Banking Financial Awareness · General Awareness

Insurance Policies and Claims

1,514 Questions

Insurance policies provide financial protection against specific perils, involving concepts like deductibles, premiums, and claim settlements. Banking and insurance aspirants need a solid grasp of policy types, coverage limits, and claim procedures. Practice these questions to understand how different insurance principles apply in real scenarios.

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Insurance Policies and Claims Questions

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

In life insurance, the risk insured is __________________.

  1. certain to occur and also the timing of its occurrence is known

  2. certain to occur but its timing of occurrence is not known

  3. not certain to occur and also the timing of its occurrence is not known

  4. not likely to occur
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Life insurance are taken to cover up the unforeseen and untimely event occurs during the life time. Life insurance companies provide the coverage of life of the insurer by taking an insurance premium. Life cover are taken to have future security in case of untimely and unforeseen circumstances.

Multiple choice elements of business partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

The best way to explain limited liability is this :- 'you risk what you put in'.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The best way to explain limited liability is this: 'you risk what you put in'. The concept of limited liability restricts the amount of money a person risks to what she invests in a business enterprise. It means that the liability of each person is limited to the extent of his/her share in the business.

Multiple choice organization of commerce and management business services 1 importance, types and documentation in warehousing meaning of warehousing and warehousing warehousing

A _______ was developed to offer a broad coverage against all possible damages arising from a variety of risks.

  1. Lump-sum policy

  2. One-time policy

  3. Comprehensive policy

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A comprehensive policy was developed to offer a broad coverage against all possible damages arising from a variety of risks. Comprehensive policy typically covers damage from fire, vandalism or falling objects. Comprehensive policy is often regarded as an optional coverage.

Multiple choice organization of commerce and management business services 1 importance, types and documentation in warehousing meaning of warehousing and warehousing warehousing

Whenever you buy a vehicle, motor insurance is equally important and third party liability insurance is mandatory.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
A. True
Motor Vehicle Insurance falls under the General Insurance. In motor insurance, the owner’s liability to compensate people who were killed or injured through negligence of the motorists or drivers is passed on to the insurance company. This is also known as third party insurance. The premium is paid yearly in case of Motor Vehicle Insurance.
Multiple choice organization of commerce and management business services 1 importance, types and documentation in warehousing meaning of warehousing and warehousing warehousing

State the following statement is True or False:
Fire Insurance is a contract to cover risk of loss due to fire.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period upto the amount specified in the policy. Normally, the fire insurance policy is for a period of one year after which it is to be renewed from time to time.
Multiple choice business mathematics and statistics insurance and annuity amount of an annuity annuities financial mathematics

Which of the following is not an example of annuity contingent ?

  1. Daughter's Marriage Loan

  2. Life Insurance Plans

  3. Mortgage

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
$\Rightarrow$  $Mortgage$ is not an example of annuity contingent.
$\Rightarrow$   Annuity contingent is an annuity arrangement in which the beneficiary does not begin receiving payments until a specified event occurs.
 $\Rightarrow$  A contingent annuity may be set up to begin sending payments to a beneficiary upon the death of another individual who wishes to ensure financial stability for the beneficiary or upon retirement or disablement of the beneficiary.
$\Rightarrow$  Daughter's Marriage loan and Life insurance plans are examples of annuity contingent.
Multiple choice business mathematics and statistics insurance and annuity amount of an annuity annuities financial mathematics

Which of the following comes under Annuity due?

  1. Life insurance Premium

  2. Recurring Deposit Payments

  3. Advance Payment of monthly house rent

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An annuity is a contract aimed at generating steady income during retirement, where in lump sum payment is made by an individual to obtain certain amounts immediately or at some point of future
all of above comes under annuity.
It includes Life insurance Premium, Recurring Deposit Payments, Advance Payment of monthly house rent.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Distribution of insurance products and insurance policies by banks as corporate agents is known as _________.

  1. general Insurance

  2. non-life insurance

  3. bancassurance

  4. insurance banking
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bancassurance is a partnership between a bank and an insurance company where the bank sells the insurance company's products to its existing customer base.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Prepaid insurance is nominal account.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Prepaid insurance represents an asset (a representative personal account) because it is a payment made in advance for future benefits. Nominal accounts only represent current expenses, losses, incomes, or gains.

Multiple choice

An insurance policy is a contract and is an example of a:

  1. Bilateral contract

  2. Unilateral contract
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An insurance policy is considered a unilateral contract because only one party, the insurer, makes a legally enforceable promise to pay for covered losses. The insured does not promise to pay premiums, though they must do so to keep the policy in force.

Multiple choice

Which of the following is not a type of marine insurance

  1. Ship and hull insurance

  2. Cargo insurance

  3. Freight insurance

  4. Fixed line service
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ship and hull, cargo, and freight insurance are all standard types of marine insurance. Fixed line service is a telecommunications term, not an insurance type.

Multiple choice

Which of the insurance is not a contract of indemnity

  1. Marine insurance

  2. Fire insurance

  3. Freight insurance

  4. Life insurance
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Life insurance is a contract of certainty, not indemnity, because the value of a human life cannot be measured in monetary terms to be 'restored' to its original state.