Insurance Knowledge Quiz

What does the term "insurance" mean?

• A contract between two parties for financial protection

• A compulsory government tax

• A type of investment product

• A contract to split business profits

What is a “Premium”?

• The amount paid by an insurer in case of a covered event

• The amount charged by an insurer for providing insurance coverage

• An extra service offered by an insurer

• The amount a policyholder receives when they cancel their insurance policy

Which principle states that the insured should not profit from a loss or damage?

• Principle of insurable interest

• Principle of indemnity

• Principle of utmost good faith

• Principle of contribution

What is “term life insurance”?

• A life insurance policy that provides coverage for a specified term

• A life insurance policy that provides lifelong coverage

• An insurance policy that covers the policyholder's property

• An insurance policy that covers the policyholder's medical expenses

Which type of insurance covers the risk of damage to a property due to events like fire, theft, or natural disasters?

• Health Insurance

• Life Insurance

• Property Insurance

• Liability Insurance

What is a “rider” in insurance?

• A separate policy that covers additional risks not covered by the main policy

• A person who is authorized to make decisions on behalf of the policyholder

• A provision added to an insurance policy that provides additional coverage or modifies existing coverage

• A document that outlines the terms and conditions of an insurance policy

What is a “claim” in the context of insurance?

• A request by the policyholder for the insurer to pay benefits under the terms of the policy

• A formal complaint made by the policyholder against the insurer

• A legal document that outlines the terms and conditions of an insurance policy

• A request made by the insurer for the policyholder to pay their premium

How many days do insurers have in order to pay the claim after the claimants agree?

• 1 day

• 3 days

• 5 days

• 15 days

What is “group insurance”?

• Insurance coverage provided to a group of individuals under a single policy

• Insurance coverage that applies to a specific group of risks, such as natural disasters or terrorism

• Insurance coverage that is only available to members of a specific organization or association

• Insurance coverage that is based on the policyholder's membership in a specific demographic group

What is “annuity”?

• A type of investment product that provides regular income payments for a specified period or for life

• A type of insurance policy that covers the policyholder's property

• A type of insurance policy that covers the policyholder's medical expenses

• A type of insurance policy that provides coverage for a specified term