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Free General Insurance Concepts Practice Questions

Wisconsin Personal Lines exam — 58 practice questions.

Subtopics: Subrogation, Proximate cause, Deductible purpose, Pro rata, Valued policy, Binder vs policy, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

Read the General Insurance Concepts study guide

Sample questions & answers

1. After paying a collision claim, an insurer's right to recover from the at-fault party is called:

Subrogation

Subrogation lets the insurer pursue the responsible third party to recover amounts it paid the insured.

2. Proximate cause in a property loss refers to:

The primary cause that sets in motion the chain of events leading to loss

Proximate cause is the dominant, efficient cause that starts an unbroken chain of events producing the loss.

3. A deductible in a property policy primarily serves to:

Reduce small claims and lower the premium

Deductibles reduce the frequency of small claims and help lower premiums by having the insured share in losses.

4. When two policies cover the same property loss, a pro rata other-insurance clause:

Shares the loss among insurers in proportion to their limits

A pro rata other-insurance clause apportions a covered loss among insurers based on their respective limits.

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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.