Insurance Quiz

What type of insurance covers risks that might happen and usually lasts for a specific period?

• Short-term Insurance

• Health Insurance

• Long-term Insurance

• Life Insurance

Which of the following is an example of short-term insurance?

• Life insurance

• Retirement annuity

• Funeral cover

• Car insurance

What does long-term insurance primarily cover?

• Accidents

• Damage to property

• Death or retirement

• Theft

What is the purpose of indemnity in insurance?

• To provide security

• To compensate for actual loss

• To ensure honesty

• To cover future risks

Which principle of insurance requires both parties to be honest?

• Insurable Interest

• Utmost Good Faith

• Security

• Indemnity

What does the term 'insurable interest' mean?

• You can insure your neighbor's property

• You can insure items without any connection

• You can only insure something that will cost you money if lost

• You can insure anything you want

What is the main benefit of insurance for businesses?

• More customers

• Higher employee salaries

• Financial protection against risks

• Increased profits

Which of the following is NOT a benefit of personal insurance?

• Offers peace of mind

• Increases property value

• Provides income after death

• Covers medical costs

What is a disadvantage of insurance mentioned in the text?

• Guaranteed payouts

• High premiums

• Wide coverage

• Low risk

What is the Road Accident Fund (RAF) designed to do?

• Pay for funeral expenses

• Cover vehicle damages

• Compensate for road accident injuries

• Provide health insurance