Deck 15: Insurance Sector and Policies: A Comprehensive Overview

Question 1

Role and importance of insurance includes:

A)Insurance provides security and safety
B)Re-adjustments needs
C)Key Man Indemnification
D)All of the above

Answer 1

All of the above

Question 2

The valid contract, according to Section 10 of Indian Contract Act 1872, must have the following essentialities

A)Agreement
B)Legal consideration
C)Legal object
D)All of the above

Answer 2

All of the above

Question 3

For regulation and development of the insurance sector of the country the Government has formed:

A)SEBI
B)Reserve Bank of India
C)Insurance Regulatory and development Authority
D)General Insurance Corporation.

Answer 3

Insurance Regulatory and development Authority

Question 4

When was Life Insurance sector nationalised?

A)1947
B)1951
C)1956
D)1959

Question 5

When was Oriental Life Insurance Company established?

A)1818
B)1821
C)1833
D)1815

Question 6

The term „ Risk? includes:

A)Damage to machinery and property
B)Impact on the health of life of a person
C)Leakage of toxic products in the atmosphere
D)All of the above

Question 7

IRDA was constituted by which of the following committee?s recommendations

A)Singh Committee
B)Malhotra Committee
C)Sahota Committee
D)None of these

Question 8

The following are the types of life insurance products:

A)Term Insurance
B)Whole life Insurance
C)Endowment policy
D)All of the Above

Question 9

Insurance which provides cover for losses or damages that could occur to goods in transit on sea, rail, road or air is known as

A)Cargo Insurance
B)Hull Insurance
C)Rail Insurance
D)Marine Insurance

Question 10

An insurance which is concern with the carrier of goods

A)Cargo Insurance
B)Hull Insurance
C)Road Insurance
D)Marine Insurance

Question 11

For the purpose of insurance, motor vehicle are classified into ___Categories

A)Two
B)Three
C)Four
D)Five

Question 12

Third party claims are covered under Section ____ of the Motor Vehicle Act, which empowers the State Government to set up a Tribunal to adjudicate on the third party claims

A)Sec 165
B)Sec 175
C)Sec 185
D)Sec 187

Question 13

Which one is not feature of the contract of fire Insurance?

A)It is personal in nature
B)Cause of fire is immaterial
C)Covers losses as a whole
D)None of the Above

Question 14

Life Insurance Corporation (LIC) of India is a

A)Public sector company
B)Private sector company
C)Partnership Company
D)Joint venture

Question 15

The policy which cover against bodily injury resulting in death or disablement arising from an accident that has been caused by external violent and visible means is:

A)Personal accident insurance
B)Burglary Insurance
C)Burglary and house breaking insurance
D)None of the above

Question 16

As per the Insurance Act, every insurance has to prepare at the end of financial year?

A)Balance sheet
B)P/L account
C)Revenue A/c for each class of Insurance business
D)All of these

Question 17

Freight insurance is under

A)Life insurance
B)Marine
C)Fire
D)Motor

Question 18

The minimum sum insured under Fire insurance is

A)Rs.1 crore
B)Rs.2 crore
C)Rs.3 crore
D)Rs.4 crore

Question 19

General Insurance does not include:

A)Travel Insurance
B)Health Insurance
C)Home insurance
D)None of the above

Question 20

Life Insurance underwriting is mainly concerned with

A)Age
B)Health history
C)Mortality
D)Marital status

Question 21

____________caters specifically to the transportation of goods or merchandise packed or in bulk and shipped either by sea, air or land.

A)Hull insurance
B)Cargo insurance
C)Liability insurance
D)Business insurance

Question 22

Motor insurance provides insurance cover to

A)Private vehicles
B)Commercial Vehicles
C)Motor cycles
D)All of these

Question 23

In insurance the risk is

A)certain
B)uncertain
C)Both a and b
D)None

Question 24

Which one of the following statements is correct?

A)A life insurance policy is a contract, enforceable in a court of law
B)A life insurance policy is not required to be stamped
C)Both the statements are correct
D)Both the statements are wrong

Question 25

Which one of the following statements is correct?

A)The principle of utmost good faith applies only to life insurance
B)The principle of utmost good faith applies only to non-medical cases
C)The principal of utmost good faith is operative only for two years
D)All the above statements are incorrect