General Insurance Practice Questions — Page 4 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.
- 151.An insurer writes thousands of similar disability policies in one occupational class. The main benefit of t…Difficulty 2/5
- 152.In a group health plan, each covered employee represents a 'loss exposure' to the insurer. In this context,…Difficulty 1/5
- 153.Insurance is considered a personal contract because it:Difficulty 2/5
- 154.Which combination of elements must be present for a loss exposure to exist?Difficulty 2/5
- 155.An entrepreneur starts a new medical-device business that could either earn large profits or lose money. Fr…Difficulty 2/5
- 156.An insurer cancels a one-year policy after six months and returns the premium for the remaining six months.…Difficulty 1/5
- 157.An insurance policy is described as a contract of adhesion. This means that:Difficulty 2/5
- 158.A third-party administrator (TPA) is best described as a person who:Difficulty 2/5
- 159.For the law of large numbers to produce reliable loss predictions, the exposures in the insurance pool must…Difficulty 2/5
- 160.Which statement about the law of large numbers is correct?Difficulty 1/5
- 161.A health insurer considers writing a block of disability policies covering only 100 similar employees. Whic…Difficulty 2/5
- 162.A physician is sued for medical malpractice. For insurance purposes, the physician's vulnerability to such …Difficulty 1/5
- 163.An insurer evaluating a group of applicants for medical expense coverage measures how often members of the …Difficulty 2/5
- 164.An insurance policy is a contract of adhesion because:Difficulty 2/5
- 165.In insurance, a peril is best defined as:Difficulty 1/5
- 166.A sole breadwinner whose family depends entirely on her income has a loss exposure to:Difficulty 1/5
- 167.An insurer incorporated under the laws of another country and admitted to transact business in this state i…Difficulty 1/5
- 168.Why is an insurance policy considered a unilateral contract?Difficulty 2/5
- 169.An insurance policy is a unilateral contract. This means that:Difficulty 2/5
- 170.In insurance terminology, 'risk' is best defined as:Difficulty 1/5
- 171.The primary purpose of reinsurance is to:Difficulty 1/5
- 172.In risk management, loss exposure is best defined as:Difficulty 1/5
- 173.A fire destroys a home. In insurance terms, the fire is the:Difficulty 1/5
- 174.Insurance contracts are considered personal contracts primarily because:Difficulty 2/5
- 175.Under an accident and health policy that covers 'sickness and accidental bodily injury,' which of the follo…Difficulty 2/5
- 176.A homeowner faces several loss exposures, including fire damage to the home, medical expenses from a family…Difficulty 1/5
- 177.Two households each purchase hospital expense coverage. One faces potential hospital costs of up to $30,000…Difficulty 1/5
- 178.Insurers use underwriting to sort applicants into classes according to age, health, occupation, and other c…Difficulty 2/5
- 179.An insurance policy is a conditional contract. Which statement best illustrates this characteristic?Difficulty 2/5
- 180.Several families jointly contribute to a fund that will cover any member family's catastrophic medical cost…Difficulty 2/5
- 181.An insurer sells life insurance by mailing offers directly to consumers, who complete an application by mai…Difficulty 1/5
- 182.A fraternal benefit society is best described as an insurer that:Difficulty 2/5
- 183.A loss exposure is best defined as:Difficulty 1/5
- 184.Which of the following is an example of a loss exposure for an individual?Difficulty 2/5
- 185.A group of 5,000 self-employed professionals each pays a modest contribution into a fund that covers any me…Difficulty 1/5
- 186.Which statement correctly distinguishes a hazard from a peril?Difficulty 2/5
- 187.An insured installs grab bars and non-slip flooring in the home after a recent fall and begins a supervised…Difficulty 2/5
- 188.A small employer funds a group health plan with a $5,000 per-person deductible and buys a stop-loss policy …Difficulty 3/5
- 189.A hazard is best described as:Difficulty 1/5
- 190.The process by which a mutual insurance company is converted into a stock company is called:Difficulty 2/5
- 191.In insurance contracts, a warranty is best described as:Difficulty 2/5
- 192.An insured with diabetes who skips checkups, and who also exaggerates symptoms to obtain stronger medicatio…Difficulty 2/5
- 193.In the risk management process, the first step is to:Difficulty 2/5
- 194.A medical expense policy pays 80% of covered charges after the deductible, with the insured responsible for…Difficulty 2/5
- 195.A warranty in an insurance contract differs from a representation primarily because a warranty:Difficulty 2/5
- 196.A company owns a fleet of delivery trucks that could be damaged in accidents. In insurance terms, the truck…Difficulty 1/5
- 197.Which statement accurately describes the doctrine of utmost good faith in insurance contracts?Difficulty 1/5
- 198.A health insurer funds a free smoking-cessation and annual-physical program for its policyholders. This pro…Difficulty 2/5
- 199.For an applicant seeking disability income insurance, the insured's earning power represents:Difficulty 2/5
- 200.An underwriter notes that a prospective insured has significant loss exposure. The underwriter most likely …Difficulty 2/5