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MCQOPTIONS
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.
| 101. |
Redressal of Public Grievances Rules, 1998 , came into Force on --. |
| A. | 12th October, 1991 |
| B. | 11th November, 1998 |
| C. | 13th December, 1997 |
| D. | 14th September, 1983 |
| Answer» C. 13th December, 1997 | |
| 102. |
Which of the Following, is, a Function of Ombudsman?(i) Redressal of Grievances to Consumer.(ii) Protection of Consumer's Interests.(iii) Redressal of Grievances from the Policy-Holders. |
| 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. | |
| 103. |
Which of the Following, has been recommended by Commission, that, the Grievance-Redressal Authorities (G.R.A.s) should be constituted, to deal with?(i) Disputes between the Insured and the Insurer.(ii) Disputes between the Insured and the Intermediaries.(iii) Disputes between the Insurer and the Intermediaries.(iv) Any Dispute between the Insured, the Insurer, and the Intermediaries. |
| A. | Both: (i) and (ii), are Correct. |
| B. | Both: (i) and (iii), are Correct. |
| C. | Both: (ii) and (iii), are Correct. |
| D. | Only (iv) is Correct. |
| Answer» E. | |
| 104. |
Who shall deal with the Disputes, between the Insured and the Insurer? |
| A. | Consumer Group |
| B. | Grievance Redressal Authorities (G.R.A.s) |
| C. | Consumer Authority |
| D. | Consumer Commission |
| Answer» C. Consumer Authority | |
| 105. |
Which of the Following, is an Objective of Redressal of Public Grievances Rules?(i) Aim at Resolving the Complaints, Relating to the Settlement of Disputes.(ii) Protection of Consumers' Interests.(iii) Providing the Grievances to Consumers. |
| 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» B. Both: (i) and (ii), are Correct. | |
| 106. |
Who shall deal with the Disputes between the Insurer and the Intermediaries? |
| A. | Consumer Authority |
| B. | Consumer Group |
| C. | Consumer Commission |
| D. | Grievance-Redressal Authorities (G.R.A.) |
| Answer» E. | |
| 107. |
Which One of the Following, is Not an Example of Non- Verbal Communication? |
| A. | Signaling "Okay" with a Hand-Gesture. |
| B. | Gesturing in an Empty Room. |
| C. | Wearing Jewellery. |
| D. | Raising Your Voice. |
| Answer» C. Wearing Jewellery. | |
| 108. |
On Which Date, was, Consumer Protection Act, formed? |
| A. | 11th April, 1974 |
| B. | 24th December, 1968 |
| C. | 24th December, 1986 |
| D. | 22nd November, 1968 |
| Answer» D. 22nd November, 1968 | |
| 109. |
Personal Distance is defined as --. |
| A. | 18 Inches to 4 Feet. |
| B. | 12 Feet and Up. |
| C. | Touching to 18 Inches. |
| D. | 4 Feet to 12 Feet. |
| Answer» B. 12 Feet and Up. | |
| 110. |
Non-Verbal Communication is made up of --. |
| A. | Behavior, Other Than the Words, that is intended to convey a Message |
| B. | Body-Language Actions |
| C. | Any Instance, in which, a Stimulus, Other Than the Words, creates a Meaning in either a Sender's Mind or a Receiver's Mind |
| D. | All Human Behavior |
| Answer» E. | |
| 111. |
Formulate a Way of Defining the Surplus, with Regard to Insurance Companies. |
| A. | Excess Value of Cash In- Flow over Cash Out- Flow. |
| B. | Excess Value of Cash Out-Flow over Cash In- Flow. |
| C. | Excess Value of Liabilities over Assets. |
| D. | Excess Value of Assets over Liabilities. |
| Answer» E. | |
| 112. |
Which One of the Following, is a Central Repository of Insurance Grievance Data? |
| A. | National Commission |
| B. | Ombudsman |
| C. | Integrated Grievance- Management-System (I.G.M.S.) |
| D. | State Commission |
| Answer» D. State Commission | |
| 113. |
Many Proposals are Underwritten and Accepted for Insurance, without calling for a Medical Examination. This Form of Underwriting, is referred to as --. |
| A. | Healthy Underwriting |
| B. | Non-Medical Underwriting |
| C. | Non-Adverse Underwriting |
| D. | General Underwriting |
| Answer» C. Non-Adverse Underwriting | |
| 114. |
Which One of the Following, can be used, to describe Insurance, in General? |
| A. | Providing the Subsidies to the Poor. |
| B. | Betting of People's Losses. |
| C. | Generating the Profits from Other's Losses. |
| D. | Sharing of the Losses of a Few, by Many. |
| Answer» E. | |
| 115. |
Identify the Place-of-Origin of Modern-Day Insurance. |
| A. | Vatican City in Rome |
| B. | Hanging Gardens of Babylon |
| C. | Lloyds Coffee House in London |
| D. | Big Apple in New York |
| Answer» D. Big Apple in New York | |
| 116. |
Redressal of Public Grievances Rules, 1998 created the System of --. |
| A. | Insurance Agency |
| B. | Insurance-Surveyors |
| C. | Insurance Ombudsman |
| D. | Consumer Forum |
| Answer» D. Consumer Forum | |
| 117. |
The Inhabitants of Rhodes adopted a Practice, where- by, if Some Goods were lost due to Jettisoning, during Distress, the Owners of Goods (even those who lost Nothing) would bear the Losses in Some Proportion. Which Phenomenon is illustrated, in this Scenario? |
| A. | Capitalism |
| B. | Socialism |
| C. | Mutual Insurance |
| D. | Tyranny |
| Answer» D. Tyranny | |
| 118. |
Illustrate the Principle of Pooling, in Relation to Insurance. |
| A. | Gathering the People, Having Similar Assets, and Exposed to Similar Risks. |
| B. | Gathering the People, Having Different Types of Assets, and Exposed to Different Risks. |
| C. | Gathering the People, Having Similar Types of Assets, but Exposed to Different Risks. |
| D. | Gathering the People, Having Different Types of Assets, but Exposed to Similar Risks. |
| Answer» B. Gathering the People, Having Different Types of Assets, and Exposed to Different Risks. | |
| 119. |
In the Olden Days, Chinese Traders used to keep their Goods in Different Boats, while sailing through Treacherous Waters. Analyse, Why? |
| A. | Chinese Boats were Small, and they carried Heavy Goods. |
| B. | The Chinese Government mandated that, Goods should be distributed among Multiple Shipping Companies, so that, there is Equal Distribution of Business. |
| C. | Chinese Traders placed their Goods in Multiple Boats, because it provided Insurance against Total Loss. |
| D. | Chinese Traders placed their Goods in Multiple Boats, because it was Cheap. |
| Answer» D. Chinese Traders placed their Goods in Multiple Boats, because it was Cheap. | |
| 120. |
Who among the Following Individuals, are considered as High-Risk by Insurance Companies? Choose the Most Appropriate Option. |
| A. | Individuals, who, regularly consume 'Paan Masala ( )'. |
| B. | Teetotaller |
| C. | Individuals, who are Under the Influence of Sedatives and Other Stimulants. |
| D. | Individuals, who consume Non- Vegetarian Food, Regularly. |
| Answer» D. Individuals, who consume Non- Vegetarian Food, Regularly. | |
| 121. |
If a Policy-Holder wishes to seek Compensation, up to Rupees 20 Lakhs, from Insurance Company, against a Grievance, then, Where Can, He or She lodge the Complaint? Choose the Most Appropriate Option. |
| A. | District Forum |
| B. | State Commission |
| C. | National Commission |
| D. | Insurance Regulatory and Development Authority of India (I.R.D.A.I.) |
| Answer» B. State Commission | |
| 122. |
Name the Two Areas, Related to Non-Traditional Insurance-Products, where, the Customers can exercise their Choice. |
| A. | Altering the Premium and Benefit-Structure, and Choose: How to Invest the Premium- Proceeds. |
| B. | Alter the Rate-of- Return, and Choose: When to Invest the Premium-Proceeds. |
| C. | Alter the Rate-of- Return, and Choose: How to Invest the Premium-Proceeds. |
| D. | Alter the Rate-of-Return and Premium-Structure. |
| Answer» B. Alter the Rate-of- Return, and Choose: When to Invest the Premium-Proceeds. | |
| 123. |
What is the Purpose, behind buying Insurance? |
| A. | Wealth-Creation. |
| B. | Management of Expenses. |
| C. | Protection Against Un- Certainty. |
| D. | Receive Income-Tax Sops. |
| Answer» D. Receive Income-Tax Sops. | |
| 124. |
What is meant by 'Risk-Classification'? Choose the Most Appropriate Option. |
| A. | The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose. |
| B. | The Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process. |
| C. | The Process of Evaluating Each Proposal for Life- Assurance in Terms of the Degree of Risk, it represents; and then Deciding: Whether or Not to Grant the Insurance, and on What Terms. |
| D. | The Process, in which, the Applicants, Who are Exposed to Similar Degrees of Risk, are Placed in the Same Premium-Class. |
| Answer» B. The Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process. | |
| 125. |
Explain: 'Risk-Tolerance'. Choose the Most Appropriate Option. |
| A. | Types of Risks, One Can Take. |
| B. | Amount of Risk, One is Willing to Bear, while Investing. |
| C. | Instruments of Risk- Management. |
| D. | Period, for which, One is willing to risk His or Her Investments. |
| Answer» C. Instruments of Risk- Management. | |
| 126. |
Describe an In-Tangible Product. |
| A. | An In-Tangible Product refers to the Products, that can Only be Perceived In-Directly. |
| B. | An In-Tangible Product refers to Physical Objects, that can be Directly Perceived by Touch. |
| C. | An In-Tangible Product is One, that has In- Finite Value. |
| D. | An In-Tangible Product is One, that has No Value. |
| Answer» B. An In-Tangible Product refers to Physical Objects, that can be Directly Perceived by Touch. | |
| 127. |
Which One of the Following Statements, is Correct, with Regard to 'Sub-Standard Lives', under Risk- Classification? Choose the Most Appropriate Option. |
| A. | Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality corresponds to the Standard Lives, represented by the Mortality-Table. |
| B. | Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Significantly Lower Than the Standard Lives, and hence, could be charged a Lower Premium. |
| C. | Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but, are still considered to be Insurable. |
| D. | Sub-Standard Lives consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that, they could not be provided the Insurance- Coverage, at an Affordable Cost. |
| Answer» D. Sub-Standard Lives consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that, they could not be provided the Insurance- Coverage, at an Affordable Cost. | |
| 128. |
In India, Whole-Life Assurance Plans, --. |
| A. | Pay the Death-Benefits, on Death of the Life- Assured |
| B. | Pay the Death-Benefits, Post-Retirement |
| C. | Pay the Death-Benefits, Post-80-Years-of-Age |
| D. | Pay the Death-Benefits, on Payment of 30 Successful Annual Premiums |
| Answer» B. Pay the Death-Benefits, Post-Retirement | |
| 129. |
Which One of the Following, is a Tool for Monitoring the Grievance-Redressal in the Insurance-Industry? |
| A. | National Commission |
| B. | Ombudsman |
| C. | Integrated Grievance- Management-System (I.G.M.S.) |
| D. | State Commission |
| Answer» D. State Commission | |
| 130. |
With Regard to Valuation of Assets, by Insurance Companies, What is the Value, at which, the Life Insurer has purchased or acquired its Assets? |
| A. | Discounted Future Value |
| B. | Discounted Present Value |
| C. | Market-Value |
| D. | Book-Value |
| Answer» E. | |
| 131. |
Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method of Underwriting? |
| A. | Under this Method, Underwriters assign the Positive Rating-Points for All Negative or Adverse Factors. |
| B. | Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors. |
| C. | Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-Rating (E.M.R.), it has been given. |
| D. | Under this Method, if the Extra-Mortality- Rating (E.M.R.) is Very High, Insurance may even be declined. |
| Answer» C. Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-Rating (E.M.R.), it has been given. | |
| 132. |
Which One of the Following Statements, is In-Correct, with Regard to Judgement Method of Underwriting? |
| A. | Under this Method, Subjective Judgement is used. |
| B. | This Method is especially used in Case of Complex Cases. |
| C. | In this Method, the Company may seek Expert Opinion of Medical Doctor. |
| D. | In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors. |
| Answer» E. | |
| 133. |
Which One of the Following Statements, is In-Correct, with Regard to 'Surrender' of the Policy? |
| A. | Surrender-Value, that is Payable to Insured, is, Usually, a Percentage of the Premiums-Paid. |
| B. | A Policy can be surrendered, only if, it has acquired the Paid- Up Value. |
| C. | Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value. |
| D. | Surrender-Value is Payable on Voluntary Termination of the Policy-Contract by the Insured. |
| Answer» D. Surrender-Value is Payable on Voluntary Termination of the Policy-Contract by the Insured. | |
| 134. |
Which One of the Following Statements, is In-Correct, with Regard to Critical Illness (C.I.) Rider? Choose the Most Appropriate Option. |
| A. | A Specified Amount is Paid, as per the Policy- Terms, in the Event of Diagnosis of a Critical Illness. |
| B. | The Illness should have been covered in the List of Critical Illnesses, specified by the Insurance Company. |
| C. | Critical Illness (C.I.) Rider is an Example of the Claims, that may occur, during the Policy- Term. |
| D. | The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made. |
| Answer» E. | |
| 135. |
Which One of the Following Statements, is Correct, with Regard to 'Anti-Selection'? |
| A. | Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting Un-Ethical Agents. |
| B. | Anti-Selection is the Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process. |
| C. | Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up launching the Insurance Products, that are Not Suitable for the Prospective Policy- Holders. |
| D. | Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting the Wrong Investment-Products, for deploying the Premiums, collected from the Policy-Holders. |
| Answer» C. Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up launching the Insurance Products, that are Not Suitable for the Prospective Policy- Holders. | |
| 136. |
If You need to purchase a Key-Man Insurance Policy, then, What is the Information, that is going to be sought by the Insurer, to assess the Application? |
| A. | Business Audited Financial Statements and Filed Income-Tax (I.T.) Returns |
| B. | Salary of the Chief Executive Officer (C.E.O.) |
| C. | Name of the Chief Executive Officer (C.E.O.) |
| D. | Names of All the Employees |
| Answer» B. Salary of the Chief Executive Officer (C.E.O.) | |
| 137. |
Illustrate, as to How, the Internet aids in the Process of Financial Planning ... I: Provides the Information, Related to Various Facets of Financial Planning. II: Provides the Up-Dated Information, Regarding the Performance of Various Investment-Products. III: Provides the Quotations, which can aid in making the Financial Decisions. |
| A. | I, Only. |
| B. | II, Only. |
| C. | III, Only. |
| D. | I, II, and III. |
| Answer» E. | |
| 138. |
In Relation to Life Assurance, Look at the Following Two Statements, and Select the True One(s): I: Age is Material Information, and may affect the Terms of Underwriting. II: If Age is Found to be Different, the Only Effect is on the Premium-Rate. |
| A. | Only Statement-I is True. |
| B. | Only Statement-II is True. |
| C. | Both: Statement-I and Statement-II, are True. |
| D. | Both: Statement-I and Statement-II, are False. |
| Answer» B. Only Statement-II is True. | |
| 139. |
Explain to us, Why, Young People are charged Less Life Assurance Premium, when compared to the Old People. |
| A. | Young People do not need Life Assurance, as much as the Old People. |
| B. | Young People cannot afford to buy Costly Life Assurance Products, Due to their Low Income. |
| C. | Mortality is Directly Proportional to Age. |
| D. | Mortality is Inversely Proportional to Age. |
| Answer» D. Mortality is Inversely Proportional to Age. | |
| 140. |
Which One of the Following Statements, is Correct, with Regard to 'Declined Lives', under Risk- Classification? |
| A. | 'Declined Lives' consist of those Individuals, whose Anticipated Mortality corresponds to the Standard Lives, represented by the Mortality-Table. |
| B. | 'Declined Lives' consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that they could not be provided Insurance- Coverage, at an Affordable Cost. |
| C. | 'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but are still considered to be Insurable. |
| D. | 'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Significantly Lower Than Standard Lives, and hence, could be charged a Lower Premium. |
| Answer» C. 'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but are still considered to be Insurable. | |
| 141. |
Describe the Primary Objective behind Buying an Insurance Product. |
| A. | Tax-Planning |
| B. | Investment-Security |
| C. | Protection against the Loss of Economic Value of an Individual s Productive Abilities |
| D. | Wealth-Accumulation |
| Answer» D. Wealth-Accumulation | |
| 142. |
Mr. Ramesh is 55 Years' Old, and has 5 Working-Years, Left for Retirement. Currently, His Annual Income is Rupees 5 Lakhs, and He has purchased a Life Assurance Policy of Rupees 15 Lakhs. If He were to die Pre-Maturely, in the Current-Year, it-self, then, How Much Will His Family get from the Life Assurance Company? |
| A. | Rupees 20 Lakhs. |
| B. | Rupees 15 Lakhs. |
| C. | Rupees 10 Lakhs. |
| D. | Rupees 5 Lakhs. |
| Answer» C. Rupees 10 Lakhs. | |
| 143. |
Mr. Mahesh is a Drug-Dealer. He doesn't have a Regular Job. He made Rupees 10 Lakhs, from Sale of Drugs. He can't buy a House or Car, etc., with the Money. If He does, the Government will get Suspicious, and start investigating the Drug-Dealer. So, the Drug-Dealer opens a Bar or Tavern, and pads the Books to show Huge Profits on the Tavern, and pays His Taxes on the Money. This is an Example of --. |
| A. | Fraud |
| B. | Mis-Representation |
| C. | Money-Laundering |
| D. | Tax-Jugglery |
| Answer» D. Tax-Jugglery | |
| 144. |
How Many Persons, can be nominated under a Policy? Choose the Most Appropriate Option. |
| A. | Exactly One |
| B. | Exactly Two |
| C. | Exactly Three |
| D. | One or More Than One |
| Answer» E. | |
| 145. |
Mr. Nimesh bought a 20-Years' Unit-Linked Insurance Plan (U.L.I.P.). In the Event: Mr. Nimesh dies, Within the Policy-Term, Which of the Following, will be paid? |
| A. | Surrender-Value will be paid. |
| B. | Premiums paid will be Returned, After Deducting the Dues. |
| C. | Lower of Sum-Assured or Fund-Value, will be paid. |
| D. | Higher of Sum-Assured or Fund-Value, will be paid. |
| Answer» E. | |
| 146. |
Describe a Tangible Product. |
| A. | A Tangible Product refers to the Physical Objects, that cannot be Perceived by Touch. |
| B. | A Tangible Product refers to the Physical Objects, that can be Directly Perceived by Touch. |
| C. | A Tangible Product is One, that has In-Finite Value. |
| D. | A Tangible Product is One, that has No Value. |
| Answer» C. A Tangible Product is One, that has In-Finite Value. | |
| 147. |
Describe One of the Major Innovations of the Universal Life Assurance Policy. Choose the Most Appropriate Option. |
| A. | No Premiums, After First Year. |
| B. | Completely Flexible Premiums, After First Policy-Year. |
| C. | Reduced Premiums, After First Year. |
| D. | Regular Pay-Outs, After First Year. |
| Answer» C. Reduced Premiums, After First Year. | |
| 148. |
Mr. Vishal had taken an Insurance of Rupees 50 Lakhs, for a Period of 25 Years. On Maturity, the Insurer pays the Maturity-Claim Minus the Survival-Benefits, Received During the Term of the Policy. Which Type of Plan, was taken, by Mr. Vishal? |
| A. | Participating Plan |
| B. | Return of Premium(s) Plan |
| C. | Unit-Linked Insurance Plan (U.L.I.P.) |
| D. | Money-Back Assurance Plan |
| Answer» E. | |
| 149. |
Compare the Probability of a Contingent-Event, with Regard to Life Assurance and General Insurance. |
| A. | The Probability of the Event-Happening, stays Constant, through Time, with Regard to Both: Life Assurance and General Insurance. |
| B. | The Probability of the Event-Happening, increases in Case of General Insurance, and decreases in Case of Life Assurance. |
| C. | The Probability of the Event-Happening, increases in Case of Life Assurance, and decreases in Case of General Insurance. |
| D. | The Probability of the Event-Happening, increases in Case of Life Assurance, and stays Constant in Case of General Insurance. |
| Answer» E. | |
| 150. |
The Premium, Paid for Whole-Life Assurance, is --- than the Premium, Paid for Term Assurance. |
| A. | Lower |
| B. | Equal |
| C. | Higher |
| D. | Substantially Lower |
| Answer» D. Substantially Lower | |