Free General Insurance Concepts Practice Questions
Tennessee Accident & Health exam — 70 practice questions.
Subtopics: Adhesion, Aleatory, Utmost good faith, Apparent authority, Warranty, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Indemnity, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest, Methods of handling risk, Insurable risk, Types of insurers, Insurer financial strength, Distribution systems, Agency law, Contract characteristics, Contract interpretation, Contract elements, Fraud
Read the General Insurance Concepts study guide
Sample questions & answers
1. Because the insurer drafts the health contract and the insured accepts it as written, it is a contract of:
Adhesion
A contract of adhesion is written by one party and accepted as-is by the other; ambiguities are construed against the insurer.
2. A health insurance contract is aleatory because:
Values exchanged may be unequal
Aleatory means the values exchanged may be unequal and depend on an uncertain future event.
3. The expectation that both parties deal honestly and disclose material facts reflects the principle of:
Utmost good faith
Insurance contracts are based on utmost good faith, requiring honesty and disclosure of material facts by both parties.
4. When an insurer's actions lead a client to reasonably believe a producer has authority the producer does not actually have, this is:
Apparent authority
Apparent authority arises when the insurer's conduct causes a third party to reasonably believe the producer has authority.
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.
