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Insurance Awareness Practice Set 4

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Insurance Awareness Practice Set 4

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 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 4 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 4 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. 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: Option D
2. 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: Option A
3. In a life insurance contract, the stated sum of money to be paid to the beneficiary upon the insured’s death is termed as _______
    A. Face Amount B. Expense Ratio C. Extended Coverage D. Extra Expense Insurance

Answer: Option A
4. A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as _______
    A. Hospital Insurance B. Hull Insurance C. Hacker Insurance D. Identity theft Insurance

Answer: Option C
5. A seller’s market in which insurance is expensive and in short supply is termed as _______
    A. Hard Market B. Soft Market C. Alternative Market D. None of the Above

Answer: Option C
1. _________ is the liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.
    A. Contingent Beneficiary B. Contingent Liability C. Contractual Liability D. Convertible

Answer: Option B
2. 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: Option A
3. Term insurance that covers a specific period of time and which cannot be renewed is called ________
    A. Straight Life Annuity B. Straight term C. Structured Settlement D. Subjective Risk

Answer: Option B
4. A single insurance policy that combines several coverages previously sold separately is termed as __________
    A. Package Policy B. Multiple Policy C. Combined Policy D. None of the Above

Answer: Option A
5. The portion of an insurance premium that reflects the basic costs of loss, not including over-head or profit is called ______
    A. Mixed Premium B. Pure Premium C. Impure Premium D. None of the Above

Answer: Option B
1. 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: Option A
2. A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called __________
    A. Hospital Insurance B. Hull Insurance C. Group Insurance D. Identity theft Insurance

Answer: Option C
3. A whole life policy in which premiums are payable as long as the insured lives is called ________
    A. Straight Life Annuity B. Subrogation C. Straight Life D. Subjective Risk

Answer: Option C
4. A standing agreement between insurers and re-insurers. Under a treaty each party automatically accepts specific percentages of the insurer’s business is termed as _______
    A. Catastrophe Reinsurance B. Excess of Loss Reinsurance C. Facultative Reinsurance D. Treaty Reinsurance

Answer: Option D
5. A policy that cannot be cancelled by the insurer prior to a certain age is called ________
    A. No-Fault B. Negligence C. Non-cancellable D. None of the Above

Answer: Option C

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