Insurance Awareness Quiz – Set 37

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 insurance policy will be used by the employer to insure himself from dishonest act of his employees?
   A) Employees compensation policy
   B) Fidelity Guarantee Insurance policy
   C) Public Liability Insurance policy
   D) Declaration policy
   
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   Option B
   Explanation: 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.
2. In case of Marine insurance, which of the given represents the body of the ship?
   A) Cargo
   B) Jettison
   C) Hull
   D) Anchor
   
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   Option C
   
3. Which of the following policies covers loss or damage to aircraft?
   A) Marine Insurance
   B) Aviation Insurance
   C) Property Insurance
   D) Statutory Insurance
   
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   Option B
   
4. The Consequential Loss (Fire) Insurance offers covers to ____________
   A) Loss of Goodwill
   B) Loss due to fluctuations in foreign exchange
   C) Loss due to wear and tear of machinery
   D) Loss of profit in business due to damage to the property insured
   
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   Option D
   
5. The Premium to be paid in Burglary is decided on the basis of which of these factors?
   A) Security measures
   B) Location of Premises
   C) Nature of property
   D) All of the above
   
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   Option D
   
6. CAR insurance policy is a non-standard insurance policy designed to cover all types of risk related to construction projects. What does CAR stands for?
   A) Coverage Against Risk
   B) Construction Aided Risk
   C) Contractors’ All Risk
   D) Constructor’s Additional Risk
   
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   Option C
   
7. The Money Insurance Policy covers risks related to:
   A) Cash in hand
   B) Money invested in Mutual fund
   C) Money in bank’s Savings Deposit account
   D) Money held in Post Office deposit account
   
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   Option A
   
8. The risks covered under a bankers indemnity insurance policy includes?
   A) Loss of money/securities on premises and in transit due to various threats
   B) Loss arising from forgery or alteration of cheques or drafts
   C) Loss due to dishonest or criminal act of its employees
   D) All the above
   
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   Option D
   
9. What is the purpose of deductible clause in insurance policy?
   A) Avoid claim payment
   B) Increase the Premium
   C) Eliminate payment of small claims
   D) Harass the policyholder
   
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   Option C
   
10. Who among the following decides whether to accept or not to accept the risk?
    A) Underwriter
    B) Surveyor
    C) Agent
    D) Insured
    
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    Option A
    Explanation: An insuranceunderwriter is a professional who evaluates the risks involved when insuring people or assets and establishes the pricing

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