Insurance Awareness Quiz – Set 60

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. The period during which the owner of the deferred annuity makes the payment to build of the assets is known as
   A) Proximate Clause
   B) Annuity Accumulation Phase
   C) Pure Risk
   D) Annuitization
   
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   Option B
   Explanation: It is a 10 year when an annuity investor is in the early stage of building up the cash value of annuity which is followed by and Annuitization phase where payment is paid out to annuitant.
2. What is the full form of CGL?
   A) Common General Liability
   B) Commercial Generic Loss
   C) Control General Liability
   D) Captive General Liability
   
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   Option A
   Explanation: It is a type of insurance policy which provides the coverage to the business for bodily injury, personal injury or for any property damage which is caused by the business operations under the premises of business.
3. A survey which is held to determine a properties insurable value is known as
   A) Proximate clause
   B) Pure risk
   C) Appraisal
   D) Affinity sale
   
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   Option C
   Explanation: The act of judging the nature or the value of something or someone.
4. When a person holds something in trust for another what is it known as?
   A) Seller
   B) Fiduciary
   C) Aggregate
   D) Service provider
   
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   Option C
   Explanation: A fiduciary is a person who holds a legal or ethical relationship of trust with some other parties.
5. A person represents only one insurance company and is restricted by an agreement from submitting business to any other company is called as
   A) Business associate
   B) Service provider
   C) Aggregate
   D) Captive agent
   
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   Option D
   Explanation: An insurance agent is a person who only works with a single insurance company and is paid by only one company either with the combination of a salary or with commissions.
6. What is it term which referred to the property coverages for the perils of burglary theft and robbery?
   A) Personal insurance
   B) Crime insurance
   C) Commercial insurance
   D) Property insurance
   
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   Option D
   Explanation: Crime insurance is an insurance which manages the loss exposures resulting from criminal act like robbery, theft, etc. This is also known as fidelity insurance.
7. What do you understand by the term double insurance?
   A) A situation in which a person, independent or property is insured by two or more companies.
   B) The maximum sum insured fixed by the insurer which is provided on theft or total loss of vehicle.
   C) The process through which a member owned it’s company and becomes shareholder and step towards IPO.
   D) None of the above
   
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   Option A
   Explanation: It isa situation in which a person, independent or property is insured by two or more companies.
8. A person other than the insured or insurer who has incurred losses or is entitled to receive the payment due to acts is called
   A) First person
   B) Second person
   C) Last person
   D) Third person
   
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   Option D
   Explanation: In case of automotive insurance it will be provided to the driver of other vehicle since the person is not the first party in the insurance policy this is the case of third party and 2^nd party refers to the insurer .
9. A process of determining the cost of an insurance policy based on actual lost experience determined as an adjustment to the initial premium payment is called as
   A) Universal Life Insurance
   B) Unearned Premium
   C) Retrospective Rating
   D) Retro Cession
   
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   Option C
   Explanation: A process of determining the cost of an insurance policy based on actual lost experience determined as an adjustment to the initial premium payment is called as Retrospective Rating.
10. Which of the following insurance is a coverage for damage to a vessel or aircraft and affixed items?
    A) Hull Insurance
    B) Group Insurance
    C) Life Insurance
    D) Social Insurance
    
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    Option A
    Explanation: An insurance policy that provides coverage for the physical integrity of a ship is referred as Hull Insurance.

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