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.
A general question in an insurance proposal form is
name of the proposal
carriage of fare-paying passenger
description of the proposers' premises
methods of construction
Correct answer is A
Proposal (application) forms are questionnaires issued by the insurer to be completed by the proposer or his/her agent, which ask questions about the subject matter of cover. Since the insurer will use the information to assess a premium and set the terms and conditions of the policy, the prospective insured must disclose all the material circumstances, whether or not the proposal form asks for them.
insurers requesting for membership of Nigeria Insurers Association is required by law to?
(i) have been registered with NAICOM (ii)operate with sound insurance principles (iii) hold membership of CHN (iv) ascribe to the policy holding of NIA
i, ii and iii only
i, ii and iv
i, iii and iv
ii, iii and iv
Correct answer is B
No explanation has been provided for this answer.
30 policy holders
40 policy holders
50 policy holder
60policy holders
Correct answer is C
The Insurance Act 2003 provides for the liquidation of insurers on the petition of either 50 policyholders or the National Insurance Commission. Section 33 of the act prohibits the voluntary winding up of insurance businesses, except for the purpose of effecting an amalgamation, transfer or acquisition.
a proposal form
a policy form
an endorsement
a slip
Correct answer is A
A proposal form is the form completed by the policyholder when applying forinsurance. You will need to fill in information about the risk you are insuring e.g. the rebuild cost of your house or type of car you own.
An insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing thepolicy. Most standard insurance policy forms are developed by insuranceadvisory organizations, such as Insurance Services Office, Inc.
A placing slip is a document created by a broker that contains a summary of the terms of a proposed insurance or reinsurance contract which is then presented by the broker to selected underwriters for their consideration.
An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy.
The document used pending the issuance of certificate in motor insurance policy is
a cover note
a proposal form
an endorsement
a slip
Correct answer is A
A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued. A cover note is different from a certificate of insurance or an insurance policy document.
The form of term assurance that operates three options which must be excised before maturity is
decreasing term insurance
increasing term insurance
level term insurance
convertible term insurance
Correct answer is D
A convertible insurance policy is a term usually related to life insurance. This type of policy provides the benefit of obtaining less expensive term life insurancenow while maintaining the option to convert to a permanent policy at a later date asinsurance needs and financial resources change.
Decreasing term insurance is renewable term life insurance with coveragedecreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually.
Increasing term life insurance. A term life policy that increases the death benefit each year during the term. Concurrently, as the death benefit increasLevel-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.es, so does the premium. If kept long enough, the premium on this policy will increase faster than the death benefit.
Extension cover under money insurance policy doesnt include?
shortage
hold-up
personal injury
damaged to safe
Correct answer is A
Money insurance policy provides cover for loss of money in transit between the insured's premises, bank and other specified places occasioned by robbery, theft or any other fortuitous cause. It also provides cover for loss of money inthe business premises, safe or vault, etc.
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