Insurance Awareness Quiz – Set 36

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. Which among the following is correct with respect to Insurance?
    A) Prevent adverse situations from occurring
    B) Make assets continuously productive
    C) Reduce the financial consequences of adverse situations
    D) Negate all consequences of adverse situations
    View answer
    Option C
  2. Fidelity Guarantee insurance policy covers losses due to fraud by
    A) Customer
    B) Employee
    C) Supplier
    D) Borrower
    View answer
    Option B
    Fidelity Guarantee insurance is an insurance policy designed to indemnify the Insured (the employer) for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment.
  3. CTL is a loss in which the item insured is not totally destroyed but is so severely damaged that the insurance company considers it uneconomical to repair. What does CTL stands for?
    A) Constructive Total Loss
    B) Contributory Total Loss
    C) Contractors’ Total Loss
    D) Co-Insurer’s Total Loss
    View answer
    Option A
  4. The term ‘family floater’ is related to which of the following insurance?
    A) Property Insurance
    B) Accidental Insurance
    C) Health Insurance
    D) Marine Insurance
    View answer
    Option C
  5. Identify the incorrect statement with respect to brokers:
    A) Brokers are appointed by insured to take care of their interests
    B) Brokers require to undergo training before being licensed
    C) Brokers are allowed to negotiate with different insurers for the same insured
    D) Brokers should be registered companies or firms
    View answer
    Option D
    Brokers can be an individual
  6. The health insurance policy and a personal accident policy falls under which group of the insurance market?
    A) Both are life insurance product
    B) Both are non-life insurance product
    C) Life insurance for health and non-life insurance for personal accident
    D) Non-life insurance for health and life insurance for personal accident
    View answer
    Option B
  7. Which among the following is a method of risk transfer?
    A) Insurance
    B) Equity Shares
    C) Real Estate
    D) Bank FD
    View answer
    Option A
  8. A company’s decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company is known as___________
    A) Risk control
    B) Risk financing
    C) Risk retention
    D) Risk avoidance
    View answer
    Option C
  9. Which among the following lowers the cost of your insurance?
    A) Reinsurance
    B) Co-Insurance
    C) Rebate
    D) Deductibles
    View answer
    Option D
  10. The ________ is the premium paid by policyholder for life insurance, the ________ will be the compensation paid to the beneficiary in the event of the death of insured.
    A) Lower ; Higher
    B) Higher ; Higher
    C) Higher ; Lower
    D) Higher ; Faster
    View answer
    Option B

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