Insurance exam questions and answers:
Ques. ___ is an annual payment made by a life insurance company in consideration form a lump sum received.
(a) claim
(b) annuity
(c) bonus
(d) premium
Ques. Property damaged because of earthquake is _ risk
(a) Risk for general insurance
(b) Non insurable risk
(c) Property risk
(d) None of the above
Ques. General Insurance includes ___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these
Ques. __ is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy
(a) Specific policy
(b) Valued policy
(c) Average policy
(d) None of these
Ques. Distribution of insurance products and insurance policies by banks as corporate agents is known as:
(a) General Insurance
(b) Non-life insurance
(c) Bank assurance
(d) Insurance banking
(e) Deposit insurance
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Ques. When the amount for which a subject matter is insured is more that its actual value. It is called __
(a) Double insurance
(b) Over insurance
(c) Over premium
(d) None of these
Ques. Insurance business is based on _.
(a) Newton’s Law
(c) The Theory of Probability and Law of large numbers
(b) Boyles Law
(d) Parkinsons Law
Ques. A policy for protecting a group of employees in a firm is called __
(a) General Insurance
(b) State life insurance
(c) Group insurance
(d) None of the above
Ques. An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ___
(a) Premium
(b) Annuity
(c) Claim
(d) Policy
Ques. Reinsurance also termed as __
(a) Double insurance
(b) Reinsurance of reinsurance
(c) Insurance of insurance
(d) None of these
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Ques. Insurance is a risk management technique involving __
(a) Risk retention
(b) Risk avoidance
(c) Loss Control
(d) Risk transfer
Ques. The principle of subrogation is applicable to___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these
Ques. ___ is a device of reducing the risk undertaken by an insurance company.
(a) re-insurance
(b) double insurance
(c) risk insurance
(d) none of these
Ques. __ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.
(a) Underwriters
(b) Surveyors
(c) Agents
(d) Banker
Ques. Under __ policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier
(a) whole time life policy
(b) endowment policy
(c) with profit policy
(d) none of these
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Ques. Life insurance is a contract of__
(a) indemnity
(b) guarantee
(c) contribution
(d) none of these
Ques. General insurance is a contract of __
(a) contribution
(b) indemnity
(c) guarantee
(d) none of these
Ques. The consideration in insurance for covering the risk is called ___
(a) Claim
(b) Premium
(c) Annuity
(d) None of these
Ques. Insurance prices are called
(a) Commissions
(b) Allowances
(c) Premiums
(d) Discounts
Ques. Reinsurance is common in __
(a) life insurance
(b) general insurance
(c) none of these
(d) all kind of insurance
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Ques. In the case of marine insurance reserve for unexpired risk is __
(a) 50%
(b) 100%
(c) 40%
(d) none of these
Ques. Valuation balance sheet is prepared by a life insurance company to find out
(a) Profit or loss
(b) financial position
(c) surplus or deficiency
(d) net liability
Ques. ___.is an agreement between two insurance companies whereby one transfers a part of risk to other.
(a) Reinsurance
(b) Sub insurance
(c) Shared Policy
(d) None of these
Ques. The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called
(a) Insured
(b) Assurer
(c) Agent
(d) Underwriter
Ques. In legal sense, Insurance is a
(a) Contract
(b) Activity
(c) Gambling
(d) Publicity
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Ques. __ % of net surplus of a life insurance company is given to policyholders as bonus
(a) 90%
(b) 80%
(c) 95%
(d) none of these
(b)
Ques. Valuation balance sheet is prepared by ___ business.
(a) Fire Insurance
(b) Marine Insurance
(c) Life Insurance
(d) All of these
Ques. Bonus payable on maturity of the policy is termed as
(a) cash bonus
(b) capital bonus
(c) reversionary bonus
(d) none of these
Ques. What is a insurance proposal?
(a) A request for an insurance cover
(b) An offer to enter into a contract
(c) Both (a) and (b)
(d) None of the above
Ques. ___ is the amount payable to the insured on the happening of event.
(a) Premium
(b) Annuity
(c) Claim
(d) Policy
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Ques. Valuation balance sheet is prepared by __
(a) General insurance company
(b) life insurance company
(c) joint stock company
(d) banking company
Ques. Legal expenses in respect of claims of an insurance company is shown in __
(a) P & L a/c
(b) Revenue a/c
(c) Balance sheet
(d) Surplus a/c
Ques. The commission given by insurance companies to others for receiving business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these
Ques. The chance of loss from the unforeseen circumstances in future refers to ___.
(a) Perils
(b) Damage
(c) Risk
(d) Hazards
Ques. Bonus in reduction of premium appears in the revenue a/c as __
(a) an income
(b) an expense
(c) no where
(d) profit
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Ques. The commission earned by insurance companies from others for giving them business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these
Ques. When the same risk and subject matter is insured with more than one insurer is known as
(a) Reinsurance
(b) Double Insurance
(c) Under Insurance
(d) Over Insurance
Ques. The business of insurance is related to protection of __
(a) Status
(b) Economic value of asset
(c) Savings
(d) Profit
Ques. Revenue Account is also called ___
(a) Shareholders’ Account
(b) Policyholders’ Account
(c) Creditors’ Account
(d) None of these
Ques. Under ___, the sum assured is given to the beneficiary only on death of policyholder.
(a) Life Policy
(b) Health Policy
(c) Annuity
(d) None of these
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Ques. ………is a form of agreement between two parties in which one party agrees to make good for loss of another.
(a) Contract
(b) Insurance
(c) Banking
(d) Mutual fund
Ques. The party whose risk is covered in insurance is known as __
(a) Insurer
(b) Insured
(c) Underwriter
(d) None of these
Ques. An escape from disability or death in a plain crash by refusing to fly is called __
(a) Risk shifting
(b) Risk avoidance
(c) Risk hedging
(d) None of these
Ques. The agreement of insurance is called as ___
(a) Policy
(b) Premium
(c) Annuity
(d) None of these
Ques. __ is the party who undertakes the risk in insurance.
(a) Insurer
(b) Assurer
(c) Underwriter
(d) All of these
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Ques. __ is an example for personal risk
(a) Business loss
(b) Fire occurred in business premises
(c) Risk of premature death
(d) None of the above