Free General Insurance Concepts Practice Questions
Wyoming Property exam — 78 practice questions.
Subtopics: Representations, Pure vs speculative risk, Hazard types, Moral hazard, Law of large numbers, Insurable interest property, Methods of handling risk, Risk avoidance, Stock insurer, Reciprocal insurer, Admitted vs non-admitted, Alien insurer, Reinsurance, Elements of a contract, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Concealment, Estoppel, Aleatory, Contract of adhesion, Unilateral contract, Conditional contract, Material misrepresentation, Fraud, Waiver, Domestic insurer, Foreign insurer, Mutual insurer, Lloyds association, Risk pooling, Risk retention, Risk transfer, Fundamental vs particular risk, Adverse selection, Peril definition, Morale hazard, Legal hazard, Binder, Apparent authority, Fiduciary responsibility, Self-insurance, Pro-rata cancellation, Insurable risk elements, Insurable risk - catastrophic, Large homogeneous group, Exposure, Peril vs hazard, Moral hazard example, Loss prevention vs reduction, Treaty reinsurance, Facultative reinsurance, Ceding company, Retrocession, Assessment insurers, Captive insurer, Government insurer, Mutual dividends, Independent agent, Exclusive agent, Broker, Managing general agent, Public adjuster, Producer E&O, Representation vs warranty, Absolute liability, Loss ratio, Combined ratio, Class rating, Judgment rating, Earned premium, Binder form, Contract characteristics, Hazards and perils, Insurer types
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Sample questions & answers
1. In Wyoming, statements in an insurance application are representations, so a misstatement prevents recovery only if it is fraudulent, material to the risk, or:
one that would have changed the insurer's decision
Wyo. Stat. 26-15-109(a) bars recovery only if the misstatement was fraudulent, material to the risk or hazard, or one that in good faith would have led the insurer not to issue the policy, or not at the same premium, amount or coverage.
2. Insurance is designed to cover:
Pure risk, where there is only a chance of loss
Only pure risk (loss or no loss, no chance of gain) is insurable; speculative risk involves a chance of gain.
3. A physical hazard is:
A tangible condition, such as faulty wiring, that raises the chance of loss
A physical hazard is a tangible condition (e.g., faulty wiring) that increases the likelihood or severity of loss.
4. A moral hazard is best described as:
Dishonesty or character flaws that increase the chance of loss
A moral hazard arises from dishonesty (such as arson for profit) that increases the chance of a 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.
