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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Mississippi Accident & Health exam — 45 practice questions.

Subtopics: Risk transfer, Adverse selection, Law of large numbers, Representations, Utmost good faith, Risk definition, Morale hazard, Peril, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Indemnity, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. Buying health insurance to handle the financial risk of illness is an example of risk:

Transfer

Purchasing insurance transfers the financial consequences of the risk to the insurer.

2. Adverse selection in health insurance refers to the tendency of:

Less healthy individuals to seek coverage more than healthier ones

Adverse selection is the tendency of those with greater-than-average risk to seek coverage more than healthier individuals.

3. Insurers apply the law of large numbers to:

Predict losses more accurately across a large insured group

The law of large numbers lets insurers predict losses more accurately as the insured group grows larger.

4. Statements an applicant believes to be true to the best of their knowledge on a health application are:

Representations

Representations are statements believed true to the best of the applicant's knowledge.

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Practice: General Insurance Concepts

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.