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Basic Questions about Insurance

insurance quiz

Insurance exam questions and answers:

Ques. ___ is an annual payment made by a life insurance company in consideration form a lump sum received.
(a) claim
(b) annuity
(c) bonus
(d) premium
Ans. (b)

Ques. Distribution of insurance products and insurance policies by banks as corporate agents is known as:
(a) General Insurance
(b) Non-life insurance
(c) Bank assurance
(d) Insurance banking
(e) Deposit insurance
Ans. (c)

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Ques. Employer shall contribute towards Insurance Fund ___  % of basic wages, dearness allowance, and retaining allowance.
(a) 2%
(b) 3%
(c) 1%
(d) None of these
Ans. (c)

Ques.  ___ is a device of reducing the risk undertaken by an insurance company.
(a) re-insurance
(b) double insurance
(c) risk insurance
(d) none of these
Ans. (a)

Ques. Under __ policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier
(a) whole time life policy
(b) endowment policy
(c) with profit policy
(d) none of these
Ans. (b)

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Ques. Life insurance is a contract of__
(a) indemnity
(b) guarantee
(c) contribution
(d) none of these
Ans. (b)

Ques. General insurance is a contract of __
(a) contribution
(b) indemnity
(c) guarantee
(d) none of these
Ans. (b)

Ques. Reinsurance is common in __
(a) life insurance
(b) general insurance
(c) none of these
(d) all kind of insurance
Ans. (b)

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Ques. In the case of marine insurance reserve for unexpired risk is __
(a) 50%
(b) 100%
(c) 40%
(d) none of these
Ans. (b)

Ques. Valuation balance sheet is prepared by a life insurance company to find out
(a) Profit or loss
(b) financial position
(c) surplus or deficiency
(d) net liability
Ans. (c)

Ques. Insurance Regulatory and Development Authorities Act came in to effect in
(a) 2001
(b) 2004
(c) 1999
(d) none of these
Ans. (c)

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Ques. __ % of net surplus of a life insurance company is given to policyholders as bonus
(a) 90%
(b) 80%
(c) 95%
(d) none of these
(b) Ans. (c)

Ques. Bonus payable on maturity of the policy is termed as
(a) cash bonus
(b) capital bonus
(c) reversionary bonus
(d) none of these
Ans. (c)

Ques. Insurance Act came in to effect in __
(a) 1956
(b) 1972
(c) 1938
(d) none of these
Ans. (c)

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Ques. Valuation balance sheet is prepared by __
(a) General insurance company
(b) life insurance company
(c) joint stock company
(d) banking company
Ans. (b)

Ques. Legal expenses in respect of claims of an insurance company is shown in __
(a) P & L a/c
(b) Revenue a/c
(c) Balance sheet
(d) Surplus a/c
Ans. (b)

Ques. Bonus in reduction of premium appears in the revenue a/c as __
(a) an income
(b) an expense
(c) no where
(d) profit
Ans. (b)

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Vishal Arora

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