Question

What is the key difference between insurance and assurance?

a.

Insurance covers events that will certainly happen.

b.

Assurance is for events with uncertain timing.

c.

Insurance covers financial losses after an event.

d.

Assurance is used for general insurance contracts.

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Assurance is for events with uncertain timing. Explanation:Assurance is used for events with uncertain timing, while insurance covers events that may or may not happen.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the key difference between insurance and assurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the distinguishing feature of "Assurance" in the context of life insurance?

View solution

Q. Why is the term "Assurance" used in the case of life insurance?

View solution

Q. In most markets, including India, how are the terms "Insurance" and "Assurance" commonly used?

View solution

Q. Which among the following is a method of risk transfer?

View solution

Q. What does the term 'Risk' refer to in the context of insurance?

View solution

Q. What factors determine the cost of an expected loss in insurance?

View solution

Q. How does the cost of risk vary based on probability and severity?

View solution

Q. How does insurance function as a risk management tool?

View solution

Q. What does insurance protect individuals from?

View solution

Q. What is one of the primary considerations when deciding whether to opt for insurance?

View solution

Q. In what situation would insurance be most required?

View solution

Q. What is the importance of not risking more than one can afford to lose?

View solution

Q. When is it best to insure assets?

View solution

Q. Which among the following scenarios needs insurance?

View solution

Q. Who are the major players in the insurance industry?

View solution

Q. What is the role of the Insurance Regulator in the insurance market?

View solution

Q. Who are the intermediaries in the insurance industry?

View solution

Q. What is the role of Third Party Administrators in the insurance industry?

View solution

Q. What responsibility do intermediaries, such as Agents, have towards the customer according to IRDAI regulations?

View solution

Q. According to IRDAI regulations, what must be done if the proposal and related documents are not filled by the customer?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....