Insurance and Finance - General Knowledge Questions

1 .

Insurance coverage for more than one item of property at a single location, or two or more items of property in different locations is known as_____

Blanket Value

Blanket Bond

Blanket Assign

Blanket Coverage

Correct Answer : Blanket Coverage

Blanket coverage refers to a category of business insurance policies covering multiple properties that are similar in nature but not at the same location.

2 .

If you might want to discontinue the policy, and take whatever money is due to you. The amount the insurance company then pays is known as_______

Surrender Value

Maturity Value

Paid-up value

Sum Assured

Correct Answer : Surrender Value

3 .

_________refers to the insurance company that offers the policy.

Insured or Policyholder

Agent

Insurer

Nominee or Beneficiary

Correct Answer : Insurer

4 .

Which principle specifies an insured should not collect more than the actual cash value of a loss?

Liquidity

Indemnity

Premium

Annuity

Correct Answer : Indemnity

The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss.

5 .

The amount which is payable by you during the premium paying term at regular intervals for a limited period as specified in the plan schedule is called______

Limited premium

Liquidity

Fund

Cover

Correct Answer : Limited premium

A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time.