Insurance Testing | Mock Test
1
An amendment to insurance policy that becomes a part of the insurance contract and that either expands or limits the benefit payable under the contract is
a. dividend option
b. policy term
c. policy rider
d. retrocession
2
If you are concerned that your health might deteriorate and prevent you from purchasing more insurance in the future you should purchase a policy with what type of rider?
a. Waiver of premium
b. Disability income
c. Accidental death benefit
d. Guaranteed insurability
3
Life insurance plans which provide only risk cover during a specified period without any survival benefit are called _______________ plans.
a. Money back
b. Term insurance
c. Endowment
d. Variable annuity
4
Which of the following policies has a minimum interest rate guarantee on the policy value?
a. Term
b. Universal life
c. Variable life
d. Variable universal life
5
The claim amount which is most probably paid to insured is determined at what stage of claim handling process
a. Claim notification
b. Claim registration
c. Clam payment
d. Assessment
6
The initial estimation of the loss is done at what stage of claim handling process
a. Claim notification
b. Claim registration
c. Claim processing
d. Claim payment
7
Which one of these is a charecteristic of target market?
a. Geography
b. Age
c. Gender
d. All of the above
8
The process of accessing and classifying the risk is known as
a. New business
b. Underwriting
c. Claims
d. Accounting
9
The process of ceding the higher risk applications to another insurance company is called
a. Reinsurance
b. Coinsurance
c. Add on insurance
d. None of the above
10
Which class of insured will have low premium when compared to others?
a. Preferred class
b. Standard class
c. sub-standard class
d. Declined class
