Exclusive Insurance MCQs - bsc4success.com · mailto:[email protected] Exclusive Insurance MCQs 1. Which one of the following does not belong to the main products of life insurance?

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Exclusive Insurance MCQs 1. Which one of the following does not belong to the main products of life insurance?

1) Endowment 2) Personal accident insurance 3) Term 4) Whole life 5) Life Annuity Plan

2. Which one of the following does not belong to the major general insurance private sector companies in India?

1) Bajaj Allianz General Insurance 2) Reliance General Insurance 3) Royal Sundaram Alliance Insurance 4) The Oriental Insurace Company 5) ICICI Lombard General Insurance

3. When was the General Insurance Corporation of India incorporated?

1) 1971 2) 1972 3) 1973 4) 1975 5) 1977

4. When was the Insurance Regulatory and Development Authority constituted?

1) 1938 2) 1971 3) 1993 4) 1995 5) 1999

5. What does PAC stand for?

1) Post-Authorized Cheque 2) Pre-Authorized Cheque 3) Pre-Authorized Chequing


4) Pre-Authorized Checking 5) Process-Authorized Chequing

6. What is the FDI limit in Insurance sector?

1) 26% 2) 49% 3) 51% 4) 74% 5) 100%

7. Which is a fixed amount for a covered service in the health sector?

1) Coinsurance 2) Deductible 3) Copay 4) Health Insurance 5) None of these

8. A deductible is usually mentioned in

1) Rupee 2) Dollar 3) Euro 4) Pound 5) Any Currency

9. What is the expanded form of the term ALM?

1) Asset Liability Maintenance 2) Asset Liability Management 3) Asset Liability Manipulation 4) Asset Liability Maximisation 5) Asset Liabilities Management

10. In pursuance of which one of the following was the General Insurance Corporation of India was formed?

1) General Insurance Business (Nationalization) Act, 1972 2) Insurance Act, 1938 3) Insurance Amendment Act, 2002 4) IRDA Act 1999 5) None of these


11. Which of the following types of companies/organisations issue ULIP?

1) Insurance companies 2) Banks 3) NABARD 4) RBI 5) None of these

12. Which amongst the following is not an insurance company functioning in India?

1) ICICI prudential 2) ING Vysya 3) National Securities Depository Limited 4) New India Assurance company 5) General insurance company

13. Which of the following is the only public sector company in the field of life insurance?

1) General insurance company 2) New India assurance company 3) Oriental insurance company 4) Life Insurance Corporation of India 5) None of these

14. “A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against” is technically known as

1) Death coverage 2) Life insurance 3) Savings for future 4) Provident fund 5) None of these

15. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?

1) New India Assurance Ltd. 2) Insurance Australia Group 3) Lehman Brothers Holdings Inc. 4) Allianz 5) None of these

16. Which of the following is the regulator of insurance sector in India?


1) RBI 2) AMFI 3) IRDA 4) SEBI 5) None of these

17. Which of the following terms is NOT related to the insurance sector?

1) Indemnity 2) Coverage 3) Misuse Alert 4) Annuity 5) None of these

18. Which of the following public sector companies/organizations provides insurance cover to exporters?

1) ECGC 2) NABARD 3) SIDBI 4) IRDA 5) None of these

19. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called?

1) Installment 2) Contribution 3) Premium 4) EMI 5) None of these

20. Which of the following is/are the various types of insurance?

a) Life insurance b) Health insurance c) Liability insurance

1) Only (a) 2) Only (a) and (b) 3) Only (b) and (c) 4) All the three 5) Only (a) and (c)


21. The central office of the Life Insurance Corporation of India (LIC) is located at

1) Kolkata 2) New Delhi 3) Chennai 4) Pune 5) Mumbai

22. Which of the following was the parent company of New India Assurance ?

1) LIC 2) GIC 3) Oriental Insurance Co. Ltd. 4) United India Insurance 5) None of these

23. The New India Assurance Company was established in 1919 by

1) Dorab Tata 2) G. D. Birla 3) Jamunalal BajaJ 4) Kamlapat Singhania 5) None of these

24. Which of the following is largest Non Life Insurance Company in India ?

1) ICICI Lombard General Insurance Company Ltd. 2) United India Insurance Company Ltd. 3) General Insurance Company Ltd. 4) New India Assurance Company Ltd. 5) None of these

25. In Insurance policies we always find a date which is “Date of Maturity”. What does it mean?

1) This is the date on which the policy was sold to the customer/person insured. 2) This is the date on which the policy holder will have to submit his/her claim seeking the amount of the policy. Otherwise the company will not make any payment to him/her. 3) This is the date on which the contract between the person and insurance company will come to an end. 4) The date on which the insurance company makes the final payment to the insured person which is normally fifteen days after the “payment due date”. 5) None of these


26. As we know, the Government is paying much attention to “Micro Finance” these days. Which of the following is one of the examples of Micro Finance?

1) Insurance for life 2) Investment in Mutual Funds 3) Self Help Groups 4) Letter of Credit 5) All of these

27. Which of the following terms is Not used in the world of finance, banking and insurance?

1) Devaluation 2) Amnesty 3) Hard currency 4) Preference share 5) Sinking fund

28. Insurance company transfers the insurance which cannot bear by them to which of the following ?

1) TPAs 2) Bancassurance 3) Reinsurance 4) Actuaries 5) None of these

29. Which of the following is customer of a Reinsurer?

1) Insurance Companies 2) High Networth Individual 3) Licenced Insurance Agents 4) NGOs 5) None of these

30. The Non Government organizations(NGO) helps the insurance industry mainly in

1) Linking third party administrators 2) Promotional activities 3) Drafting new regulations 4) Linking buyers and sellers 5) None of these


31. What is the maximum Time in which the insurer should settle a claim when all documents are submitted

1) 5 days 2) 20 days 3) 30 days 4) 15 days 5) None of these

32. A missing person is considered to be dead after how many years of missing ?

1) 3years 2) 5years 3) 15 years 4) 7years 5) None of these

33. A insurer advertises through daily news paper . What type of marketing is

1) cross selling 2) policy selling 3) Solicitation of Policy 4) Insurance selling 5) None of these

34. MWP- If the policy is endorsed under MWP – then the beneficiaries are wife and ?

1) ex-wife 2) children 3) mother 4) parents 5) None of these

35. Which Insurance Company started its operation in the year in which India got Independence?

1) UIICL 2) GIC 3) LIC 4) OICL 5) None of these



1)Linking third party administrators 2)Promotional activities 3)Drafting new regulations 4)Linking buyers and sellers

37. Based on which aspect, Churning is bad ?

1)Agents earn Lower Commission on churning 2)Policyholders suffer due to surrender charges and benefits 3)Policyholder gets more benefits 4)Insurance companies get good branding

38. What is the maximum Time in which The insurer should settle a claim when all documents are submitted

1)5 days 2)20 days 3)30 days 4)15 days


1) 3years 2) 5years 3) 15 years 4) 7years

40. A insurer advertises through daily newspaper . What type of marketing is

1) cross selling 2) policy selling 3) Solicitation of Policy 4) Insurance selling


1) UIICL 2) GIC 3) LIC 4) OICL

42. ECGC is made to provide:


1) Insurance cover in external trade 2) Insurance cover in internal trade 3)Insurance cover in export trade 4)Insurance cover in import trade.

43. General Insurance (Public Sector) Association of India’s HQ is situtated in?

1) Telengana 2) Mumbai 3) Delhi 4) Chennai

44. India’s Agricultural Insurer is:

1) NABARD 2) GIC 3) KIshan Bima Sanstha 4) AIC

45. IRDA has the power to frame the regulations under___of the Insurance Act. 1938.

1) Section 112A 2) Section 114A 3) Section 114B 4) None of these

46. NIACL was started in the year:

1) 1938 2) 1947 3) 1973 4) 1919

47. “Rest Assured with us” This tagline is associated with:

1) SBI Life Insurance 2) NIACL 3) Kotak Mahindra Life Insurance 4) UIICL

48. “Twins of Wood” is related to Financial system as well as to Insurance market. These are:


1) RBI & IRDA 2) RBI & IMF 3) World Bank & RBI 4) World Bank & IMF

49. "A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against" is technically known as

1. Death coverage 2. Life insurance 3. Savings for future 4. Provident fund


1. New India Assurance Ltd. 2. Insurance Australia Group 3. Lehman Brothers Holdings Inc. 4. Allianz


1. General insurance company 2. New India assurance company 3. Oriental insurance company 4. Life Insurance Corporation of India


1. Installment 2. Contribution 3. Premium 4. EMI


1. ECGC 2. NABARD 3. SIDBI 4. IRDA


54. With which of the fields is actuarial science associated?

1. Insurance 2. Banking 3. Micro-finance 4. Space technology

55. Expand the term IFRS.

1. Indian Financial Reporting Standards 2. Indian Financial Reporting Systems 3. International Financial Reporting Standards 4. International Financial Reporting Systems

56. What does the term FSDC, used in financial sectors stand for?

1. Financial Security and Development Council 2. Financial Stability and Development Council 3. Fiscal Security and Development Convention 4. Fiscal Stability and Development Council

57. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash - Sab ki Surakhsa Hamare Paas?

1. Life Insurance Corporation 2. Oriental Insurance Company 3. New India Assurance 4. General Insurance Company


(a) Life insurance (b) Health insurance (c) Liability insurance

1. Only (a) 2. Only (a) and (b) 3. Only (b) and (c) 4. All the three


1) Linking third party administrators 2) Promotional activities


3) Drafting new regulations 4) Linking buyers and sellers

60. Based on which aspect, Churning is bad ?

1) Agents earn Lower Commission on churning 2) Policyholders suffer due to surrender charges and benefits 3) Policyholder gets more benefits 4) Insurance companies get good branding

61. What is the maximum Time in which The insurer should settle a claim when all documents are submitted

1) 5 days 2) 20 days 3) 30 days 4) 15 days


1) 3years 2) 5years 3) 15 years 4) 7years

63. A insurer advertises through daily news paper . What type of marketing is-

1)cross selling 2)policy selling 3)Solicitation of Policy 4)Insurance selling


1) UIICL 2) GIC 3) LIC 4) OICL

65. ECGC is made to provide:

1) Insurance cover in external trade 2) Insurance cover in internal trade


3)Insurance cover in export trade 4)Insurance cover in import trade.

66. General Insurance (Public Sector) Association of India’s HQ is situated in?

1) Telengana 2) Mumbai 3) Delhi 4) Chennai

67. India’s Agricultural Insurer is:

1) NABARD 2) GIC 3) KIshan Bima Sanstha 4) AIC

68. IRDA has the power to frame the regulations under___of the Insurance Act. 1938.

1) Section 112A 2) Section 114A 3) Section 114B 4) None of these

69. NIACL was started in the year:

1) 1938 2) 1947 3) 1973 4) 1919

70. “Rest Assured with us” This tagline is associated with:

1) SBI Life Insurance 2) NIACL 3) Kotak Mahindra Life Insurance 4) UIICL

71. “Twins of Wood” is related to Financial system as well as to Insurance market. These are:

1) RBI & IRDA 2) RBI & IMF


3) World Bank & RBI 4) World Bank & IMF

72. Which of the following is NOT contained in the Declarations page of the Personal Auto Policy (PAP)?

1) Policy period. 2) Insuring agreement. 3) Policy number. 4) Name of the insurer. 5) Limits of insurance for each coverage provided.

73. Liability coverage- Part A is the most common part of the Personal Auto Policy (PAP). Which of the following is NOT covered under the liability section of the PAP?

1) A newly acquired auto that replaces a vehicle previously described in the policy. 2) A trailer owned by the named insured. 3) A borrowed auto used by the insured as a temporary substitute during servicing of the insured’s primary vehicle. 4) A nonowned van that the insured drives to the grocery store each week. 5) A pickup truck owned by the named insured and shown in the policy’s Declarations.

74. Which of the following is NOT considered to be an uninsured motor vehicle by the Uninsured Motorists Coverage- Part C of the Personal Auto Policy (PAP)?

1) A vehicle for which no bodily injury liability insurance or bond applies at the time of the accident. 2) A hit-and-run vehicle whose operator cannot be identified. 3) An uninsured vehicle furnished for regular use by a family member. 4) A vehicle insured with an insurer that denies coverage due to the insurer’s insolvency. 5) A vehicle insured for less than the minimum liability limit required by the state’s financial responsibility law.

75. Which of the following is NOT a duty of an insured after an auto accident covered under the Personal Auto Policy (PAP)?

1) Submit proof of loss. 2) Submit to a physical examination if requested. 3) Agree to an examination under oath. 4) Admit negligence to the police if at fault. 5) Provide prompt notice to the insurer.

76. Which of the following is NOT a common endorsement added to the Personal Auto Policy (PAP)?


1) Snowmobile endorsement. 2) Limited Mexico coverage endorsement. 3) Auto loan/lease (Guaranteed Auto Protection- GAP) coverage. 4) Towing and labor cost coverage. 5) Garage Business endorsement.

77. Which of the following is true regarding tenants of rented apartment units?

1) Tenants have no need for Homeowners insurance. 2) Tenants must insure both the apartment building and their personal property. 3) Tenants are eligible for Homeowners insurance using HO-3 (the Special Form). 4) Tenants are eligible for Homeowners insurance using HO-4 (the Contents Broad Form). 5) Tenants are eligible for Homeowners insurance using HO-8 (the Modified Coverage Form).

78. One of the Conditions in Homeowners HO-3 (the Special Form) lists the insured’s duties after a property loss. Which of the following statements concerning this condition is true?

1) The insured’s claim representative might not require that all of these duties be performed. 2) The insurer is prevented from denying a claim even if the insured fails to perform required duties. 3) All listed duties always must be performed prior to final claim settlement. 4) Claim representatives usually waive most or all duties expected of the insured. 5) As long as the insured gives prompt notice of the loss, the insurer cannot require other duties to be performed.

79. Spencer has a Homeowners HO-3 policy that provides $320,000 of insurance on his dwelling, which has a current replacement value of $500,000. Ignoring any deductible, how much will Spencer collect if his kitchen with a replacement value of $30,000 but an actual cash value of $26,000 is destroyed in a fire?

1) $20,800 2) $24,000 3) $26,000 4) $28,000 5) $30,000

80. Which of the following is NOT an exclusion in Section II of the Homeowners HO-3 policy?


1) Intentional injuries. 2) Business activities. 3) Transmission of a communicable disease. 4) The gradual yet accidental seepage of pollutants from the insured’s septic system into the neighborhood water supply. 5) Injuries caused by operation of a motor vehicle registered for use on public roads.

81. Which of the following statements regarding the- severability of insurance- condition in the HO-3 Special Form insurance policy is true?

I. The condition applies insurance separately to each insured. II. The condition does not increase the insurer’s limit of liability for any one occurrence. III. The condition allows the policy to cover a claim brought by one insured against another insured.

1) I only. 2) I and II only. 3) I and III only. 4) II and III only. 5) I, II, and III.

82. "A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against" is technically known as

1. Death coverage 2. Life insurance 3. Savings for future 4. Provident fund


1. New India Assurance Ltd. 2. Insurance Australia Group 3. Lehman Brothers Holdings Inc. 4. Allianz


1. General insurance company 2. New India assurance company 3. Oriental insurance company 4. Life Insurance Corporation of India



1. Installment 2. Contribution 3. Premium 4. EMI


1. ECGC 2. NABARD 3. SIDBI 4. IRDA

87. With which of the fields is actuarial science associated?

1. Insurance 2. Banking 3. Micro-finance 4. Space technology

88. Expand the term IFRS.

1. Indian Financial Reporting Standards 2. Indian Financial Reporting Systems 3. International Financial Reporting Standards 4. International Financial Reporting Systems

89. What does the term FSDC, used in financial sectors stand for?

1. Financial Security and Development Council 2. Financial Stability and Development Council 3. Fiscal Security and Development Convention 4. Fiscal Stability and Development Council

90. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash - Sab ki Surakhsa Hamare Paas?

1. Life Insurance Corporation 2. Oriental Insurance Company 3. New India Assurance 4. General Insurance Company



(a) Life insurance (b) Health insurance (c) Liability insurance

1. Only (a) 2. Only (a) and (b) 3. Only (b) and (c) 4. All the three

92. The punch line of the advertisement of which of the following organization is “Jindagi ke sath bhi Jindagi ke bad bhi” ?

1) New India Assurance 2) General Insurance Corporation 3) ICICI Prudential 4) Life Insurance Corporation Of India 5) None of these

93. The central office of the Life Insurance Corporation of India (LIC) is located at

1) Kolkata 2) New Delhi 3) Chennai 4) Pune 5) Mumbai

94. If an organization wishes to venture into Insurance Business it has to obtain a licence first from which of the following ?

1) Indian Banks Association (IBA) 2) Security and Exchange Board of India (SEBI) 3) Tariff Advisory Committee (TAC) 4) Insurance Regulatory and Development Authority of India (IRDAI) 5) None of these

95. Which of the following is not the name of an Insurance Scheme launched by the Government of India

1) Janashree Bima Yojana 2) Krishi Shramik Sarnajik Suraksha Yojana 3) Shiksha Sahyog Yojana


4) Varsha Bima Yojana 5) National Saving Scheme Programme

96. Which of the following insurance companies writes its punch line in the advertisements “Insurance is the subject matter of solicitation” ?

1) CIC 2) LIC 3) ING Vysya Life InsuranceCo. 4) Tata AIG Life Insurance Co 5) None of these

97. Which of the following was the parent company of New India Assurance ?

1) LIC 2) GIC 3) Oriental Insurance Co. Ltd. 4) United India Insurance 5) None of these

98. Which of the following words/ terms is closely associated with the insurance business

1) Archives 2) Donation 3) Actuary 4) Quest 5) All are associated with insurance

99. The New India Assurance Company was established in 1919 by

1) Dorab Tata 2) G. D. Birla 3) Jamunalal BajaJ 4) Kamlapat Singhania 5) None of these

100. Which of the following is largest Non Life Insurance Company in India ?

1) ICICI Lombard General Insurance Company Ltd. 2) United India Insurance Company Ltd. 3) General Insurance Company Ltd. 4). New India Assurance Company Ltd. 5) None of these


Answers –

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43. 3 44. 4 45. 2 46. 4 47. 4 48. 4 49. 2 50. 2 51. 4 52. 3 53. 1 54. 1 55. 3 56. 2 57. 2 58. 4 59. 4 60. 2 61. 3 62. 4 63. 3 64. 4 65. 3 66. 3 67. 4 68. 2 69. 4 70. 4 71. 4 72. 2 73. 4 74. 3 75. 4 76. 5 77. 4 78. 1 79. 3 80. 4 81. 5 82. 2 83. 2 84. 4 85. 3 86. 1


87. 1 88. 3 89. 2 90. 2 91. 4 92. 4 93. 5 94. 4 95. 4 96. 2 97. 2 98. 3 99. 1 100. 4

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Exclusive Insurance MCQs - bsc4success.com · mailto:[email protected] Exclusive Insurance MCQs 1. Which one of the following does not belong to the main products of life insurance?