Free General Insurance Concepts Practice Questions
New York Property & Casualty exam (series 17-56) — 43 practice questions.
Subtopics: Misrepresentation, Warranties, 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, Indemnity
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Sample questions & answers
1. Under New York Insurance Law, a misrepresentation on an application will avoid the policy only if it is:
Material to the insurer's decision to issue it
Insurance Law 3105 provides that no misrepresentation avoids a contract or defeats recovery unless it was material.
2. Under New York Insurance Law, breach of a policy warranty generally defeats recovery only if the breach:
Materially increased the risk of loss within the policy's coverage
Insurance Law 3106 limits the effect of warranty breaches to those that materially increase the risk of loss, damage, or injury within the coverage.
3. Purchasing an insurance policy is an example of which method of handling risk?
Transfer
Insurance transfers the financial consequences of a risk from the insured to the insurer.
4. A mutual insurance company is owned by its:
Policyholders
A mutual insurer is owned by its policyholders, who may receive policy dividends; a stock insurer is owned by stockholders.
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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.
