Top Insurance Quizzes & Trivia

Better safe than sorry, as the saying goes. And in the modern world, having insurance is the best way to make sure you are safe and not sorry. Insurance is a form of risk management to hedge against the risk of something that could go wrong.

Do you know all about insurance? Are you ready to hedge your bets and go all in on our insurance quizzes? What is the term for the amount of money one pays for insurance coverage? What does the word “indemnify” mean? Which two cultures are credited with the earliest forms of risk management? What kind of modern insurance was first developed during the Great Fire of London in 1666? In 1680, Edward Lloyd opened a coffee shop to serve as a meeting place for maritime insurance, eventually leading to what modern insurance marketplace still bearing his name? What is the process of underwriting? What academic disciplines are employed in the process of price setting insurance policies? Take our insurance quizzes and find out!

Insurance Questions and Answers

If a company cancels an auto policy mid-term, the refund will be made on

a. pro rata basis

b. short rate basis

c. retroactive basis

d. coinsurance basis

Insurance question from

P&C Insurance practice exam

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What is the term used to describe terminating the insurance relationship at the end of the policy period?

a. cancellation

b. nonrenewal

c. seperation

d. exclusion

Insurance question from

P&C Insurance practice exam

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Which is the best example of an indirect loss?

a. sequential loss

b. liability loss

c. employee theft

d. loss of use

Insurance question from

P&C Insurance practice exam

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The Process of making and implementing decisions to handle loss exposure is known as __________

Loss Reduction Measures

Loss Prevention Measures

Risk Management

None of the Above.

Insurance question from

INS 21 - QUIZ 1

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An insurance policy is a contract that states the rights and duties of

The insured and insurer and agent.

The insured and the insurer.

The insured and the agent.

The insured and other third parties.

Insurance question from

INS 21 - QUIZ 1

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Transferring the costs of losses to an insurer would be unnecessary, if there were no

Exposures to loss

Civil courts.

Agents.

Reinsurance.

Insurance question from

INS 21 - QUIZ 1

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LaTonya purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home? Choose all that apply.

LaTonya

John

LaTonya's son, who would like to inherit the home some day

First City Bank

Insurance question from

Chapter 1 - Principles of Insurance

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Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?

Avoidance

Reduction

Retention

Transfer

Insurance question from

Chapter 1 - Principles of Insurance

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Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?

Avoidance

Reduction

Transfer

Retention

Insurance question from

Chapter 1 - Principles of Insurance

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Which of the following is not a requirement for forming a valid contract?

Consideration

Offer and acceptance

Competent parties

Signatures of the parties involved

Insurance question from

Chapter 2 - The Insurance Contract

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What is meant by a contract of adhesion?

Both parties are required to provide services for the other.

One party draws up the contract provisions, and the other party adheres to the terms.

The contract can be revoked by any party at any time for any reason.

A contract that is formed without any consideration by either party.

Insurance question from

Chapter 2 - The Insurance Contract

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Which of the following describes the principle of indemnity?

After a loss, an insured should be restored to approximately the same condition that existed before the loss.

Every insured will receive full compensation for all losses in all cases.

When property is damaged or destroyed, the insurance company must pay the full replacement cost.

In the case of bodily injuries, liability coverage must be available without regard to any policy exclusions.

Insurance question from

Chapter 2 - The Insurance Contract

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