Insurance questions and answers

Insurance Questions and Answers

Test and improve on your knowledge of insurance with these Insurance questions and answers. This aptitude test assesses your understanding of the fundamental concepts of insurance.

11.

A blanket policy in fidelity guarantee insurance is to cover

A.

cashiers handling cash

B.

all staff that may handle cash

C.

cash from office to bank

D.

all receivables of the company

Correct answer is B

Fidelity Guarantee policy indemnifies against infidelity of an employee which leads to financial loss. It covers for the loss of money, goods and/or stock arising from dishonesty, embezzelment or misappropriation of company's funds &/or property by employees.

blanket policy is a form of property insurance that covers more than one type of property at one location, or the same type at various locations, or multiple types at multiples locations. It allows the policyholder to extend the coverage of a basic homeowner's policy.

12.

which of the following professionals assist in determining the actual cost of a loss to be paid by an insurer on a claim

A.

loss adjuster

B.

insurance broker

C.

actuary

D.

surveyor

Correct answer is C

An actuary is a business professional who deals with the measurement and management of risk and uncertainty. Being an actuary means having highly valued mathematical skills and expertise. Actuaries come from different academic backgrounds but share a love of maths even if they haven’t done a maths degree.

13.

An event sufficiently related to a legally recognizable injury to be the cause of that injury is?

A.

hazard

B.

remote clause

C.

proximate cause

D.

peril

Correct answer is C

Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril

14.

An attachment to an insurance policy that modifies the policy is?

A.

applicable

B.

variation list

C.

log book

D.

endorsement

Correct answer is D

The purpose of an endorsement is a policy change. Insurance companies create endorsements to offer options to insureds to add coverage or increase coverage limits, but insurers may also issue special endorsements to limit or restrict coverage. Insurance endorsements are used in property and casualty insurance.

15.

which of the following benefits will be covered under personal accident insurance

A.

burial expenses

B.

medical expenses

C.

legal expenses

D.

mortuary expenses

Correct answer is B

Medical care expensesinclude payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.