Insurance Awareness Quiz|12th April 2019

Insurance Awareness Quiz for LIC AAO

Q1.A risk transfer mechanism whereby one party assumes the liability of another party by contract is known as ______

(a) Hold-Harmless Agreement

(b) Incontestability Provision

(c) Level Premium Insurance

(d) Limited Payment Life Insurance

Answer & Explanation
Ans.1.(a)

Q2.A life insurance and annuity provision limiting the time within which the insurer has the legal right to void the contract on grounds of material misrepresentation in the policy application is termed as ________

(a) Hold-Harmless Agreement

(b) Incontestability Provision

(c) Level Premium Insurance

(d) Limited Payment Life Insurance

Answer & Explanation
Ans.2.(b)

Q3.A Life insurance policy for which the cost is equally distributed over the term of the premium period, remaining constant throughout is called _____

(a) Hold-Harmless Agreement

(b) Incontestability Provision

(c) Level Premium Insurance

(d) Limited Payment Life Insurance

Answer & Explanation
Ans.3.(c)

Q4.A form of whole-life insurance with a pre-defined number of premiums to be paid is known as ________

(a) Hold-Harmless Agreement

(b) Incontestability Provision

(c) Level Premium Insurance

(d) Limited Payment Life Insurance

Answer & Explanation
Ans.4.(d)

Q5.Reinsurance placed with a company not authorized in the reporting company’s state of domicile is called _______

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Underwriter

(d) Underwriting Risk

Answer & Explanation
Ans.5.(b)

Q6.A person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate. That person is known as _______

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Underwriter

(d) Underwriting Risk

Answer & Explanation
Ans.6.(c)

Q7.A section of the risk-based capital formula calculating requirements for reserves and premiums is termed as _____

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Underwriter

(d) Underwriting Risk

Answer & Explanation
Ans.7.(d)

Q8.An adjustable life insurance under which premiums and coverage are adjustable, company’s expenses are not specifically disclosed to the insured but a financial report is provided to policyholders annually is called _____

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Underwriter

(d) Underwriting Risk

Answer & Explanation
Ans.8.(a)

Q9.Which include claims that have been incurred but not reported?

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Underwriter

(d) Unpaid losses

Answer & Explanation
Ans.9.(d)

Q10.An amount of premium for which payment has been made by the policyholder but coverage has not yet been provided is known as ______

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Unearned Premium

(d) Unpaid losses

Answer & Explanation
Ans.10.(c)

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