Free General Insurance Concepts Practice Questions
Ohio Casualty exam (series 11-47) — 85 practice questions.
Subtopics: Pure risk, Hazard, Peril, Methods of handling risk, Retention, Insurable interest, Stock insurer, Reciprocal, Admitted insurer, Foreign insurer, Elements of contract, Apparent authority, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Representation, Concealment, Adhesion, Aleatory, Waiver, Estoppel, Moral hazard, Law of large numbers, Mutual insurer, Domestic insurer, Alien insurer, Surplus lines, Adverse selection, Physical hazard, Morale hazard, Speculative risk, Risk sharing, Risk reduction, Reinsurance, Fortuitous loss, Insurable risk characteristics, Fiduciary duty, Binder, Unilateral contract, Conditional contract, Personal contract, Declarations, Insuring agreement, Exclusions, Conditions, Endorsement, Material fact, Misrepresentation, Parol evidence rule, Loss exposure, Risk avoidance, Noninsurance transfer, Self-insurance, Captive insurer, Lloyd's, Residual markets, Underwriting sources, Rating methods, Premium components, Premium audit, Producer types, Direct writers, Managing general agent, Binding authority, Doctrine of reasonable expectations, Insurable interest timing, Insurance definition, Loss ratio, Combined ratio, Adjusters, Policy structure, Definitions, Monoline vs package, Interline endorsements, Insurer types, Insurance principles
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Sample questions & answers
1. Insurance generally covers only pure risk. Pure risk is a situation that involves:
Only the chance of loss or no loss
Only pure risk (no chance of gain) is insurable; speculative risk involves the possibility of gain.
2. A condition that increases the chance or severity of a loss is a:
Hazard
A hazard increases the likelihood or severity of loss; the peril is the actual cause of loss.
3. A liability policy protects against the peril of:
Legal liability for injury to others or damage to their property
Casualty (liability) insurance responds to the insured's legal liability to third parties; fire, theft and windstorm are property perils.
4. Buying a liability policy to shift the cost of lawsuits to an insurer is risk:
Transfer
Purchasing insurance transfers the financial consequences of a risk to the insurer.
Practice: General Insurance Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
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.
