Insurance Awareness Quiz – Set 26

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. The topic of this quiz is Insurance Ombudsman.

1. ___________ is financial protection for a driver who, while operating a vehicle, harms someone else or their property.
   A) Renters’ insurance
   B) Automobile liability insurance
   C) Travel insurance
   D) Vehicle insurance
   
   View answer

   Option B
   Explanation: Automobile liability insurance only covers injuries or damages to third parties and their property, not to the driver or the driver’s property.
2.  The condition where life insurance policy is used as collateral for a loan is termed as_______
   A) Collateral Assignment
   B) Blanket Value
   C) Maturity Claim
   D) Contractual Designation
   
   View answer

   Option A
   
3. ____________is the maximum amount an insurer will pay for covered losses during a policy period.
   A) Extended Coverage
   B) Conditional Receipt
   C) Affirmative Warranty
   D) Aggregate Limits
   
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   Option D
   Explanation: The annual aggregate limit is the total amount an insurer will pay in a given single year.
4. What is meant by Surrender value?
   A) The amount of money an insurance policy guarantees to pay up before any bonuses are added
   B) Reduced amount of sum assured paid by the insurance company, in case the policyholder discontinues payment of premiums
   C) The sum of money an insurance company pays to a policyholder when he want to discontinue the policy and take whatever money is due
   D) Amount paid by the insurer to the insured at the time of maturity.
   
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   Option C
   
5. ________ are the additional covers offered to the insured with the main policy so that the insured can get additional benefits under the single plan.
   A) Riders
   B) Revival
   C) Settlement
   D) Add-On
   
   View answer

   Option A
   
6. A person who buys an insurance policy is known as __________
   A) Insurer
   B) Insured
   C) Nominee
   D) Beneficiary
   
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   Option B
   
7. The amount of money charged by the insurance company from the insured for the policy is called the _____________.
   A) Annuity
   B) Fund
   C) Liability
   D) Premium
   
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   Option D
   
8. Who is an appointee in relation to insurance?
   A) The person insured
   B) A person appointed to receive the benefit upon the death of the insured
   C) The person who will receive the money on behalf of a nominee who is minor
   D) Third party who is authorized to receive the money on behalf of the actual beneficiary who is not a minor
   
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   Option C
   Explanation: Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’ who will not only receive the money on the minor’s behalf but also will undertake to spend for the minor’s welfare. Hence care should to be taken to appoint only a highly responsible and closely related person as an “appointee”.
9. An insurance policy that covers losses resulting from damage to your insured property caused by unlawful crimes such as Riot, Strike, Malicious Damage and Theft is known as ____________
   A) Burglary insurance
   B) Critical insurance
   C) Bancassurance
   D) General insurance
   
   View answer

   Option A
   Explanation: Burglary insurance is a policy that covers losses resulting from a burglary. Burglary denotes the act of entering a property unlawfully with the intention of committing a crime and it might not always involve theft. 
10. _____________ is the person or entity you name in a life insurance policy to receive the death benefit
    A) Claimant
    B) Beneficiary
    C) Insured
    D) Shareholder
    
    View answer

    Option B
    

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