Free General Insurance Concepts Practice Questions
Wisconsin Personal Lines exam (series 22-09) — 72 practice questions.
Subtopics: Subrogation, Proximate cause, Deductible purpose, Pro rata, Valued policy, Binder vs policy, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Catastrophic risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement, Indemnity and subrogation, Distribution systems, Insurer types, Insurer ratios, Loss reserves, Rate regulation, Earned and unearned premium, Lapse
Read the General Insurance Concepts study guide
Sample questions & answers
1. After paying a collision claim, an insurer's right to recover from the at-fault party is called:
Subrogation
Subrogation lets the insurer pursue the responsible third party to recover amounts it paid the insured.
2. Proximate cause in a property loss refers to:
The cause that sets in motion the events leading to loss
Proximate cause is the dominant, efficient cause that starts an unbroken chain of events producing the loss.
3. A deductible in a property policy primarily serves to:
Reduce small claims and lower the premium
Deductibles reduce the frequency of small claims and help lower premiums by having the insured share in losses.
4. When two policies cover the same property loss, a pro rata other-insurance clause:
Shares the loss in proportion to limits
A pro rata other-insurance clause apportions a covered loss among insurers based on their respective limits.
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.
