Free General Insurance Concepts Practice Questions
North Carolina Accident & Health exam — 74 practice questions.
Subtopics: Insurable interest, Indemnity, Adverse selection, Representations, Risk, Hazard, Contract of insurance, Domestic, foreign, alien, Alien company, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, 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, 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. For health insurance, an applicant generally has an insurable interest in:
His or her own health and that of immediate family
Insurable interest in health insurance typically exists in one's own health and in close family members whose illness would cause the applicant financial loss.
2. The principle of indemnity in health insurance means coverage is intended to:
Restore the insured to the pre-loss financial position
Indemnity seeks to make the insured whole, not to allow profit; many medical expense plans pay based on actual covered expenses incurred.
3. Health insurers manage adverse selection primarily through:
Underwriting and policy provisions
Underwriting, waiting periods, and pre-existing condition provisions help insurers manage adverse selection, the tendency of higher-risk applicants to seek coverage.
4. An applicant's answers on a health insurance application are generally treated as:
Representations, not warranties
Application answers are representations; in North Carolina a false statement in an accident and health application bars recovery only if it materially affected acceptance of the risk or the hazard assumed.
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.
