Free General Insurance Concepts Practice Questions
Idaho Life, Accident & Health exam — 61 practice questions.
Subtopics: Moral hazard, Morale hazard, Insurable risk, Conditional contract, Speculative risk, Handling risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral 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, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
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Sample questions & answers
1. A moral hazard is best described as:
A dishonest tendency, such as a willingness to lie or commit fraud, that increases the chance of loss
A moral hazard is a character flaw, such as dishonesty or a willingness to commit fraud, that increases the likelihood of loss.
2. A morale hazard refers to:
An attitude of carelessness or indifference that increases the chance of loss
A morale hazard is an indifferent or careless attitude, often arising because insurance exists, that raises the chance of loss.
3. Which of the following is a characteristic of an ideally insurable risk?
The loss must be definite, measurable, and due to chance
An ideally insurable risk involves losses that are definite, measurable, and due to chance, among other characteristics.
4. An insurance policy is a conditional contract because:
Both parties must meet certain conditions before benefits are payable
A policy is conditional because the insurer pays only if conditions, such as paying premiums and filing proof of loss, are met.
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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.
