Free General Insurance Concepts Practice Questions
Wisconsin Life exam (series 22-01) — 78 practice questions.
Subtopics: Indemnity, Utmost good faith, Adhesion, Aleatory, Consideration, Warranty, Concealment, Definition of risk, Hazard, Peril, Handling risk, Retention, Insurable risk, Stock insurer, Mutual insurer, Admitted insurer, Domestic foreign alien, Legal purpose, Competent parties, Offer and acceptance, Express authority, Apparent authority, Representations, 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, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Surplus lines insurer, Self-insurance, Exposure, Loss, Risk avoidance, Risk reduction, Risk sharing, Speculative risk, Homogeneous exposure units, Catastrophic loss, Domestic insurer, Alien insurer, Mutual dividends, Assessment mutual, Lloyd's, Government insurers, Insurer ratings, Captive agency system, Independent agency, Direct response, Managing general agent, Insurer as principal, Presumption of agency, Errors and omissions, Insurer consideration, Reasonable expectations, Fraud, Personal contract, Valued contract
Read the General Insurance Concepts study guide
Sample questions & answers
1. The principle of indemnity provides that an insured should:
Be restored, not profit from the loss
Indemnity aims to restore the insured to the pre-loss financial position without allowing a profit from the loss.
2. Insurance contracts are said to be contracts of utmost good faith because:
Both parties rely on full disclosure
Both parties must deal honestly and disclose material facts, reflecting the doctrine of utmost good faith.
3. An insurance policy is a contract of adhesion, meaning:
The insurer drafts it; the insured takes it as written
Because the insurer writes the contract and the insured accepts it as offered, ambiguities are generally construed against the insurer.
4. An aleatory contract is one in which:
Values exchanged depend on chance events
Insurance is aleatory because the dollar amounts exchanged by the parties may be unequal, depending on whether a loss occurs.
Practice: General Insurance Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
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.
