Insurance Awareness Questions Set 03 (Insurance Terminology)

Insurance Awareness Questions for Upcoming Insurance Exams

Insurance Awareness Questions for NIACL Assistant, NIACL AO, NICL AO, LIC AAO and other insurance exams. Insurance Awareness Questions Insurance terminology

  1. Selling of insurance product through banks is called?
    A) Actuarization
    B) Mortization
    C) Bancassurance
    D) Endowment
    View Answer
    Option C
    Explanation
    : Bancassurance is when an insurance company sells its insurance policy thorugh a bank network to the customer of the bank.
  2. A person with expertise in field of economics, statistics and mathematics, who helps in risk assessment and estimation of premium rates for insurance business is known as ___ ?
    A) Mortality
    B) Actuary
    C) Annuity
    D) Agent
    View Answer
    Option B
    Explanation
    : Actuary is the term for such a person.
  3. ______ is an amount paid periodically to the insurer by the insured for covering his risk by any insurance policy.
    A) Mortality
    B) Annuity
    C) Premium
    D) Paid up
    View Answer
    Option C
    Explanation
    : Premium is the amount which the person who has bought the insurance policy (insured) pays to the person/company from which he has bought the insurance policy (insurer) so that the policy continues to pay the benefit.
  4. When all the benefits of an insurance policy gets terminated due to non-payment of premium, then the policy is said to be _____ .
    A) Paid up
    B) Graced
    C) Charged
    D) Lapsed
    View Answer
    Option D
    Explanation
    : Policy is said to be lapsed in such a situation.
  5. ______ is the amount the policy holder will get from the insurance company if he exits the policy before maturity.
    A) Paid up value
    B) Surrendered value
    C) Annuity Value
    D) Lapse Value
    View Answer
    Option B
    Explanation
    : Surrender value is the amount the policy holder will get from the insurance company if he exits the policy before maturity, but after payment of premium for full 3 years. So if a person has payed premium for 3 years, he can opt out of the policy and get the money proportionally (it will obviously be less than that he would have got at maturity)
  6. If a policy holder stops paying the premium after three years, but does not withdraw the money from his policy, then the policy is said to be ____.
    A) Annuity
    B) AD&D
    C) Paid UP
    D) Terminated
    View Answer
    Option C
    Explanation
    : In such a case the policy is said to be paid up
  7. If a policy holder stops paying the premium after three years, but does not withdraw the money from his policy, the amount that he will get upon maturity of the policy is called _____.
    A) Surrender Value
    B) Semi Surrender Value
    C) Paid Up value
    D) Annuity Value
    View Answer
    Option C
    Explanation
    : Paid Up Value.
    When a person stops paying premium (but after 3 years), but does not terminates his policy the money that he gets on maturity is called paid up value. If after 3 years, he terminates the policy there itself and does not waits for maturity then the value that he gets is called Paid up value
  8. Which of the term is the used when a policy has lapsed due to non-payment of premium?
    A) Policy Backed
    B) Policy Unforced
    C) Policy in variance
    D) Policy not in force
    View Answer
    Option D
    Explanation
    : Policy not in force
  9. ______ is an insurance product that pays out income to the holder at specified intervals usually after retirement.
    A) Bonus
    B) Annuity
    C) Endowment
    D) Term
    View Answer
    Option B
    Explanation
    : Annuity is an insurance product that pays out income to the holder at specified intervals usually after retirement. So if you want a steady supply of money after retirement apply for an annuity plan
  10. ________ is the term for the insurance that the insurance company buys for its own insurance.
    A) General Insurance
    B) Life Insurance
    C) Re- Insurance
    D) Public Insurance
    View Answer
    Option C
    Explanation
    : Re-insurance

 

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12 Thoughts to “Insurance Awareness Questions Set 03 (Insurance Terminology)”

  1. RiStY Ritesh

    Thanx maam 🙂
    All quizzes of insurance are enough for niacl assistant mains exam ?

    1. Yes adding good questions.
      Much insurance related is not asked on exams

      1. RiStY Ritesh

        Ok Thnx maam 🙂

      2. wont rest until i get success

        maam bank exams k liye bhi insurance padhna padega?

        1. Nhi. Detail me no need.

          1. wont rest until i get success

            ok maam
            thank u

          2. Trisha

            pls add more ques of insurance as niacl mains was full of insurance questions..
            ans of 5 should be B??

  2. Barbie Warrior Girl (。♥‿♥。)

    6//10

    Tq 🙂

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