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Insurance Awareness Quiz - Part 7

Published on Friday, August 21, 2015
Insurance Awareness Quiz for today :-

Q1. _______is the process of selecting certain types of risks that have historically produced a profit and rejecting those risks that do not fit the underwriting criteria of the insurer:

a) Underwriting
b) Insurance
c) Credit Lending
d) None of These

Q2. Which of the following terms nearest to the meaning of 'Peril':
a) A potential cause of loss, Accident, Fire and Theft etc.
b) Anything which increases the loss
c) Loss that is a result of fire only
d) None of These

Q3. Which of the following terms nearest to the meaning of 'Hazard':
a) A loss that is a direct consequence of a particular peril
b) A potential cause of loss and theft.
c) Anything that increases the seriousness of a loss 
d) None of These

Q4. If the insurer pays a loss on behalf of the insured, the insurer is entitle to the _____to reduce the claim:
a) Premium
b) Salvage
c) Right of Indemnity 
d) None of These

Q5. Once the insurance has been accepted, it is called:
a) Contract of Guarantee
b) Bound
c) Assurance 
d) None of These

Q6. Today, Medical Examinations and Tests are:
a) Never required for life insurance application
b) Sometimes required for life insurance application
c) Always required for life insurance application
d) None of These

Q7. If an insured person dies, the person entitled to receive the life insurance benefit is:
a) The next of the kin of the insured person 
b) The Policy owner, but only if the policy owner is related to life insured
c) The Policy Owner, regardless of who that person is
d) None of These

Q8. The main purpose of life insurance is to:
a) Meet an insured person's debt and other financial commitments in the event of death 
b) Provide a lump sum if an insured person is diagnosed with a life - threatening illness
c) Pay for urgent medical expenses to save the life of an insured person if that is needed
d) None of These

Q9. Name of the document you receive from the insurer before you get your policy is:
a) Renewal Notice
b) Cover Note
c) Proposal Form
d) None of These

Q10. Which of the following risks is not insurable:
a) Bad Debts
b) Theft
c) Stock going out of date
d) None of These

Q11. Which is the insurance principle that applies when completing the proposal form:
a) Principle of Contribution
b) Insurable Interest
c) Utmost Good Faith
d) None of These

Q12. Which one of the following should you use when deciding on how much to insure your house for:
a) Market value of the house
b) The cost to rebuild the house today
c)  What it cost to build originally
d) None of These

Q13. Which one of the following is a loading for life insurance:
a) Dangerous Occupation
b) Non - Drinker
c) Good Medical History
d) None of These 

Q14. Which one of the following does not allow you to make a profit from insurance:
a) Contribution
b) Indemnity
c) Causa Proxima
d) None of These 

Q15. Another name for the cost of insurance is:
a) Payment
b) Premium
c) Annual Fee
d) None of These

Q16. Name the individual in the insurance company that calculates the premium:
a) Inspector Engaged
b) Actuary
c) Assessor
d) None of These

Q17. Average clause applies when you are under insured and when there is a _____:
a) Write off
b) Net Loss
c) Partial Loss
d) None of These 

Q18. PASS refers to:
a) Privilege Access for Security Scheme
b) Personal Accident Social Security Scheme
c) Previous Annual Security Scheme
d) None of These 

Q19. NAIS stands for:
a) Non Agriculture Insurance Scheme
b) National Agriculture Insurance Scheme
c) Net Acquired Investment Scheme
d) None of These

Q20. LPG (in insurance term) stands for:
a) Liquid Petroleum Gas

b) Liberalized, Privatized, Globalized 
c) Loss Prevention Guarantee 
d) None of These

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