Free General Insurance Concepts Practice Questions
Montana Personal Lines exam — 72 practice questions.
Subtopics: Physical hazard, Risk reduction, Mutual insurer, Domestic insurer, Foreign insurer, Law of agency, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Catastrophic risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement, Indemnity and subrogation, Distribution systems, Insurer types, Insurer ratios, Loss reserves, Rate regulation, Earned and unearned premium, Lapse
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Sample questions & answers
1. Icy front steps that increase the chance of a slip-and-fall are an example of a:
physical hazard
Icy steps are a physical hazard because they increase the chance of loss.
2. Installing smoke detectors and deadbolts to lessen potential losses is an example of risk:
reduction
Taking steps such as installing smoke detectors to lessen losses is risk reduction.
3. An insurance company owned by its policyholders is a:
mutual insurer
A mutual insurer is owned by its policyholders.
4. An insurer formed under the laws of Montana and operating in Montana is, from Montana's viewpoint, a:
domestic insurer
Mont. Code Ann. 33-1-201(3) defines a domestic insurer as one incorporated under the laws of Montana.
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.
