Free General Insurance Concepts Practice Questions
Connecticut Life, Accident & Health exam (series 12-CT-03) — 61 practice questions.
Subtopics: Law of large numbers, Indemnity, Peril, Hazard, Risk transfer, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Estoppel, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
Read the General Insurance Concepts study guide
Sample questions & answers
1. The law of large numbers helps an insurer:
Predict losses more accurately as the insured group grows
As the number of similar exposures grows, the law of large numbers improves the accuracy of loss predictions.
2. The principle of indemnity provides that an insured should be:
Restored to the pre-loss financial position without profiting
Indemnity seeks to restore the insured to the pre-loss position without allowing a profit from the loss.
3. A peril in insurance terms is:
The cause of a loss such as illness or accident
A peril is the cause of a loss, such as illness, accident, or fire.
4. A hazard is a condition that:
Increases the chance or severity of a loss
A hazard increases the likelihood or severity of a loss but is not itself the cause of the loss.
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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.
