Deck 3: Insurance Terms and Concepts

Question 1

Find out which of the given statements is incorrect

A)Accounts department has to monitor cash flow from subordinate offices
B)Marketing department has to monitor business inflow
C)Marketing department has to monitor performance of agents
D)Actuarial department is responsible for settling death claims

Answer 1

Actuarial department is responsible for settling death claims

Question 2

Which of the following terms is dissimilar to the other four in the context of death claims in life insurance?

A)Early claims
B)Non-early claims
C)Foreclosure
D)Claimant's statement

Answer 2

Foreclosure

Question 3

As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of:

A)Age and sex
B)Age and number of dependents
C)Income and size of family
D)Age and income

Answer 3

Age and income

Question 4

Time Policies relate to:

A)Fire insurance
B)Hull insurance
C)Personal Accident insurance
D)Workmen's Compensation insurance

Question 5

Which clause specifies the perils insured in a scheduled form of policy?

A)Preamble Clause
B)Recital Clause
C)Operative Clause
D)Consideration Clause

Question 6

Which of the following types of insurances is mandatory?

A)Motor Own Damage
B)Motor Third Party Legal Liability
C)Personal Accident Insurance
D)Product Liability

Question 7

The minimum paid up capital required for a General Insurance Company is Rs. ____

A)25 crores
B)50 crores
C)75 crores
D)100 crores

Question 8

In 'Hit and Run' cases, claims are settled from _______

A)Solatium Fund
B)IRDA's contingency Fund
C)Insuring Company's reserves
D)Motor Third Party Pool

Question 9

Select the expanded form of FPA as used in insurance

A)Freight Payable Assured
B)Free of Particular Average
C)Fire Perils Added
D)Fixed Peripherals Added

Question 10

Select the expanded form of ALOP used in insurance

A)Advance Loss of Profits insurance
B)Agreed Loss of Profits insurance
C)Additional Loss of Profits insurance
D)Associated Loss of Profits insurance

Question 11

Insurance cannot prevent the occurrence of risk but it provides for the………

A)losses of risk
B)occurrence of risk
C)chance of risk
D)none of these

Question 12

The document which embodies the contract in insurance is called…………

A)security
B)policy
C)certificate
D)none of these

Question 13

……… principle in insurance means maximum truth.

A)subrogation
B)causa proxima
C)insurable interest
D)uberrima fides

Question 14

Which of the following terms matches closest with 'Composite Policy'?

A)Shopkeepers' insurance
B)Janatha Personal Accident insurance
C)Critical Care Health insurance
D)Marine Cargo insurance

Question 15

Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like:

A)Surveyors, agents, advocates
B)Commerce, transport,
C)Consumer fora, industry, intermediaries,
D)Research bodies, organisations engaged in safety and loss prevention

Question 16

Which of the following covers is dissimilar to the other four options?

A)Loss of Passport
B)Loss of Profits
C)Loss of checked in baggage
D)Delay in receiving checked in baggage

Question 17

Which of the following types of insurances is dissimilar to the other four options?

A)Builders' Risks insurance
B)Hut insurance
C)Crop insurance
D)Livestock insurance

Question 18

Which of the following terms matches closest with 'Asbestosis'?

A)Products
B)Pension
C)Rough Weather
D)Workmen's Compensation

Question 19

Regarding 'Exclusions' find out the incorrect statement.

A)Exclusions are indicated in the policy
B)Exclusions are perils or circumstances not covered
C)Exclusions limit the coverage under the policy
D)Exclusions do not deal with risk coverage

Question 20

Which of the following statements is incorrect in respect of brokers?

A)Brokers require to undergo training before being licensed
B)Brokers are appointed by insured to take care of their interests
C)Brokers have to pass examinations before being licensed
D)Brokers should be registered companies or firms

Question 21

Which of the following terms is dissimilar to the other four options?

A)Jettison
B)Hit and Run
C)Sue and Labour
D)Salvage

Question 22

Which of the following terms is dissimilar to the other four options?

A)Post-hospitalisation expenses
B)Expenses on treatment of pre-existing diseases
C)Reinstatement value
D)Funeral expenses

Question 23

Principle of utmost good faith is also known as ………..

A)subrogation
B)causa proxima
C)insurable interest
D)uberrima fides

Question 24

…………….principle means that the insured is not entitled to make a profit on his loss.

A)subrogation
B)causa proxima
C)indemnity
D)uberrima fides

Question 25

The purpose of ………. Are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.

A)subrogation
B)causa proxima
C)indemnity
D)uberrima fides