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Quiz 20
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Q.1
Which of the following constitute Breach of Utmost Good faith?
Non-Disclosure
Misrepresentation
Both A & B
None of the above
Q.2
In commercial contracts, the principle to be observed is
Caveat Emptor
Indemnity
Proximity
Uberrima Fides
Q.3
In which type of contract, the happening of event is certain but its timing is not known?
Life Insurance
General Insurance
Both A & B
None of the above
Q.4
How life insurance is possible?
Timing of death is certain
Timing of death is uncertain
Death is certain but its timing is uncertain
None of the above
Q.5
Life insurance policy, in general, is a mixture of
Protection and security
Insurance and Assurance
Protection and Savings
Protection and Tax relief
Q.6
Which of the following is incorrect?
A. Mutuality means funds from various individuals are combined
B. Diversification means spreading out funds to various destinations.
A is correct
B is correct
Both A & B
None of the above
Q.7
The person who makes the offer is called the _________ and the person who accepts the offer in an insurance contract is called the _________
Offerer, Acceptor
Insurer, Insured
Proposer, Insured
Proposer, Insurer
Q.8
At young age, one tends to be
Progressive
Aggressive
Secured
Conservative
Q.9
Which of the following is incorrect? (i) - The longer the period of investment, the more they will multiply.
(ii)– The lesser the period of investment, the greater they will multiply.
Statement (i)
Statement (ii)
Both (i) and (ii)
Neither (i) nor (ii)
Q.10
Cost of the risk is product of which of the following 2 factors:
Insurance and Assurance
Happenings and result
Cause and effect
Probability and impact
Q.11
Considering insuring an ordinary ball pen is an example of
Don’t risk more than you can afford to lose
Don’t risk a lot for a little
Both A & B
None of the above
Q.12
Providing social security is the obligation of _________
State
Insurance companies
Private companies
Individuals
Q.13
Which is not an example of social security schemes of the Government?
Rajeev Gandhi Equity Scheme
Janata Personal Accident
Jan Arogya Scheme
Employees State Insurance Corporation
Q.14
Considering insuring an oil refinery is example of
Don’t risk more than you can afford to lose
Don’t risk a lot for a little
Both A & B
None of the above
Q.15
Which of the following is correct? Statement A. The system of insurance benefits individual, family and the society Statement B. Insurance companies could invest in speculative ventures.
A is correct
B is correct
Both A & B
None of the above
Q.16
Which of the following is untrue?
A. Insurance promotes efficient use of existing resources
B. Insurance contributes to healthy economy and national productivity
C. Insurance policy can be used as a collateral security
A is true
B is true
A & B correct
None of the above
Q.17
In Variable insurance plan, the policy reserves are placed in _________ fund which do not form part of its general investment account.
Same
Separate
Secured
Growth
Q.18
In which type of policy, death benefits and cash value varied with investment experience?
Traditional cash value plan
ULIP
Universal Life Ins
Variable life ins
Q.19
Human Life Value concept measures the value of a human life on the basis of his
Gross earnings
Net earnings
Total earnings
Expenses
Q.20
Human Life Value can be arrived at by dividing by_________
Gross earnings, Rate of interest
Net earnings, Gross earnings
Gross earnings, Net earnings
Net earnings, Rate of interest
Q.21
In respect of Traditional plans, which of the following statement is correct?
Policyholder’s bonus depend on periodic valuation of Assets & Liabilities
Bonus did not directly reflect the value of assets of the insurer
Both A & B
None of the above
Q.22
In Unit Linked policies, the benefits are determined by the _________ of units credited to the policyholder’s account on the date on which payment is due.
Growth
Value
Reduction
Loss
Q.23
Units in a Unit Linked policy are purchased through payment of a
Single premium
Regular premium
Either A or B
None of the above
Q.24
As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income.
5 to 10 times
10 to 15 times
25 to 50 times
50 to 100 times
Q.25
Which of the following typically have the highest insurance premiums.
Young, inexperienced drivers
Older, experienced drivers
Drivers who have with safe driving records
Drivers who travel long distances
Q.26
Of the four parts of auto insurance coverage, which part protects your from acts of God?
Comprehensive
Liability
Collision
Medical Payments/Bodily Injury
Q.27
According to the Affordable Care Act, children can be on their parents' health insurance until what age?
Until they get a full time job
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Q.28
The purpose of insurance is to completely transfer risk to other people.
TRUE
FALSE
Q.29
Cash set aside that can be used to cover the costs of unexpected expenses
emergency savings
emergency spending
emergency fraud
emergency share
Q.30
The risks covered and amount of money paid for losses under an insurance policy
emergency savings
beneficiary
claim
coverage
Q.31
Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
employee benefits
co-insurance
deductible
coverage
Q.32
Most experts in personal finance say that everyone should have life insurance no matter what age you are.
TRUE
FALSE
Q.33
When you shop for life insurance, you should consider only the cost or premium you will pay.
TRUE
FALSE
Q.34
In which of the following scenarios will you obligated to pay the least amount of money out-‐of-‐pocket for medical expenses?
You have no insurance.
You have health insurance with a $500 deductible.
You have auto insurance with a $700 deductible.
You have health insurance with a $1,500 deductible.
Q.35
What does renters insurance cover?
The damage to the property
Earthquakes
Personal items the tenant owns
If a burglar breaks in and he/she is injured as a result
Q.36
This type of insurance protects against damage to the car OR injury to persons in the car caused by a driver who carries no insurance.
collision
comprehensive
property
uninsured motorists
Q.37
If you can not work due to a health condition or injury, this type of insurance will pay you a portion of the income you lose.
disability
health
premium
hospitalization
Q.38
The amount paid for insurance is the
closing cost
premium
deductible
assessed value
Q.39
Someone breaks into your apartment and steals your iPad.
Homeowners Insurance
Liability Insurance
Comprehensive Insurance
Renters Insurance
Q.40
You hit a deer with your car and it needs to be repaired
Liability Insurance
Comprehensive Insurance
Collision Insurance
Life Insurance
Q.41
Food poisoning sends you and your family to the emergency room.
Liability Insurance
Disability Insurance
Life Insurance
Health Insurance
Q.42
Your car is totaled during a hit and run accident
Uninsured Motorist Insurance
Life Insurance
Comprehensive Insurance
Collision Insurance
Q.43
After your knee surgery, you are unable to work for 3 months and you need help paying expenses while you're out of work
Disability Insurance
Health Insurance
Life Insurance
Automobile Insurance
Q.44
You fall off your bike and sprain your wrist.
Disability Insurance
Automobile Insurance
Health Insurance
Life Insurance
Q.45
You crash your car into another vehicle and hurt someone else in the car
Bodily Injury Liability
Property Damage Liability
Collision Insurance
Comprehensive Insurance
Q.46
Which of the following is NOT covered by Property Damage Liability Coverage?
Cars
Poles
Signs
Medical Bills
Q.47
You have a $copay every time you go to the doctor. You have a $deductible, and a $annual premium for health care. How much money do you have to pay out of pocket before insurance kicks in?
$20
$100
$250
$1000
Q.48
Which type of Life Insurance policy only pays a beneficiary when a person dies during a time period?
Term Life Insurance
Whole Life Insurance
Variable Life Insurance
Universal Life Insurance
Q.49
Which is NOT a source of Disability Income?
Worker's Compensation
Private Insurance
Social Security
University
Q.50
What type of insurance coverage is considered specialized?
Floods and earthquakes
Stolen or destroyed property
Loss of Use
Property Damage from a fire
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