1. The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age is called _____

A. Adjuster B. Appointee C. Service Provider D. Aggregate

2. __________ is an actual ownership interest in a specific asset or group of assets.

A. Fund B. cover C. Equity D. Liquidity

3. Which is used to determine the actual cash value of property at time of loss?

A. appreciation B. Depreciation C. Realization D. Recognition

4. _________ is a type of reinsurance in which the re-insurer can accept or reject any risk presented by an insurance company seeking reinsurance.

A. Treaty Insurance B. Health Insurance C. Facultative Insurance D. None of the Above

5. A policy which has terminated and is no longer in force due to non-payment of the premium due is called ______

A. key man policy B. Lapsed Policy C. Indemnity D. Fiduciary

Answers and Explanation
1. Answer – Option B Explanation – Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’.
2. Answer – Option C Explanation – An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits.
3. Answer – Option B Explanation – Depreciation is a measure of age and condition, with a given lifetime. It may be referred to as a value (in dollars), or a percentage, or a number of years.
4. Answer – Option C Explanation – Facultative insurance is reinsurance for a single risk or a defined package of risks.
5. Answer – Option B Explanation – A policy that has been cancelled due to lack of payment of the premiums.

1. _______ plans provide for a “pension” or a mix of a lump sum amount and a pension to be paid to the policyholder or his spouse.

A. Fund B. cover C. Annuity D. Liquidity

2. The person in whose name the insurance policy is made is referred to as __________

A. Insured or Policyholder B. Nominee or Beneficiary C. Insurer D. Agent

3. Which of the following is an optional feature that can be added to a policy?

A. Rider B. Annuity C. Sum Assured D. Maturity Value

4. If you stop paying the premium, but do not withdraw the money from your policy, then the policy is referred to as ________

A. Surrender Value B. Paid-up value C. Sum Assured D. Maturity Value

5. Insurance coverage for more than one item of property at a single location, or two or more items of property in different locations is known as _________

A. Blanket Coverage B. Blanket Value C. Blanket Assign D. Blanket Bond

Answers and Explanation
1. Answer – Option C Explanation – A contract sold by an insurance company designed to provide payments to the holder at specified intervals.
2. Answer – Option A Explanation – A person or group in whose name an insurance policy is held is known as Insured or Policyholder.
3. Answer – Option A Explanation – A rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost.
4. Answer – Option B Explanation – Paidup value is the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums.
5. Answer – Option A Explanation – Blanket coverage refers to a category of business insurance policies covering multiple properties that are similar in nature but not at the same location.

1. The amount which is payable by you during the premium paying term at regular intervals for a limited period as specified in the plan schedule is called________

A. Fund B. cover C. Limited premium D. Liquidity

2. __________is the period between the date of subscription to an insurance-cum-pension policy and the time at which the first instalment of pension is received.

A. appreciation B. Depreciation C. Deferment D. Recognition

3. The one who will get the insured amount if you die, is referred to as __________

A. Insured or Policyholder B. Nominee or Beneficiary C. Insurer D. Agent

4. __________ in insurance, is the splitting or spreading of risk among multiple parties.

A. Reinsurance B. Coinsurance C. Blanket Assign D. Blanket Bond

5. The ratio of losses incurred to premiums earned actually experienced in a given line of insurance activity in a previous time period is called ______

A. Actual Loss Ratio B. Acts Of God C. Actuarial Cost Assumptions D. Combined Ratio

Answers and Explanation
1. Answer – Option C Explanation – A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time.
2. Answer – Option C Explanation – Period between the subscription date of an insurance-cum-pension policy and the time at which the first instalment of pension is received is called as deferment period.
3. Answer – Option B Explanation – A person who receives the benefit in case of death of the insured person is a nominee.
4. Answer – Option B Explanation – splitting or spreading of risk among multiple parties.
5. Answer – Option A Explanation – Loss Ratio in insurance is the ratio of total amount paid out in claims plus adjustment expenses divided by the total earned premiums.