Business Insurance Trivia Questions!

10 Questions | Total Attempts: 140

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Business Insurance Trivia Questions! - Quiz

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.


Questions and Answers
  • 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

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