C01 Introduction to Insurance MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C01 Introduction to Insurance, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C01 Introduction to Insurance MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of C01 Introduction to Insurance mcq questions that explore various aspects of C01 Introduction to Insurance problems. Each MCQ is crafted to challenge your understanding of C01 Introduction to Insurance principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C01 Introduction to Insurance MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of C01 Introduction to Insurance. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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C01 Introduction to Insurance MCQs | Page 1 of 10

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Q1.
Why do unpredictable events make people anxious and afraid?

a.

Because they can prepare for them

b.

Because they often cause economic loss and grief

c.

Because they are predictable

d.

Because they are beneficial to the community

Discuss
Answer: (b).Because they often cause economic loss and grief Explanation:Unpredictable events make people anxious and afraid because they often cause economic loss and grief.
Q2.
How old is the present form of insurance?

a.

Thousands of years old

b.

Two or three centuries old

c.

Less than a century old

d.

It is a recent development

Discuss
Answer: (b).Two or three centuries old Explanation:The present form of insurance is two or three centuries old.
Q3.
When did insurance first exist in some form?

a.

3000 BC

b.

1000 AD

c.

18th century

d.

20th century

Discuss
Answer: (a).3000 BC Explanation:Insurance has existed in some form or other since 3000 BC.
Q4.
What concept did many civilizations practice in relation to insurance?

a.

Pooling and sharing losses among community members

b.

Keeping losses to themselves

c.

Ignoring losses suffered by community members

d.

Preventing losses from happening

Discuss
Answer: (a).Pooling and sharing losses among community members Explanation:Many civilizations practiced the concept of pooling and sharing losses among themselves.
Q5.
What is the main reason behind the idea of insurance?

a.

To anticipate and predict events

b.

To cause economic loss and grief

c.

To provide aid to affected individuals

d.

To create a system of sharing and mutual support

Discuss
Answer: (d).To create a system of sharing and mutual support Explanation:The main reason behind the idea of insurance is to create a system of sharing and mutual support.
Q6.
Which traders paid extra money to their lenders to write off loans if shipments were lost or stolen?

a.

Traders of Babylon

b.

Traders of Bharuch

c.

Traders of Rhodes

d.

Chinese traders

Discuss
Answer: (a).Traders of Babylon Explanation:Traders of Babylon paid extra money to their lenders to write off their loans if shipments were lost or stolen.
Q7.
In which societies did Greeks and English people practice advance payment to take care of family members who died?

a.

Benevolent Societies/Friendly Societies

b.

Traders of Rhodes

c.

Chinese Traders

d.

Lloyds

Discuss
Answer: (a).Benevolent Societies/Friendly Societies Explanation:Greeks in the 7th century AD and English people practiced advance payment in Benevolent Societies/Friendly Societies to take care of family members who died.
Q8.
What did traders of Rhodes do to share losses if any of them lost their goods due to jettison?

a.

They sent their goods in different ships.

b.

They paid extra money to their lenders.

c.

They practiced advance payment for funeral expenses.

d.

They formed Benevolent Societies.

Discuss
Answer: (a).They sent their goods in different ships. Explanation:Traders of Rhodes shared losses if any of them lost their goods due to jettison by sending their goods in different ships.
Q9.
Where did the origins of modern commercial insurance start?

a.

Lloyd's Coffee House in London

b.

Traders of Babylon

c.

Traders of Bharuch

d.

Amicable Society for a Perpetual Assurance

Discuss
Answer: (a).Lloyd's Coffee House in London Explanation:The origins of modern commercial insurance started at Lloyd's Coffee House in London.
Q10.
Which company is considered to be the first life insurance company in the world?

a.

Lloyds

b.

Amicable Society for a Perpetual Assurance

c.

Traders of Babylon

d.

Traders of Rhodes

Discuss
Answer: (b).Amicable Society for a Perpetual Assurance Explanation:The Amicable Society for a Perpetual Assurance, founded in 1706 in London, is considered to be the first life insurance company in the world.
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