Free General Insurance Concepts Practice Questions
West Virginia Accident & Health exam — 73 practice questions.
Subtopics: Insurable interest, Adhesion, Utmost good faith, Indemnity, Concealment, Risk management, Hazard, Warranty vs representation, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Representations, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, 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, Conditional contract, Offer and acceptance, 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. In health insurance, the insurable interest a person has in their own life and health is:
Considered unlimited
A person of competent legal capacity may insure his or her own life or body for the benefit of any person; insurable interest in oneself is presumed.
2. Because the insurer drafts the health policy and the applicant accepts it as written, the contract is one of:
Adhesion
A contract of adhesion is written by one party and offered on a take-it-or-leave-it basis to the other.
3. The expectation that an applicant for health coverage will honestly disclose material medical facts reflects the principle of:
Utmost good faith
Insurance is founded on utmost good faith, requiring honest and complete disclosure by both parties.
4. Most medical expense health insurance operates on the principle of indemnity, meaning it:
Reimburses covered expenses so the insured is restored, not enriched
Reimbursement-type health insurance indemnifies the insured for covered expenses without providing a profit from the loss.
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.
