Explore topic-wise MCQs in Uncategorized topics.

This section includes 268 Mcqs, each offering curated multiple-choice questions to sharpen your Uncategorized topics knowledge and support exam preparation. Choose a topic below to get started.

1.

What is the Subject-Matter of Life Assurance?

A. Premium
B. Human Life
C. Property
D. Goodwill
Answer» C. Property
Discussion
2.

Who is protected under the In-Contestability Clause included under a Life Assurance Policy?

A. Insurer
B. Insured
C. Insurance Agent
D. Insurance Broker
Answer» C. Insurance Agent
Discussion
3.

As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim?

A. Nothing
B. Premium, Paid by the Life-Assured.
C. (2 Premium), Paid by the Life-Assured.
D. Full Face-Amount of the Policy.
Answer» E.
Discussion
4.

Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed --. Choose the Most Appropriate Option.

A. One Year
B. Three Years
C. Five Years
D. Seven Years
Answer» C. Five Years
Discussion
5.

Identify the Document, that evidences a Contract, between the Insurer and the Insured.

A. Proposal-Form
B. Claim-Form
C. Nomination-Form
D. Policy-Document
Answer» E.
Discussion
6.

If Complex Language is used to word a Certain Policy- Document, and it has given Rise to an Ambiguity, How Will it generally be construed?

A. In Favour of the Insured.
B. In Favour of the Insurer.
C. The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, With Interest, to the Insured.
D. The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, to the Insured, Without Any Interest.
Answer» B. In Favour of the Insurer.
Discussion
7.

Summarise "Contracts of Adhesion", for us.

A. These Contracts are drafted by Both Parties, and have to be accepted by Both.
B. These Contracts are drafted by One Party, and the Other can only Accept or Reject it.
C. These Contracts are drafted by One Party, and the Other has to Accept it.
D. These Contracts are Binding on Both the Parties.
Answer» C. These Contracts are drafted by One Party, and the Other has to Accept it.
Discussion
8.

Give us, the Proof of Contract between the Insurer and the Insured.

A. Proposal-Form
B. Claim-Form
C. Nomination-Form
D. Policy Document
Answer» E.
Discussion
9.

Compare: Gambling and Insurance.

A. Gambling and Insurance, Both, are the Same.
B. Gambling has No Insurable Interest involved, but Insurance does have.
C. Insurance has Only Profitable Outcomes, while, Gambling could result in Losses.
D. Gambling is Legally Enforceable, but, Insurance is Not.
Answer» C. Insurance has Only Profitable Outcomes, while, Gambling could result in Losses.
Discussion
10.

What Does, First Premium Receipt (F.P.R.), signify?

A. Free-Look Period has ended.
B. It is the Evidence, that the Policy-Contract has begun.
C. Policy cannot be cancelled, Now.
D. Policy has acquired a Certain Cash-Value.
Answer» C. Policy cannot be cancelled, Now.
Discussion
11.

Minimum Academic Qualification of a Sepcified Person is --.

A. Class 10
B. Class 12
C. Graduate
D. Post-Graduate
Answer» C. Graduate
Discussion
12.

Gives us, an Example of a Standard Policy-Provision.

A. A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting at the Time of Writing the Contract.
B. Suicide Clause
C. A Clause, Precluding Certain Illnesses.
D. A Clause, Granting Certain Privileges to the Policy-Holder.
Answer» C. A Clause, Precluding Certain Illnesses.
Discussion
13.

With Regards to Mis-Statement of Age, Select the Valid Option: I: An Under-Statement of Age, will result in the Original Policy being re-issued, for a Reduced Amount. II: An Over-Statement of Age, will, usually, result in a Refund of Premium-Payment.

A. I, Only.
B. II, Only.
C. I and II.
D. Neither I, Nor II.
Answer» D. Neither I, Nor II.
Discussion
14.

Which of the Following, is Not a Part of a Standard Policy-Document?

A. Policy Schedule
B. Standard Provisions
C. Policy-Specific Provisions
D. Policy Forfeiture Provisions
Answer» E.
Discussion
15.

Which One of the Following, forms the First Part of a Standard Insurance Policy-Document?

A. Policy-Schedule
B. Standard Provisions
C. Specific-Policy Provisions
D. Claim-Procedure
Answer» B. Standard Provisions
Discussion
16.

Gives us, an Example of a Policy-Specific Provision.

A. Premium-Payment
B. Mis-Statement of Age
C. Claim-Provision
D. A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting, at the Time of Writing the Contract.
Answer» E.
Discussion
17.

What Will Happen, if the Insured-Person loses the Original Life Assurance Policy-Document?

A. The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract.
B. The Insurance Contract will Come to an End.
C. The Insurance Company will issue a Duplicate Policy, with the Renewed Terms and Conditions, Based on the Current Health- Declarations of the Life- Assured.
D. The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract; But, Only After a Court-Order.
Answer» B. The Insurance Contract will Come to an End.
Discussion
18.

Which One of the Following Documents, will be issued by the Insurance Company, on Receipt of Subsequent Premiums, After the First Premium?

A. Revival Premium Receipt
B. Restoration Premium Receipt
C. Reinstatement Premium Receipt
D. Renewal Premium Receipt
Answer» E.
Discussion
19.

Assess the Impact of Inflation on Your Investment- Returns.

A. Inflation has No Impact on the Investment- Returns.
B. Inflation has a Positive Impact on the Investment-Returns.
C. Inflation has a Corroding Impact on the Investment-Returns.
D. Inflation boosts the Investment-Returns.
Answer» D. Inflation boosts the Investment-Returns.
Discussion
20.

For a Life Assurance Policy, Nomination is allowed Under --- of Insurance Act, 1938.

A. Section 10
B. Section 38
C. Section 39
D. Section 45
Answer» D. Section 45
Discussion
21.

Identify the Circumstances, under which, the Policy- Holder would need to appoint an Appointee.

A. Insured is a Minor
B. Nominee is a Minor
C. Policy-Holder is Not of Sound Mind
D. Policy-Holder is Not Married
Answer» C. Policy-Holder is Not of Sound Mind
Discussion
22.

All of the Following Statements, are True, with Regard to Nomination, Except --.

A. Policy-Nomination is Not Cancelled, if the Policy is assigned to the Insurer, in Return for a Loan.
B. Nomination can be Done, at the Time of Policy-Purchase or Subsequently.
C. Nomination can be Changed, by Making an Endorsement in the Policy.
D. A Nominee has Full Rights on the Whole of the Claim.
Answer» E.
Discussion
23.

Construct a Situation, that would require Evidence of Insurability, at Revival.

A. It has been a Week, since the Policy has been Lapsed.
B. Policy has been Lapsed, for More Than a Year.
C. Policy has been In- Force, for a Year.
D. Loan against Policy has been sought.
Answer» C. Policy has been In- Force, for a Year.
Discussion
24.

When is a Policy, Deemed to be Lapsed?

A. If the Premiums are Not Paid on the Due-Date.
B. If the Premiums are Not paid, Before the Due- Date.
C. If the Premium has Not been paid, even After Expiry of Grace-Period.
D. If the Policy is surrendered.
Answer» D. If the Policy is surrendered.
Discussion
25.

Construct a Valid Argument in Favour of Policy-Loans.

A. A Loan of Any Amount, can be obtained, easily.
B. Insured can decide the Terms and Conditions of the Loan.
C. There is No Legal Obligation to Re-Pay the Loan.
D. No Collateral is required.
Answer» D. No Collateral is required.
Discussion
26.

In Order for the Policy to acquire a Guaranteed Surrender-Value (G.S.V.), For How Long, must, the Premiums be Paid, as per the Regulations?

A. 2 Consecutive Years
B. 4 Consecutive Years
C. 3 Consecutive Years
D. 5 Consecutive Years
Answer» D. 5 Consecutive Years
Discussion
27.

Illustrate the Purpose of Grace-Period.

A. It is a Period, within which, Policy-Holder may cancel the Policy, if He or She Does Not Like the Same.
B. It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium.
C. It provides a Period, within which, Policy- Holder must raise a Complaint, in Case of Any Grievance.
D. It provides a Period, after which, Policy- Holder must Pay His or Her Over-Due Premium.
Answer» C. It provides a Period, within which, Policy- Holder must raise a Complaint, in Case of Any Grievance.
Discussion
28.

Select the Correct Statement, with Regard to Grace- Period. Choose the Most Appropriate Option.

A. The Standard Length of the Grace-Period is 1 Month or 31 Days.
B. The Standard Length of the Grace-Period is One Quarter.
C. The Standard Length of the Grace-Period is One Week.
D. The Standard Length of the Grace-Period is One Fort-Night.
Answer» B. The Standard Length of the Grace-Period is One Quarter.
Discussion
29.

Which One of the Following Alterations, will be permitted, by an Insurance Company?

A. Splitting-Up of the Policy into Two or More Policies.
B. Extension of the Premium-Paying-Term.
C. Change of the Policy from "With-Profits" Policy to "Without- Profits" Policy.
D. Increase in the Sum- Assured.
Answer» B. Extension of the Premium-Paying-Term.
Discussion
30.

Select a Reason, for Discharging a Contract, Under Common Law.

A. Frustration
B. Mistake
C. Mis-Representation
D. Concealment
Answer» D. Concealment
Discussion
31.

How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate Option.

A. Interim Agreement
B. Provisional Agreement
C. Constant Agreement
D. Contingent Agreement
Answer» E.
Discussion
32.

Label the Document, that is used, to lay-down the Terms of the Insurance Contract, when it is bought. Choose the Most Appropriate Option.

A. Policy
B. Agreement
C. Authorisation
D. Endorsement
Answer» B. Agreement
Discussion
33.

Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option.

A. Speculative Interest
B. Wager Interest
C. Insurable Interest
D. Indemnity Interest
Answer» D. Indemnity Interest
Discussion
34.

The Main Difference between Legal Contracts, in General; and Insurance Contracts, is that --.

A. Insurance Contracts are the Contracts of Uberrima Fidei.
B. Insurance Contracts are Legally Enforceable Contracts.
C. Insurance Contracts are Always Profitable.
D. Insurance Contracts are Not Subject to Any Regulation, What-So- Ever.
Answer» B. Insurance Contracts are Legally Enforceable Contracts.
Discussion
35.

Advise Miss Anita, on the Point or Time, when Insurable Interest has to be Present, in Case of Property-Insurance.

A. Only at the Time of Taking the Policy.
B. Only at the Time of Making a Claim.
C. At the Time of Taking a Policy, and at the Time of Making a Claim.
D. In Case of Property Insurance, No Insurable Interest is Required.
Answer» D. In Case of Property Insurance, No Insurable Interest is Required.
Discussion
36.

What Does, Valuation in Life Assurance, mean?

A. The Process of Arriving at the Profit of a Life Assurance Company.
B. The Process of Determining the Net Premium for a Life Assurance Policy.
C. The Process of Arriving at the Bonus in a Life Assurance Company.
D. The Process, by which, the Value of All the Existing Policies, is ascertained, in a Life Assurance Company.
Answer» E.
Discussion
37.

Mr. Mahesh takes out an Insurance Policy on His House. He sells His House, After a Couple of Months of taking the Policy. In Case, there is Some Damage to the House, can Mr. Mahesh receive the Claim?

A. Yes, Because, Insurable Interest was Present at the Time of Taking-Out the Policy.
B. Yes, if the Current Owner of the House, allows.
C. Yes, if the Damage is Within One Year of His Selling the House.
D. No, Because, there is No Insurable Interest, Present.
Answer» E.
Discussion
38.

Mr. Rajan fell-off a Horse, and landed in a Puddle. He had to lie in the Puddle for a Long-Time, because, the Fall had broken His Leg, this resulted in Him contracting a Severe Pneumonia. He was treated in a Near-By Hospital, where, He dies, as a Result of Pneumonia. What is the Proximate Cause of Death, in this Case?

A. Pneumonia.
B. Leg-Injury, sustained as a Result of the Fall.
C. Negligence of Doctors.
D. Hospital-Treatment.
Answer» C. Negligence of Doctors.
Discussion
39.

Select the True Statements.

A. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Constant Amount for Premiums, 2) A Constant Amount for Each 1,000 Sum- Assured , and 3) A Constant Amount per Policy.
B. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Amount for Each 1,000 Sum- Assured , and 3) A Constant Amount per Policy.
C. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Percentage for Each 1,000 Sum-Assured , and 3) A Constant Amount per Policy.
D. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Amount for Each 1,000 Sum- Assured , and 3) A Percentage Amount per Policy.
Answer» C. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Percentage for Each 1,000 Sum-Assured , and 3) A Constant Amount per Policy.
Discussion
40.

Advise Mr. Rajan, on the Point or Time, when Insurable Interest has to be Present, in Case of Life Assurance.

A. Only at the Time of Taking the Policy.
B. Only at the Time of Making a Claim.
C. At the Time of Taking a Policy, and at the Time of Making a Claim.
D. In Case of Life Assurance, No Insurable Interest is Required.
Answer» B. Only at the Time of Making a Claim.
Discussion
41.

Which One of the Following Methods of Risk- Management, is also known as Self-Insurance?

A. Risk-Avoidance
B. Risk-Retention
C. Risk-Reduction and Risk- Control
D. Risk-Transfer
Answer» C. Risk-Reduction and Risk- Control
Discussion
42.

Mr. Manish asks His Insurance-Advisor, the Primary Purpose of Insurance. Help Mr. Manish, Identify the Primary Purpose of Insurance, from the Following Options.

A. Share the Losses of Many, among Many.
B. Share the Losses of Many, among a Few.
C. Share the Losses of a Few, among Many.
D. Speculation.
Answer» D. Speculation.
Discussion
43.

Identify a Non-Physical Asset, from the List of Following Options.

A. Car
B. House
C. Goodwill
D. Air-Conditioner
Answer» D. Air-Conditioner
Discussion
44.

What led to the Formulation of Insurance?

A. Hazard
B. Indemnity
C. Loss
D. Risk
Answer» E.
Discussion
45.

When would You choose, to go for Insurance?

A. After the Contingent Event has occurred.
B. When the Probability of Event-Occurrence is Low, But, Severity is High.
C. When the Probability of Event-Occurrence is Low, along with the Severity.
D. When you can finance the Losses of the Contingent-Event, on Your Own.
Answer» C. When the Probability of Event-Occurrence is Low, along with the Severity.
Discussion
46.

Which One of the Following, is, the First Indian Insurance Company?

A. The Oriental Life Assurance Company Limited
B. Triton Insurance Company Limited
C. Bombay Mutual Assurance Society Limited
D. National Insurance Company Limited
Answer» D. National Insurance Company Limited
Discussion
47.

Discuss the Difference between Insurance and Assurance.

A. Insurance: Protection Against an Event, that Will Happen. Assurance: Protection Against an Event, that Might Happen.
B. Insurance: Protection Against an Event, that Might Happen. Assurance: Protection Against an Event, that Will Happen.
C. Both: Insurance and Assurance, Refer to the Same Thing.
D. Insurance: Guaranteed Protection, Against an Event, that Might Happen. Assurance: Protection Against an Event, that Might Happen, is Not Guaranteed.
Answer» C. Both: Insurance and Assurance, Refer to the Same Thing.
Discussion
48.

Name the Public Sector Life Assurance Company, formed as a Result of Nationalisation of Life Assurance in India.

A. General Insurance Corporation (G.I.C.) of India
B. Life Insurance Corporation (L.I.C.) of India
C. Oriental Insurance Company of India
D. National Insurance Company Limited
Answer» C. Oriental Insurance Company of India
Discussion
49.

Name the Insurance Regulator in India.

A. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
B. Institute of Insurance and Risk Management (I.I.R.M.)
C. Insurance Institute of India (I.I.I.)
D. National Insurance Academy (N.I.A.)
Answer» B. Institute of Insurance and Risk Management (I.I.R.M.)
Discussion
50.

Discuss the Risk-Management Technique, employed by an Individual, when He or She purchases the Insurance.

A. Risk-Avoidance
B. Risk-Retention
C. Risk-Transfer
D. Risk-Mitigation
Answer» D. Risk-Mitigation
Discussion