Insurance Quiz

What is the primary purpose of insurance?

• To provide loans to businesses

• To protect against losses

• To increase profits

• To manage investments

What is the difference between insurance and assurance?

• Insurance is cheaper than assurance

• Insurance covers all types of risks, assurance does not

• Insurance is for known risks, assurance is for unknown risks

• Insurance is based on likelihood, assurance is for known events

What does the principle of indemnity refer to?

• The requirement of utmost good faith

• The pooling of risks

• The obligation to pay premiums

• Compensation for losses sustained

Which of the following is an example of an insurable risk?

• War

• Bad management

• Change in fashion

• Fire

What is a proposal form in insurance?

• A policy document

• A renewal notice

• An application form for insurance

• A document for making a claim

What type of insurance provides coverage for vehicles?

• Motor Vehicle Insurance

• Marine Insurance

• Life Insurance

• Fire Insurance

What is the function of a cover note?

• To confirm the risk has been accepted

• To provide a permanent insurance policy

• To serve as a claim form

• To outline the terms of the insurance

Which of the following is NOT a type of life insurance?

• Whole Life

• Term Life

• Fire Insurance

• Life Endowment

What does the principle of subrogation entail?

• The insured must pay premiums

• Ownership rights shift to the insurer after compensation

• The insured can claim full compensation from one insurer

• The insurer must provide coverage for all risks

What is the role of the National Insurance Board (NIB) in the Bahamas?

• To administer national insurance

• To provide loans to businesses

• To regulate insurance companies

• To offer investment advice