Types of Insurance

What is the basis of compensation for fire insurance?

• Market value of the property

• Actual cash value or replacement cost of the property.

• Total insured amount regardless of damage

• Estimated future value of the property

What type of loss is compensable in life insurance?

• Injury to the insured individual

• Loss of personal property

• Loss of income due to unemployment

• Death of the insured individual

What is the typical period for marine insurance policies?

• Two years

• One year

• Six months

• Three years

What is the primary objective of fire insurance?

• To insure against theft and vandalism of property.

• To provide legal assistance in fire-related lawsuits.

• To cover damages from natural disasters other than fire.

• To provide financial protection against losses or damages caused by fire.

Which of the following is typically excluded from a standard homeowners insurance policy?

• Fire damage

• Flood damage

• Theft

• Liability claims

Aanya is considering purchasing a life insurance policy. What is the primary factor that determines her life insurance premiums?

• Age and health of the insured individual

• Type of insurance policy selected

• Location of the insured individual

• Amount of coverage desired

Ria is considering purchasing an insurance policy. What is the common term for the amount paid by Ria for insurance coverage?

• Deductible

• Premium

• Co-payment

• Excess

In the context of fire insurance, what does indemnity mean?

• Compensation for loss or damage

• Legal protection against claims

• Coverage for future losses

• Insurance against theft

Sanya is shipping a valuable collection of antiques. Which of the following best describes freight insurance?

• Insurance that covers the loss of goods during transit.

• Insurance that protects against damage to the shipping vessel.

• Insurance that covers legal liabilities of the shipper.

• Insurance that only covers delays in shipping.

Which type of marine policy provides coverage for a specific journey or voyage?

• Time policy

• Voyage policy

• Comprehensive policy

• Hull policy