Free General Insurance Concepts Practice Questions
West Virginia Life, Accident & Health exam — 63 practice questions.
Subtopics: Insurable interest, Law of large numbers, Adhesion, Aleatory, Utmost good faith, Peril, Moral hazard, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Indemnity, Aleatory contract, Contract of adhesion, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Estoppel, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative 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. In a life insurance purchase, insurable interest must exist between the applicant and insured:
At the time the contract is made
For life insurance, insurable interest must exist when the policy is applied for, not necessarily at the time of loss.
2. Insurers can more accurately predict losses as the number of similar insured exposures increases because of the:
Law of large numbers
The law of large numbers improves the accuracy of loss predictions as the pool of similar exposures grows.
3. An insurance contract is one of adhesion because:
One party writes it and the other accepts it as offered
A contract of adhesion is drafted by the insurer and offered to the applicant on a take-it-or-leave-it basis.
4. An insurance contract is aleatory because:
The amounts exchanged may be unequal and depend on chance
An aleatory contract involves an unequal exchange of value contingent on an uncertain event.
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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.
