General Insurance Concepts

Questions

Which of the following scenarios would most likely be considered uninsurable due…
A homeowner whose house burns down collects the exact replacement cost from the …
According to the California Insurance Code, a representation in an insurance con…
Which of the following is NOT a required element of a legal insurance contract?
Which of the following would be classified as a hazard rather than a peril?
Which of the following is NOT one of the four basic requirements for a risk to b…
What is the primary purpose of insurance?
The law of large numbers supports insurance operations by:
The concept of "reasonable expectations" in insurance contract interpretation ho…
A fraternal benefit society differs from a traditional insurer in that it:
Which type of insurer is owned by its policyholders, who may receive dividends b…
Premium in an insurance contract represents the insured's:
An insurance policy is considered a contract of adhesion because:
Field underwriting refers to the role of:
An insurer cancels a policy mid-term without a valid reason. Under California la…
Which type of authority is NOT expressly stated in the agent's contract but is r…
The principle of indemnity is best described as:
Which document is used to modify or add to the terms of an existing insurance po…
Which of the following statements about stock insurers is CORRECT?
The California Insurance Guarantee Association (CIGA) protects policyholders whe…
A reciprocal insurance exchange differs from a stock or mutual company in that:
After paying a health insurance claim, the insurer pursues the negligent third p…
An agent who binds coverage beyond the scope of her written agency agreement may…
Which of the following is an example of risk transfer?
The intentional withholding of a material fact from the insurer by an applicant …
An insurance company's responsibility to pay legitimate claims promptly and fair…
Which risk management technique involves purchasing an insurance policy?
Which of the following best describes "adverse selection" in insurance?
The primary purpose of reinsurance is to:
Which legal doctrine requires an insurance applicant to disclose all material fa…
For an insurance contract to be valid, which of the following elements is NOT re…
In insurance terms, a hazard is defined as:
A pure risk is characterized by:
When an applicant provides false information on an insurance application that in…
An insurer that is formed and licensed in another state but authorized to do bus…
Which of the following is an example of a pure risk, as opposed to a speculative…
A waiver in insurance is best defined as:
An insurance contract is considered aleatory because:
A producer who represents multiple insurers and legally acts as an agent of the …
Because an insurance contract is drafted by the insurer and the insured must acc…
Which section of an insurance policy specifically defines covered perils and the…
Moral hazard is best described as: