General Insurance Practice Questions — Page 2 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.
- 51.Which of the following is an example of a pure risk that health or disability insurance is designed to cover?Difficulty 1/5
- 52.Which of the following risks would generally be considered insurable?Difficulty 2/5
- 53.A business owner selects a high deductible on a property policy so that small losses are paid out of pocket…Difficulty 2/5
- 54.An insured holds an 'accident only' health policy. Which event, if it causes a covered medical expense, is …Difficulty 2/5
- 55.In disability income underwriting, a construction worker is rated differently from an office clerk primaril…Difficulty 3/5
- 56.A corporation decides to pay for small repair losses out of operating cash but buys an insurance policy wit…Difficulty 3/5
- 57.The tendency of persons with a higher-than-average chance of loss to seek insurance more actively than thos…Difficulty 2/5
- 58.A speculative risk is best characterized by which of the following?Difficulty 1/5
- 59.A homeowner installs a sprinkler system to reduce potential fire damage, but does not cancel their fire pol…Difficulty 2/5
- 60.A loss must be fortuitous to be insurable. Which statement best describes a fortuitous loss?Difficulty 2/5
- 61.Which of the following is an example of a speculative risk?Difficulty 2/5
- 62.An insured is diagnosed with cancer and incurs extensive medical bills. In this scenario, the peril is the:Difficulty 1/5
- 63.The principle of indemnity holds that an insured should be:Difficulty 2/5
- 64.Which statement correctly explains why speculative risks are generally excluded from insurance coverage?Difficulty 2/5
- 65.Which situation presents a 'risk of possible loss' as the term is understood in insurance?Difficulty 2/5
- 66.When an insurer rescinds an insurance policy, the legal effect is that:Difficulty 3/5
- 67.A person decides not to purchase a motorcycle because they consider the riding risk unacceptable. This deci…Difficulty 1/5
- 68.The primary purpose of underwriting in insurance is to:Difficulty 1/5
- 69.Which of the following is NOT one of the four essential elements required to form a valid contract?Difficulty 1/5
- 70.In health and disability insurance, a peril is best defined as:Difficulty 1/5
- 71.An accident policy covers 'accidental bodily injury caused by an accident.' Which condition is LEAST likely…Difficulty 2/5
- 72.In insurance terminology, the 'premium' is best defined as:Difficulty 1/5
- 73.Insurance contracts are said to be based on "utmost good faith," which means that:Difficulty 2/5
- 74.Which statement correctly distinguishes a peril from a loss in health insurance?Difficulty 2/5
- 75.Which statement correctly distinguishes contract law from tort law?Difficulty 2/5
- 76.Most health insurance policies define the peril of 'sickness' as:Difficulty 1/5
- 77.With respect to insurable interest in a life insurance policy, which statement is correct?Difficulty 2/5
- 78.In accident and health insurance, the covered perils that trigger benefits are generally:Difficulty 1/5
- 79.An insurance contract is said to be aleatory because:Difficulty 2/5
- 80.A person with a family history of diabetes faces the chance of developing the disease and incurring medical…Difficulty 1/5
- 81.An insured slips on an icy sidewalk, falls, and fractures a hip, incurring hospital bills. In this scenario…Difficulty 2/5
- 82.A person with a terminal illness buys a life insurance policy planning to die soon and have the family coll…Difficulty 2/5
- 83.In the policy formation process, the 'application' is best described as:Difficulty 2/5
- 84.The principle of utmost good faith in insurance requires:Difficulty 2/5
- 85.In health underwriting, which of the following is best classified as a physical hazard?Difficulty 1/5
- 86.The primary purpose of underwriting in insurance is to:Difficulty 2/5
- 87.In an application for life insurance, the statements the applicant makes about their health and habits are …Difficulty 2/5
- 88.The principle that both the applicant and the insurer must act honestly and disclose all material facts is …Difficulty 1/5
- 89.Which statement correctly describes a hazard in the context of health insurance risk classification?Difficulty 1/5
- 90.An insured slips on an icy sidewalk, fractures a hip, and incurs hospital bills and lost wages. In this sce…Difficulty 2/5
- 91.In health insurance, which of the following is best described as a peril?Difficulty 1/5
- 92.A disabled insured must stop working due to a heart condition worsened by a sedentary lifestyle, and the po…Difficulty 3/5
- 93.In insurance terminology, a hazard is best defined as:Difficulty 1/5
- 94.Life insurance is generally NOT considered a strict contract of indemnity because:Difficulty 2/5
- 95.Which statement correctly describes how the principle of indemnity applies to life insurance?Difficulty 1/5
- 96.Hazards are important to health insurers primarily because they:Difficulty 2/5
- 97.A heavy smoker has a significantly higher chance of developing lung disease than a nonsmoker. In insurance …Difficulty 1/5
- 98.For a loss to be insurable, it generally must be:Difficulty 1/5
- 99.An applicant for disability income insurance regularly races motorcycles on weekends. For underwriting purp…Difficulty 1/5
- 100.In an accident insurance policy, the 'accidental bodily injury' sustained by the insured is treated as the:Difficulty 1/5