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General Insurance Practice Questions — Page 10 of 10

490 free general insurance questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.

  1. 361.Which phrase best captures the core promise an insurer makes under an insurance contract?
    Difficulty 1/5
  2. 362.A freelance consultant buys a disability income policy to protect against losing income if injured. In risk…
    Difficulty 2/5
  3. 363.In insurance terminology, 'risk' is most accurately defined as:
    Difficulty 1/5
  4. 364.Which statement correctly describes the role of uncertainty in making a risk insurable?
    Difficulty 2/5
  5. 365.An actuary tells a new agent, 'For a large group, the risk is predictable even though each individual's out…
    Difficulty 3/5
  6. 366.Which type of risk is generally considered to be insurable?
    Difficulty 1/5
  7. 367.A client asks why a bet placed on a sporting event cannot be insured the way medical expenses can. The best…
    Difficulty 2/5
  8. 368.A 'peril,' as used in insurance, is best defined as:
    Difficulty 1/5
  9. 369.A clinic's icy walkway increases the chance that a patient will slip and fall. In this scenario, the slip-a…
    Difficulty 2/5
  10. 370.A condition or circumstance that increases the likelihood or severity of a loss is called a:
    Difficulty 1/5
  11. 371.During health underwriting, an applicant's sedentary lifestyle and poor diet are best classified as:
    Difficulty 2/5
  12. 372.An insured with comprehensive dental coverage skips regular checkups and ignores early warning signs becaus…
    Difficulty 2/5
  13. 373.The law of large numbers makes insurance possible primarily because:
    Difficulty 1/5
  14. 374.An insurer will not write a group health plan for a three-person employer, but will consider the group once…
    Difficulty 2/5
  15. 375.For the law of large numbers to improve the accuracy of loss prediction, the exposures within the pool shou…
    Difficulty 2/5
  16. 376.The term 'loss exposure' refers to:
    Difficulty 1/5
  17. 377.Which statement correctly distinguishes a loss exposure from an actual loss?
    Difficulty 2/5
  18. 378.Buying an insurance policy to shift the financial burden of a possible loss to the insurer is an example of…
    Difficulty 1/5
  19. 379.A self-employed physical therapist decides not to buy disability income coverage and instead plans to rely …
    Difficulty 2/5
  20. 380.A manufacturer removes a dangerous machine from its factory floor rather than keeping it and installing gua…
    Difficulty 2/5
  21. 381.When an underwriter evaluates whether a situation truly presents a possible loss, the first question is usu…
    Difficulty 2/5
  22. 382.Two risks have the same expected loss. Risk X produces many small claims; Risk Y produces rare but very lar…
    Difficulty 3/5
  23. 383.A person already diagnosed with a terminal condition applies for a new health policy expecting to collect o…
    Difficulty 2/5
  24. 384.Which characteristic would make a risk difficult to insure because it threatens many insureds at the same t…
    Difficulty 2/5
  25. 385.In accident and health insurance, an insurable interest exists when the applicant:
    Difficulty 2/5
  26. 386.The principle of indemnity holds that the insured should be:
    Difficulty 1/5
  27. 387.Insurance contracts are based on utmost good faith, which requires the applicant to:
    Difficulty 2/5
  28. 388.The primary purpose of underwriting in health insurance is to:
    Difficulty 1/5
  29. 389.Which sequence best describes the underwriting process for an individual health insurance application?
    Difficulty 2/5
  30. 390.An agent helps an applicant complete a health insurance application, observes the applicant's appearance an…
    Difficulty 3/5
  31. 391.Which statement correctly distinguishes contract law from tort law?
    Difficulty 1/5
  32. 392.An insured sues an insurer for refusing to pay a covered claim that the policy clearly promised to pay. The…
    Difficulty 2/5
  33. 393.In an insurance contract, the insured's consideration consists of:
    Difficulty 2/5
  34. 394.In the formation of an individual health insurance contract, the usual offer and acceptance pattern is:
    Difficulty 2/5
  35. 395.For a health insurance contract to be valid, the parties must have legal capacity and the contract must hav…
    Difficulty 2/5
  36. 396.An insurance policy is described as a contract of adhesion because:
    Difficulty 1/5
  37. 397.An insurance contract is said to be unilateral because:
    Difficulty 2/5
  38. 398.A health insurance policy is conditional because the insurer's duty to pay benefits arises only if:
    Difficulty 2/5
  39. 399.A claims examiner reviews three situations: an expired fire extinguisher at a clinic (1), a patient who exa…
    Difficulty 2/5
  40. 400.If adverse selection becomes severe in an insurance pool, the most direct consequence is that:
    Difficulty 2/5