General Insurance Practice Questions — Page 6 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.
- 251.The primary purpose of insurance underwriting is to:Difficulty 2/5
- 252.Which statement correctly distinguishes a mutual insurer from a stock insurer?Difficulty 2/5
- 253.Which of the following is NOT one of the five basic techniques used to manage risk?Difficulty 2/5
- 254.A core ethical duty of an insurance producer is to:Difficulty 1/5
- 255.The purpose of the grace period in a life insurance policy is to:Difficulty 1/5
- 256.When a primary insurer cedes part of its risk to a reinsurer, the original insured's rights under the prima…Difficulty 3/5
- 257.An insured pays a full annual premium of $1,200 for a life policy and cancels after three months. The $300 …Difficulty 2/5
- 258.A man purposely injures himself in order to collect disability benefits. Under the principle that insured l…Difficulty 3/5
- 259.A captive insurance agent differs from an independent agent in that a captive agent:Difficulty 2/5
- 260.For a risk to be insurable, the potential loss must be:Difficulty 3/5
- 261.A small business chooses a health plan with a $5,000 deductible and buys insurance only for claims above th…Difficulty 1/5
- 262.A contract law case arises from a breach of a private agreement, while a tort law case arises from:Difficulty 1/5
- 263.In the underwriting process, the agent (producer) is generally responsible for:Difficulty 2/5
- 264.An insurance policy is described as a contract of adhesion because it:Difficulty 2/5
- 265.How does a lapsed policy differ from a cancelled policy?Difficulty 2/5
- 266.An insurance policy covers only losses that are fortuitous. A loss is fortuitous when it is:Difficulty 2/5
- 267.Under the principle of indemnity, health insurance benefits are generally designed to reimburse actual cove…Difficulty 3/5
- 268.Under 18 USC Section 1033, a person convicted of a felony involving dishonesty or breach of trust:Difficulty 2/5
- 269.Life insurance is considered a conditional contract because the insurer's obligation to pay:Difficulty 2/5
- 270.Which of the following is a valid basis for an insurable interest in another person's life or health?Difficulty 2/5
- 271.An insured deliberately injures a finger to trigger the disability benefit in a newly issued policy. The in…Difficulty 2/5
- 272.How does a rider attached to a life insurance policy differ from the policy itself?Difficulty 1/5
- 273.In the distribution of insurance, the fundamental distinction between an agent and a broker is that:Difficulty 2/5
- 274.An agent who represents only one insurer and is required to place business exclusively with that company is…Difficulty 1/5
- 275.Insurance contracts are said to require utmost good faith. Which statement correctly describes the insurer'…Difficulty 2/5
- 276.Under 18 U.S.C. Section 1033, a person convicted of a felony involving dishonesty or breach of trust:Difficulty 2/5
- 277.A life insurer sells policies entirely through mailed solicitations and telephone calls with no in-person a…Difficulty 2/5
- 278.In insurance accounting, the difference between earned and unearned premium is that:Difficulty 2/5
- 279.An insured forgets to take prescribed medication, falls, and is injured. The health insurer pays the claim …Difficulty 2/5
- 280.During the underwriting of a health application, the insurer receives a Medical Information Bureau (MIB) re…Difficulty 2/5
- 281.Insurance contracts are contracts of utmost good faith. For a health insurance applicant, this principle pr…Difficulty 1/5
- 282.After evaluating an application for individual health insurance, an underwriter classifies the applicant an…Difficulty 2/5
- 283.The key legal distinction between an insurance agent and an insurance broker is that:Difficulty 2/5
- 284.One characteristic of an ideally insurable risk is that:Difficulty 2/5
- 285.Which of the following may lawfully act as an insurer transacting business in this state?Difficulty 1/5
- 286.After reviewing an application, an insurer assigns the applicant to a 'substandard' risk classification. Wh…Difficulty 2/5
- 287.Which description best matches 'direct response' as a method of distributing insurance?Difficulty 1/5
- 288.In the underwriting process, which of the following is the responsibility of the producer (agent)?Difficulty 2/5
- 289.Errors and omissions (E&O) insurance protects an insurance agent against losses arising from:Difficulty 2/5
- 290.How do underwriting and claims handling differ in the insurance process?Difficulty 2/5
- 291.An agent tells an applicant, 'You are approved; your coverage is in force,' immediately after collecting th…Difficulty 3/5
- 292.For a health insurance policy, when must the applicant generally have an insurable interest in the person t…Difficulty 2/5
- 293.A person applying for coverage on their own health has an insurable interest in their own life and health b…Difficulty 1/5
- 294.Errors and omissions (E&O) insurance protects an insurance agent against:Difficulty 2/5
- 295.A group health plan automatically enrolls every full-time employee and requires no evidence of insurability…Difficulty 2/5
- 296.During the underwriting of an individual health insurance application, the insurer requests an attending ph…Difficulty 3/5
- 297.The primary purpose of underwriting in health insurance is to:Difficulty 1/5
- 298.To verify an applicant's medical history during underwriting, many life and health insurers obtain a coded …Difficulty 2/5
- 299.An applicant for life and health coverage indicates on the application that he is an amateur competitive bo…Difficulty 2/5
- 300.In the underwriting process, the agent acts as a field underwriter primarily by:Difficulty 2/5