Free General Insurance Concepts Practice Questions
Arizona Property & Casualty exam (series 13-34) — 49 practice questions.
Subtopics: Indemnity, Subrogation, Insurable interest, Peril, Hazard, Utmost good faith, Representations, Misrepresentation effect, 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, Concealment, Warranty, Waiver and estoppel, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. The principle of indemnity in property insurance is intended to:
Restore the insured to the pre-loss position
Indemnity restores the insured to the financial position held before the loss, without gain.
2. Subrogation allows an insurer that has paid a claim to:
Recover from the party responsible for the loss
After paying a covered loss, the insurer may pursue the at-fault third party to recover its payment.
3. For property insurance, an insurable interest must generally exist:
At the time of loss
In property insurance, insurable interest must exist at the time of loss to collect under the policy.
4. A peril in property insurance refers to:
The cause of a loss, such as fire or wind
A peril is the cause of a loss, such as fire, theft, or windstorm.
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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.
