Insurance Quiz (COSD) 19th March 2024

Question 1.What is the primary purpose of insurance?

• a) Generate profits for insurance companies

• b) Provide financial protection against potential losses

• c) Lower taxes for policyholders

• d) Guarantee investment returns

Question 2. Who assumes the financial risk associated with the insured events in insurance?

• a) Policyholders

• b) Insurance agents

• c) Insurance companies

• d) Insurance regulators

Question3. What is the contract between the insured and the insurance company called?

• a) Claim Settlement

• b) Insurance Policy

• c) Premium Agreement

• d) Risk Management Plan

Question 4. You must declare all relevant information to the insurance company when seeking insurance and fill in the proposal form truthfully

• Indemnity

• Utmost good faith

• Subrogation

• Proximate Cause

Question 5. To make good the loss of something. You cannot profit from insurance. If a claim is made, compensation should put you back in the same financial position

• Utmost good faith

• Subrogation

• Indemnity

• Insurable interest