Free General Insurance Concepts Practice Questions
Arizona Accident & Health exam (series 13-32) — 71 practice questions.
Subtopics: Insurable interest, Adverse selection, Indemnity, Representations, Utmost good faith, Aleatory contract, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Concealment, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral 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, Methods of handling risk, Insurable risk, Types of insurers, Insurer financial strength, Distribution systems, Agency law, Contract characteristics, Contract interpretation, Contract elements, Fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. Under Arizona law, a person may buy disability insurance on another individual only if benefits are payable to the insured or to a person who had:
An insurable interest in the insured when the contract was made
A.R.S. 20-1104(A) requires insurable interest at the time the contract was made for insurance on another's life or body.
2. Adverse selection in health insurance refers to the tendency of:
People likely to have claims seeking more coverage
Insurers manage adverse selection through underwriting and risk classification.
3. The principle of indemnity is intended to:
Restore the insured without allowing a profit
Indemnity makes the insured whole but no better off.
4. A statement on a health application that the applicant believes to be true to the best of his or her knowledge is a:
Representation
A representation is believed true; a warranty is guaranteed literally true.
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.
