Insurance Questions and Answers
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.
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.
as soon as the policy holder dies
up to the date of death of the policy holder
when the insurer decides to pay the policyholder
as soon as the insured surrenders the policy
Correct answer is B
What is a Whole Life policy? A Whole Life policy will pay out a lump sum benefit when the life assured dies. This type of Whole of Life policy provides cover for the rest of your life.
Whole-of-life policies payout a lump sum when you die, whenever that is. The size of the payout depends on your policy. With some policies, you can stop paying once you reach a certain age, but with others you have to make monthly or annual payments right up until you die.
A primary function of insurance is the?
creation of a common pool
provision of security
stimulation of business enterprises
loss prevention and control
Correct answer is D
The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer the loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings.
The principle of utmost good faith allows the insured
to accept all risks proposed for insurance
the right to sue the insurer
to make claim from more than one insurer
to make a full disclosure of the proposed risk
Correct answer is D
Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance.
It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.
The reason for issuing certificate of motor insurance is that, it is
required by law for all motor policy holders
a general practice world wide
a support to policy document
a replacement for the policy
Correct answer is A
Of all the documentation issued by motor insurers, the Certificate of Motor Insurance stands alone as the most important document. Its primary purpose is to provide evidence that at least the minimum level of insurance cover required by the Road Traffic Act is in place on a given vehicle.
information required in a proposal form for employer's liability is insurance include
age and health condition of the employees
the number of employees and the annual wage roll of the proposer
nature and description of goods to be carried or dispatched
the extent to which the vehicle of the proposer will be put to private use
Correct answer is B
No explanation has been provided for this answer.