Free General Insurance Concepts Practice Questions
Iowa Accident & Health exam (series 12-IA-02) — 70 practice questions.
Subtopics: Indemnity, Insurable interest, Mutual insurer, Risk retention, Concealment, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Methods of handling risk, Insurable risk, Types of insurers, Insurer financial strength, Distribution systems, Agency law, Contract characteristics, Contract interpretation, Contract elements, Fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. The principle of indemnity in health insurance reimbursement means the insured should:
Be restored to the pre-loss position without profit
Indemnity seeks to restore the insured to the pre-loss financial position without allowing a profit from the loss.
2. Insurable interest in a health insurance policy on oneself:
Is presumed for one's own health
A person is presumed to have an insurable interest in their own life and health.
3. An insurance company owned by its policyholders is a:
Mutual insurer
A mutual insurer is owned by its policyowners rather than by stockholders.
4. Choosing a higher deductible to keep a small portion of risk is an example of risk:
Retention
Accepting a higher deductible is a form of risk retention because the insured keeps part of the potential loss.
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.
