Insurance Awareness Questions – Set 3

Dear Aspirants,
Welcome to Insurance Awareness Questions in AffairsCloud.com. Here we are covering some important Insurance Awareness Questions & Answers with Explanations. Do study this questions thoroughly as it may prove to be helpful in upcoming exams and also in interviews.

1. ___________ is the insurance of human life values against the risks of death, injury, illness or against expenses incidental to the latter.
   A. Personal Insurance
   B. Commercial Insurance
   C. Industrial Insurance
   D. Liability Insurance
   
   Answer & Explanation

   A. Personal Insurance
   Explanation:
   Insurance purchased for personal or family protection purposes is known as Personal Insurance.
   
   
2. __________ is the insurance of commercial property that protects the property from such perils as fire, theft and natural disaster.
   A. Personal Insurance
   B. Commercial Insurance
   C. Industrial Insurance
   D. Liability Insurance
   
   Answer & Explanation

   B. Commercial Insurance
   Explanation:
   It is used to cover any type of commercial property.
   
   
3. An individual who sells, services, or negotiates insurance policies either on behalf of a company or independently is called ________
   A. Seller
   B. Agent
   C. Service Provider
   D. Aggregate
   
   Answer & Explanation

   B. Agent
   Explanation:
   An agent is a person who represents an insurance firm and sells insurance policies on its behalf or independently.
   
   
4. A demand made by the insured, or the insured’s beneficiary, for payment of the benefits as provided by the policy is known as ______
   A. Claim
   B. Request
   C. Demanding
   D. Aggregate
   
   Answer & Explanation

   A. Claim
   Explanation:
   An insurance claim is a formal request to an insurance company asking for a payment based on the terms of the insurance policy.
   
   
5. A person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held is called _____
   A. Adjuster
   B. Agent
   C. Service Provider
   D. Aggregate
   
   Answer & Explanation

   A. Adjuster
   Explanation:
   The person who investigates insurance claims to determine the extent of the insuring company’s liability. That particular person also known as Claim Adjuster
   
   
6. Coverage for bodily injury and property damage incurred through ownership or operation of a vehicle is called _________
   A. Personal Insurance
   B. Commercial Insurance
   C. Industrial Insurance
   D. Automobile Liability Insurance
   
   Answer & Explanation

   D. Automobile Liability Insurance
   Explanation:
   Automobile Liability Insurance covers injuries or damages to third parties and their property, not to the driver or the driver’s property.
   
   
7. Who among the following can take Fire policy?
   A. Godown Keepers.
   B. Shop Keepers.
   C. Educational/ Research Institutions.
   D. All of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   Fire insurance is insurance that is used to cover damage to a property caused by fire. It is a specialized form of insurance beyond the property insurance. It is designed to cover the cost of replacement, reconstruction or repair which all are not covered by the property insurance policy.
   
   
8. An individual who may become eligible to receive payment due to will, life insurance policy, retirement plan, annuity, trust, or other contract is known as _________
   A. Adjuster
   B. Beneficiary
   C. Service Provider
   D. Aggregate
   
   Answer & Explanation

   B. Beneficiary
   Explanation:
   A person who derives advantage from something, especially a trust, will, or life insurance policy etc., is called beneficiary
   
   
9. Coverage for property taken or destroyed by breaking and entering the insured’s premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and off-premises exposure is known as _______
   A. Fire Policy
   B. Burglary Policy
   C. Jewellers Block Policy
   D. None of the Above
   
   Answer & Explanation

   B. Burglary Policy
   Explanation:
   Insurance against loss or damage resulting from or following the unlawful breaking and entering of designated premises or places of safekeeping is known as Burglary policy. This Policy is designed to cover business premises only like godown, factory, office etc.,
   
   
10. A form of liability insurance providing coverage for negligent acts and omissions such as workers compensation, errors and omissions, fidelity, crime, glass, boiler, and various malpractice coverages is called ________
    A. Casualty Insurance
    B. Commercial Insurance
    C. Industrial Insurance
    D. Automobile Liability Insurance
    
    Answer & Explanation

    A. Casualty Insurance
    Explanation:
    Casualty Insurance is not directly concerned with life insurance, health insurance, or property insurance. It is mainly liability coverage of an individual or organization for negligent acts or omission.
    
    

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