Insurance exam questions and answers:
___ 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
Insurance is a cooperative form of distributing a certain ______ over a group of persons who are exposed to it.
(a) Uncertainty
(b) Risk
(c) Peril
(d) Hazards
Property damaged because of earthquake is _ risk
(a) Risk for general insurance
(b) Non insurable risk
(c) Property risk
(d) None of the above
The principle of indemnity is not applicable to
(a) Fire Insurance
(b) Marine Insurance
(c) Life Insurance
(d) Property Insurance
General Insurance includes ___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these
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The policy for which the premium is payable throughout the life of the assured is known as
(a) Annuity Policy
(b) Whole Life Policy
(c) Term Policy
(d) Endowment
__ is a policy where the insurer undertakes to make good the loss upto the amount mentioned in the policy
(a) Specific policy
(b) Valued policy
(c) Average policy
(d) None of these
______ can be done by mere endorsement on the policy or by a separate duly stamped dee(d)
(a) Assignment
(b) Nomination
(c) Renewal
(d) Revival
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
The document which contains the terms and conditions of the insurance contract is termed as the
(a) Agreement
(b) Insurance Policy
(c) Cover Note
(d) Proposal Form
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When the amount for which a subject matter is insured is more that its actual value. It is called __
(a) Double insurance
(b) Over insurance
(c) Over premium
(d) None of these
Which of these persons will not be given a license to work as an insurance agent?
(a) A person with criminal record
(b) A corporate insurance executive.
(c) An employee of an insurance company
(d) All the three mentioned here
Insurance business is based on _.
(a) Newton’s Law
(c) The Theory of Probability and Law of large numbers
(b) Boyles Law
(d) Parkinsons Law
A memorandum added to a policy embodying some alterations to the terms of policy is known as
(a) Surrender
(b) Endorsement
(c) Nomination
(d) Breach of Contract
A policy for protecting a group of employees in a firm is called __
(a) General Insurance
(b) State life insurance
(c) Group insurance
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Which of the following is an evidence of insurance contract?
(a) Policy Document
(b) payment of premium.
(c) cover note
(d) acceptance of proposal
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ___
(a) Premium
(b) Annuity
(c) Claim
(d) Policy
A person employed to do any act for another or to represent another in dealing with a third person refers to
(a) Agent
(b) Principal
(c) Development Officer
(d) Surveyor
Reinsurance also termed as __
(a) Double insurance
(b) Reinsurance of reinsurance
(c) Insurance of insurance
(d) None of these
The agents who are selling policies of several life and non life insurance companies at a time are known as
(a) Brokers
(b) Surveyors
(c) Underwriters
(d) banks
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Insurance is a risk management technique involving __
(a) Risk retention
(b) Risk avoidance
(c) Loss Control
(d) Risk transfer
_________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy.
(a) Surveyors
(b) Loss Assessors
(c) Both a and b
(d) Agents
The principle of subrogation is applicable to___
(a) Fire Insurance
(b) Marine Insurance
(c) Burglary Insurance
(d) All of these
Insurance contract is sort of contract which is approved by
(a) The Indian Contract Act
(c) Indian Companies Act
(b) Indian Factory Act
(d) The Indian Finance Act
___ 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
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The term Assurance refers to ________.
(a) Marine Insurance Business
(c) Fire Insurance Business
(b) Life Insurance Business
(d) Motor Vehicle Business
__ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.
(a) Underwriters
(b) Surveyors
(c) Agents
(d) Banker
Gross Premium means Net Premium plus___________
(a) Margin
(b) Profit
(c) Expense Loading
(d) Loss
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
_______ is pricing of insurance products driven by market forces
(a) De-tariffing
(b) Fixed Pricing
(c) Tariffing
(d) Penetration Pricing
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Life insurance is a contract of__
(a) indemnity
(b) guarantee
(c) contribution
(d) none of these
____ is the total premium that a policyholder pays to insurance company
(a) Net Premium
(b) Gross Premium
(c) Partial Premium
(c) Level Premium
General insurance is a contract of __
(a) contribution
(b) indemnity
(c) guarantee
(d) none of these
The consideration in insurance for covering the risk is called ___
(a) Claim
(b) Premium
(c) Annuity
(d) None of these
Insurance prices are called
(a) Commissions
(b) Allowances
(c) Premiums
(d) Discounts
Reinsurance is common in __
(a) life insurance
(b) general insurance
(c) none of these
(d) all kind of insurance
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In the case of marine insurance reserve for unexpired risk is __
(a) 50%
(b) 100%
(c) 40%
(d) none of these
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
___.is an agreement between two insurance companies whereby one transfers a part of risk to other.
(a) Reinsurance
(b) Sub insurance
(c) Shared Policy
(d) None of these
The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called
(a) Insured
(b) Assurer
(c) Agent
(d) Underwriter
In legal sense, Insurance is a
(a) Contract
(b) Activity
(c) Gambling
(d) Publicity
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__ % 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)
Valuation balance sheet is prepared by ___ business.
(a) Fire Insurance
(b) Marine Insurance
(c) Life Insurance
(d) All of these
Bonus payable on maturity of the policy is termed as
(a) cash bonus
(b) capital bonus
(c) reversionary bonus
(d) none of these
What is a insurance proposal?
(a) A request for an insurance cover
(b) An offer to enter into a contract
(c) Both (a) and (b)
(d) None of the above
___ is the amount payable to the insured on the happening of event.
(a) Premium
(b) Annuity
(c) Claim
(d) Policy
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Valuation balance sheet is prepared by __
(a) General insurance company
(b) life insurance company
(c) joint stock company
(d) banking company
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
The commission given by insurance companies to others for receiving business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these
The chance of loss from the unforeseen circumstances in future refers to ___.
(a) Perils
(b) Damage
(c) Risk
(d) Hazards
Bonus in reduction of premium appears in the revenue a/c as __
(a) an income
(b) an expense
(c) no where
(d) profit
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The commission earned by insurance companies from others for giving them business under reinsurance is called ___
(a) Commission on reinsurance accepted
(b) Agents’ commission
(c) Commission on reinsurance ceded
(d) None of these
When the same risk and subject matter is insured with more than one insurer is known as
(a) Reinsurance
(b) Double Insurance
(c) Under Insurance
(d) Over Insurance
The business of insurance is related to protection of __
(a) Status
(b) Economic value of asset
(c) Savings
(d) Profit
Revenue Account is also called ___
(a) Shareholders’ Account
(b) Policyholders’ Account
(c) Creditors’ Account
(d) None of these
Under ___, the sum assured is given to the beneficiary only on death of policyholder.
(a) Life Policy
(b) Health Policy
(c) Annuity
(d) None of these
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………is a form of agreement between two parties in which one party agrees to make good for loss of another.
(a) Contract
(b) Insurance
(c) Banking
(d) Mutual fund
The party whose risk is covered in insurance is known as __
(a) Insurer
(b) Insured
(c) Underwriter
(d) None of these
An escape from disability or death in a plain crash by refusing to fly is called __
(a) Risk shifting
(b) Risk avoidance
(c) Risk hedging
(d) None of these
The agreement of insurance is called as ___
(a) Policy
(b) Premium
(c) Annuity
(d) None of these
__ is the party who undertakes the risk in insurance.
(a) Insurer
(b) Assurer
(c) Underwriter
(d) All of these
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__ is an example for personal risk
(a) Business loss
(b) Fire occurred in business premises
(c) Risk of premature death
(d) None of the above
