Free General Insurance Concepts Practice Questions
Ohio Personal Lines exam (series 11-43) — 72 practice questions.
Subtopics: Pure risk, Risk transfer, Adhesion, Insurable interest, Binder, Declarations, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Catastrophic risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement, Indemnity and subrogation, Distribution systems, Insurer types, Insurer ratios, Loss reserves, Rate regulation, Earned and unearned premium, Lapse
Read the General Insurance Concepts study guide
Sample questions & answers
1. Which type of risk involves only the possibility of loss or no loss, with no chance of gain?
Pure risk
Pure risk includes the possibility of loss or no loss but no possibility of gain, and is the kind of risk that is insurable.
2. Purchasing a homeowners policy is a form of risk:
Transfer
Buying insurance transfers risk to the insurer.
3. Because the insured cannot negotiate the policy wording, the contract is one of:
Adhesion
Insurance policies are contracts of adhesion drafted by the insurer.
4. For an insurance contract, a right or relationship regarding the subject matter of the insurance is called:
An insurable interest
An insurable interest is a right or relationship in regard to the subject matter of the insured contract.
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.
