Fundamentals of Insurance Practice Questions

Multiple-choice practice exam question from the Fundamentals of Insurance course asking which elements are special to insurance contracts. The correct answers are Insurable Interest, Utmost Good Faith, and Indemnity. Agreement and Legal Capacity apply to all contracts, not just insurance contracts.
Practice exam question for the Fundamentals of Insurance course: The elements special to insurance contracts are Insurable Interest, Utmost Good Faith, and Indemnity.
Multiple-choice practice exam question from the Fundamentals of Insurance course asking what is the most realistic way to deal with risk. The correct answer, 'Transfer,' is selected.
Practice exam question for the Fundamentals of Insurance course: The most realistic way to deal with risk is Transfer, by shifting financial loss to an insurer through insurance.
Multiple-choice practice exam question from the Fundamentals of Insurance course asking which type of risk is not insurable. The correct answer, 'Speculative risk,' is selected with an explanation that speculative risks involve possible gains, such as investing or gambling, and therefore cannot be insured.
Practice exam question for the Fundamentals of Insurance course: Speculative risk is not insurable because it involves both potential gains and losses, unlike pure risk which only involves loss.
Short answer practice exam question from the Fundamentals of Insurance course asking about ways changes can be made to insurance policies. The model answer lists endorsement, rider, and floater with brief explanations.
Practice exam question for the Fundamentals of Insurance course: Changes to insurance policies can be made through endorsements, riders, and floaters.
Short answer practice exam question from the Fundamentals of Insurance course asking students to list and explain the four ways to deal with risk. The model answer identifies Controlling, Avoidance, Retention, and Transfer (CART) with brief explanations and pros and cons.
Practice exam question for the Fundamentals of Insurance course: The four ways to deal with risk are Controlling, Avoidance, Retention, and Transfer (CART), each with advantages and disadvantages.
Multiple-choice practice exam question from the Fundamentals of Insurance course asking which document is used exclusively to add coverage to an insurance policy. The correct answer, 'Rider,' is selected.
Practice exam question for the Fundamentals of Insurance course: A Rider is used exclusively to add coverage to an insurance policy.

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