Free General Insurance Concepts Practice Questions
California Accident & Health Agent exam (series Accident & Health) — 74 practice questions.
Subtopics: Insurance defined, Insurable events, Policy defined, Required policy specifications, Concealment exceptions, Materiality, Representations, Representations and warranties, Breach of warranty, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, 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, 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, Insurable interest, Methods of handling risk, Insurable risk, Types of insurers, Insurer financial strength, Distribution systems, Agency law, Contract characteristics, Contract interpretation, Contract elements, Fraud
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Sample questions & answers
1. Under Cal. Ins. Code 22, insurance is a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from:
A contingent or unknown event
Section 22 defines insurance as a contract to indemnify another against loss, damage, or liability arising from a contingent or unknown event.
2. Under Cal. Ins. Code 250, which event may be insured against?
Any contingent or unknown event that may damage a person with an insurable interest
Section 250 allows insurance against any contingent or unknown event, past or future, that may damnify a person having an insurable interest.
3. Under the California Insurance Code, the written instrument in which a contract of insurance is set forth is the:
Policy
Section 380 defines the policy as the written instrument in which the contract of insurance is set forth.
4. Which item is NOT among the specifications Cal. Ins. Code 381 requires in every policy?
The insurer's financial strength rating
Section 381 requires the parties, the property or life insured, the insured's interest, the risks, the policy period, and the premium; a financial rating is not required.
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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.
