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. |
Objective of IRDA includes |
| A. | policy holder protection |
| B. | healthy growth of the insurance market |
| C. | both a and b |
| D. | only a |
| Answer» D. only a | |
| 2. |
________ are extra benefits under the policy |
| A. | Riders |
| B. | Loans |
| C. | both (a) and (b) |
| D. | None |
| Answer» B. Loans | |
| 3. |
Insurance contract is sort of contract which is approved by |
| A. | The Indian Contract Act |
| B. | Indian Factory Act |
| C. | Indian Companies Act |
| D. | The Indian Finance Act |
| Answer» B. Indian Factory Act | |
| 4. |
Gross premium means Net premium plus ________ |
| A. | Profit |
| B. | Loss |
| C. | Expense |
| D. | Expense loading |
| Answer» E. | |
| 5. |
From the following which is not a non-proportional form of reinsurance? |
| A. | Excess of loss method |
| B. | Pools method of re insurance |
| C. | Treaty method of reinsurance |
| D. | Quata Method of reinsurance |
| Answer» E. | |
| 6. |
Under ________ insurance, loss of profit policy is called as consequentialloss policy |
| A. | Marine |
| B. | Property |
| C. | Fire |
| D. | Life |
| Answer» D. Life | |
| 7. |
…………..company sent 50,000 direct mailers to office –goers in Mumbaithrough their lunch boxes. |
| A. | Bajaj insurance |
| B. | Reliance insurance |
| C. | Icici insurance |
| D. | Tata insurance |
| Answer» D. Tata insurance | |
| 8. |
An international code of ________ rules applied to Marine losses |
| A. | York Antwerp rule |
| B. | York Antiperil rule |
| C. | Both (a) and (b) |
| D. | None |
| Answer» B. York Antiperil rule | |
| 9. |
The proportion of the risk which the direct insurer holds on his ownaccount is called _________ |
| A. | Cession |
| B. | Retention |
| C. | Retrocession |
| D. | Line |
| Answer» C. Retrocession | |
| 10. |
The danger of loss from the unforeseen circumstances in future refers to_________ |
| A. | Perils |
| B. | Hazards |
| C. | Damage |
| D. | Risk |
| Answer» E. | |
| 11. |
__________ provides risks coverage to the life of person |
| A. | ( Life Insurance |
| B. | Health Insurance |
| C. | Death Insurance |
| D. | All of these |
| Answer» B. Health Insurance | |
| 12. |
The …………..company was the first insurance company to be set up inIndia to help the widows of the Europian community. |
| A. | Life insurance corporation of India. |
| B. | Oriental Life Insurance Company |
| C. | National insurance company |
| D. | Bajaj insurance |
| Answer» C. National insurance company | |
| 13. |
………….of India offers a range of credit risk insurance covers to exportersagainst loss in export of goods and services. |
| A. | RBI |
| B. | LIC |
| C. | ECGC |
| D. | NAIS |
| Answer» D. NAIS | |
| 14. |
The LIC of India was set up in ……..to take over 245 life companies. |
| A. | 1955 |
| B. | 1956 |
| C. | 1957 |
| D. | 1958 |
| Answer» C. 1957 | |
| 15. |
A valuable policy is just opposite to the ________ |
| A. | Value policy |
| B. | Valued policy |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 16. |
Insurable interest means ________ interest |
| A. | Individual |
| B. | Social |
| C. | Monetary |
| D. | All of these |
| Answer» D. All of these | |
| 17. |
________ means a premium which remains unchanged through out the lifeof a policy. |
| A. | Avg. premium |
| B. | Gross premium |
| C. | Total premium |
| D. | Level premium |
| Answer» E. | |
| 18. |
If the insured dies before the expiry of the term of the policy,is known as ________ |
| A. | surrender |
| B. | fore closure |
| C. | Death claim |
| D. | Death Policy |
| Answer» D. Death Policy | |
| 19. |
Motor insurance provides insurance cover to ________ |
| A. | Private vehicles |
| B. | Commercial vehicles |
| C. | Motorcycles |
| D. | All of these |
| Answer» E. | |
| 20. |
________ is the total premium that a policy holder pays |
| A. | Gross premium |
| B. | Avg. premium |
| C. | Partial premium |
| D. | All of these |
| Answer» B. Avg. premium | |
| 21. |
The term 'Assurance' refers to ___________ |
| A. | Life Insurance business |
| B. | Fire insurance business |
| C. | Motor Vehicle insurance |
| D. | Marine insurance |
| Answer» B. Fire insurance business | |
| 22. |
Members of the Insurance Advisory Committee are drawn to represent theinterests of different groups like: |
| A. | Surveyors, agents, advocates |
| B. | Commerce, transport, |
| C. | Consumer fora, industry, intermediaries, |
| D. | Research bodies, organisations engaged in safety and loss prevention |
| Answer» B. Commerce, transport, | |
| 23. |
The cause of a possible loss, such as fire windstorm theft etc. is known as _____ |
| A. | Peril |
| B. | Barratry |
| C. | both |
| D. | None |
| Answer» B. Barratry | |
| 24. |
Which of the following types of insurances is dissimilar to the other fouroptions? |
| A. | Builders’ Risks insurance |
| B. | Hut insurance |
| C. | Crop insurance |
| D. | Livestock insurance |
| Answer» B. Hut insurance | |
| 25. |
The first requirement of the corporation in the cases of death claim is _____ |
| A. | Imitation of death |
| B. | Intimation of death |
| C. | Certificate of death |
| D. | None of these |
| Answer» C. Certificate of death | |
| 26. |
A marine insurance is a contract of _________ |
| A. | Increment |
| B. | Indemnity |
| C. | Maturity |
| D. | None |
| Answer» C. Maturity | |
| 27. |
What is a proposal? |
| A. | A request for an insurance cover |
| B. | An offer to enter into a contract |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 28. |
_________ is a contract between two insures i.e. original insurer andanother insurer. |
| A. | Insurance |
| B. | Reinsurance |
| C. | Policy |
| D. | Premium |
| Answer» C. Policy | |
| 29. |
Insurance business is based on __________. |
| A. | Newtons Law |
| B. | Boyles Law |
| C. | The Theory of Probability and Law of large numbers |
| D. | Parkinsons Law |
| Answer» D. Parkinsons Law | |
| 30. |
The principle of indemnity is not applicable to |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | Property Insurance |
| Answer» D. Property Insurance | |
| 31. |
An exceptionally large risk is known as ________ |
| A. | Great risk |
| B. | Jumbo risk |
| C. | Giant risk |
| D. | None |
| Answer» C. Giant risk | |
| 32. |
Medical expense insurance is also known as ________ |
| A. | Personal insurance |
| B. | Liability insurance |
| C. | Medi claim |
| D. | Fidelity |
| Answer» D. Fidelity | |
| 33. |
In legal sense, Insurance is a |
| A. | Contract |
| B. | Activity |
| C. | Gambling |
| D. | Publicity |
| Answer» B. Activity | |
| 34. |
__________ means insuring a risk with two or more insurers and the totalsum insured also exceeds the actual value of the subject matter. |
| A. | Reinsurance |
| B. | General Insurance |
| C. | Single insurance |
| D. | Double insurance |
| Answer» E. | |
| 35. |
All of the following are social costs associated with insurance EXCEPT |
| A. | the expense of doing business. |
| B. | fraudulent claims. |
| C. | inflated claims. |
| D. | increased cost of capital. |
| Answer» E. | |
| 36. |
Final accounts of Life Insurance Companies include |
| A. | Revenue account |
| B. | Profit and loss account |
| C. | Receipt and payment account |
| D. | All of these |
| Answer» E. | |
| 37. |
________ means insuring again. |
| A. | General insurance |
| B. | Reinsurance |
| C. | Coinsurance |
| D. | Double insurance |
| Answer» C. Coinsurance | |
| 38. |
…………..in the insurance are just like the retailers of any consumer productwho help in selling and distributing the product. |
| A. | surveyors |
| B. | loss assessors |
| C. | agents |
| D. | banks |
| Answer» D. banks | |
| 39. |
Marine insurance may cover loss or damage to the ________ |
| A. | Ship |
| B. | Cargo |
| C. | Any other subject of Marine adventure |
| D. | All of these |
| Answer» E. | |
| 40. |
Select the expanded form of ALOP used in insurance |
| A. | Advance Loss of Profits insurance |
| B. | Agreed Loss of Profits insurance |
| C. | Additional Loss of Profits insurance |
| D. | Associated Loss of Profits insurance |
| Answer» B. Agreed Loss of Profits insurance | |
| 41. |
Expanded form of PPL policy is ___________ |
| A. | Policy Procedure of Interest |
| B. | Policy Port of Interest |
| C. | Policy proof of interest |
| D. | Port proof of interest |
| Answer» D. Port proof of interest | |
| 42. |
________ can be done by mere endorsement on the policy or by a separate duly stamped deed. |
| A. | Assignment |
| B. | Nomination |
| C. | Renewal |
| D. | Revival |
| Answer» B. Nomination | |
| 43. |
……….. was constituted as an autonomous body to regulate and develop thebusiness of insurance and reinsurance in India. |
| A. | LIC |
| B. | GIC |
| C. | IRDA |
| D. | NBFC |
| Answer» D. NBFC | |
| 44. |
A contract of insurance is a ________ agreement. |
| A. | Contingent |
| B. | Constant |
| C. | both |
| D. | None of these |
| Answer» B. Constant | |
| 45. |
Insurance helps to: |
| A. | Prevent adverse situations from occurring |
| B. | Reduce the financial consequences of adverse situations |
| C. | Negate all consequences of adverse situations |
| D. | Make assets continuously productive |
| Answer» C. Negate all consequences of adverse situations | |
| 46. |
Re-insurer is the insurer who grants a guarantee from the _______ |
| A. | Ceding insurer |
| B. | Direct insurer |
| C. | Underwriter |
| D. | Line |
| Answer» C. Underwriter | |
| 47. |
Master policy is issued for ___________. |
| A. | Group Insurance |
| B. | Term Insurance |
| C. | Marine Insurance |
| D. | Individual Policy |
| Answer» B. Term Insurance | |
| 48. |
Insurance is a cooperative form of distributing a certain__________over a group of personswho are exposed to it. |
| A. | Uncertainty |
| B. | Risk |
| C. | Peril |
| D. | Hazards |
| Answer» C. Peril | |
| 49. |
CTL as used in insurance |
| A. | Contributory Total Loss |
| B. | Constructive Total Loss |
| C. | Construction Totally Lost |
| D. | Contractors’ Total Loss |
| Answer» C. Construction Totally Lost | |
| 50. |
The Bombay Mutual Assurance Society Ltd. formed in ________ |
| A. | 1870 |
| B. | 1970 |
| C. | 1960 |
| D. | 1865 |
| Answer» B. 1970 | |