Free General Insurance Concepts Practice Questions
Kentucky Casualty exam — 90 practice questions.
Subtopics: Insurance defined, Representations, Misrepresentation, Premium, Pure risk, Hazard, Peril, Methods of handling risk, Retention, Insurable interest, Stock insurer, Reciprocal, Admitted insurer, Foreign insurer, Elements of contract, Apparent authority, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Representation, Concealment, Adhesion, Aleatory, Waiver, Estoppel, Moral hazard, Law of large numbers, Mutual insurer, Domestic insurer, Alien insurer, Surplus lines, Adverse selection, Physical hazard, Morale hazard, Speculative risk, Risk sharing, Risk reduction, Reinsurance, Fortuitous loss, Insurable risk characteristics, Fiduciary duty, Binder, Unilateral contract, Conditional contract, Personal contract, Declarations, Insuring agreement, Exclusions, Conditions, Endorsement, Material fact, Parol evidence rule, Loss exposure, Risk avoidance, Noninsurance transfer, Self-insurance, Captive insurer, Lloyd's, Residual markets, Underwriting sources, Rating methods, Premium components, Premium audit, Producer types, Direct writers, Managing general agent, Binding authority, Doctrine of reasonable expectations, Insurable interest timing, Insurance definition, Loss ratio, Combined ratio, Adjusters, Policy structure, Definitions, Monoline vs package, Interline endorsements, Insurer types, Insurance principles
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Sample questions & answers
1. Under KRS 304.1-030, insurance is a contract to pay or indemnify another as to loss from certain specified contingencies or perils, which the statute calls:
Risks
Kentucky defines insurance as a contract to pay or indemnify another as to loss from specified contingencies or perils called "risks."
2. Under Kentucky law, statements made by or on behalf of the insured in an application for insurance are deemed to be:
Representations, not warranties
KRS 304.14-110 deems all statements and descriptions in an application to be representations and not warranties.
3. Under KRS 304.14-110, an incorrect statement in an application prevents recovery under the policy only if it is:
Fraudulent, material, or would have changed the insurer's decision
A misrepresentation bars recovery only if fraudulent, material to acceptance of the risk or the hazard assumed, or if the insurer in good faith would not have issued the policy on the same terms had it known the truth.
4. Under Kentucky law, a policy fee or inspection fee charged in consideration for an insurance contract is:
Considered part of the premium
KRS 304.14-030 deems any assessment, membership, policy, survey, inspection, service, or similar fee to be part of the premium.
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.
