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Insurance Awareness Quiz 21

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Insurance Awareness Quiz 21

shape Introduction

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 the 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 Quiz 21 includes Questions and Answers 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 Quiz 21 is extremely important for aspirants of Insurance related recruitment's such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

Q1. _______is the process of selecting certain types of risks that have historically produced a profit and rejecting those risks that do not fit the underwriting criteria of the insurer:
    A. Underwriting B. Insurance C. Credit Lending D. None of These

Answer: Option A
Q2. Which of the following terms nearest to the meaning of 'Peril':
    A. A potential cause of loss, Accident, Fire and Theft etc. B. Anything which increases the loss C. Loss that is a result of fire only D. None of These

Answer: Option A
Q3. Which of the following terms nearest to the meaning of 'Hazard':
    A. A loss that is a direct consequence of a particular peril B. A potential cause of loss and theft. C. Anything that increases the seriousness of a loss D. None of These

Answer: Option C
Q4. If the insurer pays a loss on behalf of the insured, the insurer is entitle to the _____to reduce the claim:
    A. Premium B. Salvage C. Right of Indemnity D. None of These

Answer: Option B
Q5. Once the insurance has been accepted, it is called:
    A. Contract of Guarantee B. Bound C. Assurance D. None of These

Answer: Option B
Q1. Today, Medical Examinations and Tests are:
    A. Never required for life insurance application B. Sometimes required for life insurance application C. Always required for life insurance application D. None of These

Answer: Option B
Q2. If an insured person dies, the person entitled to receive the life insurance benefit is:
    A. The next of the kin of the insured person B. The Policy owner, but only if the policy owner is related to life insured C. The Policy Owner, regardless of who that person is D. None of These

Answer: Option C
Q3. The main purpose of life insurance is to:
    A. Meet an insured person's debt and other financial commitments in the event of death B. Provide a lump sum if an insured person is diagnosed with a life - threatening illness C. Pay for urgent medical expenses to save the life of an insured person if that is needed D. None of These

Answer: Option A
Q4. Name of the document you receive from the insurer before you get your policy is:
    A. Renewal Notice B. Cover Note C. Proposal Form D. None of These

Answer: Option B
Q5. Which of the following risks is not insurable:
    A. Bad Debts B. Theft C. Stock going out of date D. None of These

Answer: Option C
Q1. Which is the insurance principle that applies when completing the proposal form:
    A. Principle of Contribution B. Insurable Interest C. Utmost Good Faith D. None of These

Answer: Option C
Q2. Which one of the following should you use when deciding on how much to insure your house for:
    A. Market value of the house B. The cost to rebuild the house today C. What it cost to build originally D. None of These

Answer: Option B
Q3. Which one of the following is a loading for life insurance:
    A. Dangerous Occupation B. Non - Drinker C. Good Medical History D. None of These

Answer: Option A
Q4. Which one of the following does not allow you to make a profit from insurance:
    A. Contribution B. Indemnity C. Causa Proxima D. None of These

Answer: Option B
Q5. Another name for the cost of insurance is:
    A. Payment B. Premium C. Annual Fee D. None of These

Answer: Option B

Insurance Awareness - Related Information
Insurance Awareness Practice Set 4
Insurance Awareness Practice Set 5
Insurance Awareness Practice Set 6
Book for Insurance Awareness
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