Insurance Awareness Quiz|6th April 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

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

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

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

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

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

Q7.Contingencies outlined in an insurance policy is called ________

(a) Product Liability

(b) Pure Risk

(c) Provisions

(d) Proximate Clause

(e) None of these

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

Q9. Selling insurance through groups is called ________

(a) Affinity sales

(b) Pure Risk

(c) Non-admitted Insurer

(d) Proximate Clause

(e) None of these

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 Key

Ans.1.(c)

Ans.2.(d)

Ans.3.(c)

Ans.4.(a)

Ans.5.(b)

Ans.6.(d)

Ans.7.(c)

Ans.8.(c)

Ans.9.(a)

Ans.10.(c)

Leave a Reply