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Free General Insurance Concepts Practice Questions

Wyoming Accident & Health exam — 47 practice questions.

Subtopics: Risk pooling, Moral hazard, Adverse selection, Law of large numbers, Insurable interest, Reimbursement contract, Representations, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Indemnity, Utmost good faith, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance

Read the General Insurance Concepts study guide

Sample questions & answers

1. Insurers reduce the financial impact of individual losses primarily by:

Pooling premiums from many insureds to pay the losses of the few

Insurance works by pooling premiums from a large group so that the losses of the few are paid from the contributions of the many.

2. A person who fakes an injury in order to collect health benefits illustrates a:

Moral hazard

A moral hazard is a dishonest tendency, such as faking a loss, that increases the chance of a claim.

3. Health insurers use underwriting, waiting periods, and similar tools largely to control:

Adverse selection

Underwriting and waiting periods help insurers limit adverse selection, the tendency of higher-risk people to seek coverage.

4. Reliable rate-setting for a large block of health insureds depends heavily on:

The law of large numbers

The law of large numbers lets insurers predict aggregate losses more accurately as the number of similar insureds grows.

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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.