General Insurance Practice Questions — Page 5 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.
- 201.The five general techniques for handling risk are:Difficulty 1/5
- 202.In insurance mathematics, the 'chance of loss' is best described as:Difficulty 1/5
- 203.After enrolling in a comprehensive health plan, an insured begins skipping preventive screenings and delays…Difficulty 2/5
- 204.A contractor signs a contract requiring a subcontractor to assume liability for injuries to the subcontract…Difficulty 2/5
- 205.A homeowner stops hosting large parties to eliminate the risk of guest injury lawsuits. This is an example …Difficulty 2/5
- 206.An applicant for life insurance states on the application that she is 45 years old when she is actually 46.…Difficulty 2/5
- 207.A family's primary wage earner is expected to be totally disabled for at least a year after major surgery. …Difficulty 2/5
- 208.A large employer decides to pay employee medical claims from its own funds rather than buy a traditional he…Difficulty 2/5
- 209.The purpose of an insurance 'conservation' proceeding is to:Difficulty 2/5
- 210.A loss that the insured knows is certain to occur at a scheduled time cannot be properly insured because:Difficulty 3/5
- 211.When an applicant applies for disability insurance, he already has surgery scheduled for the following week…Difficulty 1/5
- 212.A small employer chooses a high-deductible health plan and sets aside funds to pay claims below the deducti…Difficulty 2/5
- 213.An endorsement or rider attached to an insurance policy serves to:Difficulty 2/5
- 214.A large employer that sets aside its own funds to pay employees' medical claims rather than purchasing insu…Difficulty 1/5
- 215.For the law of large numbers to produce reliable loss predictions, the insured exposures in the pool should…Difficulty 2/5
- 216.A misrepresentation in an insurance application is best defined as:Difficulty 2/5
- 217.An applicant asks for coverage that would pay the cost of a routine annual physical examination that she pl…Difficulty 2/5
- 218.A group of small businesses contributes to a common fund from which any member's covered losses are paid. T…Difficulty 1/5
- 219.In the insurance transaction, the fundamental distinction between an agent and a broker is that:Difficulty 1/5
- 220.An exposure has a very low probability of occurring but, if it occurs, would wipe out a family's entire sav…Difficulty 3/5
- 221.When an individual buys a health insurance policy, the financial risk of large medical bills is:Difficulty 2/5
- 222.When an individual purchases a health insurance policy, the individual is primarily using which risk manage…Difficulty 2/5
- 223.An agent mistakenly fails to recommend an available rider the client wanted, and the client later suffers a…Difficulty 2/5
- 224.Which of the following is NOT a characteristic of an ideally insurable risk?Difficulty 2/5
- 225.An insured pays an annual premium of $1,200 and the policy is canceled after three months. The insurer retu…Difficulty 2/5
- 226.In health insurance, the 'loss' that the policy indemnifies is best illustrated by which of the following?Difficulty 1/5
- 227.An insurer writes disability coverage for 20,000 similar lives. Compared with a pool of 200 similar lives, …Difficulty 2/5
- 228.An agent's life insurance license is classified as inactive. Which statement about an inactive license is c…Difficulty 2/5
- 229.According to the law of large numbers, what happens to an insurer's loss predictions as more similar exposu…Difficulty 1/5
- 230.A risk cannot be ideally insured if the premium that would have to be charged is so high that few people co…Difficulty 1/5
- 231.A life insurance policy lapses when it terminates for nonpayment of premium after the grace period. Cancell…Difficulty 2/5
- 232.A loss exposure is best defined as:Difficulty 2/5
- 233.A health policy covers only losses that are fortuitous. This means the loss must be:Difficulty 2/5
- 234.An employer's workplace wellness and smoking-cessation program illustrates which risk management technique?Difficulty 2/5
- 235.For a situation to present an insurable loss under a health policy, the loss must be:Difficulty 1/5
- 236.An insurer markets life insurance directly to consumers through mail and the internet, with no agents invol…Difficulty 1/5
- 237.In the underwriting process, the life insurance agent typically acts as a field underwriter by:Difficulty 2/5
- 238.Which of the following is the loss that disability income insurance is designed to address?Difficulty 1/5
- 239.When an insurer evaluates a loss exposure for pricing, frequency and severity refer to:Difficulty 2/5
- 240.Once an insurer has determined that a claim is payable, it must:Difficulty 2/5
- 241.The principle of indemnity provides that insurance should:Difficulty 2/5
- 242.For a loss to be insurable under a health policy, it must generally be:Difficulty 2/5
- 243.A rider attached to a life insurance policy is best described as:Difficulty 1/5
- 244.A person knowingly submits a materially false statement to a federal agency in connection with a matter aff…Difficulty 2/5
- 245.For a risk to be ideally insurable, the premium must be:Difficulty 1/5
- 246.Which characteristic is necessary for a risk to be ideally insurable?Difficulty 1/5
- 247.Under the professional code of ethics for insurance producers, a producer must not:Difficulty 2/5
- 248.An insurer describes a 'possible loss situation' as a circumstance in which:Difficulty 2/5
- 249.Which statement correctly distinguishes a mutual insurer from a stock insurer?Difficulty 2/5
- 250.Which of the following is NOT one of the five basic techniques used to manage risk?Difficulty 2/5