Insurance Quiz

What was the first type of insurance?

• Marine insurance

• Health insurance

• Life insurance

• Auto insurance

What is the purpose of insurance?

• To avoid paying taxes

• To invest money

• To protect against possible losses

• To make a profit

What does the term 'premium' refer to in insurance?

• The amount paid for a policy

• The amount of compensation received

• The duration of the policy

• The type of coverage

Who calculates how much a premium should cost?

• An Agent

• An Underwriter

• An Actuary

• A Broker

What principle requires complete honesty from both the insured and the insurer?

• Indemnity

• Insurable Interest

• Utmost Good Faith

• Subrogation

What type of insurance provides coverage for a person's entire life?

• Auto Insurance

• Endowment

• Whole Life

• Term Life

Which type of auto insurance covers only third-party damages?

• Comprehensive

• Third Party, Fire and Theft

• Full Coverage

• Third Party

What does 'subrogation' refer to in insurance?

• The type of insurance policy

• The calculation of premiums

• The process of pooling risks

• The right to claim against a third party

Which type of insurance covers damage due to fire, flood, and hurricanes?

• Burglary/Theft

• Public Liability

• Fire Insurance

• Employers' Liability

What is the main difference between insurance and assurance?

• Insurance is for individuals, assurance is for businesses

• Insurance covers risks that may happen, assurance covers risks that will happen

• There is no difference

• Insurance covers risks that will happen, assurance covers risks that may happen