Basic Questions about Insurance

insurance quiz

Insurance exam questions and answers:

Ques. ___ is an annual payment made by a life insurance company in consideration form a lump sum received.
(a) claim
(b) annuity
(c) bonus
(d) premium

Ans. (b)

Ques. General Insurance includes ___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these

Ans. (d)

Ques. Distribution of insurance products and insurance policies by banks as corporate agents is known as:
(a) General Insurance
(b) Non-life insurance
(c) Bank assurance
(d) Insurance banking
(e) Deposit insurance

Ans. (c)

Ques. Insurance business is based on _.
(a) Newton’s Law
(c) The Theory of Probability and Law of large numbers
(b) Boyles Law
(d) Parkinsons Law

Ans. (c)

Ques. An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ___
(a) Premium
(b) Annuity
(c) Claim
(d) Policy

Ans. (b)

Related: Mental Illness quiz questions

Ques. Employer shall contribute towards Insurance Fund ___  % of basic wages, dearness allowance, and retaining allowance.
(a) 2%
(b) 3%
(c) 1%
(d) None of these
Ans. (c)

Ques. The principle of subrogation is applicable to___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these

Ans. (d)

Ques.  ___ is a device of reducing the risk undertaken by an insurance company.
(a) re-insurance
(b) double insurance
(c) risk insurance
(d) none of these

Ans. (a)

Ques. __ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.
(a) Underwriters
(b) Surveyors
(c) Agents
(d) Banker

Ans. (c)

Ques. Under __ policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier
(a) whole time life policy
(b) endowment policy
(c) with profit policy
(d) none of these

Ans. (b)

Related: general Mathematics questions and answers

Ques. Life insurance is a contract of__
(a) indemnity
(b) guarantee
(c) contribution
(d) none of these

Ans. (b)

Ques. General insurance is a contract of __
(a) contribution
(b) indemnity
(c) guarantee
(d) none of these

Ans. (b)

Ques. The consideration in insurance for covering the risk is called ___
(a) Claim
(b) Premium
(c) Annuity
(d) None of these

Ans. (b)

Ques. Insurance prices are called
(a) Commissions
(b) Allowances
(c) Premiums
(d) Discounts

Ans. (c)

Ques. Reinsurance is common in __
(a) life insurance
(b) general insurance
(c) none of these
(d) all kind of insurance

Ans. (b)

Related: Contract law quiz

Ques. In the case of marine insurance reserve for unexpired risk is __
(a) 50%
(b) 100%
(c) 40%
(d) none of these

Ans. (b)

Ques. Valuation balance sheet is prepared by a life insurance company to find out
(a) Profit or loss
(b) financial position
(c) surplus or deficiency
(d) net liability

Ans. (c)

Ques. ___.is an agreement between two insurance companies whereby one transfers a part of risk to other.
(a) Reinsurance
(b) Sub insurance
(c) Shared Policy
(d) None of these

Ans. (a)

Ques. The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called
(a) Insured
(b) Assurer
(c) Agent
(d) Underwriter

Ans. (d)

Ques. In legal sense, Insurance is a
(a) Contract
(b) Activity
(c) Gambling
(d) Publicity

Ans. (a)

Related: Banking quiz questions

Ques. __ % of net surplus of a life insurance company is given to policyholders as bonus
(a) 90%
(b) 80%
(c) 95%
(d) none of these
(b)

Ans. (c)

Ques. Valuation balance sheet is prepared by ___ business.
(a) Fire Insurance
(b) Marine Insurance
(c) Life Insurance
(d) All of these

Ans. (c)

Ques. Bonus payable on maturity of the policy is termed as
(a) cash bonus
(b) capital bonus
(c) reversionary bonus
(d) none of these

Ans. (c)

Ques. What is a insurance proposal?
(a) A request for an insurance cover
(b) An offer to enter into a contract
(c) Both (a) and (b)
(d) None of the above

Ans. (c)

Ques. ___ is the amount payable to the insured on the happening of event.
(a) Premium
(b) Annuity
(c) Claim
(d) Policy

Ans. (c)

 

Related: Quiz on saving and investing with answers

Ques. Valuation balance sheet is prepared by __
(a) General insurance company
(b) life insurance company
(c) joint stock company
(d) banking company

Ans. (b)

Ques. Legal expenses in respect of claims of an insurance company is shown in __
(a) P & L a/c
(b) Revenue a/c
(c) Balance sheet
(d) Surplus a/c

Ans. (b)

Ques. The commission given by insurance companies to others for receiving business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these

Ans. (a)

Ques. The chance of loss from the unforeseen circumstances in future refers to ___.
(a) Perils
(b) Damage
(c) Risk
(d) Hazards

Ans. (c)

Ques. Bonus in reduction of premium appears in the revenue a/c as __
(a) an income
(b) an expense
(c) no where
(d) profit

Ans. (b)

Related: general knowledge quiz multiple choice

Ques. The commission earned by insurance companies from others for giving them business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these

Ans. (c)

Ques. When the same risk and subject matter is insured with more than one insurer is known as
(a) Reinsurance
(b) Double Insurance
(c) Under Insurance
(d) Over Insurance

Ans. (b)

Ques. Revenue Account is also called ___
(a) Shareholders’ Account
(b) Policyholders’ Account
(c) Creditors’ Account
(d) None of these

Ans. (b)

Ques. Under ___, the sum assured is given to the beneficiary only on death of policyholder.
(a) Life Policy
(b) Health Policy
(c) Annuity
(d) None of these

Ans. (a)

Related: Entrepreneur quiz

Ques. ………is a form of agreement between two parties in which one party agrees to make good for loss of another.
(a) Contract
(b) Insurance
(c) Banking
(d) Mutual fund

Ans. (b)

Ques. The party whose risk is covered in insurance is known as __
(a) Insurer
(b) Insured
(c) Underwriter
(d) None of these

Ans. (d)

Ques. The agreement of insurance is called as ___
(a) Policy
(b) Premium
(c) Annuity
(d) None of these

Ans. (a)

Ques. __ is the party who undertakes the risk in insurance.
(a) Insurer
(b) Assurer
(c) Underwriter
(d) All of these

Ans. (d)

About the author

Vishal Arora

MBA from one of the best universities, Vishal is our marketing guy with experience of 10+ years. He always inspires and empowers to explore more about in-depth topics in marketing, sales and entrepreneurship.