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
- CMO Stands for
1.Collaboration Money obligation
2.Collateralized mortgage Observation
3.Collateralized Market Obligation
4.Collateralized Mortgage Obligation
5.None of theseAnswer – 4.Collateralized Mortgage Obligation
Collateralized mortgage obligation (CMO) refers to a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment.’
- Who will sells both casualty insurance and life insurance ?
5.None of theseAnswer – 1.Composite insurer
Composite insurer refers to an insurance company which sells both casualty insurance and life insurance against damage to household contents, automobiles, and travel plans.
- The Insurance Act has __________sections and ______ schedules.
5.None of theseAnswer – 3.120, 8
The Insurance Act has 120 sections and 8 schedules.
- The insurance act was borrowed from which country ?
5.None of theseAnswer – 1.Britain
The insurance act was passed in 1938 borrowed heavily from the British law and covered all sorts of insurance.
- _____________ is a legal right reserved by most insurance carriers.
5.None of theseAnswer – 2.Subrogation
Subrogation is a term denoting a legal right reserved by most insurance carriers. Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured.
- Section 39 of Insurance Act related with which of the following ?
1.Nomination by Policyholder
2.Sufficiency of assets
3.Duration of insurance
4.All of these
5.None of theseAnswer –1.Nomination by Policyholder
Section 39 of the Indian Insurance Act, 1938, provides for nomination of a person (called nominee) who gets the benefits of the policy on death of the person whose life has been insured
- Life Insurance Companies cannot reject insurance claim after how many years ?
5.None of theseAnswer – 3.Three
No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy
- A reinsurance company providing services to another by insuring the activities of another reinsurance company is known as
5.None of theseAnswer – 4.Retrocession
Retrocession is the practice of one reinsurance company providing services to another by insuring the activities of another reinsurance company. This is done by accepting business that the other company had agreed to underwrite.
- In IBNR, R represent which term ?
5.None of theseAnswer – 2.Reported
In insurance, incurred but not reported (IBNR) claims is the amount owed by an insurer to all valid claimants who have had a covered loss but have not yet reported it.
- Which type of insurance can covers two or more items or location ?
4.All of these
5.None of theseAnswer – 3.Blanklet Insurance
Blanket Insurance’ A single policy on an insured property that covers more than one type of property at the same location, the same kind of property at more than one location, or two or more kinds or property at two or more locations.