Insurance Processes - Quiz 2

18 Questions | By Bojananikolic | Updated: Sep 5, 2022 | Attempts: 152

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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