Insurance Awareness Quiz|20th April 2019

Insurance Awareness Quiz for LIC AAO

Q1.A whole life policy in which premiums are payable as long as the insured lives is called ________

(a) Straight Life Annuity

(b) Subrogation

(c) Straight Life

(d) Subjective Risk

Answer & Explanation
Ans.1.(c)

Q2.A life annuity in which there is no refund to any beneficiary at the death of the annuitant is termed as ________

(a) Straight Life Annuity

(b) Subrogation

(c) Straight Life

(d) Subjective Risk

Answer & Explanation
Ans.2.(a)

Q3.A standing agreement between insurers and re-insurers. Under a treaty each party automatically accepts specific percentages of the insurer’s business is termed as _______

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Treaty Reinsurance

Answer & Explanation
Ans.3.(d)

Q4.A form of reinsurance that indemnifies the ceding company for the accumulation of losses in excess of a stipulated sum arising from a single catastrophic event or series of events is termed as _______

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Treaty Reinsurance

Answer & Explanation
Ans.4.(a)

Q5.A type of reinsurance in which the re-insurer indemnifies the ceding company for losses that exceed a specified limit is called _______

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Treaty Reinsurance

Answer & Explanation
Ans.5.(b)

Q6._______ is a form of non-proportional reinsurance.

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Treaty Reinsurance

Answer & Explanation
Ans.6.(b)

Q7.________ is reinsurance for a single risk or a defined package of risks.

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Treaty Reinsurance

Answer & Explanation
Ans.7.(c)

Q8.________ is a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years

(a) Catastrophe Reinsurance

(b) Excess of Loss Reinsurance

(c) Facultative Reinsurance

(d) Term Insurance

Answer & Explanation
Ans.8.(d)

Q9.A policy that cannot be cancelled by the insurer prior to a certain age is called ________

(a) No-Fault

(b) Negligence

(c) Non-cancellable

(d) None of the Above

Answer & Explanation
Ans.9.(c)

Q10.A single insurance policy that combines several coverages previously sold separately is termed as __________

(a) Package Policy

(b) Multiple Policy

(c) Combined Policy

(d) None of the Above

Answer & Explanation
Ans.10.(a)

 

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