Insurance Quiz – isimplifiedng.com

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This quiz is designed to test your understanding of basic insurance concepts.
Please read each question carefully and select the most appropriate answer.

Important Notes:
• You are to attempt all questions.
• Do not refresh the page during the quiz.
• Submit once you are done.

Good luck — do your school proud!

Full Name

School Name

Class

Which component is NOT part of a policy document?

Heading

Provisions

Claims history

Exclusions

None

What Latin term represents the principle of Utmost Good Faith?

Caveat Emptor

Uberrimae Fidei

Res Ipsa Loquitur

Causa Proxima

None

What is a Knock-for-Knock agreement?

A motor insurance agreement where each insurer repairs its own client’s vehicle

Insureds settle disputes themselves

A reinsurance arrangement

A criminal law principle

None

Generally, the types of risks are:

Certain, uncertain, measurable

Pure, speculative, fundamental

Static, dynamic, insured

Major, minor, premium

None

What is a slip in insurance?

A claim form

A document prepared by a broker describing the risk

A renewal notice

A premium insurance receipt

None

Which of the following is a characteristic of an insurable risk?

The risk must involve profit

The risk must be predictable

The risk must be unavoidable

The risk must be caused by the insured

None

What is Proximate Cause?

The oldest cause of loss

The nearest and most effective cause of loss

A distant contributing event of loss

The most expensive cause of loss

None

Which of the following is a remedy for breach of utmost good faith?

Increase the premium only

Ignore the breach

Cancel the contract from inception

Award a bonus to the insured

None

Why are there regulations for insurance as a profession?

To increase agent commissions

To protect the public and ensure fair practice

To reduce the number of insurers

To support only foreign companies

None

Which of these is a characteristic of uninsurable risks?

They involve certainty

They allow for predictable losses

Losses that cannot be measured

They are always physical hazards

None

Hazards can be classified into:

Primary and secondary

Legal and illegal

Physical and moral

Insured and uninsured

None

What is the amount paid to insurance companies for their services?

Claims

Levy

Commission

Premium

None

Subrogation arising from subject matter occurs when:

The insured sells damaged goods

The insurer takes ownership of salvaged property after paying the claim

The insured refuses compensation

Brokers negotiate new policies

None

Which of the following is a legal requirement for insurable interest?

The property must be within the same town

The insured must have an agent

The insurer must be a licensed corporation

The insured must face a financial loss if the event occurs

None

Who can be an intermediary between the insurer and the insured?

Banker and Appraiser

Broker and Agent

Surveyor and Accountant

Underwriter and Actuary

None

What is likely to change during renewal of a policy?

Date of birth of the policyholder

Address or condition of the subject matter

Favourite food of client

Policy number must change

None

Is profiting allowed in insurance? Why?

Yes, to encourage claims

No, because insurance is to restore, not to enrich

Yes, for brokers to make really huge profit

Yes, for moral hazard

None

For General Insurance businesses, when must insurable interest exist?

At the time of payment

At the time of renewal

At the time of loss

At the time of claim settlement

None

Is insurable interest applicable to Marine Insurance, and when exactly?

No, never

Yes, only at the time of loss

Yes, only at policy issuance

Yes, only at delivery of goods

None

What is the name of the major insurer of agricultural produce in Nigeria?

NICON

NAICOM

NAIC

NCRIB

None

In which class of insurance is a certificate required?

Motor Insurance

Travel Insurance

Householder’s Insurance

Marine Hull

None

Who was the first black man to acquire the Associate Diploma of the Chartered Insurance Institute (London)?

Chief S.L. Edu

Chief Obafemi Awolowo

Dr. Nnamdi Azikiwe

Mr. Oladele Davies

None

Is indemnity applicable to life assurance?

Yes, but only for children

No, because life cannot be valued

No, because it is optional

Yes, always

None

Which item can be found on a certificate of insurance?

Insurer’s favourite slogan

Name of policyholder

List of all claims

History of all premiums

None

What is the insured’s responsibility regarding subrogation?

Prevent the insurer from recovering

Stay silent

Help the insurer access the guilty party

Pay extra premium

None

What is the name of the body a registered Insurance agent belongs to?

CIIN

NCRIB

NIA

NAICOM

None

What other word can replace “indemnity”?

Punishment

Reward

Profit

Compensation

None

Risk that occurs frequently but causes low cost is known as:

High-impact risk

Frequency risk

Catastrophic risk

Preventable risk

None

When can premiums be partially returned?

When the insured buys a new car

When insurer wants to reward client

When risk is terminated early or policy is cancelled

When inflation increases

None

How can insurers recoup money when claims are co-insured?

By cancelling the policy

By the principle of contribution

By charging interest

By ignoring the claim

None

What was the insurance market like before Nigeria’s independence?

Many local insurers existed

Insurance was fully regulated

Brokers controlled the sector

Few cars, informal operations, expatriate dominance

None

For which classes of insurance is a cover note commonly used?

Marine Hull and Life Assurance

Health and Aviation

Motor Insurance and Marine Cargo

Group Life and Fire

None

Which of the following is an example of a physical hazard?

Faulty wiring

Delayed paperwork

Dishonesty

Carelessness

None

One way risks can be measured is by:

Using moral judgment

Counting insurance agents

Frequency and severity

None

What is the name of the association registered Insurance Brokers belong to?

NAICOM

NCRIB

NIA

CIIN

None

The Insurance agreement is strictly between two parties. Who are they?

Broker and Agent

Insurer and Insured

Reinsurer and Underwriter

Loss Adjuster and Client

None

What is a KYC form?

Know Your Customer form

Keep Your Card form

Know Your Claim form

Key Yearly Contribution form

None

What brings about contribution?

Only one insurer exists

When claims are too small

When premiums are too high

A risk is insured with two or more insurers

None

Which of the following is a method of providing indemnity?

Guesswork

Deduction

Repair or replacement

Increasing premium

None

Which of the following is a material fact in life assurance?

Favourite food

Health condition

The feet size

Best colour

None

What is an ex-gratia payment?

A goodwill payment made without legal obligation

A payment made strictly by law

A payment made by mistake

A refund of premium

None

Which of the following is a way insurance affects daily life?

It increases the cost of living

It encourages deliberate losses

It reduces the cost of national employment

It provides financial security

None

What is retrocession?

When a reinsurer passes part of the reinsured risk to another reinsurer

When insured pays premium twice

When brokers return commission

When claims are rejected

None

What does the acronym NCD stand for?

National Contribution Discount

No Claim Discount

New Client Data

Non-Cancellation Duty

None

What is the Latin term for proximate cause?

Causa Proxima

Proximus Maximus

Ipsa Loquitur

Causa Problema

None

What is a physical hazard?

Dishonesty in handling claims

Tangible conditions that increase risk

Financial failures

Poor record-keeping

None

What do we mean by the “Law of Large Numbers”?

Law of repeated losses

Law of unavoidable events

Law of diminishing coverage

Law of average risks

None

Why is reinsurance important?

It increases the insurer’s profit automatically

It reduces the need for underwriting

It spreads risk and protects insurers from large losses

It eliminates claims

None

What is subrogation?

The process of paying premiums

The act of evaluating claims

The repair of damaged property

The transfer of rights from insured to insurer after compensation

None

What is a breach of utmost good faith?

Signing a policy on time when due

Hiding or misrepresenting material facts

Paying premium early enough

Reporting claims quickly

None

What is one benefit of insurance to a farmer?

It guarantees higher crop prices

Protects crops and livestock against unexpected losses

It eliminates the need for fertilizers

It replaces labourers

None

Identify the female organization of the insurance industry.

WINBIZ

WIMBIZ

WII

NAIC Women Forum

None

What is the principle of contribution?

Insurers paying more than required

Insured paying additional premium

Sharing of liability among insurers when the same risk is insured with multiple insurers

Brokers contributing to claims

None

If more than one event causes a loss, which event is considered?

The first event

The most expensive event

The nearest cause

The longest-lasting event

None

What does NCRIB stand for?

National Council of Registered Insurance Brokers

Nigerian Chartered Reinsurance Board

National Commission for Risk and Insurance Business

Nigerian Corporate Risk & Insurance Bureau

None

What is moral hazard?

Financial reserves

Physical defect on property

Intangible attitude leading to intentional carelessness

Government regulation

None

Which of the following defines risk?

A guaranteed event

A type of insurance contract

A cause of loss

Uncertainty of an event occurring

None

Why is a cover note temporary?

It has no monetary value

It expires after a day

It applies only to agents

It is issued before the actual policy is prepared

None

What does NAICOM stand for?

National Association of Insurance Companies

Nigerian Association of Insurance Commission

National Insurance Commission

Nigeria Industrial Compensation Office

None

What is the correct meaning of “Insurable Interest”?

The right to insure another person freely

A financial relationship in which loss would cause financial hardship

A moral obligation to help the insurer

Interest charged by insurance companies

None

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