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.
whole life policy
investment linked policy
education endowment policy
term assurance policy
Correct answer is D
Term life insurance or term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary.
A method of providing indemnity under glass insurance policy is?
cash payment
repairs
replacement
reinstatement
Correct answer is C
There are various ways through which indemnity may be provided. These are :
A functional reinsurance is that it
protects the account of the insurer against large claims
discourage the spread of risk in the insurance market
provides protection for uninsured losses
encourages the insured to make claims from more than one insurer
Correct answer is A
Reinsurance is also known as insurance for insurers or stop-loss insurance.Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.
A life policy holder enjoy days of grace
at the inception of the policy
at the renewal time of the policy
when he surrenders the policy
when the policy is paid up
Correct answer is B
A grace period allows a borrower or insurance customer to delay payment for a short period of time beyond the due date.
insurers allow policyholders a period of grace of at least 15 days, during which arrear premiums can be rectified. In the life insuranceindustry, the norm is to allow policyholders a grace period of 30 days.
The right which an insurer has to stand in the place of the insured against a negligent party is?
insurable interest
subrogation
proximate cause
contribution
Correct answer is B
Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.
use the following information to answer the question below.
Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows;
Basanya's vehicle - N155,000; jaguna's vehicle- N75,000
jaguna's repaired expenses of N75,000 would be paid by
jaguna's insurer
jaguna
Basanya's insurer
Basanya
Correct answer is A
No explanation has been provided for this answer.
use the following information to answer the question below.
Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows;
Basanya's vehicle - N155,000; jaguna's vehicle- N75,000
The compensation would be calculated as
N75,000 payable to jaguna
N80,000 payable to jaguna
N155,000 payable to basanya
N230,000 payable to basanya
Correct answer is A
No explanation has been provided for this answer.
use the following information to answer the question below.
Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows;
Basanya's vehicle - N155,000; jaguna's vehicle- N75,000
The effect of the minimum cover on the two vehicles is the the?
two vehicles will be repaired by jaguna's insurer
insurer of each vehicle is responsible for the repairs
vehicle of Basanya will be repaired by jaguna's insurer
two vehicles are not entitled to compensation from the insurer
Correct answer is C
No explanation has been provided for this answer.
An insurance that could be effected with profit feauture is
term insurance
public liability insurance
endowment assurance
personal accident insurance
Correct answer is C
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.
fire insurance
all risk insurance
product liability insurance
consequential loss insurance
Correct answer is D
What is 'Consequential Loss'. A consequential loss is an indirect loss resulting from an insured's inability to use business property or equipment. A business owner may purchase insurance to protect them against the secondary loss of property and equipment due to a natural disaster or accident.
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