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Insurance Awareness Practice Set 5

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Insurance Awareness Practice Set 5

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What is an Insurance? According to the dictionary and different insurance policies, Insurance is defined as “an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.” Thus, Insurance is a means of protection from financial loss. Insurance in short is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. The insurance provider is known as an insurer, insurance company, insurance carrier or underwriter. Insurance Awareness is an important section in several recruitment exams in India, primarily in the insurance sector.
Insurance Awareness Practice Set 5 includes Q & A related to the following topics: History of Insurance sectors in India, Insurance Organizations in India, Important Insurance Terms, Insurance Abbreviations & Insurance related information. Insurance Awareness Practice Set 5 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. A risk transfer mechanism whereby one party assumes the liability of another party by contract is known as ______
    A. Hold-Harmless Agreement B. Incontestability Provision C. Level Premium Insurance D. Limited Payment Life Insurance

Answer: Option A
2. Reinsurance placed with a company not authorized in the reporting company’s state of domicile is called _______
    A. Universal Life Insurance B. Unauthorized Reinsurance C. Underwriter D. Underwriting Risk

Answer: Option B
3. 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

Answer: Option C
4. 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

Answer: Option B
5. 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

Answer: Option C
1. A survey to determine a property’s insurable value, or the amount of a loss is termed as ______
    A. Affinity sales B. Pure Risk C. Annuitization D. Appraisal

Answer: Option D
2. In Insurance, CGL stands for__________
    A. Commercial General Liability B. Common General Liability C. Captive General Liability D. Control General Liability

Answer: Option A
3. A person who represents only one insurance company and is restricted by agreement from submitting business to any other company is termed as _______
    A. Seller B. Captive Agent C. Service Provider D. Aggregate

Answer: Option B
4. Which term referring to property coverages for the perils of burglary, theft and robbery?
    A. Personal Insurance B. Commercial Insurance C. Industrial Insurance D. Crime Insurance

Answer: Option D
5. IDC stands for ______
    A. Insured Declared Value B. Insurer Declared Value C. Insurance Declared Value D. Interest Declared Value

Answer: Option A
1. What is the Full form of GIVE?
    A. Gross Insured Value Element B. Gross Insurer Value Element C. Gross Insurance Value Element D. Gross Interest Value Element

Answer: Option C
2. If the insurance policy is taken from more the one underwriter where period of insurance, subject matter of insurance and sum insured are same is termed as ________
    A. Double Insurance B. Commercial Insurance C. Industrial Insurance D. Liability Insurance

Answer: Option A
3. The conversion of insurance companies from mutual companies owned by their policyholders into publicly traded stock companies is termed as _____
    A. Affinity sales B. Demutualization C. Annuitization D. Fiduciary

Answer: Option B
4. 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

Answer: Option A
5. 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

Answer: Option A

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