Free General Insurance Concepts Practice Questions
Kansas Life, Accident & Health exam (series 12-KS-05) — 61 practice questions.
Subtopics: Speculative risk, Physical hazard, Risk reduction, Insurable risk, Conditional contract, 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, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
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Sample questions & answers
1. Speculative risk differs from pure risk because it involves:
Both a chance of gain and a chance of loss
Speculative risk includes the possibility of gain and is generally not insurable, unlike pure risk.
2. A physical hazard is best described as:
A tangible condition that increases the chance of loss
A physical hazard is a tangible condition, such as icy steps, that increases the likelihood of a loss.
3. Installing smoke detectors to lessen a potential loss is an example of risk:
Reduction
Taking steps such as installing smoke detectors to lessen potential loss is risk reduction.
4. A characteristic of an insurable risk is that the loss must be:
Definite, measurable, and due to chance
Insurable losses should be definite, measurable, and due to chance rather than intentional.
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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.
