Free General Insurance Concepts Practice Questions
Ohio Life exam (series 11-44) — 77 practice questions.
Subtopics: Law of large numbers, Hazard, Indemnity, Adhesion, Utmost good faith, Aleatory, Definition of risk, Peril, Handling risk, Retention, Insurable risk, Stock insurer, Mutual insurer, Admitted insurer, Domestic foreign alien, Consideration, Legal purpose, Competent parties, Offer and acceptance, Express authority, Apparent authority, Representations, Concealment, Pure vs speculative risk, Adverse selection, Moral hazard, Morale hazard, Physical hazard, Implied authority, Fiduciary duty, Aleatory contract, Contract of adhesion, Unilateral contract, Conditional contract, Warranty, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Surplus lines insurer, Self-insurance, Exposure, Loss, Risk avoidance, Risk reduction, Risk sharing, Speculative risk, Homogeneous exposure units, Catastrophic loss, Domestic insurer, Alien insurer, Mutual dividends, Assessment mutual, Lloyd's, Government insurers, Insurer ratings, Captive agency system, Independent agency, Direct response, Managing general agent, Insurer as principal, Presumption of agency, Errors and omissions, Insurer consideration, Reasonable expectations, Fraud, Personal contract, Valued contract
Read the General Insurance Concepts study guide
Sample questions & answers
1. Insurers predict losses more accurately as the number of similar exposures increases because of:
The law of large numbers
The law of large numbers improves loss predictability with more similar units.
2. A homeowner who leaves oily rags piled in a garage has created which of the following?
A hazard
A hazard is a condition that increases the chance or severity of a loss; the fire that might result would be the peril.
3. The principle that restores an insured to their pre-loss financial position without profit is:
Indemnity
Indemnity aims to make the insured whole, not to profit.
4. Because the insurer writes the policy and the insured accepts it as-is, an insurance contract is one of:
Adhesion
Insurance contracts are contracts of adhesion drafted by 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.
