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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Vermont Property & Casualty exam — 41 practice questions.

Subtopics: Elements of negligence, Proximate cause, Strict liability, Vicarious liability, Occurrence trigger, Physical hazard, Aggregate limit, Coinsurance concept, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, 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. To establish negligence, a claimant generally must show duty, breach, and:

Proximate cause and resulting damages

Negligence requires a legal duty, a breach of that duty, proximate causation, and actual damages.

2. Proximate cause in a liability claim refers to:

The unbroken chain of events that directly produces the injury

Proximate cause is the direct, continuous chain of events, unbroken by an intervening cause, that leads to the loss.

3. Liability imposed without regard to fault, such as for keeping a dangerous animal, is called:

Strict (absolute) liability

Strict or absolute liability applies without proof of fault for inherently dangerous activities or defective products.

4. An employer held responsible for the negligent acts of an employee acting within the scope of employment is an example of:

Vicarious liability

Vicarious liability holds one party responsible for the acts of another, such as an employer for an employee.

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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.