Insurance Awareness Quiz|26th April 2019

Insurance Awareness Quiz for LIC AAO

Q1.Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires is termed as _____

(a) Affinity sales

(b) Demutualization

(c) Annuitization

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.1.(d)

Q2.Funds that a lender collects to pay monthly premiums in mortgage and home owners insurance, and sometimes to pay property taxes is called ____

(a) Affinity sales

(b) Demutualization

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.2.(c)

Q3.A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations is called _____

(a) Affinity sales

(b) Exclusion

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.3.(b)

Q4.A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions is termed as _______

(a) Endorsement

(b) Exclusion

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.4.(a)

Q5.Legal responsibility of a fiduciary to safeguard assets of beneficiaries is termed as________

(a) Endorsement

(b) Fiduciary Liability

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.5.(b)

Q6.Contract under which the ultimate liability of the reinsurer is capped and on which anticipated investment income is expressly acknowledged as an underwriting component is called ________

(a) Finite Risk Reinsurance

(b) Fire Insurance

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.6.(a)

Q7._______ is a Coverage protecting property against losses caused by a fire or lightning that is usually included in home owners or commercial multiple peril policies.

(a) Finite Risk Reinsurance

(b) Fire Insurance

(c) Escrow Account

(d) Earned Premium

(e) None of these

Answer & Explanation
Ans.7.(b)

Q8._______ is a coverage for the policyholder’s own property or person.

(a) First Party Coverage

(b) Second Party Coverage

(c) Third Party Coverage

(d) Fourth Party Coverage

(e) None of these

Answer & Explanation
Ans.8.(a)

Q9._______ is a coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents.

(a) Flood Insurance

(b) Commercial Insurance

(c) Industrial Insurance

(d) Liability Insurance

(e) None of these

Answer & Explanation
Ans.9.(a)

Q10.________ is an insurance purchased by a bank or creditor on an uninsured debtor’s behalf so if the property is damaged, funding is available to repair it.

(a) Flood Insurance

(b) Forced Place Insurance

(c) Industrial Insurance

(d) Liability Insurance

(e) None of these

Answer & Explanation
Ans.10.(b)

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