Free General Insurance Concepts Practice Questions
New Hampshire Property exam (series 12-84) — 79 practice questions.
Subtopics: Representations, Agent's knowledge, Pure vs speculative risk, Hazard types, Moral hazard, Law of large numbers, Insurable interest property, Methods of handling risk, Risk avoidance, Stock insurer, Reciprocal insurer, Admitted vs non-admitted, Alien insurer, Reinsurance, Elements of a contract, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Concealment, Estoppel, Aleatory, Contract of adhesion, Unilateral contract, Conditional contract, Material misrepresentation, Fraud, Waiver, Domestic insurer, Foreign insurer, Mutual insurer, Lloyds association, Risk pooling, Risk retention, Risk transfer, Fundamental vs particular risk, Adverse selection, Peril definition, Morale hazard, Legal hazard, Binder, Apparent authority, Fiduciary responsibility, Self-insurance, Pro-rata cancellation, Insurable risk elements, Insurable risk - catastrophic, Large homogeneous group, Exposure, Peril vs hazard, Moral hazard example, Loss prevention vs reduction, Treaty reinsurance, Facultative reinsurance, Ceding company, Retrocession, Assessment insurers, Captive insurer, Government insurer, Mutual dividends, Independent agent, Exclusive agent, Broker, Managing general agent, Public adjuster, Producer E&O, Representation vs warranty, Absolute liability, Loss ratio, Combined ratio, Class rating, Judgment rating, Earned premium, Binder form, Contract characteristics, Hazards and perils, Insurer types
Read the General Insurance Concepts study guide
Sample questions & answers
1. Under New Hampshire fire insurance law, descriptions of the property and statements of its value in an application or policy are treated as:
Not warranties
RSA 407:9 provides that such descriptions and statements of value and title shall not be treated as warranties.
2. If a New Hampshire insurer issues a fire policy on an application prepared by someone acting as its agent, the insurer is:
Charged with that person's knowledge
RSA 407:10 charges the company with the knowledge of the person who prepared the application as if it were stated in the application.
3. Insurance is designed to cover:
Pure risk, where there is only a chance of loss
Only pure risk (loss or no loss, no chance of gain) is insurable; speculative risk involves a chance of gain.
4. A physical hazard is:
A tangible condition, such as faulty wiring, that raises the chance of loss
A physical hazard is a tangible condition (e.g., faulty wiring) that increases the likelihood or severity of loss.
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.
