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  2. South Carolina
  3. Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

South Carolina Accident & Health exam — 45 practice questions.

Subtopics: Indemnity, Adhesion, Utmost good faith, Aleatory, Material misrepresentation, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. A health expense (reimbursement) policy is based on the principle of:

Indemnity, reimbursing actual covered expenses

Reimbursement health policies follow the principle of indemnity, paying for actual covered expenses incurred.

2. Because the insurer drafts the policy and the insured accepts it as written, an insurance policy is a contract of:

Adhesion

A contract of adhesion is drafted by one party and offered on a take-it-or-leave-it basis to the other.

3. The duty of both parties to deal honestly and disclose material facts reflects the principle of:

Utmost good faith

Utmost good faith requires both insurer and insured to act honestly and disclose all material facts.

4. An insurance contract is described as aleatory because:

The amounts the parties exchange may be unequal

In an aleatory contract the values exchanged may be unequal, depending on whether a covered loss occurs.

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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 Pennsylvania Insurance Department and the exam administrator before relying on it.