Free General Insurance Concepts Practice Questions
Colorado Property & Casualty exam — 47 practice questions.
Subtopics: Morale hazard, Estoppel, Consideration, Express authority, Apparent authority, Indemnity, 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, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud
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Sample questions & answers
1. A morale hazard refers to:
Carelessness because one is insured
A morale hazard is indifference to loss arising from the belief that insurance will cover it, increasing the chance of loss.
2. Estoppel generally prevents a party from:
Reasserting a right it gave up
Estoppel bars a party from reasserting a right after a waiver or conduct that another reasonably relied upon.
3. In an insurance contract, the consideration given by the insured is generally:
The premium and application statements
The insured's consideration consists of the premium and the representations in the application; the insurer's consideration is its promise to pay.
4. Express authority granted to a producer is:
Authority written in the agency contract
Express authority is the power explicitly granted to the producer in writing through the agency contract.
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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.
