Question 1

Select a Reason, for Discharging a Contract, Under Common Law.&#10;A)Frustration&#10;B)Mistake&#10;C)Mis-Representation&#10;D)Concealment

Accepted Answer

Mis-Representation&#10;

Question 2

Label the Document, that is used, to lay-down the Terms of the Insurance Contract, when it is bought. Choose the Most Appropriate Option.&#10;A)Policy&#10;B)Agreement&#10;C)Authorisation&#10;D)Endorsement

Accepted Answer

The document used to lay down the terms of the insurance contract when it is bought is called a Policy. It outlines the coverage details, terms, and conditions between the insurer and the insured.

Question 3

Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option.&#10;A)Speculative Interest&#10;B)Wager Interest&#10;C)Insurable Interest&#10;D)Indemnity Interest

Accepted Answer

In life assurance, the insured must have an insurable interest in the life being insured. This means the insured would suffer a financial loss or certain types of personal losses if the insured person were to die. Insurable interest is a fundamental requirement for issuing a life insurance policy, distinguishing it from a mere wager or speculative venture.

Question 4

How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate Option.&#10;A)Interim Agreement&#10;B)Provisional Agreement&#10;C)Constant Agreement&#10;D)Contingent Agreement

Accepted Answer

The agreement between the insurer and the insured is a contingent agreement because it depends on the occurrence of an uncertain future event (such as damage or loss) to become active or to determine the extent of the coverage.

Question 5

The Main Difference between Legal Contracts, in General; and Insurance Contracts, is that --.&#10;A)Insurance Contracts are the Contracts of Uberrima Fidei.&#10;B)Insurance Contracts are Legally Enforceable Contracts.&#10;C)Insurance Contracts are Always Profitable.&#10;D)Insurance Contracts are Not Subject to Any Regulation, What-So- Ever.

Accepted Answer

Insurance contracts are contracts of utmost good faith (uberrima fidei), meaning both parties, the insurer and the insured, are obligated to act in good faith and disclose all relevant information to each other. This is a distinctive feature compared to general contracts, where the requirement for full disclosure may not be as stringent.

Question 6

Advise Mr. Rajan, on the Point or Time, when Insurable Interest has to be Present, in Case of Life Assurance.&#10;A)Only at the Time of Taking the Policy.&#10;B)Only at the Time of Making a Claim.&#10;C)At the Time of Taking a Policy, and at the Time of Making a Claim.&#10;D)In Case of Life Assurance, No Insurable Interest is Required.

Accepted Answer

In the case of life assurance, insurable interest needs to be present only at the time of taking the policy. Unlike other forms of insurance where insurable interest must be present at the time of the claim, life insurance requires insurable interest only at inception.

Question 7

Advise Miss Anita, on the Point or Time, when Insurable Interest has to be Present, in Case of Property-Insurance.&#10;A)Only at the Time of Taking the Policy.&#10;B)Only at the Time of Making a Claim.&#10;C)At the Time of Taking a Policy, and at the Time of Making a Claim.&#10;D)In Case of Property Insurance, No Insurable Interest is Required.

Accepted Answer

In property insurance, the insured must have an insurable interest in the property both at the time of taking the policy and at the time of making a claim. This ensures that the insured has a legal right or relationship to the property that would result in financial loss if the property were damaged or destroyed.

Question 8

Mr. Mahesh takes out an Insurance Policy on His House. He sells His House, After a Couple of Months of taking the Policy. In Case, there is Some Damage to the House, can Mr. Mahesh receive the Claim?&#10;A)Yes, Because, Insurable Interest was Present at the Time of Taking-Out the Policy.&#10;B)Yes, if the Current Owner of the House, allows.&#10;C)Yes, if the Damage is Within One Year of His Selling the House.&#10;D)No, Because, there is No Insurable Interest, Present.

Accepted Answer

Insurable interest must exist at the time of the claim, not just at the time the policy is taken out. Since Mr. Mahesh no longer owns the house, he cannot claim any loss on it.

Question 9

Mr. Rajan fell-off a Horse, and land ed in a Puddle. He had to lie in the Puddle for a Long-Time, because, the Fall had broken His Leg, this resulted in Him contracting a Severe Pneumonia. He was treated in a Near-By Hospital, where, He dies, as a Result of Pneumonia. What is the Proximate Cause of Death, in this Case?

A)Pneumonia.
B)Leg-Injury, sustained as a Result of the Fall.
C)Negligence of Doctors.
D)Hospital-Treatment.

Accepted Answer

The answer of Mr. Rajan fell-off a Horse, and land...

Question 10

Mr. Ramesh is Married, and wants to buy a Life Assurance Cover on His Friend's Life. Find Out, if He will be Able to do so.&#10;A)Yes, Mr. Ramesh can buy Life Assurance on His Friend's Life.&#10;B)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, He is Married.&#10;C)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable Interest, Present.&#10;D)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because of the Principle of Caveat Emptor.

Accepted Answer

To buy life insurance on someone's life, there must be an insurable interest present. This means the buyer must stand to suffer a financial loss upon the death of the insured. In most cases, insurable interest is present among family members or business partners, but not typically between friends without a financial relationship.

Question 11

Which One of the Following Bodies, regulates the Insurance Companies in India?&#10;A)Reserve Bank of India (R.B.I.) and Finance Ministry, Together.&#10;B)Securities and Exchange Board of India (S.E.B.I.) and Association of Mutual Funds in India (A.M.F.I.), Together.&#10;C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)&#10;D)Finance Ministry

Accepted Answer

The answer of Which One of the Following Bodies, regulates...

Question 12

Who among the Following, are Not Regulated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)?&#10;A)Third-Party Administrators (T.P.A.s)&#10;B)Insurance Brokers&#10;C)Current Account-Savings Account (C.A.-S.A.) Agents&#10;D)Corporate Agents

Accepted Answer

The answer of Who among the Following, are Not Regulated...

Question 13

Which One of the Following Statements, is Correct?&#10;A)The Prime Purpose of Insurance-Regulation, is, To Protect the Policy- Holders' Interests.&#10;B)Regulations, made by Insurance Regulatory and Development Authority of India (I.R.D.A.I.), are, to ensure that, Insurance- Companies should exist, Not as Financially Sound Organisations, but, as Socially Responsible Organisations.&#10;C)Insurance is an Absolutely Legal Contract, in Compliance with the Provisions of Indian Contract Act and Other Laws of the Country.&#10;D)Insurance Regulatory and Development Authority of India (I.R.D.A.I.) regulates the Companies from their Registration on- wards, and monitors All their Major Activities, like, Investments, Accounting, etc.

Accepted Answer

The answer of Which One of the Following Statements, is...

Question 14

What is the Prime Purpose of Insurance-Regulation? Choose the Most Appropriate Answer.&#10;A)To ensure that, Rural Areas and Weaker Sections of Population gets the Adequate Insurance-Coverage.&#10;B)To ensure that, Insurance Companies generate the Sufficient Profits, so that, they can Survive in the Long- Term.&#10;C)To ensure that, Insurance-Cover is extended to All the Citizens of India.&#10;D)To Protect the Policy- Holders' Interests.

Accepted Answer

The answer of What is the Prime Purpose of Insurance-Regulation?...

Question 15

Which One of the Following Bodies, can issue the License to work as Individual Agents, in India?&#10;A)Finance Ministry&#10;B)Government of India&#10;C)Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.&#10;D)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)

Accepted Answer

The answer of Which One of the Following Bodies, can...

Question 16

Which One of the Following Bodies, regulates the Capital Market in India?&#10;A)Reserve Bank of India (R.B.I.)&#10;B)Securities and Exchange Board of India (S.E.B.I.)&#10;C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)&#10;D)Association of Mutual Funds in India (A.M.F.I.)

Accepted Answer

The answer of Which One of the Following Bodies, regulates...

Question 17

Which One of the Following Bodies regulates the Banks in India?&#10;A)Reserve Bank of India (R.B.I.)&#10;B)Securities and Exchange Board of India (S.E.B.I.)&#10;C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)&#10;D)Association of Mutual Funds in India (A.M.F.I.)

Accepted Answer

The answer of Which One of the Following Bodies regulates...

Question 18

Third-Party Administrators (T.P.A.s) are Regulated, by Which of the Following Bodies?&#10;A)Life Insurance Council and General Insurance Council, Jointly.&#10;B)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)&#10;C)Insurance Brokers Association of India&#10;D)Finance Ministry

Accepted Answer

The answer of Third-Party Administrators (T.P.A.s) are Regulated, by Which...

Question 19

Which One of the Following, is the Basic Insurance Legislation of the Country, that governs Insurance Business in India?&#10;A)Insurance Act, 1938.&#10;B)Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.&#10;C)Deposit Insurance and Credit Guarantee Corporation Act, 1961.&#10;D)Public Liability Insurance Act, 1991.

Accepted Answer

The answer of Which One of the Following, is the...

Question 20

Insurance Agents, who hold the Licence to act as Agents for Both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called --.&#10;A)Brokers&#10;B)Corporate Agents&#10;C)Third-Party Administrators (T.P.A.s)&#10;D)Composite Insurance Agents

Accepted Answer

The answer of Insurance Agents, who hold the Licence to...

Question 21

--- was established in the Year: 2000, as an In- Dependent Authority, to Regulate and Develop the Insurance Industry.&#10;A)Reserve Bank of India (R.B.I.)&#10;B)Securities and Exchange Board of India (S.E.B.I.)&#10;C)Insurance Regulatory and Development Authority (I.R.D.A.)&#10;D)Association of Mutual Funds in India (A.M.F.I.)

Accepted Answer

The answer of --- was established in the Year: 2000,...

Question 22

Which One of the Following Bodies, has prescribed the Regulations for Protecting the Interests of Policy- Holders, stipulating the Obligations on Both: Insurers as well as Intermediaries?&#10;A)Life Insurance Council and General Insurance Council, Jointly.&#10;B)Policy-Holders' Association of India (P.A.I.).&#10;C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)&#10;D)Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.

Accepted Answer

The answer of Which One of the Following Bodies, has...

Question 23

Which One of the Following Acts, has the Provisions for Monitoring and Control of Operations of Insurance Companies?&#10;A)Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.&#10;B)Deposit Insurance and Credit Guarantee Corporation Act, 1961.&#10;C)Public Liability Insurance Act, 1991.&#10;D)Insurance Act, 1938.

Accepted Answer

The answer of Which One of the Following Acts, has...

Question 24

If Insurance Firm accepts such Applicants, Who are at a Greater Than Normal Risk or are Not Insurable, but conceal or falsify the Information about their Actual Condition or Situation, so that, they get Insurance, then this will be known as --. Choose the Most Appropriate Option.

A)Insurance-Screening
B)Adverse Selection
C)Underwriting-Lapse
D)Proposal Re-View

Accepted Answer

The answer of If Insurance Firm accepts such Applicants, Who...

Question 25

Insurance Act came into Effect, on -----.&#10;A)1st June, 1938&#10;B)1st July, 1938&#10;C)1st June, 1939&#10;D)1st July, 1939

Accepted Answer

The answer of Insurance Act came into Effect, on -----.&#10;A)1st...

Deck 4: Insurance Law and Regulation in India