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Insurance Awareness Quiz 31

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Insurance Awareness Quiz 31

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 31 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 31 is extremely important for aspirants of Insurance related recruitment's such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. When there are several policies on the same subject matter, each insurer pays only a proportionate of the loss. This concept is known as?
    A. Proportion B. Yield C. Insurance D. Contribution

Answer: Option D
2. Amit has given a loan of Rs 10,000 to Sumit. At the end of 5 years, the outstanding balance of loan due is Rs 1,000. As per the principle of insurable interest, how much is the insurable interest of Amit on the life of Sumit?
    A. Rs 10,000 B. Rs 9,000 C. Rs 1,000 D. Amit cannot take insurance on Sumit’s life as the two doesn't have any legal relationship

Answer: Option C
Explanation: on the amount of outstanding loan
3. The principle of _________ ensures that insurance cannot be used to make profit.
    A. insurable interest B. indemnity C. Subrogation D. Contribution

Answer: Option B
4. A house was burnt and weakened due to fire. After some days a storm brought down the house completely. In this case what will be considered the proximate cause?
    A. Strom B. Fire C. Both of these D. None of these

Answer: Option A
Explanation: The event that occurred last
5. What is the process for applying for insurance called?
    A. Nomination B. Proposal C. Endorsement D. Application

Answer: Option B
1. The process when a policyholder transfers theirs right under a policy to another person is known as?
    A. Assessment B. Swap C. Switch D. Assignment

Answer: Option D
2. In insurance, ___________ is an increase in the premium if there is a claim in the previous year.
    A. Malus B. Bonus C. Shift D. Upgrade

Answer: Option A
Explanation: Malus is an increase in the premium if there is a claim in the previous year. Bonus-malus systems are very common in vehicle insurance.
3. ________ is the first amount payable by you in the event of a loss, and is the uninsured portion of your loss.
    A. Over B. Increase C. Value D. Excess

Answer: Option D
Explanation: An excess is the first amount payable by you in the event of a loss and is the uninsured portion of your loss, so when you submit a claim you’ll have to pay an excess.
4. The person who assesses the risk of a proposal is known as _______.
    A. Agent B. Underwriter C. Actuary D. Assessor

Answer: Option B
5. Amendments in a standard policy condition is known as __________.
    A. Endorsement B. Valuation C. Excess D. Exclusions

Answer: Option A
1. The passing on of risk from the insurer to a re-insurer is known as?
    A. treaty B. retro cessation C. fading D. ceding

Answer: Option D
Explanation: ceding is the term used when the primary insurer passes the risk on to a reinsurer
2. Where would an insurance company find the guidelines on investing funds?
    A. The Insurance Act B. Company Guidelines C. IRDA Regulations D. There are no such guidelines.

Answer: Option A
3. In which of the following ways, does insurance manages risk?
    A. Retention B. Reduction C. Transfer D. Prevention

Answer: Option C
4. The agreement between insurers and reinsurer is known as?
    A. Sharing B. Treaties C. Quota Sharing D. Pool Arrangement

Answer: Option B
5. Which of the following is outside the purview of IRDA?
    A. ECGC B. Postal Life Insurance C. LIC D. GIC Re

Answer: Option B
Explanation: Postal Life Insurance is run by Govt of India. It is outside the purview of IRDA and Insurance Act

Insurance Awareness - Related Information
Insurance Awareness Practice Set 15
Insurance Awareness Practice Set 16
Insurance Awareness Practice Set 17
Book for Insurance Awareness
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