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.
insurable interest
utmost good faith
indemnity
contribution
Correct answer is C
Indemnity is a comprehensive form of insurance compensation for damages or loss and, in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to compensate the loss occurred to the other party (indemnity holder) due to the act of the indemnitor or any other party.
The expert who uses statistics to develop the premium payable in a life contract is an
adjuster
actuary
assesor
agent
Correct answer is B
An actuary is a business professional who deals with the measurement and management of risk and uncertainty.
The factor which increases the possibility of loss that emanates from the insured attitude is?
physical hazard
moral hazard
uninsured peril
excepted peril
Correct answer is B
moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone else bears the cost of those risks.
which of the following factors is not considered when calculating premium in life assurance policy
expense
mortality
interest
losses
Correct answer is A
There are several factors used to determine your life insurance premiums, including the following:
Life policies can be used as a collateral for loan when the policy has?
ceased to be life
been temporary suspended
acquired surrender value
been made paid-up
Correct answer is C
A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay, the lender can cash in the life insurance policy and recover what is owed.
'Surrender Value': It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity.