Insurance Awareness Quiz | 21st November 2018

Welcome to Insurance Awareness Questions in Ambitiousbaba.com. Here we are covering some important Insurance Awareness Questions & Answers with Explanations. Do study this questions thoroughly as it may prove to be helpful in upcoming exams and also in interviews.

Question 1: Which principle specifies an insured should not collect more than the actual cash value of a loss?

A. Indemnity

B. Premium

C. Annuity

D. Liquidity

Question 2: ________ is the amount you pay to the insurance company to buy a policy.

A. Fund

B. Premium

C. Annuity

D. Liquidity

Question 3: A policy which has terminated and is no longer in force due to non-payment of the premium due is called ______

A. key man policy

B. Lapsed Policy

C. Indemnity

D. Fiduciary

Question 4: _________ is a type of reinsurance in which the re-insurer can accept or reject any risk presented by an insurance company seeking reinsurance.

A. Treaty Insurance

B. Health Insurance

C. Facultative Insurance

D. None of the Above

Question 5: __________is the period between the date of subscription to an insurance-cum-pension policy and the time at which the first instalment of pension is received.

A. appreciation

B. Depreciation

C. Deferment

D. Recognition

Question 6: The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called _____

A. Adjuster

B. Appointee

C. Service Provider

D. Aggregate

Question 7: __________ is an actual ownership interest in a specific asset or group of assets.

A. Fund

B. cover

C. Equity

D. Liquidity

Question 8: The amount which is payable by you during the premium paying term at regular intervals for a limited period as specified in the plan schedule is called________

A. Fund

B. cover

C. Limited premium

D. Liquidity

Question 9: _______ plans provide for a “pension” or a mix of a lump sum amount and a pension to be paid to the policyholder or his spouse.

A. Fund

B. cover

C. Annuity

D. Liquidity

Question 10: Which is used to determine the actual cash value of property at time of loss?

A. appreciation

B. Depreciation

C. Realization

D. Recognition

SOLUTION

  1. A

The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss.

2. B

Premium is an amount paid periodically to the insurer by the insured for covering his risk.

3. B

A policy that has been cancelled due to lack of payment of the premiums.

4. C

Facultative insurance is reinsurance for a single risk or a defined package of risks.

5. C

Period between the subscription date of an insurance-cum-pension policy and the time at which the first instalment of pension is received is called as deferment period.

6. B

Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.

7. C

An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits.

8. C

A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time.

9. C

A contract sold by an insurance company designed to provide payments to the holder at specified intervals.

10. B

Depreciation is a measure of age and condition, with a given lifetime. It may be referred to as a value (in dollars), or a percentage, or a number of years.

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