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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

West Virginia Property & Casualty exam — 43 practice questions.

Subtopics: Hazard versus peril, Risk transfer, First versus third party, Occurrence, Bodily injury, Material misrepresentation, Ambiguity, Strict liability, Vicarious liability, Punitive damages, 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. A pile of oily rags stored near a furnace is best described as a:

Physical hazard that increases the chance of fire

A physical hazard is a tangible condition, like stored oily rags near heat, that increases the likelihood or severity of a loss.

2. When a business buys a liability policy, it is primarily using the risk technique of:

Transfer

Buying insurance transfers the financial consequences of a risk to the insurer.

3. Coverage that pays a third party who is injured by the insured, rather than the insured's own property, is:

Third-party liability coverage

Liability (third-party) coverage pays others harmed by the insured, while first-party coverage pays the insured's own loss.

4. In liability insurance, an 'occurrence' is generally defined as:

An accident, including continuous exposure to harmful conditions, that results in injury or damage

An occurrence is an accident, including continuous or repeated exposure to harmful conditions, that causes bodily injury or property damage.

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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.