Insurance Awareness Quiz: We have created quiz questions on Insurance Awareness which are most important for insurance exams. These questions and answers will guide you in all insurance exams like LIC (AAO/ADO), NIACL assistant and AO, UIIC, IRDA and other Bank PO exams and all competitive exams. So attempt these multiple choice questions now based on the exam pattern syllabus.
- BCAR is a rating agency that focuses on the insurance industry. What does R stands for in BCAR?
A) Ratings
B) Ratio
C) Relativity
D) Rate
- __________ is a basic measure of how financially sound an insurer is and its ability to pay claims.
A) Covered Ratio
B) Incurred Claim Ratio
C) Preference Ratio
D) Solvency Ratio
- Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss. Such risks are known as___________
A) Horizon Risk
B) Uninsurable Risk
C) Concentration Risk
D) Longevity Risk
- The tax imposed by each state on gross premium written by insurers to risks located in that state is known as___________
A) Premium Tax
B) Insurance Tax
C) Policy Tax
D) Indirect Tax
- The Annuity that pays periodic income over the life of an annuitant, and stops only with his or her death is called:
A) Time annuity
B) Fixed annuity
C) Pure Life annuity
D) Subsequent annuity
- What is the full form of CPA in insurance
A) Common Person Annuity
B) Compulsory Personal Accident
C) Covering Projected Aspect
D) Closed Policy Assurance
- Which of the following terms means to reduce risk and the liability burden of the initial reinsurer by spreading out the risk to other reinsurance companies.
A) Retrocession
B) Reinsurance
C) Retention
D) Retrospection
- A __________ rating plan can be defined as a rating plan in which the final premium is determined based on the insured’s actual loss experience during the policy term
A) Retrocession
B) Reinsurance
C) Retention
D) Retrospective
- Comprehensive insurance coverage is related with __________
A) health
B) car
C) life
D) house
- A type of life insurance policy designed to pay off a borrower’s debt if the borrower dies is known as_________
A) Debt Policy
B) Credit Life
C) Support Plan
D) Death Benefit