Free General Insurance Concepts Practice Questions
California Life-Only Agent exam (series Life-Only) — 82 practice questions.
Subtopics: Insurance defined, Insurable events, Policy defined, Required policy specifications, Concealment exceptions, Personal judgment, Materiality, Representations, False representation, Breach of warranty, Definition of risk, Hazard, Peril, Handling risk, Retention, Insurable risk, Stock insurer, Mutual insurer, Admitted insurer, Domestic foreign alien, Consideration, Legal purpose, Competent parties, Offer and acceptance, Express authority, Apparent authority, Indemnity, Utmost good faith, Concealment, Pure vs speculative risk, Law of large numbers, Adverse selection, Moral hazard, Morale hazard, Physical hazard, Implied authority, Fiduciary duty, Aleatory contract, Contract of adhesion, Unilateral contract, Conditional contract, Warranty, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Surplus lines insurer, Self-insurance, Exposure, Loss, Risk avoidance, Risk reduction, Risk sharing, Speculative risk, Homogeneous exposure units, Catastrophic loss, Domestic insurer, Alien insurer, Mutual dividends, Assessment mutual, Lloyd's, Government insurers, Insurer ratings, Captive agency system, Independent agency, Direct response, Managing general agent, Insurer as principal, Presumption of agency, Errors and omissions, Insurer consideration, Reasonable expectations, Fraud, Personal contract, Valued contract
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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 the California Insurance Code, an event may be insured against if it is:
Contingent or unknown and may damnify a person having an insurable interest
Section 250 permits insurance against any contingent or unknown event, past or future, that may damnify a person with 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.
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.
