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

Which of the following is not applicable in life insurance contract?

  1. Conditional contract

  2. Unilateral contract

  3. Indemnity contract

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Life insurance is a contract of assurance, not indemnity. Unlike property insurance, it does not aim to restore the insured to their exact financial position prior to a loss, as human life cannot be valued in monetary terms.

Multiple choice

When a business buys insurance, insurance is 

  1. increased by a debit

  2. decreased by a debit

  3. increased by a credit

  4. decreased by a credit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Insurance is an asset account. Assets are increased by debits and decreased by credits.

Multiple choice

Warranty: covers everything 

  1. full warranty

  2. limited warranty

  3. implied warranty
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A full warranty covers the entire product or service without significant limitations. It is the most comprehensive type of warranty.

Multiple choice economics emerging issues in indian economy energy and health infectious diseases - transmission and prevention infectious diseases and how to prevent them

Insurance that is provided to meet medical expenses in case of emergency is called ___________.

  1. Life insurance

  2. Health insurance

  3. Lability insurance

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

Health insurance is specifically designed to cover the costs of medical treatments and emergencies. Life insurance provides a payout upon death, while liability insurance covers legal claims.

Multiple choice

Which of the following is NOT a common type of sports event insurance?

  1. General liability insurance

  2. Participant accident insurance

  3. Property insurance

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

Weather insurance is not a common type of sports event insurance, as it is typically not available for outdoor events.

Multiple choice

What happens if I disenroll from a Medicare Advantage Plan?

  1. I will be automatically enrolled in Original Medicare

  2. I will have to pay a penalty

  3. I will lose my Medicare coverage

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If you disenroll from a Medicare Advantage Plan, you will be automatically enrolled in Original Medicare. You will not have to pay a penalty or lose your Medicare coverage.

Multiple choice

What is the purpose of a title insurance policy?

  1. To protect the lender against loss in case of a title defect

  2. To protect the buyer against loss in case of a title defect

  3. To protect both the lender and the buyer against loss in case of a title defect

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A title insurance policy is a contract that protects the lender and the buyer against loss in case of a title defect, such as a lien or an encroachment.

Multiple choice

What is the most common type of jewelry insurance?

  1. All-risk insurance

  2. Named-peril insurance

  3. Scheduled insurance

  4. Personal property insurance
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

All-risk insurance covers any loss or damage to your jewelry, regardless of the cause. This is the most comprehensive type of jewelry insurance available.

Multiple choice

What is the difference between named-peril insurance and scheduled insurance?

  1. Named-peril insurance covers specific perils, while scheduled insurance covers all perils.

  2. Named-peril insurance covers all perils, while scheduled insurance covers specific perils.

  3. Named-peril insurance covers only theft, while scheduled insurance covers all other perils.

  4. Named-peril insurance covers only fire, while scheduled insurance covers all other perils.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Named-peril insurance covers only the perils that are specifically listed in the policy. Scheduled insurance covers all perils, except for those that are specifically excluded in the policy.

Multiple choice

What is the deductible on a jewelry insurance policy?

  1. The amount you pay out of pocket before the insurance company starts to pay.

  2. The amount the insurance company pays for a covered loss.

  3. The amount you pay for the insurance policy.

  4. The amount of coverage you have for your jewelry.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The deductible is the amount you pay out of pocket before the insurance company starts to pay for a covered loss.

Multiple choice

What is the most important thing to remember about jewelry insurance?

  1. It is important to have enough coverage to replace your jewelry if it is lost or damaged.

  2. It is important to read the policy carefully and understand the terms and conditions.

  3. It is important to keep your jewelry in a safe place.

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

All of the above are important things to remember about jewelry insurance.

Multiple choice

What are some of the factors that affect the cost of jewelry insurance?

  1. The value of your jewelry.

  2. The type of coverage you choose.

  3. The deductible you choose.

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

All of the above factors can affect the cost of jewelry insurance.

Multiple choice

How can you save money on jewelry insurance?

  1. Choose a higher deductible.

  2. Opt for a named-peril policy instead of an all-risk policy.

  3. Bundle your jewelry insurance with your homeowners or renters insurance.

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

All of the above tips can help you save money on jewelry insurance.

Multiple choice

What is the best way to find a good jewelry insurance policy?

  1. Shop around and compare quotes from multiple insurance companies.

  2. Talk to your insurance agent about your needs.

  3. Read online reviews of different insurance companies.

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

All of the above tips can help you find a good jewelry insurance policy.

Multiple choice

What are some of the common exclusions in jewelry insurance policies?

  1. Theft from a vehicle.

  2. Loss or damage due to war or terrorism.

  3. Loss or damage due to wear and tear.

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

All of the above are common exclusions in jewelry insurance policies.