Important Banking Awareness Quizzes (Topic Wise) Day-206

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming IBPS/SBI Exams 2018 can make use of it.

Click “Start Quiz” to attend these Questions and view Solutions

Click here to view Banking Awareness Quizzes in Hindi

1. ___________is a term used by life insurers to describe the process of assessing risk

a) Representative

b) Insurer

c) Assuring

d) Underwriting

e) None of these

2. Compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or other party is called ___________

a) Insured amount

b) Arbitration

c) Reimbursement

d) Retention

e) None of these

3. ____________ is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability for damages

a) Repatriation

b) Depreciation

c) Consideration

d) Assignment

e) None of these

4. Termination of the policy due to failure of the payment of required renewal premium is called __________

a) Omission

b) Completion

c) Unpaid

d) Lapse

e) None of these

5. __________is an agreement given by the beneficiary to make periodic payments which continue during the survival of the annuitants or for specific period

a) Allowance

b) Guarantee

c) Annuity

d) Warranty

e) None of these

6. _______________in an insurance policy is a promise by the insured party that statements affecting the validity of the contract are true

a) Guarantee

b) Warranty

c) Surety

d) Insured

e) None of these

7. ______________ is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future

a) Liability insurance

b) Self insurance

c) Umbrella insurance

d) Safe insurance

e) None of these

8. The person who is more specialists in the mathematics of insurance who can do all calculations includes rates, reserves, dividends and other statistics is called __________

a) Insurer

b) Actuary

c) Surveyor

d) Developer

e) None of these

9. A ________ bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals

a) Fidelity

b) Surety

c) Insured

d) Safety

e) None of these

10. ____________bond is defined as a contract among at least three parties: the obligee: the party who is the recipient of an obligation

a) Fresh bond

b) Register bond

c) Foreign bond

d) Fidelity bond

e) None of these

11. ___________in insurance means a request, from the proposer to the insurer, for giving protection against a risk.

a) Conversion

b) Proposal

c) Suggestion

d) Obligation

e) None of these

12. ____________ is an insurance industry practice in which an insurer takes action retroactively to cancel a policy holder’s coverage by citing omissions or errors in the customer’s application

a) Rescission

b) Endorsement

c) Mortgage

d) Comprehensive

e) None of these

13. The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called ____________

a) Deductible

b) Cancellation

c) Collectable

d) Renewable

e) None of these

14. ___________ is a local government official who estimates the value of real property within a city, town, or village’s boundaries

a) Estimator

b) Processor

c) Developer

d) Assessor

e) None of these

15. __________period is the provision in most loan and insurance contracts that allows payment to be received for a certain period of time after the actual due date

a) Policy

b) Premium

c) Notice

d) Additional

e) None of these

Answers:

1. Underwriting is a term used by life insurers to describe the process of assessing risk, ensuring that the cost of the cover is proportionate to the risks faced by the individual concerned.

Correct Answer is: d)

2. Compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or other party. Reimbursement of business expenses, insurance costs, and overpaid taxes are common examples.

Correct Answer is: c)

3. Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability for damages.

Correct Answer is: e)

4. Termination of the policy due to failure of the payment of required renewal premium is called Lapse

Correct Answer is: d)

5. Annuity is an agreement given by the beneficiary to make periodic payments which continue during the survival of the annuitants or for specific period.

Correct Answer is: c)

6. A warranty in an insurance policy is a promise by the insured party that statements affecting the validity of the contract are true. Most insurance contracts require the insured to make certain warranties

Correct Answer is: b)

7. Umbrella insurance is extra liability insurance. It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. It does this in two ways: Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.

Correct Answer is: c)

8. The person who is more specialists in the mathematics of insurance who can do all calculations includes rates, reserves, dividends and other statistics. He is called as Actuary

Correct Answer is: b)

9. A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

Correct Answer is: a)

10. A surety bond is defined as a contract among at least three parties: the obligee: the party who is the recipient of an obligation. The principal: the primary party who will perform the contractual obligation. The surety: who assures the obligee that the principal can perform the task.

Correct Answer is: e)

11. Proposal in insurance means a request, from the proposer to the insurer, for giving protection against a risk.

Correct Answer is: b)

12. Rescission is an insurance industry practice in which an insurer takes action retroactively to cancel a policy holder’s coverage by citing omissions or errors in the customer’s application, even if the policy holder has been diligently keeping their policy current. Since passage of the Affordable Care Act, rescission is no longer allowed except where fraud is proven.

Correct Answer is: a)

13. The Amount you have to pay out of pocket for expenses before the insurance company will cover the remaining costs is called Deductible

Correct Answer is: a)

14. The assessor is a local government official who estimates the value of real property within a city, town, or village’s boundaries. This value is converted into an assessment, which is one component in the computation of real property tax bills.

Correct Answer is: d)

15. A grace period is the provision in most loan and insurance contracts that allows payment to be received for a certain period of time after the actual due date. During this period, no late fees are charged, and the late payment does not result in default or cancellation of the loan. A typical grace period is 15 days.

Correct Answer is: e)

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