SPEDEC Intelligent Test

A contract between the insured and the insurer is called:

• Agreement letter

• Insurance policy

• Premium receipt

• Claim document

The person who receives the benefits of an insurance policy is called the:

• Insurer

• Policyholder

• Beneficiary

• Agent

What type of insurance protects ships and goods transported by sea?

• Fire insurance

• Marine insurance

• Property insurance

• Cargo insurance

Which principle states that an insured person must not profit from a claim?

• Insurable interest

• Contribution

• Indemnity

• Subrogation

The principle of subrogation allows an insurer to:

• Refuse all claims

• Recover compensation from a third party responsible for the loss

• Pay extra money to the insured

• Increase the premium of the policyholder

If a person takes out multiple policies for the same risk, the principle of __ applies.

• Utmost good faith

• Contribution

• Indemnity

• Subrogation

Insurance that covers legal liabilities of a business is called:

• Public liability insurance

• Fire insurance

• Health insurance

• Term insurance

A car owner must have at least __ insurance to cover damage to another person’s car or property.

• Comprehensive

• Third-party

• Life

• Health

What happens when a policyholder fails to pay premiums?

• The policy remains valid

• The insurance company will refund all payments

• The policy may be canceled

• The policyholder is fined

Insurance that pays for medical expenses of the insured is called:

• Marine insurance

• Life insurance

• Health insurance

• Fire insurance