General Insurance Practice Questions — Page 3 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.
- 101.Which statement correctly distinguishes contract law from tort law?Difficulty 2/5
- 102.The primary purpose of underwriting in insurance is to:Difficulty 1/5
- 103.After purchasing disability income coverage, an insured continues to engage in a risky hobby without taking…Difficulty 2/5
- 104.An insured who regularly texts while driving is seriously injured in an automobile accident and submits a c…Difficulty 1/5
- 105.The primary purpose of insurance underwriting is to:Difficulty 2/5
- 106.An insurance agent's authority that the public reasonably believes the agent has, based on the insurer's co…Difficulty 1/5
- 107.An insurance company is reviewing whether a proposed health insurance risk is insurable. Which characterist…Difficulty 1/5
- 108.An applicant with a history of chronic back problems applies for disability insurance. The insurer offers c…Difficulty 2/5
- 109.Under 18 U.S.C. Section 1033, persons convicted of which category of felony are barred from the insurance b…Difficulty 2/5
- 110.An applicant for individual disability insurance regularly skydives and smokes. For underwriting purposes, …Difficulty 2/5
- 111.The primary purpose of insurance underwriting is to:Difficulty 1/5
- 112.A disability income insurer assigns applicants to occupational classifications (for example, class 1 for lo…Difficulty 2/5
- 113.Which type of loss is generally NOT covered by an errors and omissions (E&O) policy for an insurance producer?Difficulty 2/5
- 114.The key difference between a morale hazard and a moral hazard is that a morale hazard involves:Difficulty 2/5
- 115.After purchasing a disability income policy, an insured becomes less diligent about following medical advic…Difficulty 2/5
- 116.A life insurer prices coverage at $1.20 per $1,000 of face amount, and a $100,000 policy therefore costs $1…Difficulty 1/5
- 117.A group of independent pharmacies jointly funds a pool to cover property damage losses that any member may …Difficulty 2/5
- 118.An insurance policy is considered a contract of adhesion because:Difficulty 1/5
- 119.An insurer's book of business shows that applicants with hazardous avocations, such as skydiving, apply for…Difficulty 3/5
- 120.A hazard is best defined as a condition that:Difficulty 1/5
- 121.A disability claimant deliberately exaggerates the severity of an injury to collect a larger benefit. This …Difficulty 2/5
- 122.An insured who has comprehensive medical coverage deliberately exaggerates the value of medical expenses on…Difficulty 1/5
- 123.The law of large numbers allows an insurer to predict losses accurately when a large number of similar, rel…Difficulty 3/5
- 124.In insurance terminology, 'risk' is best understood as:Difficulty 1/5
- 125.For a loss to be insurable, the loss generally must be:Difficulty 2/5
- 126.Which statement correctly describes risk from an insurance perspective?Difficulty 2/5
- 127.An applicant tells the life insurance agent, in confidence, about a serious health condition, and the agent…Difficulty 2/5
- 128.An insurance policy is governed by contract law. Which statement correctly distinguishes contract law from …Difficulty 1/5
- 129.An applicant for disability insurance intentionally conceals a chronic back condition and later exaggerates…Difficulty 2/5
- 130.Which situation best illustrates adverse selection in health insurance?Difficulty 1/5
- 131.Which of the following is a physical hazard in the context of health insurance underwriting?Difficulty 1/5
- 132.Insurance is classified as a unilateral contract because:Difficulty 1/5
- 133.The key difference between contract law and tort law is that contract obligations arise from:Difficulty 2/5
- 134.An applicant fails to disclose a heart condition, and the insured later dies of a heart attack. The insurer…Difficulty 2/5
- 135.Which statement about the law of large numbers is FALSE?Difficulty 2/5
- 136.A restaurant kitchen keeps a greasy exhaust vent near an open flame. For a property and health insurer, the…Difficulty 2/5
- 137.Which statement correctly describes how an insurer uses the law of large numbers when pricing disability in…Difficulty 2/5
- 138.An insurance contract is described as a contract of adhesion because:Difficulty 1/5
- 139.An applicant for health insurance has poorly controlled diabetes and works in a lead foundry. For risk clas…Difficulty 1/5
- 140.An applicant for individual health insurance has high blood pressure that is not well controlled. From an u…Difficulty 3/5
- 141.Which statement correctly distinguishes contract law from tort law?Difficulty 1/5
- 142.An insurance contract is described as "conditional" because:Difficulty 2/5
- 143.For the law of large numbers to produce reliable premium predictions, the losses in the insured group must be:Difficulty 2/5
- 144.The law of large numbers enables accurate prediction because, as the number of similar exposures increases:Difficulty 2/5
- 145.A healthy teacher applies for individual health insurance. The teacher's exposure to future medical expense…Difficulty 1/5
- 146.A small employer with only eight employees has experienced widely fluctuating health claims year to year. T…Difficulty 3/5
- 147.The law of large numbers allows an insurer to:Difficulty 1/5
- 148.In an insurance contract, the insured's premium payment functions as:Difficulty 2/5
- 149.An A&H insurer uses a morbidity table to price a block of disability policies. The law of large numbers sup…Difficulty 1/5
- 150.An insurance contract is described as unilateral because:Difficulty 2/5