Free General Insurance Concepts Practice Questions
Louisiana Accident & Health exam — 70 practice questions.
Subtopics: Concealment, Utmost good faith, Waiver, Consideration, Risk avoidance, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Legal purpose, Competent parties, Express authority, Apparent authority, Indemnity, Representations, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest, Methods of handling risk, Insurable risk, Types of insurers, Insurer financial strength, Distribution systems, Agency law, Contract characteristics, Contract interpretation, Contract elements, Fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. Failing to disclose a material fact on a health insurance application is known as:
Concealment
Concealment is the failure to disclose a material fact that the insurer needs to evaluate the risk.
2. The principle that both parties to an insurance contract must deal honestly and disclose material facts is called:
Utmost good faith
Insurance contracts are based on utmost good faith, requiring honesty and full disclosure of material facts by both parties.
3. The voluntary giving up of a known right by the insurer is called:
Waiver
A waiver is the intentional and voluntary surrender of a known right.
4. In an insurance contract, the consideration provided by the insured is:
The premium and application statements
The insured's consideration consists of the premium payment and the representations made in the application.
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.
