Insurance and Finance - General Knowledge Questions

1 .

An environment where insurance is plentiful and sold at a lower cost, also known as a Buyers market is called

Hard Market

Soft Market

Alternative Market

None of the Above

Correct Answer : Soft Market

A period of time during which insurance companies assess low premiums and therefore achieve relatively low profits.

2 .

_____are assumptions about rates of investment earnings, mortality, turnover and distribution or actual ages at which employees are likely to retire.

Actuarial Cost Assumptions

Acts of God

Combined Ratio

Actual Loss Ratio

Correct Answer : Actuarial Cost Assumptions

3 .

The payment of sum assured to the insured person which has become due by instalments under a money back policy is known as____

Surrender Value

Survival Benefit

Paid-up value

Correct Answer : Survival Benefit

Survival benefits are benefit given to the policy holder during or upon completion of the policy tenure.

4 .

Which is used to determine the actual cash value of property at time of loss?

Appreciation

Realization

Depreciation

Recognition

Correct Answer : Depreciation

Depreciation is a measure of age and condition, with a given lifetime. It may be referred to as a value (in dollars), or a percentage, or a number of years.

5 .

A person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held is called

Service Provider

Agent

Aggregate

Adjuster

Correct Answer : Adjuster

The person who investigates insurance claims to determine the extent of the insuring company’s liability. That particular person also known as Claim Adjuster