Insurance Awareness Quiz – Set 59

Insurance Awareness Quiz – Set 59

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. In the health sector, what is the fixed amount for a covered service called?
    A) Copay
    B) Health Insurance
    C) Deductible
    D) Coin Insurance
    View answer
    Option A
    Explanation:
    A fixed amount for the covered service which is paid by a patient to an insurance company before wants a service from any physician.
  2. Which of the following term referred as the amount of risk retained by an insurance company that is not re-insured?
    A) Reinsure
    B) Uninsurable risk
    C) Retention
    D) None of the above
    View answer
    Option C
    Explanation:
    The amount of risk retained by an insurance company that is not re-insuredis known as Retention.
  3. BCAR is the percentage measured by a company’s relative capital strength which is compared to its industry peer composite. Here, in BCAR, what do you understand by ‘C’?
    A) Currency
    B) Capital
    C) Claim
    D) Consumer
    View answer
    Option B
    Explanation:
    Best’s Capital Adequacy Relativity
  4. What was the tenure in which the amount charged by the insurer to provide the life cover to policy holder on the life of the life Insured is known as Cost of Insurance?
    A) Every year
    B) Every month
    C) Every 6 month
    D) Every 3 month
    View answer
    Option A
    Explanation:
    The amount charged by the insurer to provide the life cover to policy holder on the life of the life Insured is known as Mortality Charge.
  5. What is the full form of TPA?
    A) Third Part Accelerators
    B) Third Party Administrators
    C) The Party Administrators
    D) The Party Accelerators
    View answer
    Option B
    Explanation:
    Third Party Administrators
  6. What do you understand by Solvency?
    A) An enterprise’s capacity which meet its capacity for the long-term financial commitments.
    B) Money that an individual is required to pay for a service after any deductible is paid.
    C) A sum of money paid by an employer to an employee for services rendered in the company.
    D) None of the above
    View answer
    Option A
    Explanation:
    An enterprise’s capacity which meet its capacity for the long-term financial commitments is known as Solvency.
  7. A risk at which someone’s finds difficult getting insurance?
    A) Partial Risk
    B) Pure Risk
    C) Uninsurable Risk
    D) Insurable Risk
    View answer
    Option C
    Explanation:
    a situation in which you cannot protect yourself by purchasing an insurance because it is impossible to calculate any damage which will be caused after any incident.
  8. Where is National Insurance Academy is located?
    A) Lucknow
    B) Mumbai
    C) Chennai
    D) Pune
    View answer
    Option D
    Explanation:
    The National Institute Academy situated in Pune Maharashtra. It was founded in 1980 by the finance department of the Indian government.
  9. When a single insurance company offers both life and non- life insurance policies then what does it known as?
    A) Mutual Insurance Company
    B) Composite insurer
    C) Service provider
    D) None
    View answer
    Option B
    Explanation:
    An insurance company which provides both life and non-life insurance plans then that company is referred as composite insurer.
  10. An insurance that is a form of long term care policy and covers a policyholders stay in a nursing facility is called as
    A) Kidnap Insurance
    B) Nuclear Insurance
    C) Inland Marine Insurance
    D) Nursing Home Insurance
    View answer
    Option D
    Explanation:
    long term care benefit plan will convert any form of life insurance to pay directly for the cost of long term care in any nursing home or at any home health care.

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