1. Insurance is a cooperative form of distributing a certain__________over a group of persons
who are exposed to it.
Correct : B. Risk
2. In legal sense, Insurance is a
Correct : A. Contract
3. The principle of indemnity is not applicable to
Correct : C. Life Insurance
4. LIC was nationalised in
Correct : A. 1956
5. The policy for which the premium is payable throughout the life of the assured is known as
Correct : B. Whole Life Policy
6. When the same risk and subject matter is insured with more than one insurer is known as
Correct : B. Double Insurance
7. The chance of loss from the unforeseen circumstances in future refers to ______.
Correct : C. Risk
8. Master policy is issued for ___________.
Correct : A. Group Insurance
9. The organisation structure of LIC refers to ___________.
Correct : B. Four Tier
10. ________ can be done by mere endorsement on the policy or by a separate duly stamped deed.
Correct : A. Assignment
11. The document which contains the terms and conditions of the life insurance contract is termed
as the
Correct : B. Life Insurance Policy
12. What is a proposal?
Correct : C. Both a and b
13. Which of these persons will not be given a license to work as an insurance agent?
Correct : A. A person with criminal record
14. A memorandum added to a policy embodying some alterations to the terms of policy is known as
Correct : B. Endorsement
15. Which of the following is an evidence of insurance contract?
Correct : A. Policy Document
16. The person responsible for evaluation and acceptance / rejection of risks and computation of
premium in insurance is called
Correct : D. Underwriter
17. Insurance prices are called
Correct : C. Premiums
18. A person employed to do any act for another or to represent another in dealing with a third person
refers to
Correct : A. Agent
19. The IRDA was set up in
Correct : D. 2000
20. ______________ in the insurance are just like the retailers of any consumer product who help in
selling and distributing the product.
Correct : C. Agents
21. The agents who are selling policies of several life and non life insurance companies at a time are
known as
Correct : A. Brokers
22. _____________ are independent professionals appointed by an insurance company to assess the
loss or damage on a claim under a policy.
Correct : C. Both a and b
23. Insurance contract is sort of contract which is approved by
Correct : A. The Indian Contract Act
24. General Insurance Corporation was established during the year
Correct : D. 1972
25. The term Assurance refers to ________.
Correct : B. Life Insurance Business
26. Committee of reforms in insurance sectors during 1993 headed by ________.
Correct : A. R.N. Malhotra
27. Insurance business is based on __________.
Correct : C. The Theory of Probability and Law of large numbers
28. Gross Premium means Net Premium plus___________
Correct : C. Expense Loading
29. _____________ is pricing of insurance products driven by market forces
Correct : A. De-tariffing
30. ____________ is the total premium that a policy holder pays to insurance company
Correct : B. Gross Premium
31. Insurance helps to:
Correct : B. Reduce the financial consequences of adverse situations
32. An actuary is expected to:
Correct : B. Make a reasonable forecast of the future liabilities of policies
33. The principle of _____________ ensures that an insured does not profit by
insuring with multiple insurers
Correct : B. Contribution
34. The principle of average applies when the value is _____________ in the
proposal
Correct : A. Understated
35. Fidelity Guarantee Policies cover losses due to fraud by ____________
Correct : A. Employees
36. CTL as used in insurance
Correct : B. Constructive Total Loss
37. GA as used in insurance
Correct : B. General Average
38. Which of the following terms matches closest with ‘Family Floater’?
Correct : A. Health insurance
39. In cases where a Life Insurance Agent collects the premium from the
policyholder and remits it to the insurer’s office, he is acting as an agent of _____
Correct : B. the Insurance Company
40. A policy where the policyholder makes a one-time payment of premium, is
known as a ______________:
Correct : B. Single premium policy
41. i. State which of the statements given below is correct .
Correct : A. An organisation can exist only with employees
42. ……… may be described as a social device to reduce or eliminate risk of loss
to life and property.
Correct : C. insurance
43. State which of the statements given below is correct
Correct : B. Religious beliefs interfere with the purchase of life insurance
44. Compared to the premium for a Whole Life plan, the premium for an
Endowment plan will be ____________ for the same age
Correct : A. more
45. Select the expanded form of SA as commonly used in life insurance
Correct : A. Sum Assured
46. Select the expanded form of OR as commonly used in life insurance
Correct : C. Ordinary Rates
47. Select the expanded form of SV as commonly used in life insurance
Correct : C. Surrender Value
48. Which of the following terms matches closest with ‘Automatic Teller
Machines’?
Correct : D. Information Kiosks
49. Which of the following terms matches closest with ‘Foreclosure’?
Correct : A. Surrender Value
50. Find out which of the given statements is incorrect
Correct : C. An organisation is identified by the building it occupies
51. Find out which of the given statements is incorrect
Correct : D. Actuarial department is responsible for settling death claims
52. Which of the following terms is dissimilar to the other four in the context of
death claims in life insurance?
Correct : C. Foreclosure
53. As per structured formula under the Motor Vehicle Act, victims of fatal
injuries are paid compensation on the basis of:
Correct : D. Age and income
54. Time Policies relate to:
Correct : B. Hull insurance
55. Which clause specifies the perils insured in a scheduled form of policy?
Correct : C. Operative Clause
56. Which of the following types of insurances is mandatory?
Correct : B. Motor Third Party Legal Liability
57. The minimum paid up capital required for a General Insurance Company is
Rs. ____
Correct : D. 100 crores
58. In ‘Hit and Run’ cases, claims are settled from _______
Correct : A. Solatium Fund
59. Select the expanded form of FPA as used in insurance
Correct : B. Free of Particular Average
60. Select the expanded form of ALOP used in insurance
Correct : A. Advance Loss of Profits insurance
61. Insurance cannot prevent the occurrence of risk but it provides for the………
Correct : A. losses of risk
62. The document which embodies the contract in insurance is called…………
Correct : B. policy
63. ……… principle in insurance means maximum truth.
Correct : D. uberrima fides
64. Which of the following terms matches closest with ‘Composite Policy’?
Correct : A. Shopkeepers’ insurance
65. Members of the Insurance Advisory Committee are drawn to represent the
interests of different groups like:
Correct : A. Surveyors, agents, advocates
66. Which of the following covers is dissimilar to the other four options?
Correct : B. Loss of Profits
67. Which of the following types of insurances is dissimilar to the other four
options?
Correct : A. Builders’ Risks insurance
68. Which of the following terms matches closest with ‘Asbestosis’?
Correct : D. Workmen’s Compensation
69. Regarding ‘Exclusions’ find out the incorrect statement.
Correct : D. Exclusions do not deal with risk coverage
70. Which of the following statements is incorrect in respect of brokers?
Correct : D. Brokers should be registered companies or firms
71. Which of the following terms is dissimilar to the other four options?
Correct : B. Hit and Run
72. Which of the following terms is dissimilar to the other four options?
Correct : C. Reinstatement value
73. Principle of utmost good faith is also known as ………..
Correct : D. uberrima fides
74. …………….principle means that the insured is not entitled to make a profit
on his loss.
Correct : C. indemnity
75. The purpose of ………. Are to hold the negligent person responsible for the
loss and prevent the insured from collecting twice for the same loss.
Correct : A. subrogation
76. ………..principle in insurance mention the cause of loss must be direct and
an insured one in order to claim for compensation.
Correct : B. causa proxima
77. ………… principle in insurance mention the assured must have insurable
interest in the life or property insured.
Correct : D. insurable interest.
78. The first insurance contract was entered into by European maritime nations
in 1347 to accept ……..insurance as a practice.
Correct : C. marine
79. Dr.Nicholas Barbon set up in 1967 the first fire insurance company known
as the ………..
Correct : D. fire office
80. The oldest life insurance company in existence today is the society for the
equitable assurance of lives and survivorship, known as ………
Correct : B. Old equitable
81. The ……………discovered by Jakob Bernoulls around 1700 forms the basis
of modern insurance.
Correct : B. law of large numbers
82. The Sanskrit term …………..,the name of LIC of India corporate
headquarters,is found in Rig Veda.
Correct : C. Yogakshema
83. The …………..company was the first insurance company to be set up in
India to help the widows of the Europian community.
Correct : B. Oriental Life Insurance Company
84. ………..is the first comprehensive legislation governed both life and non-life
branches of insurance was enacted to provide strict state control over the insurance business in India.
Correct : A. Insurance Act-1938
85. The LIC of India was set up in ……..to take over 245 life companies.
Correct : B. 1956
86. ………….committee suggested the re-opening up of the insurance sector to
private players.
Correct : B. R.N.Malhothra
87. The IRDA was set up in…………..
Correct : C. 2000
88. The IRDA stands for
Correct : C. Insurance Regulatory and Development Authority.
89. The insurance industry till august 2000 had only two nationalised players ,LIC and ….
Correct : B. GIC
90. The ………….,has allowed cooperative societies to carry on insurance
business.
Correct : C. Insurance (amendment)Act,2002
91. ……….. was constituted as an autonomous body to regulate and develop the
business of insurance and reinsurance in India.
Correct : C. IRDA
92. Objective of IRDA includes
Correct : C. both a and b
93. IAIS stands for……
Correct : B. International Association of Insurance Supervisors
94. To provide the insured a speedy and inexpensive grievance redressal system
,the Govt.of India promulgated…………
Correct : B. Redressel of public grievance Rule 1988
95. RPG rule 1988 set up an institution for building the confidence of the policy
holders in insurance.
Correct : B. ombudsman
96. An ombudsman is entrusted with………..functions
Correct : B. conciliation and award making
97. The ……….associated with the insurance business are agents, surveyors,
loss assessors, brokers, third party administrators and banks.
Correct : C. intermediaries
98. …………..in the insurance are just like the retailers of any consumer product
who help in selling and distributing the product.
Correct : C. agents
99. …………are independent professionals appointed by an insurance company
to assess the loss or damage when a claim is notifed under a policy issued by them.
Correct : D. both a and b
100. …………are agents but they can sell policies of several life and non-life
insurance companies at a time.