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. |
Which of the following types of insurances is mandatory? |
| A. | Motor Own Damage |
| B. | Motor Third Party Legal Liability |
| C. | Personal Accident Insurance |
| D. | Product Liability |
| Answer» C. Personal Accident Insurance | |
| 2. |
Which of the following is an evidence of insurance contract? |
| A. | Policy Document |
| B. | payment of premium. |
| C. | cover note |
| D. | acceptance of proposal |
| Answer» B. payment of premium. | |
| 3. |
Which of the following statements is incorrect in respect of brokers? |
| A. | Brokers require to undergo training before being licensed |
| B. | Brokers are appointed by insured to take care of their interests |
| C. | Brokers have to pass examinations before being licensed |
| D. | Brokers should be registered companies or firms |
| Answer» E. | |
| 4. |
In India ……….controls and regulate the rates, advantages , terms andconditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation. |
| A. | IRDA |
| B. | TAC |
| C. | GIC |
| D. | LIC |
| Answer» C. GIC | |
| 5. |
…………….principle means that the insured is not entitled to make a profiton his loss. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | uberrima fides |
| Answer» D. uberrima fides | |
| 6. |
When the amount for which a subject matter is insured is more than itsactual value, it is called _________ |
| A. | Reinsurance |
| B. | Double insurance |
| C. | Over insurance |
| D. | None |
| Answer» D. None | |
| 7. |
Intimation of Death is the information of death to the ________ |
| A. | Beneficiary |
| B. | Insurer |
| C. | Both (a) and (b) |
| D. | None |
| Answer» C. Both (a) and (b) | |
| 8. |
…………are independent professionals appointed by an insurance companyto assess the loss or damage when a claim is notifed under a policy issued by them. |
| A. | surveyors |
| B. | loss assessors |
| C. | agents |
| D. | both a and b |
| Answer» E. | |
| 9. |
LIC Housing Finance Ltd. was incorporated on ________ |
| A. | 1984 |
| B. | 1989 |
| C. | 1969 |
| D. | 1993 |
| Answer» C. 1969 | |
| 10. |
The time frame for which an insurance policy provides coverage is knownas ________ |
| A. | Policy term |
| B. | Policy loan |
| C. | Policy mode |
| D. | None |
| Answer» B. Policy loan | |
| 11. |
The term Assurance refers to ________. |
| A. | Marine Insurance Business |
| B. | Life Insurance Business |
| C. | Fire Insurance Business |
| D. | Motor Vehicle Business |
| Answer» C. Fire Insurance Business | |
| 12. |
Public liability Insurance act established in _______ |
| A. | 1990 |
| B. | 1991 |
| C. | 1992 |
| D. | 1993 |
| Answer» C. 1992 | |
| 13. |
________ Policy covers both fixed and current assets of insured manufactures. |
| A. | Block |
| B. | Blanket |
| C. | Transit |
| D. | Excess |
| Answer» C. Transit | |
| 14. |
The document which contains the terms and conditions of the life insurance contract is termed as the |
| A. | Agreement |
| B. | Life Insurance Policy |
| C. | Cover Note |
| D. | Proposal Form |
| Answer» C. Cover Note | |
| 15. |
Which of the following insurance contract is not based on theprinciple of indemnity. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | All |
| Answer» D. All | |
| 16. |
________ is the charge to be paid to the transportation of the goods. |
| A. | Hull |
| B. | Cargo |
| C. | Fright |
| D. | Premium |
| Answer» D. Premium | |
| 17. |
……..is pricing of insurance products driven by market forces |
| A. | tariffing |
| B. | de-tariffing |
| C. | equilibrium pricing |
| D. | fixed pricing |
| Answer» C. equilibrium pricing | |
| 18. |
From the following which is not an example of fundamental risk? |
| A. | War |
| B. | Unemployment |
| C. | Inflation |
| D. | Burning of a house |
| Answer» E. | |
| 19. |
Select the expanded form of FPA as used in insurance |
| A. | Freight Payable Assured |
| B. | Free of Particular Average |
| C. | Fire Perils Added |
| D. | Fixed Peripherals Added |
| Answer» C. Fire Perils Added | |
| 20. |
Compared to the premium for a Whole Life plan, the premium for anEndowment plan will be ____________ for the same age |
| A. | more |
| B. | less |
| C. | the same |
| D. | double |
| Answer» B. less | |
| 21. |
________ means the transfer of all the rights and remedies available to theinsured in respect of the subject matter to the insurer after indemnity has been effected. |
| A. | Subrogation |
| B. | Indemnity |
| C. | Contribution |
| D. | None |
| Answer» B. Indemnity | |
| 22. |
From the following, which is a type of reserve in insurance business |
| A. | Unearned Premium Reserve |
| B. | Un-expired Risk Reserve |
| C. | Outstanding Claims Reserve |
| D. | All of these |
| Answer» E. | |
| 23. |
TAC stands for |
| A. | Trade Advisory Corporation |
| B. | Trade Advisory Committee |
| C. | Tariff Advisory Corporation |
| D. | Tariff Advisory Committee |
| Answer» E. | |
| 24. |
A person who gains or benefits as per a contract is known as ______ |
| A. | Beneficiary |
| B. | Annuitant |
| C. | Assurer |
| D. | None |
| Answer» B. Annuitant | |
| 25. |
________ is also termed as group risk |
| A. | Fundamental risk |
| B. | Static risk |
| C. | Property risk |
| D. | Liability risk |
| Answer» B. Static risk | |
| 26. |
………..is the first comprehensive legislation governed both life and non-lifebranches of insurance was enacted to provide strict state control over the insurance business in India. |
| A. | Insurance Act-1938 |
| B. | Insurance Act-1939 |
| C. | Insurance Act-1940 |
| D. | Insurance Act-1941 |
| Answer» B. Insurance Act-1939 | |
| 27. |
The oldest life insurance company in existence today is the society for theequitable assurance of lives and survivorship, known as ……… |
| A. | Eqitable insurance |
| B. | Old equitable |
| C. | socity for insurance |
| D. | none of these. |
| Answer» C. socity for insurance | |
| 28. |
To provide the insured a speedy and inexpensive grievance redressal system,the Govt.of India promulgated………… |
| A. | Redressel of public grievance Rule 1987 |
| B. | Redressel of public grievance Rule 1988 |
| C. | Redressel of public grievance Rule 1989 |
| D. | Redressel of public grievance Rule 1990 |
| Answer» C. Redressel of public grievance Rule 1989 | |
| 29. |
___________ Policy is issued to cover the risks involved when the ship isanchored in the post. |
| A. | Cargo |
| B. | Port risk |
| C. | Currency |
| D. | Fleet |
| Answer» C. Currency | |
| 30. |
__________ refers to the right of an insurer to refuseadmittance of the claim by the insured. |
| A. | Replication |
| B. | Repudiation |
| C. | Dufalication |
| D. | None |
| Answer» C. Dufalication | |
| 31. |
Taylor Tobacco Company is concerned that the company may be heldliable in a court of law and forced to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses is known as |
| A. | moral hazard. |
| B. | particular risk |
| C. | speculative risk |
| D. | legal hazard. |
| Answer» E. | |
| 32. |
________ is a package policy which provides protection against a number ofseparate points. |
| A. | Single peril policy |
| B. | Group peril policy |
| C. | Multiperil policy |
| D. | None |
| Answer» D. None | |
| 33. |
_______ involves proportionate sharing of the insurance among more thanone insurer. |
| A. | Reinsurance |
| B. | Double Insurance |
| C. | Co-insurance |
| D. | None |
| Answer» D. None | |
| 34. |
……………is insurance companies tying up with banks to sell insuranceproducts. |
| A. | franchising |
| B. | merger |
| C. | bancassurance |
| D. | insuranced linked banking |
| Answer» D. insuranced linked banking | |
| 35. |
Principle of utmost good faith is also known as ……….. |
| A. | subrogation |
| B. | causa proxima |
| C. | insurable interest |
| D. | uberrima fides |
| Answer» E. | |
| 36. |
Select the expanded form of OR as commonly used in life insurance |
| A. | Oral Rehydration |
| B. | Once Renewed |
| C. | Ordinary Rates |
| D. | Ordinary Renewal |
| Answer» D. Ordinary Renewal | |
| 37. |
All of the following are financial risks which may be faced by businessorganizations EXCEPT |
| A. | interest rate risk. |
| B. | commodity price risk. |
| C. | product liability risk. |
| D. | currency exchange rate risk. |
| Answer» D. currency exchange rate risk. | |
| 38. |
Which of the following terms matches closest with ‘Foreclosure’? |
| A. | Surrender Value |
| B. | Nominee |
| C. | Death Claim |
| D. | Maturity Claims |
| Answer» B. Nominee | |
| 39. |
The Sanskrit term …………..,the name of LIC of India corporateheadquarters,is found in Rig Veda. |
| A. | Yogaraksha |
| B. | Yogakarma |
| C. | Yogakshema |
| D. | all of these. |
| Answer» D. all of these. | |
| 40. |
Insurable interest must be present in an ________ insurance contract atthe time of contract and at the time of loss. |
| A. | Fire |
| B. | Marine |
| C. | Property |
| D. | Life |
| Answer» B. Marine | |
| 41. |
From the following which is the importance of life Insurance? |
| A. | Encourage investments |
| B. | Credit work ness |
| C. | Tax benefit |
| D. | All of these |
| Answer» E. | |
| 42. |
The ……….associated with the insurance business are agents, surveyors,loss assessors, brokers, third party administrators and banks. |
| A. | management |
| B. | organisation |
| C. | intermediaries |
| D. | regulators |
| Answer» D. regulators | |
| 43. |
The chance of loss from the unforeseen circumstances in future refers to ______. |
| A. | Perils |
| B. | Damage |
| C. | Risk |
| D. | Hazards. |
| Answer» D. Hazards. | |
| 44. |
The insurer agrees to compensate the insured in considerationof a sum of money is called |
| A. | Premium |
| B. | Policy |
| C. | Subject matter |
| D. | None |
| Answer» B. Policy | |
| 45. |
Which of the following terms is dissimilar to the other four in the context ofdeath claims in life insurance? |
| A. | Early claims |
| B. | Non-early claims |
| C. | Foreclosure |
| D. | Claimant’s statement |
| Answer» D. Claimant’s statement | |
| 46. |
From the following which is not a type of Public Liability Risk Insurance |
| A. | Industrial Risk Insurance |
| B. | Industrial All Risk Insurance |
| C. | Non - Industrial Risk Insurance |
| D. | Business premises Insurance |
| Answer» E. | |
| 47. |
________ is a plan designed for businessmen and professionals as money isavailable periodically. |
| A. | Jeevan Surabhi |
| B. | Jeevan Saathi |
| C. | Jeevan Kishore |
| D. | Jeevan Sukanya |
| Answer» B. Jeevan Saathi | |
| 48. |
________ was the first Indian Insurance Company |
| A. | Bombay Mutual Assurance Society Ltd. |
| B. | Bombay Insurance Society Ltd. |
| C. | Insurance Regulatory Development Authority |
| D. | General Insurance Corporation |
| Answer» B. Bombay Insurance Society Ltd. | |
| 49. |
The IRDA was set up in………….. |
| A. | 1999 |
| B. | 1991 |
| C. | 2000 |
| D. | 2001 |
| Answer» D. 2001 | |
| 50. |
………….are the middlemen in the healthcare delivery chain in insurancesector. |
| A. | surveyors |
| B. | loss assessors |
| C. | brokers |
| D. | TPAs |
| Answer» E. | |