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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Wisconsin Life, Accident & Health exam — 33 practice questions.

Subtopics: Speculative risk, Moral hazard, Morale hazard, Reinsurance, Domestic insurer, 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, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reciprocal insurer, Estoppel, Insurable interest timing

Read the General Insurance Concepts study guide

Sample questions & answers

1. Speculative risk differs from pure risk because it:

Involves a chance of gain as well as loss

Speculative risk includes the possibility of gain, which makes it uninsurable, unlike pure risk.

2. A moral hazard in underwriting refers to:

A character tendency that increases the likelihood of loss

Moral hazard arises from dishonesty or character traits that increase the chance or size of a loss.

3. A morale hazard is an attitude of:

Carelessness or indifference because insurance exists

Morale hazard is indifference to loss because the insured knows the insurer will pay, increasing risk.

4. Reinsurance is best described as:

Insurance purchased by an insurer to transfer part of its risk

Reinsurance is coverage one insurer buys from another to share or transfer portions of its risk exposure.

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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.