Free General Insurance Concepts Practice Questions
Mississippi Accident & Health exam — 70 practice questions.
Subtopics: Risk transfer, Adverse selection, Law of large numbers, Representations, Utmost good faith, Risk definition, Morale hazard, Peril, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Indemnity, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, 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. Buying health insurance to handle the financial risk of illness is an example of risk:
Transfer
Purchasing insurance transfers the financial consequences of the risk to the insurer.
2. Adverse selection in health insurance refers to the tendency of:
Less healthy individuals to seek coverage more than healthier ones
Adverse selection is the tendency of those with greater-than-average risk to seek coverage more than healthier individuals.
3. Insurers apply the law of large numbers to:
Predict losses more accurately across a large insured group
The law of large numbers lets insurers predict losses more accurately as the insured group grows larger.
4. Statements an applicant believes to be true to the best of their knowledge on a health application are:
Representations
Representations are statements believed true to the best of the applicant's knowledge.
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.
