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.

Deductible clausesInsurance perilsTravel insurance coveragePolicy conversion rightsClaim dispute avoidanceSubrogation principles

Insurance Policies and Claims Questions

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

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.

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

Which of the following is not a function of insurance?

  1. Risk sharing

  2. Assist in capital formation

  3. Lending of funds

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

Insurance functions include risk sharing, capital formation, and providing certainty. Lending of funds is a primary function of banks or financial institutions, not insurance companies.

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.