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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Montana Personal Lines exam — 58 practice questions.

Subtopics: Physical hazard, Risk reduction, Mutual insurer, Domestic insurer, Foreign insurer, Law of agency, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

Read the General Insurance Concepts study guide

Sample questions & answers

1. Icy front steps that increase the chance of a slip-and-fall are an example of a:

physical hazard

Icy steps are a physical hazard because they increase the chance of loss.

2. Installing smoke detectors and deadbolts to lessen potential losses is an example of risk:

reduction

Taking steps such as installing smoke detectors to lessen losses is risk reduction.

3. An insurance company owned by its policyholders is a:

mutual insurer

A mutual insurer is owned by its policyholders.

4. An insurer formed under the laws of Montana and operating in Montana is, from Montana's viewpoint, a:

domestic insurer

From Montana's viewpoint, an insurer formed under Montana law is a domestic insurer.

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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.