1. Exam Prep
  2. New Jersey
  3. Property & Casualty
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

New Jersey Property & Casualty exam — 35 practice questions.

Subtopics: Hazard, Indemnity, 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, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. Leaving oily rags in a workshop is an example of which type of hazard?

Physical hazard

A physical hazard is a tangible condition that increases the chance of loss, such as fire-prone materials.

2. The principle of indemnity in property insurance means the insured should:

Be restored to the pre-loss financial position, not better

Indemnity restores the insured to the financial position held before the loss without allowing profit.

3. Purchasing an insurance policy is an example of which method of handling risk?

Transfer

Insurance transfers the financial consequences of a risk from the insured to the insurer.

4. A mutual insurance company is owned by its:

Policyholders

A mutual insurer is owned by its policyholders, who may receive policy dividends; a stock insurer is owned by stockholders.

All Property & Casualty 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.