Insurance is defined as pooling of risk because many people
with common interest make claims every year
with common risk insure with the same company
with common interest insure with reinsurance company
form common association to help themselves
Correct answer is B
Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.
The part of the policy that describes the event that could lead to loss in an insurance contract is
recital clause
condition
specification
operative clause
Correct answer is D
The operative clause of the policy is a promissory clause. It is a promise that the insurer undertakes to pay the benefits of the policy if the reason(s) why the policy was incepted, and issued by the insurer, happens while the policy is in force.
In an endowment policy, benefits are paid at death or
a lump sum is paid on maturity
regular payments are made after maturity
regular payments are made before maturity
no payments is made until the death of the insured.
Correct answer is A
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.
life insurance is a contract of?
indemnity
subrogation
benefit
contribution
Correct answer is C
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner. is a contract of benefit.
agent
broker
consultant
underwriter
Correct answer is B
An insurance broker is a person or company registered as an adviser on matters of insurance and as an arranger of insurance cover with an insurer on behalf of a client.