Insurance Principles Quiz

Which of the following is uninsurable risk?

• Broken Window

• Car accident

• Examination Failure

• Flood

What does the term "insured" refer to?

• Insurance Company Offering insurance

• Payment made for Insurance

• Person who is covered by insurance

• Property Covered by insurance

What determine the amount charged as insurance premium?

• Government Regulation

• The amount of Risk Involved

• The number of policies held by the insured

• The wealth of the insurance

Which principle of insurance states that the insurance application form must be completed honestly?

• Indemnity

• Insurable Interest

• Subrogation

• Utmost Good Faith

Which is an important principle of insurance?

• Gamble for money

• Insurable Interest

• Not for profit

• Not to tell the truth

What is a form of insurance taken out by people who have insurable interest in property exposed to the dangers of sea called?

• Accident insurance

• Fire insurance

• Marine insurance

what is the fee charged by an insurance company by an insurance company for promising to compensate the insured against injury or loss called?

• A cover

• A premium

• A policy

• compensation

which risk is a trader not able to insure his or her business against?

• Accident

• Change in price

• Damage to goods

• Fire

What risk does Marine insurance deal with

• Cargo

• Rail

• Road

• Sea

Which is an insurable risk?

• Change in demand

• change in fashion

• change in price

• Risk of Fire