Insurance Trivia: MCQ Quiz!

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| By KMayne1
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KMayne1
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Quizzes Created: 3 | Total Attempts: 414
Questions: 11 | Attempts: 174

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Insurance Trivia: MCQ Quiz! - Quiz

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Questions and Answers
  • 1. 

    The principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he or she occupied before the loss occurred, no better or no worse. 

    • A.

      Insurable Interest

    • B.

      Insurance

    • C.

      Indemnity

    • D.

      Implied Warranties

    Correct Answer
    C. Indemnity
    Explanation
    Indemnity is the correct answer because it refers to the principle of insurance where the insured is compensated for their loss in a way that restores them to their previous financial condition. This principle ensures that the insured is neither better off nor worse off after the loss occurs. It aims to provide financial protection and prevent the insured from profiting from the insurance policy.

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  • 2. 

    A mutual insurance company is owned by who?

    • A.

      Stockholders

    • B.

      Reciprocals

    • C.

      Executive Board

    • D.

      Insureds

    Correct Answer
    D. Insureds
    Explanation
    A mutual insurance company is owned by the insureds. In a mutual insurance company, the policyholders are also the owners of the company. They pool their resources by paying premiums and in return, the company provides them with insurance coverage. The insureds have a say in the company's operations and may be entitled to receive dividends or refunds based on the company's financial performance. This ownership structure ensures that the company's focus is on serving the best interests of its policyholders rather than maximizing profits for stockholders.

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  • 3. 

    You own the home, but you rent it to others. What type of policy do you need?

    • A.

      Dwelling Fire

    • B.

      Homeowners

    • C.

      Renters

    • D.

      Personal Umbrella

    Correct Answer
    A. Dwelling Fire
    Explanation
    If you own a home but rent it to others, you would need a Dwelling Fire insurance policy. This type of policy is specifically designed for property owners who rent out their homes. It provides coverage for the structure of the home, as well as any detached structures, against specific perils such as fire, lightning, and explosions. It does not provide coverage for the personal belongings of the tenants, as that would be their responsibility to insure.

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  • 4. 

    What do you call a condition or situation that presents a possibility of loss?

    • A.

      Pure Risk

    • B.

      Speculative Risk

    • C.

      Loss

    • D.

      Exposure

    Correct Answer
    D. Exposure
    Explanation
    Exposure refers to a condition or situation that presents a possibility of loss. It represents the vulnerability or potential harm that an individual or organization may face due to various risks. This can include risks such as financial losses, physical damage, legal liabilities, or reputational harm. By understanding and managing exposure, individuals and organizations can take appropriate measures to mitigate potential losses and protect themselves against adverse events.

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  • 5. 

    What year did NYCM open the Amsterdam branch office?

    • A.

      1979

    • B.

      1989

    • C.

      1999

    • D.

      2009

    Correct Answer
    B. 1989
    Explanation
    The correct answer is 1989. This is the year when NYCM opened the Amsterdam branch office.

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  • 6. 

    What year was A. Central Insurance Company launched?

    • A.

      1999

    • B.

      2000

    • C.

      2001

    • D.

      2002

    Correct Answer
    C. 2001
    Explanation
    The correct answer is 2001. This means that A. Central Insurance Company was launched in the year 2001.

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  • 7. 

    Which insurance company uses this slogan? "Without it, no insurance is complete."

    • A.

      Amica

    • B.

      Geico

    • C.

      Progressive

    • D.

      AFLAC

    Correct Answer
    D. AFLAC
    Explanation
    The correct answer is AFLAC. AFLAC is an insurance company that uses the slogan "Without it, no insurance is complete." This slogan emphasizes the importance of AFLAC insurance in providing comprehensive coverage.

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  • 8. 

    Which insurance company uses this slogan? "You're in good hands"

    • A.

      Geico

    • B.

      Allstate

    • C.

      Amica

    • D.

      Progressive

    Correct Answer
    B. Allstate
    Explanation
    The correct answer is Allstate. Allstate is the insurance company that uses the slogan "You're in good hands." This slogan implies that customers can trust Allstate to take care of their insurance needs and provide reliable coverage.

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  • 9. 

    Which of the following is NOT a NYCM Homeowner discount?

    • A.

      Gated Community Discount

    • B.

      Retirement Discount

    • C.

      Early Signing Discount

    • D.

      Renovation Discount

    Correct Answer
    C. Early Signing Discount
    Explanation
    The Early Signing Discount is not a NYCM Homeowner discount. This discount is typically offered by insurance companies to encourage homeowners to sign up for a policy early. It provides a financial incentive for customers to secure coverage before their current policy expires or before they purchase a new home. NYCM may offer other homeowner discounts such as the Gated Community Discount, Retirement Discount, and Renovation Discount, but the Early Signing Discount is not one of them.

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  • 10. 

    Which year did NYCM Insurance acquire the independent adjusting firm A. F. Stager Inc?

    • A.

      1990

    • B.

      1991

    • C.

      1992

    • D.

      1993

    Correct Answer
    B. 1991
    Explanation
    In 1991, NYCM Insurance acquired the independent adjusting firm A. F. Stager Inc.

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  • 11. 

    As of June 2017, which company does NYCM lose most of its personal lines business to?

    • A.

      Geico & Allstate

    • B.

      Allstate & Travelers

    • C.

      State Farm & Travelers

    • D.

      Farmers & Allstate

    Correct Answer
    A. Geico & Allstate
    Explanation
    For NYCM Auto and Home, we lose the most business (the carrier acquiring cancellations) to GEICO and Allstate respectively. Earlier in the year, Travelers took the most business on Auto, but GEICO is now the top carrier.

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