Micro Insurance

QUESTION 1

Which of the following are key risks in microinsurance?Select all that apply.

a.High frequency payments

b.Moral Hazard

c.Adverse Selection

d.Simple product structure

QUESTION 2

Microinsurance is necessary to cover expenses that cannot be easily solved with savings or loans.

True

False

QUESTION 3

Consider the below client testimonial.Which of the below risk factors are reduced by the use of cell phone technology to deliver insurance (select all that apply)?

"When Cornelius Tetteh's father passed away, Cornelius received GHS 2,500 ($725) from Airtel Insurance.Following his father's death, Cornelius explains how he came to terms with the huge cost involved in organizing a befitting funeral for his father. "How could someone like me afford a funeral for my father, a pastor, with hundreds of guests expected to travel from across the country. I was broken!"Cornelius learnt about Airtel Insurance from an SMS that was sent to his father's phone. As he had been nominated as the next of kin, Cornelius was able to submit the required documents to receive the insurance money."There is no doubt that paying for the funeral expenses of a loved one can be costly," Cornelius explained. "Airtel Insurance comes in handy in Ghana where funerals are tremendously expensive."

a.Adverse Selection

b.Ex Ante Moral Hazard

c.High Cost to Deliver Financial Services

d.Complexity of Claims Process

QUESTION 4

Which of the following is true a out Micro Insurance Agency ?Select all that apply.

a.Simplified the process by focusing on single risk policies

b.Covering over 3 million people

c.One of the first ventures in the field of microinsurance

d.Opened first subsidiary in the Phillipines in 2006

QUESTION 5

Consider the following description of an insurance product: "Political violence is a significant risk in many countries; endangering people's lives, homes and livelihoods. MicroEnsure's political violence insurance covers the outstanding balance of a borrower's loan in the event that the customer's business is destroyed as a result of political violence or riots."This product protects clients from loss incurred as a result of:

a.Country Context

b.Moral Hazard

c.Poor Business Planning

d.None of these

QUESTION 6

What is the dominant technology used in microinsurance according to the assigned CGAP paper?

a.None of these

b.mobile phones

c.RFID

d.Smart cards

QUESTION 7

Which of the below Grameen Bank loan program characteristics is also true of Micro Insurance Agency products?

a.Groups of 5 Cross Guaranty Each Other

b.Simplified Products and Paperwork

c.Mandatory Savings Accounts

d.None of these

QUESTION 8

Consider the following insurance product description: "Political violence is a significant risk in many countries; endangering people's lives, homes and livelihoods. MicroEnsure's political violence insurance covers the outstanding balance of a borrower's loan in the event that the customer's business is destroyed as a result of political violence or riots."This product is most similar to:

a.Grameen Group Loans

b.Grameen Fisheries

c.Grameen Credit Life

d.Grameen Pension Scheme

QUESTION 9

What trend doesMary Ellen Iskenderian discuss regarding Women's World Banking product innovations in the webinar "Microfinance: Meeting Needs with More than Just Loans"?

a.Mandatory health insurance for microloan clients have improved loan repayment

b.Automation of client payments allows for a better database to manage client risk

c.Using technology of voice messaging a client to go for a checkup improves health insurance outcomes

d.Commercial banks are interested in serving the poor but retreat when they realize it is costly and labor intensive

QUESTION 10

Microinsurance Agency is a non profit business.

True

False