Free General Insurance Concepts Practice Questions
Michigan Accident & Health exam (series 16-66) — 69 practice questions.
Subtopics: Indemnity, Representation, Waiver, Conditional receipt, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, 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. A health insurance contract that reimburses actual covered medical expenses reflects the principle of:
Indemnity
Reimbursing actual covered expenses reflects the principle of indemnity, restoring the insured without profit.
2. Statements made by a health applicant believed true to the best of knowledge are:
Representations
Application statements are generally representations, believed true, rather than absolute warranties.
3. The voluntary giving up of a known right by an insurer is called:
Waiver
A waiver is the intentional and voluntary relinquishment of a known legal right.
4. A conditional receipt given when an application and premium are submitted provides coverage:
If the applicant proves insurable
A conditional receipt provides coverage as of a stated date if the applicant proves insurable under underwriting.
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.
