1. What is the full form of CPA in insurance?

A. Common Person Annuity B. Compulsory Personal Accident C. Covering Projected Aspect D. Closed Policy Assurance

Answer: Option B
Explanation: Individuals who drive two- and four-wheelers will now have a mandatory personal accident insurance of ₹15 lakh.
2. Which of the following terms means to reduce risk and the liability burden of the initial reinsurer by spreading out the risk to other reinsurance companies.

A. Retrocession B. Reinsurance C. Retention D. Retrospection

Answer: Option A
3. A __________ rating plan can be defined as a rating plan in which the final premium is determined based on the insured’s actual loss experience during the policy term

A. Retrocession B. Reinsurance C. Retention D. Retrospective

Answer: Option D
4. Comprehensive insurance coverage is related with __________

A. health B. car C. life D. house

Answer: Option B
Explanation: Comprehensive insurance is a type of automobile insurance that covers damage to your car from causes other than a collision such as hail, storms, falling tree limbs or other acts of nature.
5. A type of life insurance policy designed to pay off a borrower’s debt if the borrower dies is known as_________

A. Debt Policy B. Credit Life C. Support Plan D. Death Benefit

Answer: Option B

1. Inadequate insurance coverage held by a policy holder where the limits may not be high enough to cover the full expenses of a claim is known as__________

A. Low-insurance B. Under-insurance C. Doubtful-insurance D. Cheap-insurance

Answer: Option B
Explanation: Underinsurance refers to inadequate insurance coverage held by a policyholder. In the event of a claim, underinsurance may result in economic losses to the policyholder, since the claim would exceed the maximum amount that can be paid out by the insurance policy.
2.____________ is where an insurer deposits premiums from policies it underwrites and from which it funds day-to-day operations of the business.

A. General Account B. Insurance Account C. Savings Account D. Business Account

Answer: Option A
3. Which of these best defines the “maximum you have to pay for covered services in a plan year”?

A. actual cash value B. up-to-date maximum C. Gross premiums were written D. out-of-pocket maximum

Answer: Option D
Explanation: Your out-of-pocket maximum is the most you have to pay each year toward your medical services or prescription drugs before your insurance pays for all your care. This amount does not include what you pay in premiums.
4. What does EOB stands for in insurance?

A. Extra offer Benefits B. Existence of Beneficiary C. Explanation of Benefits D. Emergence of Bancassurance

Answer: Option C
Explanation: An explanation of benefits (EOB) is a statement sent by a health insurance company to covered individuals explaining what medical treatments and/or services were paid for on their behalf.
5. The period during which claim is not admitted in health insurance is known as________

A. Waiting Period B. Turning Period C. Halt Period D. Grace Period

Answer: Option A
Explanation: The concept of waiting period in a health insurance policy is defined as the period of time specified which must pass before some or all of your health care coverage can begin.

1. An insurance policy issued at a higher premium rate than standard because of less than average health conditions or undesirable lifestyles is known as____________.

A. Loss policy B. Rated policy C. With-Profit policy D. Systematic policy

Answer: Option B
2. The duration of the period during which an insurer has the right to investigate the policy and decide upon the claim is called _______

A. Waiting period B. Finite period C. Recoupment D. Contestable period

Answer: Option D
Explanation: The life insurance contestability period is a short window in which insurance companies can investigate and deny claims. The period is two years in most states and one year in others. It begins as soon as a policy goes into effect.
3. Which class of policyholders pays generally higher insurance premiums

A. Female B. Male C. Children D. There is no such distribution

Answer: Option B
4. Suppose an individual purchase mortgage life insurance and is paying down the principal, what will happen to his coverage?

A. Decrease B. No change C. Increase D. Cannot be determined

Answer: Option A
Explanation: The coverage decreases at the same rate as the party pay off the principal of the mortgage
5. HMOs are a type of health insurance plan. Here HMO stands for_______

A. Health Management Obligation B. Health Medicare Office C. Health Maintenance Organization D. Health Monitoring Ombudsman

Answer: Option C