Free General Insurance Concepts Practice Questions
Virginia Property & Casualty exam (series 11-03) — 47 practice questions.
Subtopics: Insurable risk, Law of large numbers, Adhesion, Utmost good faith, Physical hazard, Reinsurance, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Hazards, Definitions, Authority of producers, Legal interpretations, Principle of indemnity, Concealment, Warranty, Waiver and estoppel, Subrogation, 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. Which kind of risk is generally insurable?
Pure risk, with only loss or no loss
Insurance covers pure risks; speculative risks involving a chance of gain are not insurable.
2. The law of large numbers allows insurers to:
Predict losses more accurately
As the number of similar exposure units grows, actual results more closely match expected losses.
3. Because an insurance policy is a contract of adhesion, ambiguous terms are:
Construed against the insurer
The insured must accept the insurer's drafted terms, so courts construe ambiguities against the insurer.
4. The doctrine of utmost good faith requires:
Both parties to be honest and disclose material facts
Insurance contracts require honesty and full disclosure of material facts by 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.
