Free General Insurance Concepts Practice Questions
Kansas Personal Lines exam (series 12-KS-55) — 72 practice questions.
Subtopics: Proximate cause, Moral hazard, Unilateral contract, Waiver, Estoppel, Salvage, Pure vs speculative risk, Hazard, Peril, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Catastrophic risk, Loss exposure, Frequency vs severity, Conditional contract, Personal contract, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement, Indemnity and subrogation, Distribution systems, Insurer types, Insurer ratios, Loss reserves, Rate regulation, Earned and unearned premium, Lapse
Read the General Insurance Concepts study guide
Sample questions & answers
1. The first, efficient cause that sets in motion an unbroken chain of events leading to a loss is the:
Proximate cause
Proximate cause is the primary cause that starts the unbroken chain of events resulting in a loss.
2. A moral hazard is best described as:
A dishonest tendency, such as exaggerating a claim
A moral hazard is a dishonest tendency, such as inflating a claim, that increases the likelihood or size of a loss.
3. Insurance is called a unilateral contract because:
Only the insurer makes a legally enforceable promise
In a unilateral contract, only the insurer makes a legally enforceable promise to pay covered losses.
4. A waiver is best defined as:
The voluntary giving up of a known right
A waiver is the voluntary relinquishment of a known legal right.
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.
