Free General Insurance Concepts Practice Questions
Illinois Life, Accident & Health exam — 61 practice questions.
Subtopics: Risk transfer, Reinsurance, Unilateral contract, Warranty, Conditions, Handling risk, Insurable 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, Conditional contract, Express authority, Apparent authority, Fiduciary duty, 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
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Sample questions & answers
1. Purchasing insurance is a method of handling risk by:
Transferring it to the insurer
Insurance transfers the financial consequences of a risk from the insured to the insurer.
2. Reinsurance is insurance purchased by:
An insurer shifting risk to another insurer
Reinsurance lets an insurer transfer part of its risk to another insurer.
3. Insurance policies are called unilateral contracts because:
Only the insurer makes a legally enforceable promise
In a unilateral contract only the insurer makes a legally enforceable promise to pay.
4. A statement guaranteed to be literally true and made part of the contract is a:
Warranty
A warranty is a statement guaranteed to be true and made part of the 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.
