C02 Core Elements of Insurance MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C02 Core Elements of 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 C02 Core Elements of 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 C02 Core Elements of Insurance mcq questions that explore various aspects of C02 Core Elements of Insurance problems. Each MCQ is crafted to challenge your understanding of C02 Core Elements of 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 C02 Core Elements of Insurance MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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C02 Core Elements of Insurance MCQs | Page 1 of 5

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Q1.
How is an asset defined in the context of insurance?

a.

Anything with economic value

b.

Anything that is productive

c.

Anything with scarcity

d.

Anything that is owned by an individual

Discuss
Answer: (a).Anything with economic value Explanation:In the context of insurance, an asset is defined as "anything that confers some benefits and has an economic value to its owner."
Q2.
What is one way in which an asset can have economic value?

a.

By being productive and generating income

b.

By being owned by multiple individuals

c.

By being freely available to all

d.

By being abundant and not scarce

Discuss
Answer: (a).By being productive and generating income Explanation:An asset can have economic value by being productive and generating income.
Q3.
Why are air and sunlight not considered assets in the economic sense?

a.

Because they have economic value

b.

Because they are owned by individuals

c.

Because their supply is abundant and not scarce

d.

Because they are productive

Discuss
Answer: (c).Because their supply is abundant and not scarce Explanation:Air and sunlight are not considered assets in the economic sense because their supply is abundant and not scarce.
Q4.
What conditions must an asset satisfy to qualify as such in the context of insurance?

a.

Scarcity and productivity

b.

Economic value, scarcity, and ownership or possession

c.

Economic value and ownership

d.

Scarcity and ownership

Discuss
Answer: (b).Economic value, scarcity, and ownership or possession Explanation:An asset must satisfy the conditions of economic value, scarcity, and ownership or possession to qualify as such in the context of insurance.
Q5.
What does insurance provide protection against when it comes to assets?

a.

Protection against natural wear and tear

b.

Protection against financial losses arising from unexpected events

c.

Protection against all types of losses

d.

Protection against loss or damage of assets

Discuss
Answer: (b).Protection against financial losses arising from unexpected events Explanation:Insurance provides protection against financial losses arising from unexpected events, not natural wear and tear of assets.
Q6.
Can insurance protect an asset from loss or damage caused by natural disasters like earthquakes?

a.

Yes, insurance can completely protect assets from such losses.

b.

No, insurance cannot protect assets from loss or damage caused by natural disasters.

c.

Insurance can prevent the occurrence of natural disasters.

d.

Insurance can repair damaged assets completely.

Discuss
Answer: (b).No, insurance cannot protect assets from loss or damage caused by natural disasters. Explanation:Insurance cannot prevent the occurrence of natural disasters, and it cannot completely protect assets from such losses.
Q7.
How can insurance help in the event of loss or damage to assets?

a.

By preventing the loss or damage from occurring

b.

By repairing the damaged assets completely

c.

By paying a sum of money to reduce the economic impact of the loss

d.

By replacing the lost assets with new ones

Discuss
Answer: (c).By paying a sum of money to reduce the economic impact of the loss Explanation:Insurance can help by paying a sum of money, which would reduce the economic impact of the loss, but it cannot prevent the loss or damage from occurring.
Q8.
What is the primary function of life insurance?

a.

To prevent accidents and illnesses

b.

To provide healthcare services

c.

To cover the costs of treatment for diseases

d.

To provide financial protection in case of death or disability

Discuss
Answer: (d).To provide financial protection in case of death or disability Explanation:The primary function of life insurance is to provide financial protection in case of death or disability.
Q9.
What is risk, in the context of insurance?

a.

The certainty of a loss

b.

The subject matter of insurance

c.

The chance of a loss

d.

The economic impact of a loss

Discuss
Answer: (c).The chance of a loss Explanation:Risk, in the context of insurance, is defined as the chance of a loss, or the likelihood of a loss occurring.
Q10.
What is the term used to refer to the cause of a loss in insurance?

a.

Risk

b.

Peril

c.

Asset

d.

Policy

Discuss
Answer: (b).Peril Explanation:The cause of the loss in insurance is referred to as a peril.
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