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Question 3: A policy which has terminated and is no longer in force due to non-payment of the premium due is called ______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