Free General Insurance Concepts Practice Questions
Georgia Property & Casualty exam (series 12-GA-06) — 47 practice questions.
Subtopics: Indemnity, Insurable interest timing, Subrogation, Morale hazard, Representations, Actual cash value, 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, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. The principle of indemnity in property insurance means the insured should:
be restored to about the same financial position as before the loss
Indemnity means restoring the insured to approximately the financial position held before the loss, without profit.
2. For property insurance, insurable interest must exist:
at the time of the loss
A Georgia property insurance contract is enforceable only for persons having an insurable interest at the time of the loss.
3. After paying a property claim, an insurer's right to pursue the responsible third party is:
subrogation
Subrogation is the insurer's right, after paying the insured, to recover from the third party who caused the loss.
4. An insured's carelessness because they have insurance is an example of:
morale hazard
Morale hazard is carelessness or indifference by the insured that increases the chance of 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.
