Question 1

Insurance is a cooperative form of distributing a certain__________over a group of persons who are exposed to it.

Accepted Answer

Insurance is a mechanism for distributing risk among a group of individuals or entities, thereby reducing the financial impact of unforeseen events on any single member of the group.

Question 2

In legal sense, Insurance is a

Accepted Answer

Insurance is considered a contract where an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Question 3

Master policy is issued for ___________.

Accepted Answer

Master policies are typically issued for group insurance plans, where a single policy covers an entire group of people, such as employees of a company.

Question 4

________ can be done by mere endorsement on the policy or by a separate duly stamped deed.

Accepted Answer

Assignment of an insurance policy can be done either by a simple endorsement on the policy document itself or by executing a separate deed that is duly stamped. This process transfers the rights of the policy from the assignor to the assignee.

Question 5

The document which contains the terms and conditions of the life insurance contract is termed as the

Accepted Answer

The Life Insurance Policy is the document that contains all the terms and conditions of the life insurance contract between the insurer and the insured.

Question 6

What is a proposal?

Accepted Answer

A proposal can be both a request for an insurance cover, where an individual or entity proposes to an insurer to consider them for insurance coverage, and an offer to enter into a contract, where one party proposes certain terms to another party with the intention of creating a legally binding agreement if the offer is accepted.

Question 7

Which of these persons will not be given a license to work as an insurance agent?

Accepted Answer

A person with a criminal record may be denied a license to work as an insurance agent due to the potential risk and trust issues involved in the position. Corporate insurance executives and employees of insurance companies can be licensed if they meet the other necessary criteria.

Question 8

A memorandum added to a policy embodying some alterations to the terms of policy is known as

Accepted Answer

An endorsement in the context of insurance is a document that is attached to the original insurance policy, indicating changes or alterations to the terms of the policy. It serves to modify the policy as agreed upon by the insurer and the insured.

Question 9

Which of the following is an evidence of insurance contract?

Accepted Answer

A policy document is the formal evidence of an insurance contract, outlining the terms and conditions agreed upon by the insurer and the insured.

Question 10

The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called

Accepted Answer

Underwriters are professionals in the insurance industry who evaluate and analyze the risks involved in insuring people and assets. They decide whether to provide insurance and under what terms, including the computation of premiums.

Question 11

Insurance prices are called

Accepted Answer

Insurance prices are called premiums, which are the amounts paid for insurance coverage.

Question 12

______________ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.

Accepted Answer

Agents in the insurance industry act similarly to retailers in other sectors by assisting in the sale and distribution of insurance products to consumers. They are the intermediaries between insurance companies and policyholders.

Question 13

The agents who are selling policies of several life and non life insurance companies at a time are known as

Accepted Answer

Brokers are agents who sell policies from multiple insurance companies, unlike agents who typically represent a single company. They act as intermediaries between the insurance buyer and the insurance providers, offering a wider range of products.

Question 14

_____________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy.

Accepted Answer

Surveyors and Loss Assessors are both professionals appointed by insurance companies to assess the loss or damage when a claim is made under a policy. They play a crucial role in determining the extent of the insurance company's liability for the claim.

Question 15

Insurance contract is sort of contract which is approved by

Accepted Answer

Insurance contracts are governed by the Indian Contract Act, 1872, which lays down the framework for all contracts in India.

Quiz 1: Insurance: Principles, Policies, and Practices