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Insurance Trivia

Insurance Trivia Quizzes

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5 Insurance quizzes and 65 Insurance trivia questions.
1.
  Health Insurance Information    
Multiple Choice
 10 Qns
The United States is one of the few countries where health insurance is provided by private companies rather than through a national policy. Here are some terms and issues that patients and providers become familiar with as they negotiate the system.
Average, 10 Qns, julia103, Mar 22 23
Average
julia103 gold member
Mar 22 23
1183 plays
2.
  Liability (USA Based)    
Multiple Choice
 10 Qns
I handle many commercial clients and people make claims against them. Some are hotels, some are malls, some is auto, and even casinos. How does liability work you ask? You may be surprised.
Average, 10 Qns, superferd, Jan 12 24
Average
superferd
Jan 12 24
596 plays
3.
  Your USA Auto Insurance Policy: Things To Know    
Multiple Choice
 10 Qns
My goal is to become a writer. In the meantime, in order to feed myself and build a savings account, I have a "real job". I am a claims adjuster for automobile insurance. Here is a small quiz about your policy and what to do in case an accident occurs.
Average, 10 Qns, superferd, Jun 28 20
Average
superferd
Jun 28 20
740 plays
4.
  Insurance Terminology    
Multiple Choice
 25 Qns
Almost everyone has it, but not enough people understand it. I'll give you some basic insurance related terms and concepts as they relate to insurance in the United States. All questions will be multiple choice.
Tough, 25 Qns, MisterE76, Apr 26 18
Tough
MisterE76
Apr 26 18
1405 plays
5.
  Financial Guaranty    
Multiple Choice
 10 Qns
This quiz is about the Financial Guaranty industry (aka bond insurance or monolines). Essentially a bond insurer attaches their guaranty to bonds (aka debt) issued by a corporation or municipality in order for them pay a lower interest rate.
Difficult, 10 Qns, rubinsc, Mar 11 22
Difficult
rubinsc
Mar 11 22
361 plays

Insurance Trivia Questions

1. Who was the first bond insurance company?

From Quiz
Financial Guaranty

Answer: Ambac

It was in 1971 when Ambac first started insuring bonds. At that time it only insured municipal bonds, not corporate bonds, hence the name Ambac which is an acronym for American Municipal Bond Assurance Corporation. Ambac was founded in Milwaukee, Wisconsin as a subsidiary of MGIC Investment Corp. MBIA is also one of the big players in the game. MBIA stands for Municipal Bond Insurance Association. They were founded in 1971 but did not start to insure bonds until 1973. FGIC stands for Financial Guaranty Insurance Corporation and started business in 1983. They were owned by GE from 1989 until 2004 when they were sold to a group of investors led by PMI Group. FSA stands for Financial Security Assurance. FSA started business in 1985 and, in 2000, were acquired by Dexia.

2. Many insurance plans in the U.S. today are HMOs. What does HMO stand for?

From Quiz Health Insurance Information

Answer: Health Maintenance Organization

When HMOs first started, many people were attracted to them because they covered routine check-ups and tests while the traditional insurance plans only covered "sick visits". However as HMOs developed further they have become less popular because they limit which doctors a patient may see and what treatments are covered. HMO management has been known to overrule doctors about whether a given treatment is "medically necessary".

3. In what city did MBIA move its headquarters in the late 1980s?

From Quiz Financial Guaranty

Answer: Armonk

In 1989 MBIA moves from White Plains to a 97,000 square-foot building on a 15-acre meadow near the Kensico Reservoir in Armonk, New York.

4. In the US, patients and/or their employers pay a regular amount each month to the insurance company, regardless of whether the patient is receiving any medical treatment. What is this amount called?

From Quiz Health Insurance Information

Answer: Premium

Regular premiums are paid to create a pool of available funds which can then be used to pay the medical bills of the contributors. At least that's the concept behind health insurance. However, some of this money goes as profits to the insurance companies' management and shareholders, rather than being used for medical or administrative purposes. The CEO of Blue Cross/Blue Shield of Maryland, Bill Jews, received over $2.77 million in salary and bonuses in 2002 (This was reported in the Baltimore Sun on July 8 2003). That would cover a lot of doctor's visits!

5. The declarations page of your auto policy states that your liability coverages are 100 300 100. What coverage does the last figure represent?

From Quiz Insurance Terminology

Answer: Property Damage

The 100 300 is that amount that would be paid towards personal injuries of others if you were found liable in an automobile accident. The last 100 is what would be covered towards the property of others due to your liability. Comprehensive and Collision cover your own vehicle.

6. What company planned to merge with bond insurer Radian in 2007, but the merger was not completed and subsequently called off later that year?

From Quiz Financial Guaranty

Answer: MGIC

In February of 2007 MGIC and Radian agreed to merge companies. The main reason according to MGIC was the large write off in C-Bass. Radian and MGIC each owned roughly 1/2 of C-Bass. C-Bass ended up going out of business at the end of 2007 during the mortgage crisis. C-Bass generally bought distressed mortgages then securitized the loans and subsequently sold out the bonds to investors. The value of the deals greatly reduced forcing C-Bass to be under capitalized and subsequently go out of business.

7. In the US, many policies require the patient to pay an initial amount of their own bills before the insurance will reimburse anything. What is this amount called in the US?

From Quiz Health Insurance Information

Answer: Deductible

Policies with higher deductibles usually are less expensive since the insurance doesn't kick in right away. This is true of other types of insurance (such as auto or homeowners) as well as health insurance.

8. In what country did CIFG start (it is also the country to its parent company)?

From Quiz Financial Guaranty

Answer: France

CIFG is a AAA rated bond insurer although not as large as the big 4 (MBIA, Ambac, FSA & FGIC) they still do plenty of business in the United Stated and overseas. In 2001 CIFG was formed by the merger of 2 companies: (1) Banque Populaire in Angers, France & (2) Groupe Caisse d'Epargne, the French cooperative savings bank network. In 2006 Groupe Banque Populaire and Groupe Caisse d'Epargne combined several of their respective businesses into a new entity, Natixis, one of the leading banking groups in France.

9. In the US, what is the difference between an assigned claim and an unassigned claim?

From Quiz Health Insurance Information

Answer: Assigned claims are paid to the provider (usually a doctor or hospital). Unassigned claims are paid to the patient.

When the doctor's office asks you to sign a form allowing them to bill the insurance and get paid directly, they are asking you to assign your benefits to them. Providers within a network are called participating providers or in-network providers.

10. Most people have a certain amount of money that they have to pay before the insurance company will kick in any money to repair their car. Usual amounts range from $250 to $500 to even $1000. What is this called in the US?

From Quiz Your USA Auto Insurance Policy: Things To Know

Answer: Deductible

You choose your deductible when you buy your insurance policy. The higher the deductible, the lower your insurance premiums usually are. However, if your car gets sideswiped or you hit a tree, you should be aware of how much out of pocket money you will have to pay a body shop or dealership before picking up your repaired vehicle.

11. The medical payments portion of your automobile policy (Coverage B) provides protection for who?

From Quiz Insurance Terminology

Answer: You and your passengers

Bodily injuries of others is covered in your liability. Medical payments covers you, your family, and your passengers.

12. In what year did Assured Guaranty publicly list its company under the stock ticker AGO?

From Quiz Financial Guaranty

Answer: 2004

On April 23, 2004 the Initial Public Offering of Assured Guaranty Ltd. was priced at $18.00 per share on the New York Stock Exchange ("NYSE").

13. In the US, most traditional policies pay a percentage of the doctor's charge and leave a smaller percentage to be paid by the patient. What is the patient's responsibility called?

From Quiz Health Insurance Information

Answer: Coinsurance

These policies are known as indemnity policies, to distinguish them from HMO policies. They are also referred to by the percentages involved, e.g. an 80/20 plan (patient pays 20%).

14. A bunch of items are stolen from your vehicle. They are valued at $4,800. In the USA, under what type of policy listed would this loss be covered?

From Quiz Insurance Terminology

Answer: Homeowner's

Personal property is not covered by an automobile policy. Items in your vehicle are covered by a homeowner's or renter's policy under the Personal Property coverage.

15. What does FSA stand for?

From Quiz Financial Guaranty

Answer: Financial Security Assurance

FSA started in 1985 and was the first bond insurer that focused on financial guarantees for asset-backed securities. Asset backed securities have grown to since the mid 1980s. With the explosion of the mortgage market at the end of the 20th century and rolling into the beginning of the 21st century the need to insure mortgage backed securities ("MBS") & collateralizaed debt obligations ("CDO's) was much needed. With insurance, corporations could issue debt at a lower interest rate therefore saving money to do more business and write more deals.

16. In the US, most HMO policies require patients to pay a specific amount each time they visit their primary physician, regardless of the reason or length of the visit. What is this amount called?

From Quiz Health Insurance Information

Answer: Co-pay

The most common co-pay amounts are $10, $15 and $20 per visit. Visits to specialists under HMO plans do not involve co-pays as long as the primary physician refers the patient to the specialist.

17. Who was the first US financial guarantor to obtain a license to write financial guaranty insurance in the United Kingdom?

From Quiz Financial Guaranty

Answer: FGIC

In 1992 FGIC became the first US financial guarantor to obtain a license to write financial guaranty insurance in the United Kingdom. Due to laws and rules within each country bond insurance may not be a viable option. Certain countries have restrictions on how funds are raised which may prohibit bond insurers from entering. The countries that do allow bond insurance can greatly benefit by issuing debt at lower costs.

18. Some US insurance policies pay higher benefits if the patient goes to any doctor on a list provided by the insurance company. This type of policy is called PPO. What does PPO stand for?

From Quiz Health Insurance Information

Answer: Preferred Provider Organization

This is different from an HMO. HMOs require the patient to chose one doctor from the list and always go to that doctor first.

19. Another definition. The cost to replace an item of property at the time of loss, less an allowance for depreciation.

From Quiz Insurance Terminology

Answer: Actual Cash Value

Replacement cost coverage does not deduct for depreciation.

20. In what year did Ambac receive its AAA rating from S&P?

From Quiz Financial Guaranty

Answer: 1979

In 1979 Ambac received the coveted AAA rating from S&P. MBIA which started insuring bonds in 1973 was rated AAA from the start. When a municipality or corporation issues debt and pays for bond insurance then the municipality or corporation can issue bonds (a/k/a debt) using the rating of the bond insurer and therefore save money because the bonds would be paying out a lower interest rate.

21. If a patient in the US is covered by more than one insurance policy, the coverage is subject to COB provisions. What does COB stand for?

From Quiz Health Insurance Information

Answer: Co-ordination of benefits

Coordination of benefits was established so that a doctor or patient wouldn't be paid more than the total bill. There are very specific rules set up to determine which policy should pay first. When I started working as a claims examiner, over fifteen years ago, the rule was that if a child was covered through insurance from both parents, the father's policy would pay first. Now the policy from the parent whose birthday falls earlier in the calendar year will usually pay first.

22. Someone rear ends your nice new 2002 Volkswagen Jetta and after it gets appraised, it is determined it will take 3 days for a body shop to repair it. You need a rental car. What are you owed by the adverse insurance company?

From Quiz Your USA Auto Insurance Policy: Things To Know

Answer: Loss of Use

No insurance companies have to set you up with a rental agency. This is a wide misconception. Most companies do this however and have contracts with companies such as Enterprise. However, all that is owed is the lost time that it will take while your car is being repaired. This is calculated by the amount of labor hours on the estimate by the number of hours that the shop is allotted to working on the car per day. In other words, if there were 35 labor hours (body and paint) and the shop works on each car for 5 hours a day, this would be 7 days loss of use or LOU. The company should pay you for a comparable vehicle for those days (and shops don't work on weekends, so that is 2 extra days), making it 9 days. If they pay you $30 a day for 9 days, for instance, you get a separate check for $270, besides the check to fix your car. LOU is also under your property damage coverage.

23. Each state has a time where the time to file a claim against them runs out unless a suit is filed. What is this called?

From Quiz Liability (USA Based)

Answer: Statute of limitations

Every state in the U.S. has a different statute of limitations. Florida, where I live has a 4 year statute for both bodily injury and property damage.

24. What sector does a bond insurer generally not cover?

From Quiz Financial Guaranty

Answer: Dental insurance

Dental insurance is generally not part of bond insurance. CDS's, GO's and MBS bonds are all very popular types of bonds that bond insurer's guaranty. GO's are bonds backed by the full faith of the city or township issuing the securities. If a city or town has a poor debt rating they are likely to seek bond insurance so they are able to the sell the bonds at a lower rate. In some cases people may not want to buy the bonds because there is too much risk that they will not be paid.

25. A mutual insurance company is owned by who?

From Quiz Insurance Terminology

Answer: Insureds

26. What is an "Umbrella Policy?"

From Quiz Liability (USA Based)

Answer: An excess policy

Many businesses have what is called a "self insured retention" (SIR) in which they can hire a TPA (Third Party Administrator), where I work to handle their claims up to a certain limit. However, there has to be a true carrier like AIG involved so they take over the policy limits after the client's SIR is exhausted. An umbrella policy would be over this. For example, an amusement park might be self insured for $50,000 and then ACE Insurance takes over to the policy limit of $1,000,000. Then, AIG would have an excess policy up to $4,000,000 after that and this is an "umbrella policy".

27. In what US state was the first municipal bond insured?

From Quiz Financial Guaranty

Answer: Alaska

Ambac who started the bond insurance business in 1971 insured an Alaskan bond in the amount of $650,000 for the Greater Juneau Borough Medical Arts Building. This bond was insured in 1971 and helped create a name for bond insurers because municipalities realized the savings when they used bond insurance because they could issue bonds at a lower interest rate. Bonds were rated using the insurer's credit rating, rather than the debt rating of the issuer (which was lower).

28. What do you call a condition or situation that presents a possibility of loss?

From Quiz Insurance Terminology

Answer: Exposure

29. There is a section in any insurance policy which clarifies the meaning of certain terms used in the policy. What is this section referred to as?

From Quiz Insurance Terminology

Answer: Definitions

30. What two coverages are typically provided in Aviation policies?

From Quiz Insurance Terminology

Answer: Physical Damage and Liability

The same as the basic coverages in an auto policy. The most significant difference between the two is the high dollar exposure to loss with an aircraft.

This is category 10193
Last Updated Feb 25 2024 9:09 AM
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