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Insurance Awareness Questions – Set 21

By
AC Team 1
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Dear Aspirants,

Welcome to Insurance Awareness Questions in AffairsCloud.com. Here we are covering some important Insurance Awareness Questions & Answers with Explanations. It will help you to know the important terms, condition, definitions and abbreviation related with Insurance

  1. Which is a fixed amount for a covered service in health sector ?
    1.Coinsurance
    2.Deductible
    3.Copay
    4.Health Insurance
    5.None of these
    Answer – 3.Copay
    Explanation :
    A copayment or copay is a fixed amount for a covered service, paid by a patient to the insurance company before patient receives service from physician.

  2. A deductible is usually mentioned in
    1.Rupee
    2.Dollar
    3.Euro
    4.Any currency
    5.None of these
    Answer – 2.Dollar
    Explanation :
    A deductible is usually a fix dollar amount that you have to pay out of your own pocket before the insurance will cover the remaining eligible expenses

  3. The amount of risk retained by an insurance company that is not re-insured is called
    1.Retention
    2.Uninsurable risk
    3.Insurable risk
    4.Reinsure
    5.None of these
    Answer – 1.Retention
    Explanation :
    Retention is the amount of risk retained by an insurance company that is not re-insured.

  4. The Coinsurance is specified by
    1.All of the below
    2.Equity
    3.Ratio
    4.Percentage
    5.None of these
    Answer – 4.Percentage
    Explanation :
    Coinsurance refers to money that an individual is required to pay for services, after a deductible has been paid. Coinsurance is often specified by a percentage.

  5. In BCAR, C related with __________
    1.Capital
    2.Currency
    3.Customer
    4.Claim
    5.None of these
    Answer – 1.Capital
    Explanation :
    Best’s Capital Adequacy Relativity (BCAR) – This percentage measures a company’s relative capital strength compared to its industry peer composite

  6. _________is a sum of money paid by an employer to an employee for services rendered in the company
    1.Pension
    2.Gratuity
    3.Salary
    4.Premium
    5.None of these
    Answer – 2.Gratuity
    Explanation :
    Gratuity is a benefit payable under the Payment of Gratuity Act passed in the year 1972. Gratuity is a sum of money paid by an employer to an employee for services rendered in the company.

  7. What is lapse in insurance ?
    1.Termination of an insurance policy due to the insured’s failure to pay the premium.
    2.It is a policy that does not pay benefits to the beneficiary if the cause of death is an accident
    3.It is a policy that pays benefits to the beneficiary if any emergency occur
    4.It is a policy that pays benefits to the beneficiary if the cause of death is an accident
    5.Both 1 and 2
    Answer – 5.Both 1 and 2
    Explanation :
    The term lapse refers to a “lapse in coverage”, meaning the life insurance contract will no longer pay a death benefit or provide any insurance coverage for the insured person

  8. Mortality Charge is the amount charged _____________ by the insurer
    1.Every month
    2.Every year
    3.Every day
    4.Every 6 months
    5.None of these
    Answer – 2.Every year
    Explanation :
    Mortality Charge is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the Life Insured. It can otherwise be called the Cost of Insurance.

  9. __________________ is an insurance product typically sold or issued by life insurance companies.
    1.Life term policy
    2.Life Insurance
    3.Life Annuity
    4.Term Insurance
    5.None of these
    Answer – 3.Life Annuity
    Explanation :
    A life annuity is an annuity, or series of payments at fixed intervals, paid while the purchaser (or annuitant) is alive. A life annuity is an insurance product typically sold or issued by life insurance companies.

  10. What is TPA ?
    1.Third Party Administrators
    2.Third Power Administrators
    3.The Party Accelerators
    4.The Power Administrators
    5.None of these
    Answer – 1.Third Party Administrators
    Explanation :
    Third Party Administrators or TPAs are a vital link between health insurance companies, policyholders and health care providers

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