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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : policy rider[/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Guaranteed insurability [/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Term insurance[/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Variable life [/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Assessment[/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Claim registration [/bg_collapse]
7
Which one of these is a charecteristic of target market?
a. Geography
b. Age
c. Gender
d. All of the above
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : All of the above [/bg_collapse]
8
The process of accessing and classifying the risk is known as
a. New business
b. Underwriting
c. Claims
d. Accounting
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Underwriting [/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Reinsurance [/bg_collapse]
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
[bg_collapse view=”button-green” color=”#FFF” icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]Answer : Preferred class[/bg_collapse]