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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Ohio Personal Lines exam — 59 practice questions.

Subtopics: Pure risk, Risk transfer, Adhesion, Insurable interest, Coinsurance, 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, Fundamental vs particular 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

Read the General Insurance Concepts study guide

Sample questions & answers

1. Which risk is insurable because it involves only loss or no loss?

Pure risk

Pure risk involves only loss or no loss and 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. A person must have an insurable interest to:

Validly purchase property insurance

Insurable interest is required to validly purchase property insurance.

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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.