Free General Insurance Concepts Practice Questions
Kentucky Property exam — 84 practice questions.
Subtopics: Insurance defined, Insurable interest, Representations, Misrepresentation, Premium, Pure vs speculative risk, Hazard types, Moral hazard, Law of large numbers, Insurable interest property, Methods of handling risk, Risk avoidance, Stock insurer, Reciprocal insurer, Admitted vs non-admitted, Alien insurer, Reinsurance, Elements of a contract, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Concealment, Estoppel, Aleatory, Contract of adhesion, Unilateral contract, Conditional contract, Material misrepresentation, Fraud, Waiver, Domestic insurer, Foreign insurer, Mutual insurer, Lloyds association, Risk pooling, Risk retention, Risk transfer, Fundamental vs particular risk, Adverse selection, Peril definition, Morale hazard, Legal hazard, Binder, Apparent authority, Fiduciary responsibility, Self-insurance, Pro-rata cancellation, Insurable risk elements, Insurable risk - catastrophic, Large homogeneous group, Exposure, Peril vs hazard, Moral hazard example, Loss prevention vs reduction, Treaty reinsurance, Facultative reinsurance, Ceding company, Retrocession, Assessment insurers, Captive insurer, Government insurer, Mutual dividends, Independent agent, Exclusive agent, Broker, Managing general agent, Public adjuster, Producer E&O, Representation vs warranty, Absolute liability, Loss ratio, Combined ratio, Class rating, Judgment rating, Earned premium, Binder form, Contract characteristics, Hazards and perils, Insurer types
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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 KRS 304.14-060, a property insurance contract is enforceable only for the benefit of persons who have an insurable interest:
At the time of the loss
Kentucky requires an insurable interest in the insured property as at the time of the loss.
3. Kentucky defines an insurable interest in property as any actual, lawful, and substantial:
Economic interest in the safety or preservation of the property
KRS 304.14-060(2) defines insurable interest as any actual, lawful, and substantial economic interest in the safety or preservation of the subject of insurance.
4. 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.
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.
