Free General Insurance Concepts Practice Questions
Virginia Accident & Health exam (series 11-06) — 70 practice questions.
Subtopics: Adverse selection, Indemnity, Law of large numbers, Conditional contract, Risk, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral 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. Adverse selection in health insurance refers to:
Higher risks seeking coverage more often
Adverse selection is the tendency of people with higher-than-average risk to seek or keep insurance more than others.
2. The principle of indemnity means a policy should:
Restore the insured's position without profit
Indemnity means restoring the insured to the prior financial position without allowing a profit from the loss.
3. The law of large numbers helps insurers:
Predict losses more accurately as risks increase
The larger the number of similar exposure units, the more closely actual losses approach predicted losses.
4. A health insurance policy is a conditional contract because:
Benefits are payable only if conditions are met
A conditional contract requires certain conditions, such as paying premium and filing proof of loss, before the insurer must pay.
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.
