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. |
Marine insurance is for one year or for a specified ________ |
| A. | Voyage |
| B. | Year |
| C. | Loss |
| D. | None |
| Answer» B. Year | |
| 2. |
LIC was nationalised in |
| A. | 1956 |
| B. | 1955 |
| C. | 1957 |
| D. | 1948 |
| Answer» B. 1955 | |
| 3. |
From the following which is not a content of the letter of intimation |
| A. | Name of the life assured |
| B. | Date of Death |
| C. | Cause of death |
| D. | Date of birth |
| Answer» E. | |
| 4. |
…………are those where a part of the premium is charged for the risk coverand the rest is invested in selected mutual funds as per the choice of the investor. |
| A. | mutual fund insurance |
| B. | unit-linked insurance |
| C. | double insurance |
| D. | partial insurance |
| Answer» C. double insurance | |
| 5. |
Which of the following covers is dissimilar to the other four options? |
| A. | Loss of Passport |
| B. | Loss of Profits |
| C. | Loss of checked in baggage |
| D. | Delay in receiving checked in baggage |
| Answer» C. Loss of checked in baggage | |
| 6. |
_____________ Policy issued on the basis of the number of persons assured. |
| A. | Single life |
| B. | Level Premium |
| C. | Annuity |
| D. | Multiple life |
| Answer» E. | |
| 7. |
The main cause of loss or damage is _____________ |
| A. | Proximate cause |
| B. | Indirect Loss |
| C. | Consequential loss |
| D. | All of these |
| Answer» B. Indirect Loss | |
| 8. |
_____________ is pricing of insurance products driven by market forces |
| A. | De-tariffing |
| B. | Fixed Pricing |
| C. | Tariffing |
| D. | Penetration Pricing____ |
| Answer» B. Fixed Pricing | |
| 9. |
The things or property insured is called ________ of theinsurance |
| A. | Subject matter |
| B. | Insurable interest |
| C. | Policy |
| D. | None |
| Answer» B. Insurable interest | |
| 10. |
…………are agents but they can sell policies of several life and non-lifeinsurance companies at a time. |
| A. | surveyors |
| B. | loss assessors |
| C. | brokers |
| D. | banks |
| Answer» D. banks | |
| 11. |
From the following, which is not a type of risk? |
| A. | Speculative risks |
| B. | Dynamic risks |
| C. | Fundamental |
| D. | Quantitative |
| Answer» E. | |
| 12. |
Select the expanded form of SV as commonly used in life insurance |
| A. | Summary Valuation |
| B. | Selected Value |
| C. | Surrender Value |
| D. | Stamp Value |
| Answer» D. Stamp Value | |
| 13. |
NAIS stands for |
| A. | National Agricultural Insurance Scheme |
| B. | National Agro Insurance Scheme |
| C. | National Accident Insurance Scheme |
| D. | National Authority for Insurance Schemes. |
| Answer» B. National Agro Insurance Scheme | |
| 14. |
Policy holders are expected to pay premium on due dates, a period of 15-30days is allowed as grace to make payment of premium from the due date is _____ |
| A. | Days of grace |
| B. | Days of indemnity |
| C. | both |
| D. | None |
| Answer» B. Days of indemnity | |
| 15. |
________ is the property saved from loss |
| A. | Profit |
| B. | Salvage |
| C. | Stand |
| D. | Jettison |
| Answer» C. Stand | |
| 16. |
Insurance prices are called |
| A. | Commissions |
| B. | Allowances |
| C. | Premiums |
| D. | Discounts |
| Answer» D. Discounts | |
| 17. |
Which of the following terms matches closest with ‘Automatic TellerMachines’? |
| A. | Divisional Offices |
| B. | Branch Offices |
| C. | Agents |
| D. | Information Kiosks |
| Answer» E. | |
| 18. |
GA as used in insurance |
| A. | General Assurance |
| B. | General Average |
| C. | General Adjustment |
| D. | Guaranteed Assurance |
| Answer» C. General Adjustment | |
| 19. |
IAIS stands for…… |
| A. | Internal Association of Insurance Supervisors |
| B. | International Association of Insurance Supervisors |
| C. | International Academy of Insurance Supervisors |
| D. | International Association of Insurance Surveyors |
| Answer» C. International Academy of Insurance Supervisors | |
| 20. |
_____________ Policy is granted only in respect of stocks of inventories ofthe insured under fire insurance business. |
| A. | Declaration |
| B. | Floating |
| C. | Replacement |
| D. | Valued |
| Answer» B. Floating | |
| 21. |
In cases where a Life Insurance Agent collects the premium from thepolicyholder and remits it to the insurer’s office, he is acting as an agent of _____ |
| A. | IRDA |
| B. | the Insurance Company |
| C. | the Policyholder |
| D. | the broker |
| Answer» C. the Policyholder | |
| 22. |
RPG rule 1988 set up an institution for building the confidence of the policyholders in insurance. |
| A. | management |
| B. | ombudsman |
| C. | council |
| D. | committee |
| Answer» C. council | |
| 23. |
The principle of average applies when the value is _____________ in theproposal |
| A. | Understated |
| B. | Overstated |
| C. | Not ascertainable |
| D. | Negligible |
| Answer» B. Overstated | |
| 24. |
The central office of LIC of India is located at ________ |
| A. | Mumbai |
| B. | New Delhi |
| C. | Bangalore |
| D. | Chennai |
| Answer» B. New Delhi | |
| 25. |
An ombudsman is entrusted with………..functions |
| A. | managing & concilling |
| B. | conciliation and award making |
| C. | agency and principal |
| D. | none of the above |
| Answer» C. agency and principal | |
| 26. |
The minimum paid up capital required for a General Insurance Company isRs. ____ |
| A. | 25 crores |
| B. | 50 crores |
| C. | 75 crores |
| D. | 100 crores |
| Answer» E. | |
| 27. |
________ insurance means an alternative to purchasing insurance in acommercial market. |
| A. | External |
| B. | Internal |
| C. | Double |
| D. | Re insurance |
| Answer» C. Double | |
| 28. |
____________ is the total premium that a policy holder pays to insurance company |
| A. | Net Premium |
| B. | Gross Premium |
| C. | Partial Premium |
| D. | Level Premium |
| Answer» C. Partial Premium | |
| 29. |
__________ Insurance is a contract to provide a measure of financialsupport to farmers in the event of a crop failure due to drought or flood. |
| A. | Cattle |
| B. | Crop |
| C. | Burglary |
| D. | Fire |
| Answer» C. Burglary | |
| 30. |
Gross Premium means Net Premium plus___________ |
| A. | Margin |
| B. | Profit |
| C. | Expense Loading |
| D. | Loss |
| Answer» D. Loss | |
| 31. |
A policy where the policyholder makes a one-time payment of premium, isknown as a ______________: |
| A. | Money-back policy |
| B. | Single premium policy |
| C. | Salary Savings Scheme policy |
| D. | Half-yearly policy |
| Answer» C. Salary Savings Scheme policy | |
| 32. |
………….committee suggested the re-opening up of the insurance sector toprivate players. |
| A. | K.N.Malhotra |
| B. | R.N.Malhothra |
| C. | Nrasimham |
| D. | Goyal |
| Answer» C. Nrasimham | |
| 33. |
Which of the following terms matches closest with ‘Composite Policy’? |
| A. | Shopkeepers’ insurance |
| B. | Janatha Personal Accident insurance |
| C. | Critical Care Health insurance |
| D. | Marine Cargo insurance |
| Answer» B. Janatha Personal Accident insurance | |
| 34. |
An unlooked mishap or an untoward event which is not expected ordesigned |
| A. | Risk |
| B. | Accident |
| C. | Loss |
| D. | None |
| Answer» C. Loss | |
| 35. |
__________ means the body or frame of the ship or vessel and its machinery. |
| A. | Cargo |
| B. | Fright |
| C. | Hull |
| D. | Voyage |
| Answer» D. Voyage | |
| 36. |
Time Policies relate to: |
| A. | Fire insurance |
| B. | Hull insurance |
| C. | Personal Accident insurance |
| D. | Workmen’s Compensation insurance |
| Answer» C. Personal Accident insurance | |
| 37. |
Committee of reforms in insurance sectors during 1993 headed by ________. |
| A. | R.N. Malhotra |
| B. | S. Narashiman |
| C. | Manmohan Singh |
| D. | P.Chidambaram |
| Answer» B. S. Narashiman | |
| 38. |
The ……………discovered by Jakob Bernoulls around 1700 forms the basisof modern insurance. |
| A. | law of insurance |
| B. | law of large numbers |
| C. | law of modern insurance. |
| D. | none of these |
| Answer» C. law of modern insurance. | |
| 39. |
Bronson Company manufactures tools that it sells to wholesalers. Bronsonis concerned that it may be unable to collect money the company is owed by the wholesalers. To address this risk, Bronson Company could purchase |
| A. | a fidelity bond. |
| B. | general liability insurance. |
| C. | allied lines insurance. |
| D. | credit insurance. |
| Answer» E. | |
| 40. |
Regarding ‘Exclusions’ find out the incorrect statement. |
| A. | Exclusions are indicated in the policy |
| B. | Exclusions are perils or circumstances not covered |
| C. | Exclusions limit the coverage under the policy |
| D. | Exclusions do not deal with risk coverage |
| Answer» E. | |
| 41. |
________ is a form of health insurance against loss by accidental bodilyinjury |
| A. | Property insurance |
| B. | Marine insurance |
| C. | Personal insurance |
| D. | Accident insurance |
| Answer» E. | |
| 42. |
A memorandum added to a policy embodying some alterations to the terms of policy is known as |
| A. | Surrender |
| B. | Endorsement |
| C. | Nomination |
| D. | Breach of Contract |
| Answer» C. Nomination | |
| 43. |
………..principle in insurance mention the cause of loss must be direct andan insured one in order to claim for compensation. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | uberrima fides |
| Answer» C. indemnity | |
| 44. |
In insurance the risk is ________ |
| A. | Certain |
| B. | Uncertain |
| C. | Both (a) & (b) |
| D. | None |
| Answer» C. Both (a) & (b) | |
| 45. |
From the following which is the dilly or powers of IRDA. |
| A. | To regulate, promote and ensure orderly growth of the insurance business |
| B. | To exercise all powers and functions of the Controller of Insurance |
| C. | To promote and regulate professional organizations connected with insurance business |
| D. | All of these |
| Answer» E. | |
| 46. |
State which of the statements given below is correct |
| A. | People generally feel that life related risks are imminent |
| B. | Religious beliefs interfere with the purchase of life insurance |
| C. | People are always keen to buy insurance |
| D. | Life insurance cannot be denied to anyone at any time |
| Answer» C. People are always keen to buy insurance | |
| 47. |
The ________ is the party who agrees to compensate the otherperson against possible losses. |
| A. | Insured |
| B. | Insurer |
| C. | Assured |
| D. | None |
| Answer» C. Assured | |
| 48. |
Human life is the subject matter of a contract of ________ |
| A. | Life assurance |
| B. | Fire insurance |
| C. | Marine insurance |
| D. | General insurance |
| Answer» B. Fire insurance | |
| 49. |
Which of the following terms is dissimilar to the other four options? |
| A. | Jettison |
| B. | Hit and Run |
| C. | Sue and Labour |
| D. | Salvage |
| Answer» C. Sue and Labour | |
| 50. |
………… principle in insurance mention the assured must have insurableinterest in the life or property insured. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | insurable interest. |
| Answer» E. | |