Co-insurance

1)   What do you mean by ‘Deductible’?

Deductible is one of the several types of clause that are used by the insurance company as a threshold for policy payment for health insurance or travel insurance. Deductible is a decided amount that you have to pay from your pocket while claiming the insurance.  For example, you have a deductible of $500, and you have insurance coverage for $2000, then you are responsible for paying for $500 and the remaining amount $1500 will be paid by insurance company.

2)   What is Co-insurance?

Co-insurance term is usually referred to health insurance companies.  In this type of policy, you share the coverage with, the insurance company in percentage of the policy value, after paying deductible or co-payment.  It is the split of insurance coverage between you and insurance company; usually the split would be 80/20 % where you are liable to pay 20% and the remaining amount by the insurance company.  For example, for health policy you have claimed for $200, according to policy clause you have to pay deductible, let say $100, now after paying deductible the remaining amount is $100, now you have a co-insurance which is split into 80/20%. So you will pay $20 out of $100 from your pocket while the $80 will be paid by co-insurance(meaning the insurance company).

3)   What do you mean by term “Annuity”?

An annuity is the term used for the regular amount paid by the insurance company to the insured, after a certain period of time. The payment can be monthly or quarterly, this is often done to supplement income after retirement.

Insurance Policy

1) What is the contestable period’ in insurance policy?

‘Contestable period’ is usually 1 or 2 years, during which the insurance company holds all the right to investigate the policy and decide whether to pay or not to pay to the insured.

2)      What is the difference between “revocable beneficiary” and “irrevocable beneficiary”?

‘Revocable beneficiary’ designation gives right to the policy holder to change the beneficiary name without the consent of the named beneficiary. While in ‘Irrevocable beneficiary’ the policy holder has to take consent of the beneficiary before the name is changed.

3)       What is no-claim bonus?

No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium on the following year.

Insurance Interview Questions & Answers

1)       What are the different types of Insurance Coverage?

Insurance policy is categorised into two

a)      General or Non-life  Insurance

b)      Life Insurance

  2)    What do you mean by ‘insurance coverage’?

The term ‘insurance coverage’ means, when an individual takes an insurance policy the insured will be covered by insurance company for a specific amount for themselves or the things that he had taken the insurance policy, for which he would be paying premiums to the insurance company.  The insurance company will pay the insured in case of damage or  claims made by the insured according to their ‘insurance coverage’.

3)      What is a premium’?

It is the amount to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly or annually according to their plan, in return of the coverage he/she has taken from the insurance company.

General Insurance Quiz

1.Ohio casualty is doing regular business in indiana. within the state of indiana, ohio casualty would be considered a

Domestic company Nonadmitted company Alien company Foreign company

2.Ohio casualty is doing regular business in indiana. within the state of indiana, ohio casualty would be considered

Admitted Domestic Unauthorized Risk retention group

3.A company chartered in guam and puerto rico doing regular business in new york would be considered by new yorkers to be a

Domestic Foreign Alien International

4.With regard to insurance, the term consideration means

The premium and the statements on the application 

The insurer's method of evaluating the applicant for coverage The screening process all agents undergo prior to licensing

The sidebyside policy comparison by the applicant

5.Which of the following terms indicates that an insurance contract contains the legally enforcable promises of only one party?

Adhesion Unilateral Conditional Aleatory

Benefit of the policyholders

1.Risk is best defined as

Chance of loss Certainty of loss Financial loss Sentimental loss

2.Being subject to a loss is

Liability Indemnity Exposure Subrogation

3.The ranking insured in a personal lines contract is the

Named insured First named insured Mortgagee Husband

4.To be paid a claim under a p&c contract, insurable interest must exist

At the time of application On the policy date At the time of loss At the time of claim settlement

5.This type of company is run for the benefit of the policyholders

Stock Mutual Foreign Alien