These General insurance exam questions and answers cover general insurance concepts. It is designed to help you evaluate your comprehension of the general insurance concepts for which you will be tested in your insurance license qualification exam. The questions are intended to resemble the types of queries and the range of content on your insurance license qualification exam; however, because insurance license exam questions are kept strictly confidential, you should not expect these questions to be the same as those you will see on your actual exam.
The named insured
A residence employee
A person who is on the insured location without permission
Any regular resident of the insured's household who pays rent
Indemnity policies
ACV policies
Valued or agreed amount policies
Market value policies
An assumption of risk
An intervening cause
The proximate cause of loss
A matter of strict liability
60 days
45 days
30 days
15 days
Unilateral contract
Representation
Warranty
Waiver
$2,500
$2,000
$1,500
$1,000
Premiums by combined losses and expenses
Premiums by underwriting losses
Operating expenses by total premiums
Underwriting losses by total premiums
Only the United States
The United States, its territories and possessions, and Canada
The United States, Canada, and Mexico
All of North America and Europe
On the policy's retroactive date.
Before the policy's retroactive date.
After the policy's retroactive date.
Before the effective date, if there is no retroactive date.
It is the most the insurer will pay for any one accident.
It is the most the insurer will pay for all losses during any one policy period.
It is the maximum limit for each claim when multiple claimants are arising out of the same occurrence.
It is the single largest limit that applies when a loss is covered by two or more policies issued by the same insurer.
A maximum payment of $300
A maximum payment of $460
A maximum payment of $600
A maximum payment of $740
All classes of newly acquired autos are automatically covered.
An insured can select different classifications for various coverages.
"Any auto" is the broadest coverage classification.
"Hired autos" include autos the insured leases, hires, rents, or borrows.
Peril
Hazard
Risk
Catastrophe
10 days
30 days
60 days
Until the end of the policy period
Arbitration
Deductible
Valued policy
Coinsurance
Excess and surplus lines agent
Solicitor
Consultant
Producer
$50,000 per accident
$100,000 per accident
$250,000 per accident
$500,000 per accident
All dwelling forms
The basic form only
The basic and broad forms
The special form only
Indefinitely
5 years
3 years
60 days
Injury for such things as libel, slander, false arrest, or invasion of privacy.
Only bodily injuries that are suffered by individuals.
Any form of injury that affects a person, including bodily injury, property damage, financial injury, and damage to one's reputation.
Injuries suffered by named insureds or family members who are insured under personal lines policies.
30 days
14 days
10 days
7 days
DIC policies provide property and liability coverages.
Traditional perils (such as fire, lightning, and so on) are usually excluded by DIC policies.
DIC supplements other coverages and fills insurance gaps.
DIC can provide considerable protection at a reasonable cost.
$500 per person
$1,000 per person
$2,500 per person
$5,000 per person
Direct writer system
Exclusive of the captive agency system
Direct response system
Independent agency system
Windstorm
Explosion
Volcanic eruption
Sprinkler leakage
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