Question 1

First private life insurance company was registered in India in&#8230;&#8230;&#8230;.&#10;A)1999&#10;B)2000&#10;C)2002&#10;D)1978

Accepted Answer

The first private life insurance company registered in India after the liberalization of the insurance sector was HDFC Life Insurance Company Ltd., which was registered in the year 2000.

Question 2

When did Government of India nationalized life insurance business.&#10;A)1956&#10;B)1978&#10;C)1991&#10;D)2002

Accepted Answer

The Government of India nationalized the life insurance business in 1956, leading to the establishment of the Life Insurance Corporation of India (LIC).

Question 3

&#8230;&#8230;&#8230;&#8230;&#8230;.. is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy&#10;A)Specific policy&#10;B)Valued policy&#10;C)Average policy&#10;D)None of these

Accepted Answer

Average policy&#10;

Question 4

&#8230;&#8230;&#8230;&#8230; Clause generally inserted in all general insurance contract to discourage under insurance&#10;A)Specific clause&#10;B)General clause&#10;C)Valuation clause&#10;D)Average clause

Accepted Answer

The Average Clause is included in general insurance contracts to discourage under insurance. It does this by reducing the claim amount payable in proportion to the under-insurance of the asset.

Question 5

Who pays premium under social security group insurance?&#10;A)Every member of the group&#10;B)Government&#10;C)LIC&#10;D)None of the above

Accepted Answer

The answer of Who pays premium under social security group...

Question 6

&#8230;&#8230;&#8230;&#8230;..is concerned with the conversion of a firms asset and earning power against risk of accidental loss.&#10;A)Risk retention&#10;B)Risk management&#10;C)Risk control&#10;D)Risk identification

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;..is concerned with the conversion of a...

Question 7

If the market interest rate is higher, the cost of insurance&#8230;&#10;A)Increases&#10;B)Moderate&#10;C)Decreases&#10;D)No change

Accepted Answer

The answer of If the market interest rate is higher,...

Question 8

As age increases risk on the life&#8230;&#8230;&#8230;..&#10;A)Increases&#10;B)Decreases&#10;C)No change&#10;D)None of the above

Accepted Answer

As age increases, the risk on life increases due to factors such as higher susceptibility to diseases, reduced physical resilience, and the natural aging process.

Question 9

Premium of a policy is calculated on the basis of&#8230;&#8230;&#10;A)Income of the insured&#10;B)Agent's report&#10;C)Risk associated with the policy&#10;D)None of the above

Accepted Answer

The premium of a policy is primarily calculated based on the risk associated with the policy. This involves assessing the likelihood of the insured event occurring and the potential cost of claims. Factors such as the insured's health, occupation, lifestyle, and the coverage amount are considered to evaluate the risk level.

Question 10

&#34;Human life is an income generating asset&#34;. The statement is&#8230;&#8230;&#10;A)True&#10;B)Partly true&#10;C)False&#10;D)Partly false

Accepted Answer

Human life is considered an income-generating asset because individuals can generate income through employment, entrepreneurship, or other economic activities over their lifetime.

Question 11

Maximum period of a policy in case of insurance other than life insurance is&#8230;..&#10;A)12 months&#10;B)24 months&#10;C)No limit&#10;D)None of these

Accepted Answer

The answer of Maximum period of a policy in case...

Question 12

The business of insurance is related to protection of&#8230;&#8230;&#8230;&#8230;&#10;A)Status&#10;B)Economic value of asset&#10;C)Savings&#10;D)Profit

Accepted Answer

The answer of The business of insurance is related to...

Question 13

_________ is concerned with the conversion of a firm's asset and earning power against risks of accidental loss.&#10;A)Risk retention.&#10;B)Risk management.&#10;C)Risk control.&#10;D)Risk identification.

Accepted Answer

The answer of _________ is concerned with the conversion of...

Question 14

________ involved those losses that occur even if there were no changes in the economic environment.&#10;A)Dynamic risk.&#10;B)Static risk.&#10;C)Fundamental risk.&#10;D)Particular risk.

Accepted Answer

The answer of ________ involved those losses that occur even...

Question 15

Fundamental risk is also termed as _________&#10;A)Particular risk.&#10;B)Speculative risk.&#10;C)Group risk.&#10;D)Pure risk.

Accepted Answer

The answer of Fundamental risk is also termed as _________&#10;A)Particular...

Question 16

Unemployment, war, inflation, earthquakes etc., are the examples of ________&#10;A)Pure risk.&#10;B)Particular risk.&#10;C)Personal risk.&#10;D)Fundamental risk.

Accepted Answer

The answer of Unemployment, war, inflation, earthquakes etc., are the...

Question 17

Any risk involved a situation where there is a possibility of gain refers to ________&#10;A)Liability risk.&#10;B)Personal risk.&#10;C)Pure risk.&#10;D)Speculative risk.

Accepted Answer

The answer of Any risk involved a situation where there...

Question 18

Direct or Consequential losses refer to _________&#10;A)Dynamic risk.&#10;B)Particular risk.&#10;C)Property risk.&#10;D)Pure risk.

Accepted Answer

The answer of Direct or Consequential losses refer to _________&#10;A)Dynamic...

Question 19

Spreading of risk otherwise termed as _________&#10;A)Shifting of risk.&#10;B)Acceptance of risk.&#10;C)Reduction of risk.&#10;D)Spreading of risk.

Accepted Answer

The answer of Spreading of risk otherwise termed as _________&#10;A)Shifting...

Deck 3: Insurance Fundamentals