Insurance Awareness Quiz Set 1

Dear readers, who are preparing for the competitive examinations, we are providing the Insurance Awareness Questions and Answers with a detailed Explanation in So candidates can practice these questions thoroughly and they may help for the upcoming exams too.

Insurance Awareness Quiz Set 1

1. An insurance company not licensed to do business within a given state is called _____

2. The person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured is called _______

3. The portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain is called ______

4. Event covered under insured’s policy agreement is called _____

5. _______ is an insurance coverage protecting the manufacturer, distributor, seller of a product against legal liability resulting from a defective condition causing personal injury, or
damage, to any individual or entity, associated with the use of the product.

6. Circumstance including possibility of loss or no loss but no possibility of gain is termed as ______

7. Contingencies outlined in an insurance policy is called ________

8. The conversion of the account balance of a deferred annuity contract to income payments is termed as ________

9. The conversion of the account balance of a deferred annuity contract to income payments is termed as ________

10. Selling insurance through groups is called ________

11. The process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as _______

12. An adjustable life insurance under which premiums and coverage are adjustable, company’s expenses are not specifically disclosed to the insured but a financial report is provided
to policyholders annually is called _____

13. A life insurance and annuity provision limiting the time within which the insurer has the legal right to void the contract on grounds of material misrepresentation in the policy
application is termed as ________

14. A risk transfer mechanism whereby one party assumes the liability of another party by contract is known as ______

15. A form of whole-life insurance with a pre-defined number of premiums to be paid is known as ________

16. Reinsurance placed with a company not authorized in the reporting company’s state of domicile is called _______

17. An amount of premium for which payment has been made by the policyholder but coverage has not yet been provided is known as ______


18. A person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if
so, at what rate. That person is known as _______

19. A Life insurance policy for which the cost is equally distributed over the term of the premium period, remaining constant throughout is called _____

20. A section of the risk-based capital formula calculating requirements for reserves and premiums is termed as _____

21. Which include claims that have been incurred but not reported?



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