Deck 7: Insurance Terminology and Policies

Question 1

Certain percentage of the sum assured is paid periodically according to.......... policy

A)term
B)endowment
C)money back
D)group insurance

Answer 1

money back

Question 2

The principle of indemnity does not apply to

A)burglary insurance
B)fire insurance
C)marine insurance
D)life and personal accident insurance

Answer 2

life and personal accident insurance

Question 3

Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is called

A)insurable interest
B)subrogation
C)proximate cause
D)mitigation of loss

Answer 3

subrogation

Question 4

Guarantee for employer for the loss out of employees dishonest is

A)burglary insurance
B)fidelity insurance
C)third party insurance
D)guarantee insurance

Question 5

Motor insurance has its beginning in the

A)usa
B)ussr
C)uk
D)uae

Question 6

Fidelity guarantee insurance does not guarantee

A)the death of the employer
B)the death of the employee
C)the employees honesty
D)the employers honesty

Question 7

Insurance is based on the principle of

A)co-operation
B)democracy
C)equality
D)welfare

Question 8

This policy covers all risks to the ship and its cargo while the ship is at a particular port.

A)voyage policy
B)floating policy
C)time policy
D)port risk policy

Question 9

Fire insurance can be taken in respect of

A)movable properties only
B)immovable properties only
C)both a & b
D)persons only

Question 10

The principle of indemnity applicable to...........

A)life insurance
B)personal accident insurance
C)property insurance
D)all of these

Question 11

Except life insurance the maximum term of other insurance is

A)12 months
B)24 months
C)6 months
D)36 months

Question 12

The person whose risk is insured is called

A)insured
B)assured
C)insurer
D)both a &b

Question 13

The person who agrees to compensate the loss arising from the risk is called the ........

A)insurer
B)underwriter
C)assurer
D)all of these

Question 14

............ policy matures on the assureds' death or on his attainment of particular age whichever is earlier

A)endowment policy
B)money back policy
C)joint life policy
D)single premium policy

Question 15

In marine insurance, insurable interest is enough at the time of........

A)claim
B)loss
C)maturity
D)insurance

Question 16

In fire insurance, insurable interest is enough at the time of........

A)effecting the policy
B)loss
C)maturity
D)both a & b

Question 17

......... is an agreement whereby the insurer agrees to indemnify the insured against losses due to sea and port perils

A)fire insurance
B)marine insurance
C)life insurance
D)all the above

Question 18

....... are those terms, which are written on the policy

A)express warranties
B)implied warranties
C)memorandum clause
D)valuation clause

Question 19

When the subject matter insured is destroyed wholly refers to.........

A)partial total loss
B)actual total loss
C)constructive total loss
D)none of these

Question 20

------- policy issued on the basis of the number of persons assured

A)annuity policy
B)multiple life policy
C)single life policy
D)level premium policy

Question 21

Process of transferring right in respect of a policy from one person to another is

A)blank transfer
B)surrender
C)assignment
D)endorsement

Question 22

......... means a wilful and intentional act on part of self destroyer

A)death
B)suicide
C)murder
D)accident

Question 23

The central office of LIC is located at

A)new delhi
B)kolkata
C)mumbai
D)chennai

Question 24

A person employed to act for another or to represent another while dealing with third party is

A)principal
B)trustee
C)agent
D)servant

Question 25

Maritime perils are also called..........

A)perils of the sea
B)moral hazards
C)morale hazards
D)none of these