1. Exam Prep
  2. Nebraska
  3. Life, Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Nebraska Life, Accident & Health exam — 33 practice questions.

Subtopics: Moral hazard, Morale hazard, Physical hazard, Risk pooling, Conditional contract, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Estoppel, Insurable interest timing

Read the General Insurance Concepts study guide

Sample questions & answers

1. A dishonest tendency, such as an insured's history of fraud, that increases the chance of loss is a:

Moral hazard

A moral hazard arises from dishonesty or a tendency toward fraud that increases the likelihood of loss.

2. An attitude of carelessness because insurance is present, increasing the chance of loss, is a:

Morale hazard

A morale hazard is indifference to loss because the insured knows insurance will respond.

3. An icy sidewalk that increases the chance of a slip-and-fall loss is an example of a:

Physical hazard

A physical hazard is a tangible condition, such as an icy walk, that increases the chance or severity of loss.

4. Spreading the losses of a few among many similar exposures reflects the principle of:

Risk sharing or pooling

Insurance relies on pooling, in which the losses of a few are shared among many similar exposures.

All Life, Accident & Health topics

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.