Insurance Questions and Answers updated daily – General Knowledge

Insurance Questions: Solved 237 Insurance Questions and answers section with explanation for various online exam preparation, various interviews, General Knowledge Category online test. Category Questions section with detailed description, explanation will help you to master the topic.

Insurance Questions

201. __________ is a coverage for expenses incurred as the result of an identity theft.




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Correct Ans:Identity Theft Insurance
Explanation:
Identity theft insurance means any insurance policy that pays benefits for costs, including travel costs, notary fees, and postage costs, lost wages, and legal fees and expenses associated with efforts to correct and ameliorate the effects and results of identity theft of the insured individual.
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202. _________ is a coverage for glass breakage caused by all risks.




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Correct Ans:Glass Insurance
Explanation:
An insurance policy that provides coverage for damage to an expensive piece of glass.
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203. A legal concept that holds gun manufacturers liable for the cost of injuries caused by guns. Several cities have filed lawsuits based on this concept is termed as ______




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Correct Ans:Gun Liability
Explanation:
Gun liability insurance as a means to offset the economic costs of gun violence.
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204. Which of the following insurance is mainly used for leased cars ?




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Correct Ans:Commercial Insurance
Explanation:
GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks.
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205. An auto-mobile insurance option, available in some states, that covers the difference between a car's actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company is called ______




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Correct Ans: Gap Insurance
Explanation:
GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks.
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206. A company owned by its policyholders that returns part of its profits to the policyholders as dividends is known as ______




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Correct Ans: Mutual Insurance Company
Explanation:
A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are rebated to policyholders in the form of dividend distributions or reduced future premiums.
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207. ______ is a coverage that guarantees bondholders timely payment of interest and principal even if the issuer of the bonds defaults.




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Correct Ans:Municipal Bond Insurance
Explanation:
Municipal bond insurance companies guarantee that the interest and principal of a municipal bond will be paid on time if the bond issuer is unable to do so.
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208. Any insurance risk resulting from a human decision is called _____




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Correct Ans: Dynamic Risk
Explanation:
Integral part of a speculative decision where only three alternatives are possible: gain, loss, or break even.Dynamic risks are not insurable.
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209. A professional liability coverage for physicians, lawyers, and other specialists against suits alleging negligence or errors and omissions that have harmed clients is termed as _______




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Correct Ans: Malpractice Insurance
Explanation:
A type of professional liability insurance purchased by health care professionals and sometimes by other types of professionals like lawyers.
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210. Which section of the Indian Insurance Act 1938 provides for nomination of a person?




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Correct Ans:Section 39
Explanation:
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.
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211. What is the maximum claim amount for an Insurance Ombudsman complaint?




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Correct Ans:20 lakh
Explanation:
Ombudsman’s powers are restricted to insurance contracts of value not exceeding Rs. 20 lakhs.
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212. _______ is a coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.




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Correct Ans:Liquor Liability
Explanation:
Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons.
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213. A technique that consists of staggering the maturity dates and the mix of different types of bonds is termed as _______




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Correct Ans:Laddering
Explanation:
Laddering means you buy multiple smaller policies that custom tailor your needs rather than one large policy.
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214. Risks that affect simultaneously a great number of policyholders is called ______




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Correct Ans:Covariant Risk
Explanation:
A risk that affects all households in a locality and arises out of factors that prevail on all the households equally such as rainfall and market price conditions.
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215. _______ is a life insurance policy that remains in force for the policyholder's lifetime.




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Correct Ans:Ordinary Life Insurance
Explanation:
“ordinary life,” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date.
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216. Insurance that pays claims arising out of incidents that occur during the policy term, even if they are filed many years later is known as _____




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Correct Ans:Occurrence Policy
Explanation:
An Occurrence policy protects you from any covered incident that “occurs” during the policy period, regardless of when a claim is filed. An occurrence policy will respond to claims that come in – even after the policy has been canceled – so long as the incident occurred during the period in which coverage was in force.
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217. A form of long-term care policy that covers a policyholder's stay in a nursing facility is called _______




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Correct Ans:Nursing Home Insurance
Explanation:
The Long Term Care Benefit Plan will convert any form of life insurance to pay directly for the costs of long term care in a nursing home, assisted living and home healthcare.
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218. Insurance Policy which is provided as an additional layer of security to those who are at risk for being sued for damages to other people's property or injuries caused to others in an accident is known as ______




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Correct Ans:Umbrella Insurance
Explanation:
Umbrella insurance is extra liability insurance. It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future
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219. ________covers operators of nuclear reactors and other facilities for liability and property damage in the case of a nuclear accident and involves both private insurers and the federal government.




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Correct Ans: Nuclear Insurance
Explanation:
An insurance policy providing coverage to an individual or, more frequently, a company in the event of a lawsuit resulting from personal or property damage due to nuclear energy.
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220. Auto insurance coverage that pays for each driver's own injuries, regardless of who caused the accident is called __________




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Correct Ans:No Fault
Explanation:
A system of auto-mobile insurance where a party who is injured in an auto-mobile accident recovers damages up to a specific amount against his own insurance company regardless of who was responsible for the accident.
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