Test and improve on your knowledge of insurance with these Insurance questions and answers. This aptitude test assesses your understanding of the fundamental concepts of insurance.
A clause that prevents the insurer from paying under a policy if the insured killed himself is?
exceptional clause
revival clause
accidental clause
suicide clause
Correct answer is D
The “suicide clause.” Usually, this clause states that no death benefit will be paid if the insured commits suicide within two years of taking out a policy. Whenever an insured person replaces an existing life insurance policy with a new one, the time clock for the suicide clause is set back to zero and starts over again.
A professional charged with the responsibility of assessing loss in insurance
underwriter
adjuster
actuary
broker
Correct answer is B
A loss adjuster is an insurance agent who assesses the amount of compensation that should be paid after a person has claimed on their insurance policy.
A risk is classified uninsurable when the
extent of the loss can be calculated
risk will occur no matter the precaution taken
risk may not happen
insurance company cannot pay
Correct answer is B
Uninsurable risk is a condition that poses unknowable or unacceptable risk of loss or a situation in which the insurance would be against the law. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss.
In many cases catastrophes, such as earthquakes, have become uninsurable risks. a situation for which an insurance company will not provide insurance, because, for example, it is certain to happen: A person suffering from a terminal illness is considered to be an uninsurable risk.
Which of the following conditions must be met before an insurer is under obligation to pay claim
loss notification
premium payment
completion of proposal form
submission of policy paper to the insurer
Correct answer is B
In insurance, the insurance policy is a contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language. The insurer is only obligated to pay for claims if the insured keeps their own part of the bargain by paying the premium.
burglary policy
public liability policy
goods-in-transit policy
money policy
Correct answer is D
Money insurance policy provides cover for loss of money in transit between the insured’s premises, bank and other specified places occasioned by robbery, theft or any other fortuitous cause. It also provides cover for loss of money in the business premises, safe or vault, etc.
The duty of a loss assessor is to ensure
adequate compensation to the insured
payment of premium to the insurer
that risk manager identifies the risk properly
that insurance broker collects commission
Correct answer is A
A Loss Assessor is appointed by the policyholder when they need to submit a substantial or complex claim.
Independent entity hired and paid by the insured (policy holder) to negotiate an insurance claim with the insurer (insurance company). The loss assessor receives a fee that is usually a percentage of the claim amount received by the insured.
one of the difference between contract of life assurance and non life insurance is?
non-life requires renewal while life does not
life requires renewal while non-life does not
life is subject to indemnity while non life is not
non-life is subject to compensation while life is not
Correct answer is D
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.
Non- life insurance refers to the insurance of goods and properties. ... Non- life insurance is taken as a means of providing financial protection for building, machinery, equipment, furniture, and vehicle and merchandise items against the risk of fire, earthquake, accident and theft.
A motor policy that provides cover for the loss or damage of a vehicle used for farming purposes is
private car policy
agricultural policy
special type policy
motor trades policy
Correct answer is C
No explanation has been provided for this answer.
To insure any property, the insured must have
insurable interest
goodwill
premium
valuable consideration
Correct answer is A
Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc.
A ''no claim discount'' will be granted under
fidelity guarantee insurance
marine insurance
life insurance
motor insurance
Correct answer is D
No-claim bonus (NCB) is a discount in premium offered by insurance companies if a vehicle owner has not made a single claim during the term of the motor insurance policy.
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