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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

South Carolina Life, Accident & Health exam — 33 practice questions.

Subtopics: Conditional contract, Unilateral, Estoppel, Waiver, Fraud, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Insurable interest timing

Read the General Insurance Concepts study guide

Sample questions & answers

1. An insurance policy is a conditional contract because:

Certain conditions must be met before the insurer pays a claim

A conditional contract requires certain conditions, such as paying premium and proving a loss, to be met before benefits are paid.

2. An insurance contract is unilateral, meaning:

Only the insurer makes a legally enforceable promise

In a unilateral contract, only the insurer makes a legally enforceable promise once the premium is paid.

3. Estoppel refers to:

Being prevented from denying a fact that another party reasonably relied upon

Estoppel bars a party from asserting a fact or right that is inconsistent with a position another reasonably relied on.

4. A waiver is the:

Voluntary giving up of a known right

A waiver is the intentional, voluntary relinquishment of a known right.

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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.