Deck 6: Insurance Policy Types and Terms

Question 1

Which one of the following statement is correct?

A)Group insurance covers a large number of persons in the policy
B)Group insurance is relatively cheaper than individual insurances
C)Both the statements above are correct
D)Both statements above are wrong

Answer 1

Both the statements above are correct

Question 2

Which one of the following statement is correct?

A)A master policy is issued in a group insurance policy.
B)Each member in a group policy pays the premium directly to the insurer
C)Both statements above are correct
D)Both the statements above are wrong

Answer 2

Each member in a group policy pays the premium directly to the insurer

Question 3

Which one of the following is true for a group policy?

A)Copies of the master policy are given to all members by the insurer.
B)The group has to be formed exclusively for the purpose of insurance
C)Entry into the scheme and exit out of it, is at the option of the members.
D)The amount of the cover is determined by the scheme

Answer 3

The amount of the cover is determined by the scheme

Question 4

State which one of the following statement is correct?

A)A trade union can take out a group insurance policy
B)The cover for an employee can be equal to his age multiplied by a fixed number
C)Both the statements above are correct
D)Both the statements above are wrong

Question 5

One of the fundamental principles of life insurance is ______

A)there is an insurer and policy holder
B)utmost good faith
C)insurable interest
D)Both (b) and (c

Question 6

Facts which need to be disclosed is ____

A)facts of common knowledge
B)facts which lessen the risks
C)facts which every one is supposed to know in general
D)family history

Question 7

_______ policy is which covers the risk during all situations.

A)Floating .
B)Wagering.
C)Valu
D)Mixed

Question 8

The proportion of the risk which the direct insurer holds on his own account refers to ___________

A)Line.
B)Retention.
C)Retrocession.
D)Ceding insurer.

Question 9

An international code of York Antwerp Rules applied to__________

A)marine losses.
B)losses of fire.
C)losses of crop.
D)losses of human life.

Question 10

___________ policy is granted only in respect of stock of inventories of the insured under fire insurance business.

A)Floating.
B)Declarations.
C)Replacement.
D)Valued.

Question 11

Insurance business is based on ___________

A)Parkinson's law.
B)Newton's law.
C)The theory of probability and law of large numbers.
D)Boyle's law.