Insurance Quiz

What is the primary purpose of insurance?

• To invest in stocks

• To provide protection against loss

• To generate profit

• To avoid taxes

Who is referred to as the 'insured' in an insurance contract?

• The government agency

• The insurance company

• The person who is protected against losses

• The person who sells the policy

What does the term 'premium' refer to in insurance?

• The amount paid by the insurer

• The duration of the policy

• The amount paid by the insured

• The total value of the policy

Which principle requires both parties to disclose all material facts?

• Principle of Indemnity

• Principle of Subrogation

• Principle of Utmost Good Faith

• Principle of Contribution

What is 'insurable interest'?

• Interest in the policyholder's life

• Financial interest in the subject matter of insurance

• Interest in the insurance premium

• Interest in the insurance company

Which principle states that the insured must minimize losses?

• Principle of Causa-Proxima

• Principle of Contribution

• Principle of Indemnity

• Principle of Mitigation of Loss

What does the principle of subrogation entail?

• The insurer pays the full claim amount

• The insured can claim from multiple insurers

• The insured must pay a higher premium

• Ownership rights of damaged property pass to the insurer

Which type of insurance policy pays out on the death of the insured?

• Property Insurance

• Health Insurance

• Term Insurance

• Travel Insurance

What is a 'whole life policy'?

• Insurance for a specific term

• Insurance for the entire life of the insured

• Insurance that provides regular payouts

• Insurance that pays out only on maturity

Which policy provides a regular percentage of the sum assured during the lifetime?

• Term Insurance

• Money-back Policy

• Endowment Policy

• Annuity Policy