Question 1

Which one of the following statement is correct?
A)Group insurance covers a large number of persons in the policy
B)Group insurance is relatively cheaper than individual insurances
C)Both the statements above are correct
D)Both statements above are wrong

Accepted Answer

Both statements A and B are correct. Group insurance does cover a large number of persons under a single policy, typically offered by employers or organizations to their members or employees. It is also generally more cost-effective than purchasing individual insurance policies, as the risk is spread out over a larger group, leading to lower premiums per member.

Question 2

Which one of the following statement is correct?
A)A master policy is issued in a group insurance policy.
B)Each member in a group policy pays the premium directly to the insurer
C)Both statements above are correct
D)Both the statements above are wrong

Accepted Answer

B

Question 3

Which one of the following is true for a group policy?
A)Copies of the master policy are given to all members by the insurer.
B)The group has to be formed exclusively for the purpose of insurance
C)Entry into the scheme and exit out of it, is at the option of the members.
D)The amount of the cover is determined by the scheme

Accepted Answer

The amount of cover in a group policy is typically determined by the terms of the scheme itself, rather than individual choices of the members. This allows for standardized coverage across all members of the group.

Question 4

State which one of the following statement is correct?
A)A trade union can take out a group insurance policy
B)The cover for an employee can be equal to his age multiplied by a fixed number
C)Both the statements above are correct
D)Both the statements above are wrong

Accepted Answer

Both statements are correct. A trade union can indeed take out a group insurance policy for its members, and it's also possible for the cover for an employee under such a policy to be calculated as their age multiplied by a fixed number, depending on the terms of the policy.

Question 5

One of the fundamental principles of life insurance is ______
A)there is an insurer and policy holder
B)utmost good faith
C)insurable interest
D)Both (b) and (c

Accepted Answer

Both utmost good faith and insurable interest are fundamental principles of life insurance. Utmost good faith (uberrima fides) requires both parties to act honestly and not withhold information. Insurable interest means the policyholder must have a legitimate interest in the insured's continued life.

Question 6

Facts which need to be disclosed is ____
A)facts of common knowledge
B)facts which lessen the risks
C)facts which every one is supposed to know in general
D)family history

Accepted Answer

The answer of Facts which need to be disclosed is...

Question 7

_______ policy is which covers the risk during all situations.
A)Floating .
B)Wagering.
C)Valu
D)Mixed

Accepted Answer

A mixed policy covers risks in various situations, combining elements of different types of insurance policies.

Question 8

The proportion of the risk which the direct insurer holds on his own account refers to ___________
A)Line.
B)Retention.
C)Retrocession.
D)Ceding insurer.

Accepted Answer

Retention refers to the portion of risk that an insurer keeps for itself instead of transferring it to a reinsurer or another party. It indicates the level of risk the insurer is willing to hold on its own account.

Question 9

An international code of York Antwerp Rules applied to__________
A)marine losses.
B)losses of fire.
C)losses of crop.
D)losses of human life.

Accepted Answer

The York Antwerp Rules specifically apply to general average losses in maritime shipping, where the sacrifice or expenditure is made for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.

Question 10

___________ policy is granted only in respect of stock of inventories of the insured under fire insurance business.
A)Floating.
B)Declarations.
C)Replacement.
D)Valued.

Accepted Answer

Declarations policy is specifically designed for businesses with fluctuating inventory levels, allowing the insured to declare the value of their stock at different times. This flexibility is crucial for accurately covering the changing value of inventories under a fire insurance policy.

Question 11

Insurance business is based on ___________
A)Parkinson's law.
B)Newton's law.
C)The theory of probability and law of large numbers.
D)Boyle's law.

Accepted Answer

Insurance business fundamentally relies on the theory of probability and the law of large numbers to predict risk and set premiums accordingly.

Quiz 6: Insurance Policy Types and Terms

Which one of the following statement is correct?

Which one of the following statement is correct?

Which one of the following is true for a group policy?

State which one of the following statement is correct?

One of the fundamental principles of life insurance is ______

Facts which need to be disclosed is ____

_______ policy is which covers the risk during all situations.

The proportion of the risk which the direct insurer holds on his own account refers to ___________

An international code of York Antwerp Rules applied to__________

___________ policy is granted only in respect of stock of inventories of the insured under fire insurance business.

Insurance business is based on ___________