Banking Financial Awareness · General Awareness

Insurance Policies and Claims

1,580 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 elements of accounts dual effect of transactions and types of accounts meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

Consider the following statements.
I. Workmen's compensation and third party insurance are examples of guarantee insurance.
II. Re-insurance is more common under fire and marine insurance.
Which of the statement given is/are correct?

  1. I only

  2. II only

  3. Both I and II

  4. Neither I nor II
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both the statements are correct.

1. Guarantee insurance indemnifies the employer and protects against employees and third parties.
2.Insurance of Insurance companies is re-insurance, the claims are high in case of fire and marine insurance and hence, re-insurance is common under them.

Multiple choice organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

State the following statement is True or False:
A policy under which all assets (fixed and current) are insured is called blanket policy of Fire Insurance.

  1. True

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

Blanket policy is issued to cover more than one property or the assets in the property. Under such a policy, the fixed and current assets of a manufacturer or a trader available in different buildings can be covered with a single policy.

Multiple choice organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

Select a word, term or a phase which can substitute the statements:
An insurance policy, covering goods of different types of lying at different places.

  1. Comprehensive policy

  2. Floating policy

  3. Fire policy

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An insurance policy, covering goods of different types of lying at different places is known as floating policy. Payment for insuring the goods under floating policy can change from one period to another as the value of the insured goods cannot be calculated.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Insurance claim received on account of machinery damaged completely by fire is called _________.

  1. Capital receipt

  2. Revenue receipt

  3. Capital expenditures

  4. Revenue expenditures
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Insurance claim received on account of machinery damaged completely by fire is called capital receipt. As this is a receipt that deals with fixed assets, it falls under capital receipt.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

In a marine insurance, when must the insurable interest exist?

  1. At the time of making contract

  2. At the time of loss of subject matter

  3. Both at the time of making contract and at the time of loss of subject matter

  4. At the time of termination of the policy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In marine insurance, the insurable interest must exist at the time of the loss of the subject matter. This differs from life insurance, where it must exist at the time of the contract.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Which of the following statement is true ?

  1. Insurance is not a gambling

  2. Insurance is not a wagering

  3. Insurance is a contract

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Insurance is not a gambling because it is use to cover risk losses gampling is speculative where as insurance is non-speculative
Insurance is not a wagering as insurance itself means surety of the risk cover
Insurance is the contract because it is an agreement where insurer promises to pay benefits to the insured.
Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Insurance claim for loss-in-transit received by consignor is _________________.

  1. Credited to Bank Account

  2. Debited to Insurance Co.

  3. Credited to Abnormal Loss Account

  4. Debited to Consignment Account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A loss by theft or losses by fire, flood, earthquake, war, accidents, in transit, etc. are abnormal losses. These losses are avoidable and not inherent in nature. These losses reduce the value of closing stock as well as profit. 

After finding out the value, credit the Consignment A/c and debit the Abnormal Loss A/c.

Multiple choice social science food security in india need for nregs rural development and employment guarantee scheme food security and nutrition

Under Crop Insurance Scheme, a fixed amount is given to the farmer if his crop is damaged.

  1. True

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

Under Crop Insurance Scheme, when the crop gets damaged by natural calamity or any other factors, a certain amount is provided to the farmers to avoid any further degrading of farmer's quality of life. It is known as 'Pradhan Mantri Fasal Bima Yojana'.

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.