Insurance Processes - Quiz 2

18 Questions | Total Attempts: 120

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Insurance Processes - Quiz 2


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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