Deck 1: Insurance: Principles, Policies, and Practices

Question 1

Insurance is a cooperative form of distributing a certain__________over a group of persons who are exposed to it.

A)Uncertainty
B)Risk
C)Peril
D)Hazards

Answer 1

Risk

Question 2

In legal sense, Insurance is a

A)Contract
B)Activity
C)Gambling
D)Publicity

Answer 2

Contract

Question 3

Master policy is issued for ___________.

A)Group Insurance
B)Term Insurance
C)Marine Insurance
D)Individual Policy

Answer 3

Group Insurance

Question 4

________ can be done by mere endorsement on the policy or by a separate duly stamped deed.

A)Assignment
B)Nomination
C)Renewal
D)Revival

Question 5

The document which contains the terms and conditions of the life insurance contract is termed as the

A)Agreement
B)Life Insurance Policy
C)Cover Note
D)Proposal Form

Question 6

What is a 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

Question 7

Which of these persons will not be given a license to work as an insurance agent?

A)A person with criminal record
B)A corporate insurance executive.
C)An employee of an insurance company
D)All the three mentioned here.

Question 8

A memorandum added to a policy embodying some alterations to the terms of policy is known as

A)Surrender
B)Endorsement
C)Nomination
D)Breach of Contract

Question 9

Which of the following is an evidence of insurance contract?

A)Policy Document
B)payment of premium.
C)cover note
D)acceptance of proposal

Question 10

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

Question 11

Insurance prices are called

A)Commissions
B)Allowances
C)Premiums
D)Discounts

Question 12

______________ 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

Question 13

The agents who are selling policies of several life and non life insurance companies at a time are known as

A)Brokers
B)Surveyors
C)Underwriters
D)banks

Question 14

_____________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy.

A)Surveyors
B)Loss Assessors
C)Both a and b
D)Agents

Question 15

Insurance contract is sort of contract which is approved by

A)The Indian Contract Act
B)Indian Factory Act
C)Indian Companies Act
D)The Indian Finance Act