Free General Insurance Concepts Practice Questions
Arizona Personal Lines exam (series 13-44) — 74 practice questions.
Subtopics: Indemnity, Conditions, Exclusions, Insuring agreement, Pro rata cancellation, Proximate cause, Representations, Misrepresentation effect, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, 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, Catastrophic 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, Indemnity and subrogation, Distribution systems, Insurer types, Insurer ratios, Loss reserves, Rate regulation, Earned and unearned premium, Lapse
Read the General Insurance Concepts study guide
Sample questions & answers
1. The principle of indemnity in personal lines insurance means a claim payment should:
Restore the insured to the pre-loss position
Indemnity restores the insured to the financial position held before the loss, without profit.
2. A condition in an insurance policy is:
A requirement the insured must meet for coverage
Conditions are provisions the insured must comply with for coverage to respond to a loss.
3. An exclusion in a personal lines policy:
Describes losses the policy does not cover
Exclusions identify the losses, perils, or property the policy will not cover.
4. The insuring agreement of a policy:
States the insurer's basic promise to pay
The insuring agreement is the insurer's core promise to pay for covered losses under the policy.
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.
