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 Quiz 11 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 11 is extremely important for aspirants of Insurance related recruitment’s such as UIIC, OICL, LIC, HFL, AAO, etc.
Q1
A period of up to one month during which the purchaser of an annuity can cancel the contract without penalty is known as ______
- A. Lock Period
B. Demutualization
C. Annuitization
D. Free Lock Period
A period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges is termed as Free Lock Period.
Q2
Which of the following insurance is mainly used for leased cars?
- A. Double Insurance
B. Commercial Insurance
C. Industrial Insurance
D. Gap Insurance
GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks.
Q3
A legal concept that holds gun manufacturers liable for the cost of injuries caused by guns. Several cities have filed lawsuits based on this concept is termed as ______
- A. Gun Liability
B. Commercial Insurance
C. Industrial Insurance
D. Gap Insurance
Gun liability insurance as a means to offset the economic costs of gun violence.
Q4
This broad type of coverage was developed for shipments that do not involve ocean transport is known as ______
- A. Double Insurance
B. Inflation Guard Clause
C. Inland Marine Insurance
D. Gap Insurance
Insurance provided to cover the loss to movable or moving property that is a subset of ocean marine insurance.
Q5
An organization such as a bank or insurance company that buys and sells large quantities of securities is called __________
- A. Major Investor
B. Minor Investor
C. Institutional Investor
D. Giant
Institutional investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, investment advisors, endowments, and mutual funds.