#1
Which of the following is not a fundamental element of an insurance contract?
Offer and acceptance
Consideration
Competence
Investment
#2
What is the purpose of an insurance premium?
To provide coverage
To generate profit for the insurer
To reimburse policyholders
To cover administrative expenses
#3
Which type of insurance provides coverage for damage to property?
Life insurance
Health insurance
Property insurance
Liability insurance
#4
What is an insurance policy's 'declaration page'?
The page that summarizes policy coverage and terms
The page where premiums are listed
The page with the insurer's contact information
The page detailing claim procedures
#5
In insurance, what is 'exclusion'?
A provision that limits coverage for certain risks
A type of insurance policy
The process of filing a claim
The process of renewing a policy
#6
Which of the following is not a type of insurance policy?
Term life insurance
Whole life insurance
Universal life insurance
Renewable life insurance
#7
What is a deductible in insurance?
The maximum amount the insurer will pay for a claim
The minimum amount the insured must pay before the insurer pays
The premium paid by the policyholder
The total coverage amount of the policy
#8
In insurance, what does the term 'indemnity' refer to?
The policyholder's financial compensation for loss or damage
The insurer's liability to pay claims
The process of assessing risk
The premium calculation method
#9
What is the principle of utmost good faith in insurance contracts?
Insurers should always act in the best interest of the insured
Policyholders must disclose all relevant information truthfully
Insurers must disclose all terms and conditions of the policy
Policyholders have the right to cancel their policy at any time
#10
What is the purpose of reinsurance?
To provide coverage for uninsurable risks
To transfer risk from the insurer to another insurance company
To sell insurance policies internationally
To regulate the insurance industry
#11
What does the term 'actuary' refer to in insurance?
A person who investigates insurance fraud
An insurance sales agent
A professional who assesses risk and sets insurance premiums
A legal advisor specialized in insurance law
#12
What is 'underwriting' in the context of insurance?
The process of assessing risk and determining premiums
The process of filing a claim
The process of renewing an insurance policy
The process of selling insurance policies
#13
What is a 'rider' in insurance terminology?
A person who evaluates risk for the insurer
An amendment or addition to an insurance policy
The maximum coverage limit of a policy
The insurer's representative who sells policies
#14
What is subrogation in insurance?
The transfer of rights from the insurer to the insured
The process of a third party taking over the insurance contract
The right of the insurer to pursue legal action against a third party responsible for the loss
The process of converting an insurance claim into a loan
#15
What is 'policyholder surplus' in insurance?
The total amount of premiums collected by the insurer
The difference between an insurer's assets and liabilities
The amount of coverage provided by a policy
The maximum payout limit of the insurance policy
#16
What is the principle of 'subrogation' in insurance?
The transfer of rights from the insurer to the insured
The process of a third party taking over the insurance contract
The right of the insurer to pursue legal action against a third party responsible for the loss
The process of converting an insurance claim into a loan