Types of Insurance Quiz
12 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which type of insurance provides coverage for damage to a ship or its cargo?

  • Fire insurance
  • Marine insurance (correct)
  • Life insurance
  • Health insurance
  • Which type of insurance provides a lump-sum payment to beneficiaries upon the insured person's death?

  • Life insurance (correct)
  • Marine insurance
  • Health insurance
  • Motor vehicle insurance
  • Which type of insurance provides coverage for medical expenses and loss of income due to illness or injury?

  • Health insurance (correct)
  • Life insurance
  • Motor vehicle insurance
  • Fire insurance
  • What is the primary purpose of re-insurance?

    <p>To protect insurance companies against large financial losses</p> Signup and view all the answers

    Which type of insurance provides compensation in case of loss or damage to property due to fire?

    <p>Fire insurance</p> Signup and view all the answers

    What does 'double insurance' refer to?

    <p>Having two separate insurance policies for the same risk with different insurance companies</p> Signup and view all the answers

    In the context of insurance, what does 're-insurance' specifically involve?

    <p>The practice of one insurer transferring some of its own risk to another insurer</p> Signup and view all the answers

    What potential impact does re-insurance have on an insurance company's financial stability?

    <p>It can enhance the financial stability by reducing the exposure to large losses</p> Signup and view all the answers

    In insurance, what is the term for the situation when a policyholder insures the same risk with multiple insurance companies?

    <p>Double insurance</p> Signup and view all the answers

    What type of insurance occurs when an insurer obtains insurance from another insurer to cover part of the risk it has assumed?

    <p>Re-insurance</p> Signup and view all the answers

    Which type of insurance involves a situation where two or more insurers share the same risk on the same property at the same time?

    <p>Co-insurance</p> Signup and view all the answers

    What type of insurance is designed to provide coverage that exceeds the limits of a traditional insurance policy or provides additional coverage for specific risks not covered under the primary policy?

    <p>Excess insurance</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser