1. Exam Prep
  2. Virginia
  3. Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Virginia Accident & Health exam — 45 practice questions.

Subtopics: Adverse selection, Indemnity, Law of large numbers, Conditional contract, Risk, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, 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, Offer and acceptance, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. Adverse selection in health insurance refers to:

A tendency for higher-risk individuals to seek coverage more

Adverse selection is the tendency of those with greater likelihood of loss to seek or keep insurance, which insurers manage through underwriting.

2. The principle of indemnity means a policy should:

Restore the insured to the prior financial position without profit

Indemnity aims to restore the insured to their pre-loss position, not to allow a profit from a loss.

3. The law of large numbers helps insurers:

Predict losses more accurately as the number of similar risks grows

As the pool of similar exposures grows, actual loss experience more closely approaches the expected, improving rate accuracy.

4. A health insurance policy is a conditional contract because:

Benefits are payable only if policy conditions are met

A conditional contract requires certain conditions (premium payment, proof of loss) to be met before benefits are paid.

All Accident & Health topics

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.