Free General Insurance Concepts Practice Questions
Delaware Life, Accident & Health exam — 61 practice questions.
Subtopics: Indemnity, Consideration, Conditional contract, Express authority, Estoppel, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, 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
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Sample questions & answers
1. Under the principle of indemnity, an insured should:
Be restored to the pre-loss position without profiting
The principle of indemnity aims to restore the insured to the pre-loss position without allowing a financial gain.
2. The consideration given by the insured when forming an insurance contract is:
The premium and the statements made in the application
The insured's consideration consists of the premium paid and the representations made in the application.
3. An insurance policy is described as a conditional contract because:
Certain conditions must be met before the insurer is obligated to pay a claim
A conditional contract requires that stated conditions, such as paying premiums and filing proof of loss, be met before the insurer pays.
4. The authority an insurer specifically grants to a producer in the written agency agreement is called:
Express authority
Express authority is the power specifically granted to the producer in 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.
