Insurance and Entrepreneurship Quiz

What is keyboarding?

• Watching videos on a computer

• Typing information into a computer using a keyboard

• Drawing on a screen

• Playing games on a computer

Which of the following best explains utmost good faith in insurance?

• Only the insurer tells the truth

• Both parties must disclose all material facts truthfully

• The insured must not question the insurer

• The claim must be paid immediately

What does the principle of indemnity ensure?

• The insured receives profit

• The insured gets full market value

• The insured is returned to the financial position before the loss

• The insured gets a new item

In which principle does the insurer gain the right to act on behalf of the insured after paying compensation?

• Indemnity

• Subrogation

• Risk pooling

• Disclosure

Why is insurable interest important in insurance?

• It increases premium

• It ensures only people with a financial stake can insure a property

• It avoids multiple claims

• It allows for policy cancellation

Why is indemnity used in most insurance policies?

• To reward the insured

• To increase the value of loss

• To prevent the insured from gaining or losing financially

• To calculate risk

If someone lies on an insurance application, which principle is being violated?

• Subrogation

• Insurable interest

• Utmost good faith

• Risk assessment

The insurer’s right to take legal action against a third party after compensating the insured is called:

• Indemnity

• Utmost good faith

• Subrogation

• Risk pooling

Which of these best shows insurable interest?

• A shop owner insuring the goods in their shop

• A neighbor insuring someone else's car

• A student insuring their friend’s books

• A customer insuring a store

Which row of keys is known as the home row?

• QWERTY

• ASDFGHJKL

• ZXCVBNM

• 1234567890