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Free General Insurance Concepts Practice Questions

Wyoming Personal Lines exam — 66 practice questions.

Subtopics: Insurable interest, Indemnity, Actual cash value, Replacement cost, Pure risk, Perils, Indirect loss, Spread of risk, Hazard, Moral hazard, Negligence, Proximate cause, Liability exposure, Subrogation, Pure vs speculative risk, Peril, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, 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. For property insurance, the insured must generally have an insurable interest in the covered property:

At the time of the loss

Property insurance requires an insurable interest at the time of loss so the insured can be indemnified for an actual loss.

2. As a contract of indemnity, a property insurance policy is intended to:

Restore the insured to the pre-loss financial condition, no more

Indemnity seeks to restore the insured to the financial condition held just before the loss, without allowing a profit.

3. Actual cash value (ACV) is most commonly calculated as:

Replacement cost minus depreciation

Actual cash value is generally replacement cost at the time of loss minus depreciation.

4. Replacement cost coverage pays to repair or replace damaged property:

Without deduction for depreciation, subject to policy terms

Replacement cost coverage pays the cost to repair or replace without deducting depreciation, subject to the policy's conditions.

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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.