10 Questions
What does an insurance company do?
Assumes financial responsibility for losses from an insured risk
What is insurance?
Protection against possible financial loss
What does a policyholder pay periodically to the insurer?
Premium
What is 'insurable interest' in insurance?
A financial stake in the subject matter of the insurance
What is the purpose of an insurance pool?
To provide funds for helping ease hardships in case of losses
What is the concept of insurance pool?
A fund where premiums are collected from a large group of people to cover potential losses
What is the role of an insurer in insurance?
Assumes financial responsibility for losses from an insured risk
What is the primary function of an insurance policy?
To transfer the risk of financial loss from the insured individual to the insurer
What is the purpose of insurable interest in insurance?
To ensure the person purchasing insurance would suffer a financial loss from the subject matter of the insurance
What happens when a person purchases an insurance policy?
The insurer assumes the financial risk for losses from an insured risk
Test your knowledge of risk management and life insurance with this quiz based on Chapter 5 of the book "Personal Financial Planning (FIN533)." Assess your understanding of insurance planning, including the principles, types of coverages, and the comparison between Takaful and conventional insurance.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
