Free General Insurance Concepts Practice Questions
Massachusetts Property & Casualty exam — 47 practice questions.
Subtopics: Binder, Certificate of insurance, Return premium, Proximate cause, Coinsurance, Deductible, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud, Indemnity
Read the General Insurance Concepts study guide
Sample questions & answers
1. A binder that an agent issues before the policy is delivered serves as:
Temporary evidence of coverage until the policy is issued
A binder gives temporary proof that coverage is in effect until the formal policy is issued or declined.
2. A certificate of insurance issued to a third party generally:
Evidences coverage but does not amend the policy
A certificate of insurance summarizes coverage as evidence but does not change the terms of the underlying policy.
3. When a policy is canceled mid-term and the insured is owed money, the insurer pays a:
Return premium
A return premium is the unearned portion of premium refunded to the insured after a mid-term cancellation.
4. The unbroken chain of events that leads to and causes a covered loss is the:
Proximate cause
Proximate cause is the unbroken sequence of events that produces the loss without intervening cause.
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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.
