1. Exam Prep
  2. Virginia
  3. Property & Casualty
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Virginia Property & Casualty exam — 39 practice questions.

Subtopics: Pure risk, Law of large numbers, Adhesion, Utmost good faith, Hazard types, Reinsurance, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Principle of indemnity, Concealment, Warranty, Waiver and estoppel, Subrogation, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. Insurable risk is generally:

Pure risk involving only loss or no loss

Only pure risk (loss or no loss) is insurable; speculative risk is not.

2. The law of large numbers allows insurers to:

Predict aggregate losses more accurately

As the number of similar exposures grows, predicted losses more closely match actual losses.

3. An insurance policy is a contract of adhesion, so ambiguous terms are:

Interpreted against the insurer

Ambiguities in adhesion contracts are construed against the drafting insurer.

4. Utmost good faith in insurance requires:

Honesty and disclosure of material facts by both parties

Both parties must act in good faith and disclose material facts.

All Property & Casualty 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.