MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Mr. Poddar has used Insulated Wiring in His House, so as to Reduce the Chances of Damage, Due to Fire. Identify the Risk-Management Technique, practiced here. |
| A. | Risk-Avoidance |
| B. | Risk-Retention |
| C. | Risk-Transfer |
| D. | Risk-Reduction and Risk- Control |
| Answer» E. | |
| 2. |
Ms. Smita has set-up a Reserve Fund, to be used for the Repairs, in Case, the House is damaged for Some Reason. Identify the Risk-Management Technique, practiced here. |
| A. | Risk-Financing |
| B. | Risk-Retention |
| C. | Risk-Transfer |
| D. | Risk-Reduction and Risk- Control |
| Answer» B. Risk-Retention | |
| 3. |
Ms. Shaheen refuses to go on a Business-Trip to Iraq, because of Violence in the Destination Country. Identify the Risk-Management Technique, practiced here. |
| A. | Risk-Avoidance |
| B. | Risk-Retention |
| C. | Risk-Transfer |
| D. | Risk-Reduction and Risk- Control |
| Answer» B. Risk-Retention | |
| 4. |
Mr. Suresh has purchased a Life Assurance Policy, so that, His Family-Members do not have to depend on Any-One, in Case of His Un-Timely Death. Identify the Risk-Management Technique, practiced here. |
| A. | Risk-Avoidance |
| B. | Risk-Retention |
| C. | Risk-Transfer |
| D. | Risk-Reduction and Risk- Control |
| Answer» D. Risk-Reduction and Risk- Control | |
| 5. |
Explain the Concept of Surrender-Value. |
| A. | Maximum Compensation, Available Under Policy. |
| B. | Cash-Value, Associated with the Policy, in Case, the Premiums have been Paid, for 3 Years, at least. |
| C. | Minimum Compensation, Available Under the Policy. |
| D. | Compensation, Available Under the Policy, At Any Given Point of Time. |
| Answer» C. Minimum Compensation, Available Under the Policy. | |
| 6. |
Expand the Term: U.L.I.P. |
| A. | Unit-Less Insurance Policy |
| B. | Unit-Linked Investment Policy |
| C. | Unit-Linked Insurance Policy |
| D. | Union-Linked Insurance Policy |
| Answer» D. Union-Linked Insurance Policy | |
| 7. |
Where was, Universal Life Assurance, introduced First? |
| A. | United States of America (U.S.A.) |
| B. | England |
| C. | France |
| D. | Germany |
| Answer» B. England | |
| 8. |
Which Section of Married Women's Property (M.W.P.) Act, provides for Security of Benefits under a Life Assurance Policy, to the Wife and Children? |
| A. | Section 38 |
| B. | Section 39 |
| C. | Section 6 |
| D. | Section 45 |
| Answer» D. Section 45 | |
| 9. |
Describe an Asset, in General. Choose the Most Appropriate Option. |
| A. | An Asset is Some-Thing, that is Freely Available. |
| B. | An Asset is Some-Thing, that yields a Value or a Return. |
| C. | An Asset is Some-Thing, that yields No Return, and Only provides an Utility. |
| D. | An Asset is Some-Thing, that cannot be owned. |
| Answer» C. An Asset is Some-Thing, that yields No Return, and Only provides an Utility. | |
| 10. |
All of the Following, are the Dis-Advantages of Cash- Value Insurance-Contracts, Except --. |
| A. | Lower Yields |
| B. | Safe and Secure Investment |
| C. | Returns, Subject to Corroding Effect of Inflation |
| D. | Low Accumulation in Early Years |
| Answer» C. Returns, Subject to Corroding Effect of Inflation | |
| 11. |
Who is a Key-Man? |
| A. | Person, who has Key to the Office-Lock. |
| B. | Person, Critical to the Business-Operations. |
| C. | Person, Who Left the Business. |
| D. | Person, Willing to Join the Business. |
| Answer» C. Person, Who Left the Business. | |
| 12. |
Inter-Temporal Allocation of Resources, refers to --. |
| A. | Postponing the Allocation of Resources, Until the Time is Right |
| B. | Allocation of Resources, over Time |
| C. | Temporary Allocation of Resources |
| D. | Diversification of Resource-Allocation |
| Answer» C. Temporary Allocation of Resources | |
| 13. |
Identify the Flip-Side of a Term Assurance. |
| A. | It is the Cheapest Form of Assurance. |
| B. | It can be converted in to a Whole-Life Assurance. |
| C. | It does not provide Any Returns, on Maturity. |
| D. | It comes Handy, as an Income-Replacement Plan. |
| Answer» D. It comes Handy, as an Income-Replacement Plan. | |
| 14. |
Expand the Term: M.R.I. |
| A. | Most Reliable Insurance |
| B. | Mortgage-Redemption- Insurance |
| C. | Money-Redemption- Insurance |
| D. | Money Reliable Insurance |
| Answer» C. Money-Redemption- Insurance | |
| 15. |
All of the Following Statements are False, with Respect to Unit-Linked Insurance Plans (U.L.I.P.s), Except: |
| A. | Policy-Holder's Benefits or Returns depend on the Assumptions and Discretion of the Life Assurance Company. |
| B. | Investment-Risk is borne by the Insurer. |
| C. | Unit-Linked Insurance Plans (U.L.I.P.s) are Transperant with Regard to their Term- Component, Expenses- Component, and Savings- Component. |
| D. | Unit-Linked Insurance Plans (U.L.I.P.s) are Bundled Products. |
| Answer» D. Unit-Linked Insurance Plans (U.L.I.P.s) are Bundled Products. | |
| 16. |
You are an Insurance-Surveyor. On Behalf of the Insurer, Why Will You survey and inspect a Property, Prior to Insurance? |
| A. | To Assess the Risk, for Rating Purposes. |
| B. | To Arrive At the Valuation of the Property, by Looking at the Surroundings. |
| C. | To Find-Out: How Far the Property is, From the City. |
| D. | To Get a Look at the Neighbouring Properties, Also. |
| Answer» B. To Arrive At the Valuation of the Property, by Looking at the Surroundings. | |
| 17. |
All of the Following, are the Components of Unit- Linked Insurance-Plan (U.L.I.P.) Premiums, Except --. |
| A. | Policy-Allocation-Charge |
| B. | Investment-Risk- Premium |
| C. | Mortality-Charge |
| D. | Social Security Charge, to fulfill Rural Obligations of the Insurance Company, as mandated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.) |
| Answer» E. | |
| 18. |
Who, originally proposed the Concept of Human Life Value (H.L.V.)? |
| A. | William Faulkner |
| B. | Mr. N. Malhotra |
| C. | Economist, Adam Smith |
| D. | Professor Hubener |
| Answer» E. | |
| 19. |
The Principle of Indemnity is Applicable to --. |
| A. | Life Assurance |
| B. | General Insurance |
| C. | Life Assurance and General Insurance |
| D. | Neither Life Assurance, Nor General Insurance. |
| Answer» C. Life Assurance and General Insurance | |
| 20. |
Which One of the Following, cannot be categorised under the Risks, faced by Ordinary People? |
| A. | Living, Too Long. |
| B. | Dying, Too Early. |
| C. | Natural Wear and Tear. |
| D. | Living with Disability. |
| Answer» D. Living with Disability. | |
| 21. |
Identify the Two Factors, that need to be considered, while calculating Human Life Value (H.L.V.). |
| A. | Net-Earnings of the Bread-Winner and Number of Family- Members. |
| B. | Net-Earnings of the Bread-Winner and Annual Rate-of-Interest. |
| C. | Net Earnings of the Bread-Winner and His or Her Job-Type. |
| D. | Net Earnings of the Bread-Winner and Insurance-Purchased |
| Answer» C. Net Earnings of the Bread-Winner and His or Her Job-Type. | |
| 22. |
Which One of the Following, cannot be an Asset? |
| A. | Air |
| B. | Car |
| C. | House |
| D. | Goodwill |
| Answer» B. Car | |
| 23. |
Which One of the Following Methods, is, a Traditional Method, that can Help Determine the Insurance, needed by an Individual? |
| A. | Human Property-Value |
| B. | Life-Term Proposition |
| C. | Human Life-Value |
| D. | Future Life-Value |
| Answer» D. Future Life-Value | |
| 24. |
Which One of the Following, is Not a Know-Your- Customer (K.Y.C.) Document? |
| A. | Photograph |
| B. | Age-Proof |
| C. | Address-Proof |
| D. | Horoscope |
| Answer» E. | |
| 25. |
Identify the Component, that is Not a Part of the Life Assurance Business. |
| A. | Asset |
| B. | Risk |
| C. | Principle of Mutuality |
| D. | Speculation |
| Answer» E. | |
| 26. |
All of the Following, are the Advantages of Cash-Value Insurance-Contracts, Except --. |
| A. | Inculcates the Saving- Discipline |
| B. | Safe and Secure Investment |
| C. | Income-Tax Benefits |
| D. | Lower Yields |
| Answer» E. | |
| 27. |
What was the Primary Argument, behind "Buy Term Assurance and Invest the Difference, Else-Where"? Choose the Most Appropriate Option. |
| A. | Term Assurance is the Best Form of Life Assurance. |
| B. | Investing the Balance Premiums, in Other Investment-Instruments, could yield a Higher Return. |
| C. | The Policy-Holder can take the Higher Risks, by investing the Balance Premium in the Equities. |
| D. | Non-Term Assurance has the Lowest Yields. |
| Answer» C. The Policy-Holder can take the Higher Risks, by investing the Balance Premium in the Equities. | |
| 28. |
Mr. Brijesh purchased a 20-Years' Unit-Linked Insurance-Plan (U.L.I.P.), from ABC Insurance Company. If Mr. Brijesh Dies, Before the Maturity of the Policy, then Insurance Company will have to pay --. |
| A. | Surrender-Value |
| B. | Premiums, After Deducting the Dues. |
| C. | Lower of Sum-Assured or Fund-Value. |
| D. | Higher of Sum-Assured or Fund-Value. |
| Answer» E. | |
| 29. |
Who bears the Mortality-Risk, in Case of Unit-Linked Insurance-Plans (U.L.I.P.s)? |
| A. | Insurer |
| B. | Insured |
| C. | Insured or Insurer, as specified in the Terms of the Policy. |
| D. | Insurer and the Mutual Fund, where, the Money is invested. |
| Answer» B. Insured | |
| 30. |
Which One of the Following Protocols, is In-Correct, with Regard to the Recommendations, that the Ombudsman needs to follow? |
| A. | Recommendations should be made, within 6 Months of the Receipt of such a Complaint. |
| B. | The Copies should be sent to Both: the Complainant and the Insurance Company. |
| C. | Recommendations have to be accepted, In- Writing, by the Complainant, Within 15 Days of Receipt of such Recommendation. |
| D. | A Copy of Acceptance- Letter, by the Insured, should be sent to the Insurer, and His or Her Written Confirmation sought, Within 15 Days of His or Her receiving such Acceptance-Letter. |
| Answer» B. The Copies should be sent to Both: the Complainant and the Insurance Company. | |
| 31. |
Insurance Act, 1938, specifies the Rules for Nomination of Insurance-Policies under --. |
| A. | Section 39 |
| B. | Section 41 |
| C. | Section 45 |
| D. | Section 64-VB |
| Answer» B. Section 41 | |
| 32. |
The Insurance Regulatory and Development Authority (I.R.D.A.) was established in the Year: --, under The Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999. |
| A. | 1999 |
| B. | 2000 |
| C. | 2002 |
| D. | 2003 |
| Answer» C. 2002 | |
| 33. |
Mr. Vimal is a 32-Years' Old, Healthy, Non-Smoker, Teetotaller Individual; Who applies for Life Assurance from ABC Limited Insurance Company. Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company? |
| A. | Risk will be Accepted at Ordinary Rates. |
| B. | Risk will be Accepted With an Extra, Over the Tabular Rate of Premium. |
| C. | Risk will be Accepted, With a Lien on Sum- Assured. |
| D. | Risk will be Accepted, With a Restrictive Clause. |
| Answer» B. Risk will be Accepted With an Extra, Over the Tabular Rate of Premium. | |
| 34. |
Insurance Act, 1938, prohibits the Use of Rebates, as an Inducement to take an Insurance Policy, under --. |
| A. | Section 38 |
| B. | Section 41 |
| C. | Section 45 |
| D. | Section 64-VB |
| Answer» C. Section 45 | |
| 35. |
If, Mr. Brijesh, a 40-Years' Old Individual, is perceived as a 'Sub-Standard Risk', by the Insurance Company, then, Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company? |
| A. | Risk will be Accepted at Ordinary Rates. |
| B. | Risk will be Accepted at Lower Rates. |
| C. | Risk will be Accepted With an Extra, Over the Tabular Rate of Premium. |
| D. | Risk will be Declined. |
| Answer» D. Risk will be Declined. | |
| 36. |
ABC Insurance Company has offered an Insurance-Plan to Mr. Krishna, with a Provision of Survival-Claim. How will the Company ascertain the Survival-Claim? Choose the Most Appropriate Option. |
| A. | Claim will be ascertained, as per the Conditions, stipulated in the Policy. |
| B. | Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self. |
| C. | Claim will occur, when the Policy-Holder decides to cancel the Contract. |
| D. | Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of His Claim. |
| Answer» B. Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self. | |
| 37. |
Mr. Rahul had purchased an Insurance-Cover, from ABC Insurance Company, for a Period of 20 Years. On Completion of 20 Years, the Company pays Fund-Value to Mr. Rahul, as the Maturity-Claim. Which Type of Plan, was taken, by Mr. Rahul? |
| A. | Participating Plan |
| B. | Return of Premium(s) Plan |
| C. | Unit-Linked Insurance Plan (U.L.I.P.) |
| D. | Money-Back Assurance Plan |
| Answer» D. Money-Back Assurance Plan | |
| 38. |
Mr. Sudhir had taken an Insurance-Cover of Rupees 25 Lakhs, from ABC Insurance Company, 20 Years Back. On Maturity, the Company pays the Sum-Assured Plus Accumulated Bonuses, Less the Dues (Outstanding Premium(s)), as the Maturity-Claim, to Mr. Sudhir. Which Type of Plan, was taken, by Mr. Sudhir? |
| A. | Participating Plan |
| B. | Return of Premium(s) Plan |
| C. | Unit-Linked Insurance Plan (U.L.I.P.) |
| D. | Money-Back Assurance Plan |
| Answer» B. Return of Premium(s) Plan | |
| 39. |
Which One of the Following, is Not a Direct Indicator of Service-Quality? |
| A. | Reliability |
| B. | Empathy |
| C. | Assurance |
| D. | Sales Data |
| Answer» E. | |
| 40. |
Which One of the Following, is Not a Contributor, towards Customer Life-Time Value? |
| A. | Historical |
| B. | Present |
| C. | Potential |
| D. | Speculated |
| Answer» E. | |
| 41. |
Choose the Correct Expanded Form for I.G.M.S. |
| A. | Indo-German Management School |
| B. | Integrated Government Management System |
| C. | Indian Genome Mapping Scheme |
| D. | Integrated Grievance- Management System |
| Answer» E. | |
| 42. |
Identify the Choice, which relates to In-Accurate Statements, which are made with Any Fraudulent Intention. |
| A. | Representation |
| B. | Mis-Representation |
| C. | Coercion |
| D. | Fraud |
| Answer» C. Coercion | |
| 43. |
What is the Maximum Amount, that can be awarded by Ombudsman, in Case of a Grievance? |
| A. | Up To Rupees 10 Lakhs |
| B. | Up To Rupees 20 Lakhs |
| C. | Up To Rupees 50 Lakhs |
| D. | Up To Rupees 100 Lakhs |
| Answer» C. Up To Rupees 50 Lakhs | |
| 44. |
Integrated Grievance-Management-System (I.G.M.S.) has been launched by --. |
| A. | Policy-Holders' Association of India |
| B. | Insurance Regulatory and Development Authority of India (I.R.D.A.I.) |
| C. | Life Insurance Council |
| D. | Government of India |
| Answer» C. Life Insurance Council | |
| 45. |
The --- has framed the Rules, known as, Redressal of Public Grievances Rules, 1998. |
| A. | Insurance Regulatory and Development Authority (I.R.D.A.) |
| B. | Non-Banking Finance Company (N.B.F.C.) |
| C. | Securities and Exchange Board of India (S.E.B.I.) |
| D. | Central Government |
| Answer» E. | |
| 46. |
Identify the Factor, impacting the Risk, in Case of Insurance. |
| A. | Face-Value |
| B. | Moral Hazard |
| C. | Cash Value |
| D. | Policy Document |
| Answer» C. Cash Value | |
| 47. |
The Insured can resolve a Dispute, by approaching the Ombudsman, under --. |
| A. | Complaints-Handling Procedure |
| B. | Grievance-Redressal Procedure |
| C. | Risk-Grievance Procedure |
| D. | Redressal of Public Grievances Rules |
| Answer» E. | |
| 48. |
The Assignment or Transfer, upon the Reasons, In- Writing, to be communicated to the Policy-Holder, Subject to such Decision being challenged, by Way of Petition, before the --. |
| A. | Grievance-Redressal- Authority |
| B. | Consumer-Redressal Authority |
| C. | Seller-Redressal Authority |
| D. | Administrative Redressal Authority |
| Answer» B. Consumer-Redressal Authority | |
| 49. |
Which of the Following, is the Main Objective of Consumer Protection Act?(i) To Protect the Interests of the Policy-Holders.(ii) To Protect the Interests of the Investors.(iii) To Provide a Simple, Speedy, and In-Expensive Redressal to the Consumer-Grievances. |
| A. | Only (i) is Correct. |
| B. | Both: (i) and (ii), are Correct. |
| C. | Only (iii) is Correct. |
| D. | Both: (i) and (iii), are Correct. |
| Answer» D. Both: (i) and (iii), are Correct. | |
| 50. |
Select a Scenario, that showcases the Principle of Uberrima Fides. |
| A. | Timely Payment of Premium. |
| B. | Disclosing All Material Information on the Insurance Proposal- Form. |
| C. | Faking All Material Information on the Insurance Proposal- Form. |
| D. | Disclosing All Irrelevant Information on the Insurance Proposal- Form. |
| Answer» C. Faking All Material Information on the Insurance Proposal- Form. | |