Free General Insurance Concepts Practice Questions
Wisconsin Life, Accident & Health exam — 61 practice questions.
Subtopics: Speculative risk, Moral hazard, Morale hazard, Reinsurance, Domestic insurer, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reciprocal insurer, Estoppel, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
Read the General Insurance Concepts study guide
Sample questions & answers
1. Speculative risk differs from pure risk because it:
Involves a chance of gain as well as loss
Speculative risk includes the possibility of gain, which makes it uninsurable, unlike pure risk.
2. A moral hazard in underwriting refers to:
A character trait that increases the chance of loss
Moral hazard arises from dishonesty or character traits that increase the chance or size of a loss.
3. A morale hazard is an attitude of:
Carelessness or indifference because insurance exists
Morale hazard is indifference to loss because the insured knows the insurer will pay, increasing risk.
4. Reinsurance is best described as:
Insurance an insurer buys to shift part of its risk
Reinsurance is coverage one insurer buys from another to share or transfer portions of its risk exposure.
All Life, Accident & Health topics
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.
