Business Quiz: Insurance General Knowledge

1. The internationally famous Lloyd's of London began in a _______________, in what year?

Public House in 1777

Coffee House in 1688

Brick House in 1900

Person's House in 1850

Jail House in 1550

It all started in Edward Lloyd's Coffee House in London back in 1688. And you think underwriters are uptight today! Try them after 50 cups of coffee.

Explanation

It all started in Edward Lloyd's Coffee House in London back in 1688. And you think underwriters are uptight today! Try them after 50 cups of coffee.

2. The Lutine Bell still hangs in the underwriting room at today’s Lloyd’s of London. Historically, the bell was heard throughout Lloyd’s:

To signify the King or Queen of England renewing an insurance policy

Lunchtime

When a ship was overdue in returning to its port

Twice daily

At the start of a war

Since the first type of insurance issued by a Lloyd's syndicate was Maritime Insurance, the bell was rung whenever a ship failed to arrive on schedule.

Explanation

Since the first type of insurance issued by a Lloyd's syndicate was Maritime Insurance, the bell was rung whenever a ship failed to arrive on schedule.

3. Lloyd’s of London is famous for issuing some pretty strange policies. Which of the policies that follow WAS NOT issued by Lloyd’s of London?

A “happiness policy,” insuring against “worry lines” forming on face of famous model

Protection against accidental death caused by Sputnik falling from the sky

Revolution insurance to protect against British colonies declaring independence

Flamenco dancer Jose Greco's special trousers insured against splitting at $980 a pair

A policy covering the outcomes of Tony Blair palling around with President G.W. Bush

It's true. They tried to get coverage, but Lloyd's underwriters were not happy about it.

Explanation

It's true. They tried to get coverage, but Lloyd's underwriters were not happy about it.

4. When was the first time Workers Compensation insurance was required?

1797

1897

1937

1957

1977

It was back in 1897, when the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. In 1898, the first Workers Comp fraud case was tried, but the chiropractor involved got off.

Explanation

It was back in 1897, when the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. In 1898, the first Workers Comp fraud case was tried, but the chiropractor involved got off.

5. They say that Lloyd’s underwriters can insure almost any risk. Which risk did Lloyd’s of London underwriters ACTUALLY refuse to insure?

The risk of a European gentleman’s daughter losing her virginity

The risk of Royal Family embarrassment due to marital problems

The risk of injury or death as a result of reading a Charles Dickens novel

The innumerable risks resulting from attitudes of the French

The risk of the King's gambling habit

That would have made for one heck of an interesting claims investigation though, don't you think?

Explanation

That would have made for one heck of an interesting claims investigation though, don't you think?

6. The origins of life insurance date back to:

Seventeenth Century England

Eighteenth Century England

Ancient Rome

Ancient Greece

1800s New York

Life insurance's origins date back to ancient Rome, where Roman citizens formed clubs whose members agreed to pay the funeral expenses of other members along with helping the loved ones of the deceased by providing some monetary payments for a period of time.

Explanation

Life insurance's origins date back to ancient Rome, where Roman citizens formed clubs whose members agreed to pay the funeral expenses of other members along with helping the loved ones of the deceased by providing some monetary payments for a period of time.

7. As of 2005, how many U.S. households did NOT own any life insurance?

45 million

60 million

22 million

14 million

11.7 million

According to industry association LIMRA, as of 2005, 22 million U.S. households owned no life insurance. See, the market's still wide open!

Explanation

According to industry association LIMRA, as of 2005, 22 million U.S. households owned no life insurance. See, the market's still wide open!

8. The first monetary arrangement that offered to protect the value of property while in transit occurred when:

300 years ago

500 years ago

1500 years ago

2100 years ago

4500 years ago

In ancient Babylonia, traders used to bear the risk of transporting goods by caravan by giving loans that had to be repaid later (with interest) assuming the goods arrived safely. In 2100 BC, the Code of Hammurabi gave legal status to this practice.

Explanation

In ancient Babylonia, traders used to bear the risk of transporting goods by caravan by giving loans that had to be repaid later (with interest) assuming the goods arrived safely. In 2100 BC, the Code of Hammurabi gave legal status to this practice.

9. Who is most often credited as being the world's most successful life insurance salesman?

Miles Standish, of The Hartford

Mickey Rubinstein, of Indianapolis Life

John Hancock, of John Hancock

Ben Feldman, of New York Life

Horrace Mann, of Prudential

Over Ben's 50-year career selling insurance for New York Life, not only did his sales volume exceed $1.5 billion, but a third of it came after he turned 65. During his best year, his sales exceeded $100 million. His record for a single day was $20 million. Ben was short, stout, balding, and spoke with a lisp. He never finished high school. He would emphasize the cash build-up available in a life insurance policy by saying: "Wouldn't you like to save some money? How much have you saved in the last 5 years? Is there any reason to think that in the next five years you'll do any better?"

Explanation

Over Ben's 50-year career selling insurance for New York Life, not only did his sales volume exceed $1.5 billion, but a third of it came after he turned 65. During his best year, his sales exceeded $100 million. His record for a single day was $20 million. Ben was short, stout, balding, and spoke with a lisp. He never finished high school. He would emphasize the cash build-up available in a life insurance policy by saying: "Wouldn't you like to save some money? How much have you saved in the last 5 years? Is there any reason to think that in the next five years you'll do any better?"

Business Quiz: Insurance General Knowledge

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