Free General Insurance Concepts Practice Questions
New Hampshire Property & Casualty exam (series 12-64) — 49 practice questions.
Subtopics: Warranty, Fortuitous loss, Moral hazard, Combined ratio, Domestic insurer, Loss exposure, Representations, Agent's knowledge, 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, 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, Indemnity
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Sample questions & answers
1. A warranty in an insurance contract is a statement that is:
Guaranteed true and part of the contract
A warranty is a statement guaranteed to be true and made part of the contract. New Hampshire fire insurance law provides that descriptions and statements of value in an application are not treated as warranties.
2. For a loss to be insurable, it generally must be fortuitous, meaning it is:
Accidental and unexpected
An insurable loss must be fortuitous, meaning accidental and beyond the insured's control.
3. A person who intentionally causes or exaggerates a loss to collect insurance presents a:
Moral hazard
A moral hazard arises from dishonesty or a tendency to cause or exaggerate a loss to collect insurance.
4. An insurer's combined ratio compares:
Losses and expenses to premiums
The combined ratio measures losses and expenses against premiums earned to gauge underwriting profitability.
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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.
