Expected Questions – Insurance Awareness – Set 2

Hello and welcome to ExamPundit. Here is the part 2 of Expected Questions from Insurance Terms and News.

1. The amount
payable, as stated in a life insurance policy, to the designated beneficiary
(ies) upon the
death of the insured.
– Death Benefit Payable
2. Section 39 of the
Indian Insurance Act 1938 provides for ___________.
– Nomination of a person
3. The process takes
place when the claims examiner looks at the policy document and the evidence

submitted to him or her and makes a
decision to reject it.
– Repudiation of a claim
4. A form of
insurance in which individual policies are issued to the employees of a common
employer or
the members of an association
under an arrangement by which the employer or association agrees to
collect the premium and remit them to the
– Franchise Insurance
5. What does GIVE
stands for in Insurance?
– Gross Insurance Value Element
6. A policy designed
to provide coverage under a single limit for two or more items (e.g. building
contents), two or more
locations, or a combination of items and/or locations.
– Blanket Insurance
7. A No-claim Bonus
(or No-claim Discount) system in which the premium level reached after a
policyholder has made claims may be higher
than that corresponding to the point of entry.
– Bonus-malus
8. A company owned
solely or in large part by one or more non- insurance entities for the primary

purpose of providing insurance coverage
to the owner or owners.
– Captive Insurance Company
9. In insurance, an
exceptional loss for example, resulting from a flood or earthquake is called?
– Catastrophe Risk
10. Amount of the
insurance ceded to a reinsurer by the original insuring company in a
– Cession
11. A single
insurance company writing both life and non-life business.
– Composite insurer
12. The portion of an
insured loss borne by the policyholder.
– Deductible
13. Any insurance
risk resulting from a human decision.
– Dynamic Risk
14.  Estimated Maximum Loss (EML) is used in
– Fire, explosion and material damage insurance policies.
15. Type of insurance
or reinsurance that covers a whole account over a period of time. No payment is

made until the accumulated losses in the
year exceed the stop-loss level.
– Stop-Loss


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