Free General Insurance Concepts Practice Questions
Ohio Property & Casualty exam (series 11-36) — 45 practice questions.
Subtopics: Law of large numbers, Morale hazard, Indemnity, Utmost good faith, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Principle of indemnity, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. Insurers can better predict total losses across many similar properties due to:
The law of large numbers
The law of large numbers improves loss prediction with more similar exposures.
2. Carelessness or indifference by an insured that increases the chance of loss is a:
Morale hazard
A morale hazard is negligence or disregard by the insured that could lead to probable loss; a moral hazard involves personal characteristics such as dishonesty.
3. The principle that keeps an insured from profiting from a property loss is:
Indemnity
Indemnity restores the insured to approximately the pre-loss financial position.
4. An insurance contract requires both parties to act with:
Utmost good faith
Insurance contracts depend on utmost good faith between the parties.
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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.
