Insurance Awareness Quiz – Set 35

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. 

1. Reinsurance can be broadly classified into how many categories?
   A) Four
   B) Three
   C) One
   D) Two
   
   View answer

   Option D
   Explanation: Broadly, reinsurance can be classified under two heads – treaty reinsurance and facultative reinsurance.
2. A person who represents an insurance firm and sells insurance policies on its behalf is known as______
   A) Broker
   B) Actuary
   C) Agent
   D) Beneficiary
   
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   Option C
   
3. The situation where the bank sells the tied insurance company’s insurance products to its clients is known as _______________
   A) Bancassurance
   B) Annuitant
   C) Assignor
   D) Beneficiary
   
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   Option A
   
4. __________is the person or entity entitled to receive the claim amount upon the death of the insured or on the maturity of the policy.
   A) Liable
   B) Beneficiary
   C) Agent
   D) Claimant
   
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   Option B
   
5. The point beyond which the insurer cedes the risk to the reinsurer is called ________.
   A) Revival Period
   B) Holding Limit
   C) Retention Limit
   D) Detainment Limit
   
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   Option C
   Explanation: The maximum amount of risk retained by an insurer per life is called retention. Beyond that, the insurer cedes the excess risk to a reinsurer. The point beyond which the insurer cedes the risk to the reinsurer is called retention limit. 
6. The supplementary benefits added in the primary life insurance policy purchased by the insured is known as____________
   A) Sum Assured
   B) Annuity
   C) Claim Amount
   D) Riders
   
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   Option D
   
7. Under which of the following,  the insured receives a regular flow of income from the insurer post the maturity of the policy?
   A) Adverse Selection
   B) Settlement Option
   C) Embedded Value
   D) Deferred Acquisition Cost
   
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   Option B
   
8. The facility under which the insured person can ask the insurer to start the policy from an earlier date than the one on which he actually signs the policy is known as_________
   A) Dating Back
   B) Pre-Policy
   C) Precede
   D) Anachronize
   
   View answer

   Option A
   
9. In a life insurance policy, the person/entity that gets proceeds from the policy in the event of a demise of the primary beneficiary at the same time as that of the insured is known as:
   A) Random Beneficiary
   B) Probable Beneficiary
   C) Contingent Beneficiary
   D) Incidental Beneficiary
   
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   Option C
   Explanation: For instance, the owner of the policy chooses his/her spouse as the primary beneficiary.However, the spouse dies at the same time as that of the insured. Here the children of the insured will become the contingent beneficiary. 
10. The first time default on premium payments by a policy holder is termed as ________
    A) First Class Default
    B) Maiden Premium Default
    C) First Default
    D) First Unpaid Premium
    
    View answer

    Option D
    

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