Free General Insurance Concepts Practice Questions
North Carolina Life, Accident & Health exam — 65 practice questions.
Subtopics: Insurable interest timing life, Warranty vs representation, Concealment, Law of large numbers, Estoppel, Reinsurance, Contract of insurance, Domestic, foreign, alien, Alien company, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reciprocal insurer, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
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Sample questions & answers
1. For a life insurance policy, insurable interest must exist:
At the time of application
In life insurance, insurable interest must exist when the policy is applied for; it need not exist at the time of the insured's death.
2. Compared with a representation, a warranty in an insurance contract is:
Guaranteed to be literally true
A warranty is a statement guaranteed to be literally and absolutely true, while a representation is believed true to the best of the applicant's knowledge.
3. Concealment in insurance refers to:
Intentionally withholding a material fact
Concealment is the failure to disclose a known material fact; if intentional and material, it can void coverage.
4. Insurers rely on the law of large numbers to:
Predict losses better as similar exposures increase
The law of large numbers allows insurers to predict aggregate losses more reliably as the number of similar exposure units increases.
All Life, Accident & Health topics
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.
