Free General Insurance Concepts Practice Questions
Missouri Property & Casualty exam — 47 practice questions.
Subtopics: Risk avoidance, Risk retention, Speculative risk, Risk reduction, Reasonable expectations, Personal contract, 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
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Sample questions & answers
1. Risk avoidance as a risk management technique means:
Eliminating the activity that creates the risk
Avoidance eliminates the exposure entirely by not engaging in the activity.
2. Risk retention means the insured chooses to:
Bear some or all of the financial loss
Retention means the insured bears some or all of the loss itself, such as through deductibles or self-insurance.
3. A speculative risk differs from a pure risk because it involves:
A chance of gain as well as loss
A speculative risk involves the possibility of gain, loss or no change; pure risk involves only loss or no loss and is insurable.
4. Loss control measures, such as installing sprinklers, are examples of:
Risk reduction
Loss control measures such as sprinklers reduce the frequency or severity of loss; this is risk reduction.
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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.
