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  2. New Hampshire
  3. Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

New Hampshire Accident & Health exam — 45 practice questions.

Subtopics: Adverse selection, Law of large numbers, Contract of adhesion, Indemnity, Risk pooling, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, Aleatory contract, Pure risk, Speculative risk, 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. Adverse selection in health insurance refers to the tendency of:

Higher-risk individuals to seek or retain coverage more than average risks

Adverse selection is the tendency of higher-risk individuals to seek or keep insurance more than lower-risk individuals.

2. Insurers apply the law of large numbers to:

Predict losses more accurately as the number of similar exposures increases

The law of large numbers improves the accuracy of loss predictions as the number of similar exposure units grows.

3. A health insurance policy is a contract of adhesion because:

It is prepared by the insurer and the applicant accepts it as written

In a contract of adhesion the insurer drafts the terms and the applicant generally must take it or leave it.

4. The principle of indemnity in insurance means the insured should be:

Restored to approximately the same financial position as before the loss, without profit

Indemnity seeks to restore the insured to the pre-loss financial position without allowing a profit from the 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.