Principles of Insurance Quiz

Anika is applying for a health insurance policy. What is the principle of utmost good faith that she should follow?

• The insurer can change the policy terms anytime.

• Anika can hide information about her medical history.

• The insurer must pay the full claim amount regardless of circumstances.

• Both Anika and the insurer must provide accurate information.

Arjun wants to insure his new car. Which principle states that the car should have financial value?

• Principle of Indemnity

• Principle of Contribution

• Principle of Insurable Interest

• Principle of Subrogation

Emma has insured her house with two different insurance companies. What does the principle of contribution entail in this scenario?

• Only one insurer pays the claim.

• Multiple insurers share the loss proportionately.

• The policyholder pays the full amount.

• The insurer pays more than the loss.

After Maya's car was damaged in an accident and she received compensation from her insurance company, what happens according to the principle of subrogation?

• The insurer takes ownership to recover losses.

• The policyholder retains ownership.

• The policyholder can claim again.

• The insurer pays additional compensation.

Aria's car was damaged in an accident, and she filed a claim with her insurance company. What principle will the insurance company follow to settle her claim?

• Compensation is provided for actual loss.

• Compensation is guaranteed for profit.

• Compensation is optional.

• Compensation is always equal to the premium.

Olivia's car was damaged in a storm, but the insurance company is evaluating whether the damage was caused by the storm or a pre-existing condition. Which principle involves evaluating the nearest cause of loss?

• Principle of Contribution

• Principle of Subrogation

• Principle of Utmost Good Faith

• Principle of Proximate Cause

Mason has an insurance policy for his car. What does the principle of loss minimization require from Mason?

• To take steps to minimize loss.

• To be careless with insured items.

• To ignore potential risks.

• To always claim the maximum amount.

Mia is considering purchasing a life insurance policy. What is the primary purpose of life insurance?

• To insure property against theft.

• To provide financial support after the policyholder's demise.

• To cover travel expenses.

• To insure against natural disasters.

Liam applied for an insurance policy and provided false information. What can the insurer do in this situation?

• The insurer increases the coverage.

• The policy remains unaffected.

• The insurer can cancel the policy.

• The policyholder receives a bonus.

Tags

CCSS.RL.5.6

Mia's car was damaged in an accident, and she filed a claim with her insurance company. Which principle ensures that the insurer cannot pay Mia more than the actual loss she incurred?

• Principle of Contribution

• Principle of Subrogation

• Principle of Utmost Good Faith

• Principle of Indemnity