Free General Insurance Concepts Practice Questions
North Dakota Property & Casualty exam — 47 practice questions.
Subtopics: Speculative risk, Indemnity, Material misrepresentation, Waiver, Contract elements, Moral hazard, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud
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Sample questions & answers
1. Which of the following is a speculative risk that is generally NOT insurable?
Opening a restaurant hoping to make a profit
Speculative risk involves a chance of gain as well as loss, such as a business venture, and is generally not insurable.
2. Which principle means an insured should be restored to about the same financial position as before a loss, without profiting from it?
Indemnity
Indemnity restores the insured without profit; N.D.C.C. 26.1-29-05 states that the sole object of insurance is the indemnity of the insured.
3. A false statement on an application that is important enough to affect the insurer's decision is a:
Material misrepresentation
A material misrepresentation is a false statement significant enough to affect the insurer's underwriting decision and may void coverage.
4. When an insurer voluntarily gives up a known right under the policy, this is a:
Waiver
A waiver is the voluntary relinquishment of a known right; estoppel may then prevent the insurer from later asserting that right.
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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.
