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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Montana Accident & Health exam — 45 practice questions.

Subtopics: Risk retention, Insurable risk, Utmost good faith, Risk pooling, Indemnity, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, 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. Choosing to pay for small losses yourself rather than insuring them is an example of risk:

Retention

Paying for small losses yourself rather than insuring them is risk retention.

2. One characteristic of an insurable risk is that the loss must be:

Definite, measurable, and accidental

An insurable loss should be definite, measurable, and accidental.

3. The principle that both parties to an insurance contract rely on each other's honesty is called:

Utmost good faith

Utmost good faith means both parties rely on each other's honesty and full disclosure.

4. Insurance works by pooling premiums so that:

The losses of the few are paid by the contributions of the many

Pooling premiums lets the losses of the few be paid by the contributions of the many.

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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.