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Free General Insurance Concepts Practice Questions

Tennessee Life exam — 47 practice questions.

Subtopics: Aleatory, Adhesion, Unilateral, Conditional, Express authority, Indemnity, Waiver, Definition of risk, Hazard, Peril, Handling risk, Retention, Insurable risk, Stock insurer, Mutual insurer, Admitted insurer, Domestic foreign alien, Consideration, Legal purpose, Competent parties, Offer and acceptance, Apparent authority, Utmost good faith, Representations, Concealment, Pure vs speculative risk, Law of large numbers, Adverse selection, Moral hazard, Morale hazard, Physical hazard, Implied authority, Fiduciary duty, Aleatory contract, Contract of adhesion, Unilateral contract, Conditional contract, Warranty, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Surplus lines insurer, Self-insurance

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Sample questions & answers

1. A life insurance contract is described as aleatory, meaning:

The dollar amounts exchanged may be unequal, depending on an uncertain event

Aleatory contracts involve an unequal exchange of value that depends on an uncertain event.

2. Because the insurer writes the contract and the applicant accepts it as written, a life policy is a contract of:

Adhesion

A contract of adhesion is drafted by one party (the insurer) and accepted by the other as written; ambiguities are construed against the drafter.

3. A life insurance contract is unilateral because:

Only the insurer makes a legally enforceable promise to pay

In a unilateral contract only one party (the insurer) makes a legally enforceable promise; the owner is not legally required to continue paying.

4. A life insurance contract is conditional because:

Certain conditions, such as paying premium and providing proof of loss, must be met for the insurer to pay

A conditional contract requires certain conditions (premium payment, proof of death) to be met before the insurer pays.

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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.