Insurance Awareness Questions Set 04 (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 NIACL NICL LIC

  1. An individual who sells and services insurance policies is called?
    A) Actuary
    B) Beneficiary
    C) Agent
    D) Salesman
    View Answer
    Option C
    : Agent is the technical term for a person who sells insurance policy.
  2. A demand made by the insured, or the insured’s beneficiary, for payment of the benefits as provided by the policy is called?
    A) Capital
    B) Benefit
    C) Casualty
    D) Claim
    View Answer
    Option D
    : Claim
  3. _________ is the Fee paid to an agent or insurance salesperson as a percentage of the policy premium.
    A) Annuity
    B) Paid up
    C) Semi-premium
    D) Commission
    View Answer
    Option D
    : Commission
  4. _______ is the time which must pass after filing a claim before policyholder can collect insurance benefits.
    A) Waiting period
    B) Benefit period
    C) Elimination period
    D) Off period
    View Answer
    Option A
    : Waiting period: This is the period of time that must pass before your cover comes into effect. During this time you are unable to claim. For example, if you have a waiting period applied for spinal injuries, you would be unable to claim for this condition until the waiting period had passed. This is to prevent people applying for cover when they know that they are likely to claim in the near future.
  5. _____ is the length of time after a premium is due and unpaid during which the policy, including all riders, remains in force.
    A) Null Period
    B) Grace Period
    C) Void Period
    D) Prompt Period
    View Answer
    Option B
    : Grace Period – The length of time (usually 31 days) after a premium is due and unpaid during which the policy, including all riders, remains in force. If a premium is paid during the grace period, the premium is considered to have been paid on time.
  6. _________ is an insurance policy designed to protect professionals and business owners when they are found to be at fault for a specific event such as misjudgment.
    A) AD&D insurance
    B) Indemnity insurance
    C) Legal insurance
    D) Independent insurance
    View Answer
    Option B
    : Indemnity insurance
  7. ____________ is the ratio of the number of life insurance policy that lapsed within a given period to the number of policy in Force at the beginning of that period.
    A) Force ratio
    B) Annuity ratio
    C) Lapse ratio
    D) Paid up ratio
    View Answer
    Option C
    : Lapse ratio
  8. A person who makes an insurance claim is called ?
    A) Claimant
    B) Churner
    C) Insured
    D) Insurer
    View Answer
    Option A
    : Claimant
  9. _________ indicates the level of development of insurance sector in a country.
    A) Revenue Rate
    B) Policy Rate
    C) Penetration Rate
    D) Core Rate
    View Answer
    Option C
    : Penetration Rate
  10. _________ is the date from which the annuity holder starts receiving the policy benefits of a regular stream of income.
    A) Cooling date
    B) Vesting date
    C) Preferred date
    D) Bonus date
    View Answer
    Option B
    : Vesting date


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5 Thoughts to “Insurance Awareness Questions Set 04 (Insurance Terminology)”

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