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Free General Insurance Concepts Practice Questions

Nebraska Property & Casualty exam — 39 practice questions.

Subtopics: Estoppel, Warranty, Representation, Material misrepresentation, Apparent authority, Express authority, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. When an insurer's conduct leads an insured to rely on a representation and the insurer is later barred from denying it, this is:

Estoppel

Estoppel prevents a party from asserting a right that contradicts its earlier conduct relied upon by another.

2. A promise by the insured that a protective safeguard, such as a sprinkler system, will be maintained is a:

Warranty

A warranty is a promise by the insured that becomes part of the contract and must be maintained.

3. A statement an applicant believes to be true, made to help obtain coverage, is a:

A representation

A representation is a statement the applicant believes true that is made to obtain coverage.

4. A false statement important enough that the insurer would not have issued the policy had it known the truth is a:

A material misrepresentation

A material misrepresentation is a false statement significant enough to affect the insurer's decision.

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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.