Insurance Testing Questions and Answers

Insurance Testing | Mock Test

___________ risk are insuable
a. Pure
b. Speculative
c. Actual
d. expected

Answer : Pure
__________person who decides weather to accept the risk or not?
a. binder
b. underwriter
c. intermediary
d. agent
Answer : underwriter
A company which covers insurance for all its employes ___________
a. captive insurance company
b. mutual insurance company
c. syndicate
d. pools
Answer : captive insurance company
In which form of insurance company will the customers have a dual relationship of customers as well as owner with the company?
a. Mutual Insurance Company
b. Syndicated insurance companies
c. Govt
d. pools
Answer : Mutual Insurance Company
The purpose of —————–is to make sure that the insured will not make profit from insurance
a. Indemnification
b. Subrogation
c. Recouping
d. Rectifying
Answer : Indemnification
Which among these is a technique to counter moral hazard in Insurance?
a. Partial Insurance
b. Premium discounts on renewal.
c. Adhering to correct accounting practices.
d. Risk pooling among insurers
Answer : Partial Insurance
Insurance companies generally classify proposed insured who have a significantly greater-thanaverage likelihood of loss but who are still found to be
a. preferred risk
b. standard risk
c. substandard risk
d. declined risk
Answer : substandard risk
Buying an insurance policy is what kind of a risk handling technique?
a. Avoidance
b. Transferring
c. Retention
d. Prevention
Answer : Transferring
By buying an insurance policy who assumes the risk?
a. Insurer
b. Insured
c. Neither
d. Both
Answer : Insurer
By not buying a life insurance policy the person is ——the financial risk on his family due to the death
a. Avoiding
b. Controlling
c. Retaining
d. Preventing
Answer : Controlling

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