Insurance questions and answers

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.

106.

Marine cargo insurance indemnifies the insured for a loss of?

A.

vessel

B.

container

C.

consignment

D.

freight

Correct answer is C

marine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways. shippers can request cargo insurance to protect their goods from loss, damage, or theft while in transit.

consignment is a batch of goods destined for or delivered to someone.

108.

Non-indemnity insurance policies are referred to as

A.

benefit policies

B.

profit policies

C.

non-profit policies

D.

non-benefit policies

Correct answer is A

In non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured. Life insurance contracts, personal accident and sickness insurance are examples of non-indemnity insurance.

A benefit policy is the advantage, privilege, right, or financial reimbursement (such as that made under an insurance policy, medical plan, or pension plan).

for example life insurance is non-indemnity insurance.

109.

A risk considered as sub standard in future can be dealt with by insurers through

(i) premium loading (ii) double insurance (iii) excess imposition

A.

I and II

B.

I and III

C.

II and III

D.

I,II and III

Correct answer is B

premium loading; The amount an insurer needs to cover its expenses and generate profit.

 Excess imposition - Your insurer may impose a non-standard excess, because of the number of claims you have had, or other factors which may mean you are more likely to make a claim.

110.

one of the steps taken by an insurer in claim settlement is to?

A.

investigate the loss

B.

assess the risk

C.

present a claim

D.

appoint loss assessor

Correct answer is B

Once you are injured in an accident, receiving compensation is more than just a simply filing a claim with the guilty party’s insurance.

Most of the time, there will be negotiating involved with the insurance company along with an extensive investigation of your claims. After all of this, insurance companies may still low-ball your claim, and knowing how to proceed can be very important.