INSURANCE 201

QUIZ

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Personal Insurance Quiz 201 - Intermediate

10 Intermediate level, random quick, easy home and car insurance quiz questions to help you unlock how it works by increasing your knowledge.

1 / 10

What is the function and purpose of insurance?

To make sure that my assets are not damaged.

To protect my life and assets from being damaged.

Where the insurer accepts my premium in exchange for undertaking a risk to compensate me in the event of potential loss.

2 / 10

What is an additional excess?

This is the excess you will pay the panel beater at the time of a claim.

This is an excess applicable over and above your basic excess. It will only be payable if it applies to you at the time of the claim.

This is the excess you will pay the insurer every time you make a claim.

3 / 10

What happens if I had a burglary at my home 2 years ago and I didn’t tell my current insurer about it when I took out home contents cover?

The insurer will give you a warning, but will pay out your claim and failure to disclose anything again will result in your policy being cancelled.

Nothing, it happened 2 years ago so the insurer can't really do anything about it now.

The insurer may reject your claim in the future, as you have not disclosed important information, they may also cancel your insurance immediately because of this.

The insurer will reject your claim at claim stage as you are now considered a risky client and can no longer be covered for contents cover.

4 / 10

What happens if I decide to cancel my vehicle insurance and self insure?

You need to give 60 days notice to the insurer and they must accept your cancellation.

Your cover will end as per the date you cancel from and you may lose your insurance history you built up due to your break in insurance.

Your cover will end and you will be liable for any outstanding excesses that needs to be paid.

5 / 10

What is SASRIA cover?

Cover for damage caused by a third party vehicle (someone knocks into me).

Covers loss or damage caused by riots, wars , political acts, public disorder any attempted acts of this kind.

Covers you for legal expenses.

Under insurance is calculated using average. Average is calculated using the below formula:
Average = (Sum Insured Amount) / (Actual Replacement Amount ) x (Claim Amount)
Once you have worked out the average amount you need to minus the excess and it will give you the total amount that an insurer will payout.

6 / 10

My contents is covered for R100 000 with a basic excess of R2 000. Someone breaks into my house and steals contents to the value of R50 000. I submitted a claim, the insurer advises that I am under insured.

My contents is actually worth R250 000. How much will I be paid out?

R18 000 (100 000/250 000) x 50 000 minus 2 000

R48 000 (50 000 minus 2 000)

R20 000 (100 000/250 000 x 50 000)

R198 000 (250 000 minus 50 000 minus 2 000)

7 / 10

My contents is covered for R100 000 with a basic excess of R2 000. Someone breaks into my house and steals all my contents. I submitted a claim, the insurer advises that I am under insured.

My contents is actually worth R250 000. How much will I be paid out?

R38 000 (100 000/250 000) x 100 000 minus 2 000

R98 000 (100 000 minus 2 000)

R248 000 (250 000 minus 2 000)

R40 000 (100 000/250 000 x 100 000)

8 / 10

Why is it important to know about my past insurance and claims when I am taking out insurance?

Your previous insurance history will allow the insurer to understand the type of risk they are accepting and will allow them to provide you with adequate premiums specific to your risk history.

Insurers don’t want to cover clients who have too many accidents, so that’s why they ask for this information.

This will allow the insurer to see how many accidents and claims you have had in the past.

9 / 10

Why does it matter if I have a license or not when taking out insurance, if I am the one who will be paying for the premium?

Insurance only covers people who have licenses for more than 2 years as anything less is just too much of a risk for them.

People who have no license and drives on the roads are high risk as they are reckless and therefore the insurer will not cover anyone who is reckless.

It is a requirement by law to have a valid driver's license in order to travel on the roads, insurers need to abide by the law, thus will not provide insurance cover to those that are un-licensed.

10 / 10

I have contents and building insurance with A Insurers and I am covered for R1 000 000 for my building and R250 000 for my contents cover.

I have a zero excesses on both covers. After validating my claim due to a fire, I am advised that I am under insured for both my contents and building.

The replacement value for my building is R2 500 000 and my contents is R325 000. How much will I be paid out?

R400 000 for the building and R192 308 for contents (1 000 000/2 500 000) x 1 000 000 AND (250 000/325 000) x 250 000

R1 000 000 for building and R250 000 for contents.

R2 500 000 for building and R325 000 for contents.

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*This quiz is not intended as financial or insurance advice. Call us for specific insurance related questions and advice.

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