Free General Insurance Concepts Practice Questions
Oklahoma Life, Accident & Health exam — 61 practice questions.
Subtopics: Morale hazard, Insurable risk, Conditional contract, Utmost good faith, Risk retention, Handling risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Unilateral contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Estoppel, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
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Sample questions & answers
1. An insured who becomes careless about safety simply because they have insurance illustrates a:
Morale hazard
A morale hazard is an attitude of carelessness arising from the existence of insurance.
2. For a risk to be considered insurable, the loss should generally be:
Definite, measurable, and due to chance
Insurable risks generally involve losses that are definite, measurable, fortuitous, and predictable in the aggregate.
3. An insurance policy is a conditional contract because:
Certain conditions must be met before the insurer pays a claim
A conditional contract requires that specified conditions, such as paying premiums and filing proof of loss, be met for the insurer to pay.
4. The idea that both parties to an insurance contract rely on each other's honesty and full disclosure reflects the principle of:
Utmost good faith
Insurance contracts are based on utmost good faith, requiring honesty and full disclosure from both parties.
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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.
