Free General Insurance Concepts Practice Questions
North Dakota Accident & Health exam — 70 practice questions.
Subtopics: Indemnity, Adverse selection, Law of large numbers, Contract of adhesion, Risk transfer, Risk definition, Morale hazard, Peril, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, Aleatory contract, 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. The principle of indemnity in health insurance generally means the insured should:
Be restored without profiting
Indemnity aims to restore the insured to the pre-loss position without allowing a profit from the loss.
2. Adverse selection in health insurance is the tendency of:
Less healthy people to seek coverage more
Adverse selection is the tendency of higher-risk individuals to seek or retain coverage more than lower-risk individuals.
3. The law of large numbers helps a health insurer to:
Predict losses more accurately
The law of large numbers improves the accuracy of loss predictions as the number of similar insureds grows.
4. A health insurance contract is a contract of adhesion because:
The insurer writes it; the buyer accepts it
In a contract of adhesion, the insurer drafts the contract and the applicant generally takes it or leaves it.
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.
