
Multiple Choice Questions on Insurance
Authored by Anthony Simiyu
Other
9th Grade
Used 1+ times

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30 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Insurance is a contract between
The insured and the insurer
The insured and the beneficiary
The insurer and the agent
The insured and the government
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The primary purpose of insurance is to
Generate profit for the insurance company
Protect the insured against financial loss
Provide employment opportunities
Increase government revenue
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The law of large numbers is a fundamental principle in insurance. It states that
Insurance companies should have a large number of employees
Insurance premiums should be based on the number of claims
The probability of a loss can be predicted by studying a large group of people
Insurance companies should operate in many different countries
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The term 'premium' in insurance refers to
The amount paid by the insured to the insurer
The value of the property insured
The amount of compensation paid by the insurer
The cost of the insurance policy
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A risk that can result in either a loss or a profit is known as
Pure risk
Speculative risk
Catastrophic risk
Insurable risk
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The principle of insurable interest requires that
The insured must have a financial stake in the property insured
The insurer must have a financial stake in the property insured
The insured must be related to the property insured
The insured must be a resident of the same country as the property insured
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The principle of utmost good faith means that
The insurer must act in the best interest of the insured
The insured must disclose all relevant information to the insurer
The insured must pay premiums on time
The insurer must compensate the insured for all losses
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