Insurance Processes - Quiz 2
18 Questions
| Total Attempts: 120
Questions and Answers
- 1.You can insure your neighbour's life.
- A.
True
- B.
False
- 2.Both insurer and insured as contracting parties should tell all necessary information before entering into contract.
- A.
Utmost good faith
- B.
Indemnitiy
- C.
Subrogation
- D.
Contribution
- 3.Getting the claimant to the same level as prior to the loss.
- A.
Insurable interest
- B.
Utmost good faith
- C.
Indemnity
- D.
Subrogation
- 4.5 years ago, you bought a cell phone and it costed $300. Now the price is $100, but you would be able to get $50 for an old cell phone. Your cell phone is insured. How much the insurer will pay in case your cell phone is completely destroyed?
- A.
$100
- B.
$50
- C.
$300
- 5.Mark types of non-life insurance.
- A.
Fire
- B.
Annuities
- C.
Personal accident
- D.
Theft
- 6.You can insure only something that you own or have financial interest in. This is principle called insurable interest.
- A.
True
- B.
False
- 7.Insurance company doesn't have rights to take remains of the cell phone once the claim was fully payed to a insured.
- A.
True
- B.
False
- 8.The ownership rights are shifted after compensation for the claim is done. This is:
- A.
Insurable interest
- B.
Utmost good faith
- C.
Subrogation
- D.
Indemnity
- 9.Once insurer pays the claim for your cell phone, the remains cannot be taken over by insurer and sold to recover some money
- A.
True
- B.
False
- 10.What can happen if an insurer finds out that insured made some material misrepresentation?
- A.
Ignore
- B.
Deny a claim
- C.
Adjust the premium
- D.
Adjust the benefit amount
- 11.Proximate cause is the peril that should be covered by the policy and that had direct effect on the loss.
- A.
True
- B.
False
- 12.Insured fell from a horse -> got wet -> caught pneumonia -> died. Proximate cause is:
- A.
Accident
- B.
Illness
- C.
Both
- 13.Underinsurance is when property is insured to a full price.
- A.
True
- B.
False
- 14.Coinsurance is when:
- A.
Insure property with more than one insurer.
- B.
Split responsibility with few insured.
- C.
Applying only for one insurer.
- 15.Mark all characteristics of ideal insurable risk.
- A.
Calculable chance of loss
- B.
Homogeneous risk
- C.
Catastrophic loss
- D.
Non-measurable loss
- 16.Two huge groups of insurance are:
- A.
Life insurance
- B.
Pure risk
- C.
Non-life insurance
- D.
Speculative risk
- 17.In life insurance risk is uncertain, and in non-life risk is certain.
- A.
True
- B.
False
- 18.Types of life insurance are:
- A.
Annuities
- B.
Marine cargo
- C.
Life
- D.
Personal accident
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