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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Nebraska Accident & Health exam — 45 practice questions.

Subtopics: Risk, Adverse selection, Stop-loss, Indemnity, Utmost good faith, Risk definition, Morale hazard, Peril, Risk transfer, 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. In insurance terms, risk is best defined as:

Uncertainty regarding loss

Risk is the uncertainty regarding the chance of a loss occurring.

2. The tendency of less healthy individuals to seek health coverage more readily than healthier ones illustrates:

Adverse selection

Adverse selection is the tendency of higher-risk individuals to pursue coverage more than lower-risk individuals.

3. Stop-loss insurance purchased by a self-funded employer is a form of:

Protection against unusually large aggregate claims

Stop-loss coverage protects a self-funded plan against claims that exceed expected levels.

4. The principle that insurance should restore but not enrich the insured is the principle of:

Indemnity

The principle of indemnity seeks to make the insured whole without allowing a profit from a loss.

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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.