Insurance Basics

What is the meaning of insurance?

• A type of fruit

• A form of transportation

• Financial protection against losses

• A type of clothing

Who are the parties involved in insurance?

• Insured and Broker

• Claimant and Underwriter

• Beneficiary and Reinsurer

• Policyholder (insured) and Insurance company (insurer)

What are the roles in the insurance industry?

• premium collector

• policyholder

• insurance agent, underwriter, claims adjuster, actuary, risk manager

• insurance broker

What is the role of the insured in insurance?

• To pay a premium for financial protection

• To perform magic tricks

• To walk their dog

• To bake cookies

Explain the role of the insurer in insurance.

• The insurer is responsible for selling insurance policies to customers.

• The insurer determines the amount of compensation to be paid in case of a claim.

• The insurer is not involved in assessing risks or providing coverage.

• The insurer provides financial protection against specified risks in exchange for payment of a premium.

What is the primary function of an insurance broker?

• To sell insurance policies directly to customers

• To assess risks and provide coverage

• To act as an intermediary between the insured and the insurer

• To determine the compensation amount for claims

Explain the concept of underwriting in insurance.

• Underwriting refers to the process of selling insurance policies

• Underwriting involves assessing risks and determining coverage

• Underwriting is not a part of the insurance industry

• Underwriting is the same as claims adjustment

Explain the role of a claims adjuster in the insurance process.

• A claims adjuster sells insurance policies

• A claims adjuster assesses risks and determines coverage

• A claims adjuster investigates and settles insurance claims

• A claims adjuster is responsible for underwriting policies

What is the primary responsibility of an insurance agent?

• To bake cookies

• To assess risks and provide coverage

• To perform magic tricks

• To sell insurance policies and provide customer service

What is the main role of an actuary in the insurance industry?

• To design insurance policies

• To assess risks and calculate premiums

• To sell insurance directly to customers

• To investigate and settle claims