Insurance Awareness Quiz|15 May 2019

Insurance Awareness Quiz for LIC AAO

Q1.The person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured is called _______

(a) First Person

(b) Second Person

(c) Third Person

(d) Last Person

(e) None of these

Answer & Explanation
Ans.1.(c)

Q2.The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as _______

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Unearned Premium

(d) Retrospective Rating

(e) None of these

Answer & Explanation
Ans.2.(d)

Q3.The portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain is called ______

(a) Universal Life Insurance

(b) Unauthorized Reinsurance

(c) Retro cession

(d) Retrospective Rating

(e) None of these

Answer & Explanation
Ans.3.(c)

Q4._______ is an insurance coverage protecting the manufacturer, distributor, seller of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product.

(a) Product Liability

(b) Unauthorized Reinsurance

(c) Retro cession

(d) Retrospective Rating

(e) None of these

Answer & Explanation
Ans.4.(a)

Q5.Circumstance including possibility of loss or no loss but no possibility of gain is termed as ______

(a) Product Liability

(b) Pure Risk

(c) Pure Premium

(d) Retrospective Rating

(e) None of these

Answer & Explanation
Ans.5.(b)

Q6.Event covered under insured’s policy agreement is called _____

(a) Product Liability

(b) Pure Risk

(c) Provisions

(d) Proximate Clause

(e) None of these

Answer & Explanation
Ans.6.(d)

Q7.Contingencies outlined in an insurance policy is called ________

(a) Product Liability

(b) Pure Risk

(c) Provisions

(d) Proximate Clause

(e) None of these

Answer & Explanation
Ans.7.(c)

Q8.An insurance company not licensed to do business within a given state is called _____

(a) Product Liability

(b) Pure Risk

(c) Non-admitted Insurer

(d) Proximate Clause

(e) None of these

Answer & Explanation
Ans.8.(c)

Q9. Selling insurance through groups is called ________

(a) Affinity sales

(b) Pure Risk

(c) Non-admitted Insurer

(d) Proximate Clause

(e) None of these

Answer & Explanation
Ans.9.(a)

Q10.The conversion of the account balance of a deferred annuity contract to income payments is termed as ________

(a) Affinity sales

(b) Pure Risk

(c) Annuitization

(d) Proximate Clause

(e) None of these

Answer & Explanation
Ans.10.(c)

 

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