Free General Insurance Concepts Practice Questions
South Carolina Life, Accident & Health exam — 61 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, Competent parties, Warranties, Material misrepresentation, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
Read the General Insurance Concepts study guide
Sample questions & answers
1. An insurance policy is a conditional contract because:
Conditions precede payment
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 barred from denying a relied-on fact
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
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.
