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Free General Insurance Concepts Practice Questions

Ohio Life exam — 46 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

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 condition that increases the likelihood or severity of a loss is a:

Hazard

A hazard increases the chance or severity of a loss; a peril is the cause of loss.

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.

All Life 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.