Business Quiz: Insurance General Knowledge
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For those in the insurance business that fancy themselves "experts," here's a quiz to see just how knowledgeable you really are. Fun to share around the office, too. The winner is obviously King of the Insurance World!
- 1.
The origins of life insurance date back to:
- A.
Seventeenth Century England
- B.
Eighteenth Century England
- C.
Ancient Rome
- D.
Ancient Greece
- E.
1800s New York
Correct Answer
C. Ancient RomeExplanation
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.Rate this question:
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- 2.
The first monetary arrangement that offered to protect the value of property while in transit occurred when:
- A.
300 years ago
- B.
500 years ago
- C.
1500 years ago
- D.
2100 years ago
- E.
4500 years ago
Correct Answer
E. 4500 years agoExplanation
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.Rate this question:
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- 3.
The internationally famous Lloyd's of London began in a _______________, in what year?
- A.
Public House in 1777
- B.
Coffee House in 1688
- C.
Brick House in 1900
- D.
Person's House in 1850
- E.
Jail House in 1550
Correct Answer
B. Coffee House in 1688Explanation
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.Rate this question:
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- 4.
The Lutine Bell still hangs in the underwriting room at today’s Lloyd’s of London. Historically, the bell was heard throughout Lloyd’s:
- A.
To signify the King or Queen of England renewing an insurance policy
- B.
Lunchtime
- C.
When a ship was overdue in returning to its port
- D.
Twice daily
- E.
At the start of a war
Correct Answer
C. When a ship was overdue in returning to its portExplanation
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.Rate this question:
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- 5.
They say that Lloyd’s underwriters can insure almost any risk. Which risk did Lloyd’s of London underwriters ACTUALLY refuse to insure?
- A.
The risk of a European gentleman’s daughter losing her virginity
- B.
The risk of Royal Family embarrassment due to marital problems
- C.
The risk of injury or death as a result of reading a Charles Dickens novel
- D.
The innumerable risks resulting from attitudes of the French
- E.
The risk of the King's gambling habit
Correct Answer
A. The risk of a European gentleman’s daughter losing her virginityExplanation
That would have made for one heck of an interesting claims investigation though, don't you think?Rate this question:
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- 6.
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.
A “happiness policy,” insuring against “worry lines” forming on face of famous model
- B.
Protection against accidental death caused by Sputnik falling from the sky
- C.
Revolution insurance to protect against British colonies declaring independence
- D.
Flamenco dancer Jose Greco's special trousers insured against splitting at $980 a pair
- E.
A policy covering the outcomes of Tony Blair palling around with President G.W. Bush
Correct Answer
A. A “happiness policy,” insuring against “worry lines” forming on face of famous modelExplanation
It's true. They tried to get coverage, but Lloyd's underwriters were not happy about it.Rate this question:
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- 7.
When was the first time Workers Compensation insurance was required?
- A.
1797
- B.
1897
- C.
1937
- D.
1957
- E.
1977
Correct Answer
B. 1897Explanation
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.Rate this question:
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- 8.
As of 2005, how many U.S. households did NOT own any life insurance?
- A.
45 million
- B.
60 million
- C.
22 million
- D.
14 million
- E.
11.7 million
Correct Answer
C. 22 millionExplanation
According to industry association LIMRA, as of 2005, 22 million U.S. households owned no life insurance. See, the market's still wide open!Rate this question:
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- 9.
Who is most often credited as being the world's most successful life insurance salesman?
- A.
Miles Standish, of The Hartford
- B.
Mickey Rubinstein, of Indianapolis Life
- C.
John Hancock, of John Hancock
- D.
Ben Feldman, of New York Life
- E.
Horrace Mann, of Prudential
Correct Answer
D. Ben Feldman, of New York LifeExplanation
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?"Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Aug 07, 2024Quiz Edited by
ProProfs Editorial Team -
Nov 28, 2008Quiz Created by
Mandelman
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