Insurance Awareness Quiz|8th April 2019

Insurance Awareness Quiz for LIC AAO

Q1.Coverage for losses incurred as a result of the failure of an insured object on the insured’s premises is referred as ______

(a) Conditional Contract

(b) Conditional Receipt

(c) Conditional Renewable

(d) Consequential Damage Endorsement

Answer & Explanation
Ans.1.(d)

Q2.A person named in a life insurance contract to receive the benefits of the policy if other named beneficiaries are not living is referred as _______

(a) Contingent Beneficiary

(b) Contingent Liability

(c) Contractual Liability

(d) Convertible

Answer & Explanation
Ans.2.(a)

Q3.A person named in a life insurance contract to receive the benefits of the policy if other named beneficiaries are not living is referred as _______

(a) Contingent Beneficiary

(b) Contingent Liability

(c) Contractual Liability

(d) Convertible

Answer & Explanation
Ans.3.(b)

Q4.___________ is the liability arising from contractual agreements in which it is stated that some losses, if they occur, are to be borne by specific parties.

(a) Contingent Beneficiary

(b Contingent Liability

(c) Contractual Liability

(d) Convertible

Answer & Explanation
Ans.4.(c)

Q5.A term policy that can be converted to permanent coverage rather than expiring on a specific date is called _________

(a) Contingent Beneficiary

(b) Contingent Liability

(c) Contractual Liability

(d) Convertible

Answer & Explanation
Ans.5.(d)

Q6.Commercial coverage against losses resulting from the failure of business debtors to pay their obligation to the insured, usually due to insolvency is termed as ______

(a) Credit Insurance

(b) Contingent Liability

(c) Contractual Liability

(d) Convertible

Answer & Explanation
Ans.6.(a)

Q7.The ratio of losses incurred to premiums earned; anticipated when rates are first formulated is termed as_______

(a) Expected Loss Ratio

(b) Expense Ratio

(c) Extended Coverage

(d) Extra Expense Insurance

Answer & Explanation
Ans.7.(a)

Q8.Percentage of each premium rupee that goes to insurers’ expenses including overhead, marketing, and commissions is called_________

(a) Expected Loss Ratio

(b) Expense Ratio

(c) Extended Coverage

(d) Extra Expense Insurance

Answer & Explanation
Ans.8.(b)

Q9.An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basic policy is termed as ______

(a) Expected Loss Ratio

(b) Expense Ratio

(c) Extended Coverage

(d) Extra Expense Insurance

Answer & Explanation
Ans.9.(c)

Q10.The consequential property insurance that covers the extra expense incurred by the interruption of a business is called _________

(a) Expected Loss Ratio

(b) Expense Ratio

(c) Extended Coverage

(d) Extra Expense Insurance

Answer & Explanation
Ans.10.(d)

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