Business Insurance Trivia Questions!
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Test your knowledge on this quiz by answering the following questions.
- 1.
What is the role that insurance plays in financial planning?- A.
It guarantees that income and assets are protected ✓
- B.
It helps build and maintain one's credit score
- C.
It helps cover day-to-day expenses
- D.
It grows in value and appreciates over time
- 2.
The cost to replace an item of property at the time of loss, less an allowance for depreciation.
- A.
Actual Cash Value
- B.
Absolute Liability
- C.
Replacement Cost
- D.
Apparent Authority
- 3.
You own the home, but you rent it to others. What type of policy do you need?
- A.
Personal Umbrella
- B.
Dwelling Fire
- C.
Homeowners
- D.
Renters
- 4.
A mutual insurance company is owned by who?
- A.
Executive Board
- B.
Stockholders
- C.
Insureds
- D.
Reciprocals
- 5.
What do you call a condition or situation that presents a possibility of loss?
- A.
Speculative Risk
- B.
Pure Risk
- C.
Loss
- D.
Exposure
- 6.
What two coverages are typically provided in Aviation policies?
- A.
Liability and Property of Others
- B.
Liability and Loss of Life
- C.
Physical Damage and Property of Others
- D.
Physical Damage and Liability
- 7.
Which of these is not an insurance company?
- A.
Fireman's Fund
- B.
Geico
- C.
Progressive
- D.
Lloyd's of London
- 8.
There is a section in any insurance policy which clarifies the meaning of certain terms used in the policy. What is this section referred to as?
- A.
Exclusions
- B.
Declarations
- C.
Agreements
- D.
Definitions
- 9.
This general term is used to describe policy conditions that specify what the insured and insurer must do after a loss.
- A.
Loss Sustained Condition
- B.
Loss Ratio
- C.
Loss Provisions
- D.
Loss Conditions
- 10.
This is a written form that verifies a policy has been written. It provides a summary of the coverage provided under the policy. What is it called?
- A.
Conditional Contract
- B.
Fidelity Bond
- C.
Certificate of Insurance
- D.
Claims-Made Form
Questions: 25 | Attempts: 22464 | Last updated: Mar 22, 2022
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Sample QuestionMedical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?
Questions: 26 | Attempts: 20928 | Last updated: Mar 22, 2022
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Sample QuestionIn disability insurance, the period of time between when the disability started and the commencement of benefits is the:
Questions: 35 | Attempts: 12021 | Last updated: Mar 21, 2022
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Sample QuestionThe Process of making and implementing decisions to handle loss exposure is known as __________
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