Free General Insurance Concepts Practice Questions
West Virginia Personal Lines exam — 78 practice questions.
Subtopics: Insurable interest, Indemnity, Pure risk, Negligence, Comparative negligence, Comparative negligence bar, Modified comparative fault, Comparative fault math, Several liability, Joint liability exception, Fault defined, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, 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. For property insurance, insurable interest must generally exist:
At the time of the loss
In property insurance, insurable interest must exist at the time of loss so the insured suffers an actual financial loss.
2. The principle of indemnity in property insurance means the insured should be:
Restored to the same financial position as before the loss, no better
Indemnity restores the insured to the pre-loss financial position without allowing a profit from the loss.
3. Only pure risk is generally insurable because it involves:
A chance of loss or no loss, with no chance of gain
Pure risk involves only the possibility of loss or no loss and is insurable, unlike speculative risk which includes a chance of gain.
4. To establish negligence, an injured party generally must show duty, breach of that duty, damages, and:
Proximate cause linking the breach to the damages
Negligence generally requires a legal duty, a breach, actual damages, and proximate causation connecting the breach to the harm.
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.
