Exclusive Insurance MCQs for OICL AO Main

Transcription

1 Exclusive Insurance MCQs for OICL AO Main 1. 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 2. 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 3. 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) 4. 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 5. 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 6. 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 7. 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 8. The New India Assurance Company was established in 1919 by 1) Dorab Tata 2) G. D. Birla 3) Jamunalal Bajaj 4) Kamlapat Singhania 9. 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. Downloaded From:

2 10. Which is the sole reinsurance company in the Indian insurance market? 1) United India Insurance Company Limited 2) General Insurance Corporation of India 3) New India Assurance Company Limited 4) The Oriental Insurance Company 5) Life Insurance Corporation of India 11. Which of the following types of companies/organisations issue ULIP? 1) Insurance companies 2) Banks 3) NABARD 4) RBI 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 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 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 16. Which of the following is the regulator of insurance sector in India? 1) RBI 2) AMFI 3) IRDA 4) SEBI 17. Which of the following terms is NOT related to the insurance sector? 1) Indemnity 2) Coverage 3) Misuse Alert 4) Annuity 18. Which of the following public sector companies/organizations provides insurance cover to exporters? 1) ECGC 2) NABARD 3) SIDBI 4) IRDA 19. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called? 1) Instalment 2) Contribution 3) Premium 4) EMI 20. Which of the following is/are the various types of insurance? a) Life insurance b) Health insurance c) Liability insurance Downloaded From:

3 1) Only (a) 2) Only (a) and (b) 3) Only (b) and (c) 4) All the three 5) Only (a) and (c) 21. 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 22. With which of the fields is actuarial science associated? 1) Insurance 2) Banking 3) Micro-finance 4) Space technology 23. Which of the following terms is used in the field of finance and banking? 1) Elasticity 2) Inflation 3) Pulse rate 4) Hot waves 24. Expand the term IFRS. 1) Indian Financial Reporting Standards 2) Indian Financial Reporting Systems 3) International Financial Reporting Standards 4) International Financial Reporting Systems 25. 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 26. Which of the following is the regulator of the credit rating agencies in India? 1) RBI 2) SBI 3) SEBI 4) ICRA 27. FDI refers to 1) Fixed Deposits in India 2) Foreign Direct Investment 3) Foreign Deposits in India 4) Future Derivative Investment 28. State financial Corporations give assistance mainly to develop which of the following? 1) Small and medium scale industries 2) Agricultural sector 3) Cotton industry 4) Large scale industries 29. Whose signatures are found on one rupee note in India? 1) Governor, Reserve Bank of India 2) Finance Minister, Government of India 3) Finance Secretary, Ministry of Finance Government of India 4) One rupee note does not have any signatures 30. Which of the following insurance plan is not launched by LIC? 1) Jeevan Abhaya 2) Life Mahalife Gold Plan 3) Child Career Plan 4) Child Future Plan 5) Jeevan Saral Downloaded From:

4 31. Which first bank in India to fully own an insurance business? 1. HDFC Bank 2. Kotak Mahindra Bank 3. ICICI Bank 4. IDBI Bank 5. None of these 3 2. Aam Admi Bima Yojana provide insurance of. on natural death 1. Rs Rs Rs Rs None of these 3 3.The Central Government rolled out a new Crop Insurance Scheme through which it will bring down the rate of premium to be paid by farmers to a maximum of 2.5 per cent of the sum insured, Currently, farmers have to pay premium ranging from per cent to insure crops. 1) 3 to 12 2) 5 to 15 3) 4 to 15 4) 2 to Which of the following is the first mortgage guarantee company in India? 1) Unit Trust of India 2) Life Insurance Corporation 3) General Insurance Corporation 4) National Housing Bank 5) None of the above 35. insurance is general insurance that covers common property under the management of a title or body corporate entity. 1) Residential, strata 2) Commercial, strata 3) Agriculture, crop 4) Medical indemnity, health 3 6. A is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the. 1) ULIP 2) Bancassurance 3) Term Insurance 4) Whole Life Insurance 3 7. Aam Admi Bima Yojana is an insurance scheme for rural landless households introduced by 1) LIC 2) UTI 3) ICICI 4) None of these 38. Government has issued an ordinance announcing ULIP as 'Insurance Product'. Who is now the regulator of ULIPs? 1. SEBI 2. IRDAI 3. Both 1 and 2 4. Government of India 5. None of these 39. Which among the following committee recommended the establishment of IRDA? 1) P.N. Mehrotra Committee 2) R.N. Malhotra Committee 3) D.R. Gadgil Committee 4) Rajmannr Committee 40. Who among the following is the current chairman of Insurance Regulatory & Development Authority of India? 1) J. Harinarayan 2) Rana Pratap 3) T.S. Vijayan 4) K.T.S. Tulsi 41. The entire general insurance business in India which was nationalised by General Insurance Business (Nationalisation) Act, (GIBNA). Downloaded From:

5 1) ) ) ) Which of the following is NOT an operating goal of an insurer? 1) Comply with legal requirements. 2) Concentrate risk. 3) Meet customer needs. 4) Earn a profit. 5) Fulfill its duty to society. 43. What are the three core functions that exist within a typical insurer? 1) Accounting, actuarial, and underwriting. 2) Actuarial, claims, and underwriting. 3) Accounting, marketing and distribution, and sales. 4) Claims, marketing and distribution, and underwriting. 5) Actuarial, marketing and distribution, and sales. 44. Which of the following errors is the most significant problem in measuring insurer profitability? 1) Errors in setting adequate rates. 2) Errors in estimating future investment returns 3) Errors in estimating loss reserves. 4) Errors in estimating sales growth. 5) Errors in classification of loss exposure units. 45. Which of the following is NOT a reason insurers are subject to governmental regulation? 1) Protect consumers against fraud. 2) Guarantee insurer profit. 3) Maintain insurer solvency. 4) Prevent unfair discrimination. 5) Protect consumers against unethical marketing behavior. 46. Which of the following is the primary reason insurer solvency is monitored by regulators? 1) Insurers hold large sums of money for the benefit of consumers. 2) Insurers are inherently financially unstable. 3) The cost of insurer insolvencies is shifted to taxpayers. 4) Solvency of insurers is easily measured without much cost. 5) The claims-paying ability of insurers can be analyzed by most consumers and businesses. 47. Which of the following are the three major goals of insurance rate regulation? 1) Ensure that rates are adequate, are not excessive, and are unfairly discriminatory. 2) Ensure that rates guarantee insurance company solvency, are affordable, and are not overly complex. 3) Ensure that rates do not allow insurers excessive or unreasonable profits, are high enough to pay all claims and expenses, and result in fair, consistent, and equitable charges among all i nsured groups. 4) Ensure that rates are not affected by competition, are not excessive, and are not discriminatory. 5) Ensure that rates are actuarially sound, are affordable to all, and are equitable. 48. Which of the following types of insurance customer is most likely to have the broadest choice of Downloaded From:

6 risk financing alternatives? 1) Individual.2) Professional partnership. 3) Small business. 4) Middle market account. 5) National account. 49. Which of the following are advantages of allowing qualified producers to handle certain types of claims? I. Lower loss adjustment expenses. II. Larger payments to claimants. III. Quicker service to policyholders. 1) I only. 2) I and II only. 3) I and III only. 4) II and III only. 5) I, II, and III. 50. Which of the following is the principal method of determining a prospect s insurance needs? 1) Having a conversation to determine what insurance coverage the prospect wants to purchase. 2) Performing a thorough risk management review of the prospect s loss exposures. 3) Selling the prospect as much coverage as it can afford, given its insurance purchasing budget. 4) Determining if the prospect s insurance needs can be placed in the standard market or placed in the residual market. 5) Determining which insurer offers the most attractive contingent commission arrangement for the prospect s desired coverage. 51. Which of the following does NOT determine the underwriting capacity of an insurer? 1) The volume of premiums written relative to the insurer s policyholders surplus. 2) Availability and cost of adequate reinsurance. 3) Regulatory guidelines. 4) Ability to generate an acceptable return on equity. 5) Standardized methods used to organize underwriting activities. 52. 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 53. 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 54. The Life Insurance Corporation Of India has how many Zonal offices in India? 1) Five 2) Eight 3) Ten 4) Fifteen 55. As per the news published in various newspapers, Life Insurance policies may become paperless in the near future. This means 1) LIC will not insure any person here after as it has already reached its peak 2) LIC will not ask for any documents from a person who wishes to purchase an Insurance policy 3) All policy related documents and policy certificates will henceforth be available in electronic form and not in their present physical Downloaded From:

7 4) LIC henceforth will not entertain any claim or complaint in written form or on paper. Things should be in electronic condition. 56. 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 57. 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 58. 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) 59. 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 60. The New India Assurance Company was established in 1919 by 1) Dorab Tata 2) G. D. Birla 3) Jamunalal BajaJ 4) Kamlapat Singhania 61. 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. 62. Which of the following actions must be taken by a line underwriter if policy limits on an application exceed the line underwriter s binding authority? 1) Seek approval from supervisory personnel within the underwriting department. 2) Accept the application but reclassify the loss exposure. 3) Accept the application and ignore binding authority restrictions. 4) Accept the application as a favor to the producing agent or broker. 5) Decline the application. 63. Numerous factors help shape an insurer s underwriting policy. Which of the following is NOT a constraint that would cause certain types of insurance or classes of business to be avoided? Downloaded From:

8 1) Reinsurance treaties exclude the business. 2) The insurer s personnel lack needed marketing and underwriting expertise. 3) Intense competition in the line of business would result in insufficient profit opportunities. 4) The underwriter is experiencing a high hit ratio on policies quoted. 5) Policy forms, rates, and rating plans are not available to the insurer at a reasonable cost. 64. COPE is an acronym describing a common tool used in underwriting the fire peril and other causes of loss to property. What does COPE stand for? 1) Conditions, Omissions, Perils, and Exclusions. 2) Construction, Occupancy, Protection, and External exposure. 3) Commercial, Operations, Production, and Entertainment. 4) Concealment, Omissions, Protection, and Exclusions. 5) Construction, Occupancy, Perils, and External exposure. 65. Which of the following policy provisions does NOT affect the determination of the amount an insurer is obligated to pay at the time of a covered loss to property? 1) The policy s coverage limit. 2) The insurable interest of all persons insured at policy inception. 3) The policy s deductible provisions. 4) The policy s coinsurance provisions. 5) The policy s provisions for establishing the value of the insured property. 66. Which of the following is NOT a characteristic of umbrella and excess liability insurance? 1) Each requires the insured to pay for losses equal to the self-insured retention or the deductible. 2) Each provides liability coverage in excess of the underlying policy limits. 3) Umbrella liability insurance provides coverage for gaps in the underlying policies but excess liability insurance does not. 4) Both umbrella and excess liability insurers must assume defense of a claim if the underlying insurer cannot due to its insolvency. 5) Loss frequency rather than loss severity is the primary concern in underwriting umbrella and excess liability insurance. 67. Which of the following is an ethical obligation insurers have with regard to using their superior knowledge of loss control and prevention? 1) Earn a profit. 2) Provide funds for government sponsored disaster relief programs. 3) Decline coverage for exposures that may have a loss. 4) Assist in preventing or reducing accidental losses. 5) Discourage risk-taking in business and personal activities. 68. Which of the following statements about premium auditing is true? 1) Premium auditing is verification of premium information included on an insurer s financial statements. 2) Premium auditing is a methodical examination of the insured s operations, records, and books of account to determine the actual exposure units and premiums for insurance to be provided in the next policy period. 3) Premium auditing is a regulatory function that determines if the insurer has paid the correct amount of premium taxes to the states in which it operates. Downloaded From:

9 4) Premium auditing is a methodical examination of the insured s operations, records, and books of account to assist in underwriting decision-making. 5) Premium auditing is a methodical examination of the insured s operations, records, and books of account to determine the actual exposure units and premiums for insurance already provided. 69. Which of the following is NOT a reason why accurate premium audits are important to the insurer? 1) Undetected premium audit errors may allow the insurer to retain premium overcharges and boost profits. 2) Incomplete or inaccurate premium audits cause costly extra work and a loss of efficiency. 3) Accurate premium audits assure equity in prices charged insured customers that present similar loss exposures. 4) Premium developed from premium audits is fully earned. 5) The insurer s cash flow depends on timely and accurate billing of auditable commercial insurance. 70. Which of the following is NOT included among an insurer s claim representatives? 1) Insurance agents and brokers. 2) Independent claim adjusters. 3) Public claim adjusters. 4) Managing general agents (MGAs). 5) Staff claim representatives. 71. Which of the following is NOT a reason that a court of law may find an insurer to be guilty of bad faith claim settlement practices if it has denied payment of a claim? 1) Failing, without legal cause, to fulfill a contractual promise. 2) Mishandling the claim resulting in financial detriment to the insured or third party claimant. 3) Failing to comply with the implied duty of good faith claim settlement. 4) Denying a claim for which coverage was neither provided nor intended in the contract of insurance. 5) Failing to deal with the claimant fairly and in good faith. 72. Which of the following insurance companies writes its punch line in the advertisements Insur ance 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 73 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 74. 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 75. 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 Downloaded From:

10 76. 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 77. Which of the following Insurance Companies was launched with NABARD as one of its promoter s with 30% stake in it? 1. General Insurance Corporation Ltd. 2. National Insurance Cornpany Ltd. 3. Agriculture Insurance Company Ltd, 4. SBI Life Insurance Company Ltd. 5. None of these 78. Which of the following correctly describes what the Bancassurance is 1. It is an arrangement whereby the branches of a bank sell / distribute insurance products of an insurance company. 2. It is a new product developed/ launched by the banks in which the risks of the high value customers are covered for any losses to their property and/or lives through an insurance cover. 3. It is a new product launched by some banks by which they are providing insurance cover to exporters/ importers for the losses, if any due to high fluctuations in the exchange rates of dollars and other major currencies. 1. Only 1 2. Only2 3. Only 3 4. All 1, 2 and 3 5. None of these 79. As per the news published in various newspapers, Life Insurance policies may become paperless in the near future. This means 1) LIC will not insure any person here after as it has already reached its peak 2) LIC will not ask for any documents from a person who wishes to purchase an Insurance policy 3) All policy related documents and policy certificates will henceforth be available in electronic form and not in their present physical 4) LIC henceforth will not entertain any claim or complaint in written form or on paper. Things should be in electronic condition. 80. 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. Downloaded From:

11 81. Which of the following insurance plan is not launched by LIC? 1) Jeevan Abhaya 2) Life Mahalife Gold Plan 3) Child Career Plan 4) Child Future Plan 5) Jeevan Saral 82. Which of the following is the best description of what insurance is? 1) Insurance = Collective bearing of risk 2) Insurance = Paying for other s mistake 3) Insurance = Taking from A to pay B 4) Insurance = Paying for something which will never happen 5) All of these 83. Which of the following should a claim representative do when deciding how thoroughly to investigate a claim? 1) Be sure the investigation has been thorough enough to satisfy a judge and jury that good faith claim handling procedures have been followed. 2) Comply with requirements of the Fair Credit Reporting Act by avoiding any access to the claimant s financial information. 3) Collect enough evidence to support denial of the claim. 4) Be sure to spend no more time on settling the claim than is considered standard by claim department guidelines. 5) Refer most claims to the insurer s special investigations unit (SIU). 84. Which of the following potential claimants does NOT have an insurable interest in property damaged or destroyed by a covered cause of loss? 1) An unsecured creditor of the property owner. 2) A person who leases the property from the owner. 3) Warehouse operators acting as custodians of the property. 4) Common carriers transporting the property. 5) Business partners holding property as owners in common. 85. Which of the following causes of loss are common carriers liable for when a shipper s goods are damaged? 1) By an act of God. 2) By theft while the property is in the care, custody, and control of the carrier. 3) By negligence of the shipper. 4) By some inherent defect or vice of the goods. 5) By exercise of public authority. 86. Betty Smith is an avid golfer. While teeing off at her golf club recently, she sliced her shot and hit her golfing partner, Susan Jones, in the face causing Susan to suffer a laceration, severe pain, and temporary loss of vision in one eye. Betty immediately contacted her insurance agent, reported the mishap, and inquired about coverage under her homeowners insurance policy. The agent in turn reported the claim to the insurance company. In settling the claim, which step would NOT be followed by the insurer s representative? 1) Identify the insurance policy covering Betty Smith. Downloaded From:

12 2) Acknowledge receipt of the claim to the agent. 3) Advise Susan not to contact an attorney. 4) Determine if the loss occurred during the policy period. 5) Document and file all information concerning the claim. 87. Which of the following is NOT a reason why reinsurance is purchased? 1) Reinsurance increases underwriting capacity. 2) Reinsurance reduces the number of claims incurred. 3) Reinsurance stabilizes loss experience. 4) Reinsurance may provide underwriting guidance. 5) Reinsurance provides catastrophe protection. 88. Which of the following is true regarding a facultative reinsurance contract? 1) The reinsurer is obligated to accept all loss exposures underwritten by the primary insurer. 2) The primary insurer must negotiate a separate agreement for each loss exposure it wants to reinsure. 3) The reinsurer agrees in advance to accept a set proportion of all loss exposures underwritten by the primary insurer. 4) Both the primary insurer and the reinsurer may cancel the contract at any time with sufficient notice. 5) Reinsurance protection continues as long as the primary insurer renews the insured s coverage. 89. Which of the following reinsurance programs is best suited for a primary insurer experiencing rapid premium growth in its personal auto insurance line of business? 1) Finite risk reinsurance. 2) Excess of loss treaty reinsurance. 3) Pro rata facultative reinsurance. 4) Quota share treaty reinsurance. 5) Per occurrence excess of loss treaty reinsurance. 90. Which of the following is the traditional and most commonly used system for compensating victims of auto accidents? 1) Pure no-fault system. 2) Absolute liability system. 3) Tort liability system. 4) Vicarious liability system. 5) Modified no-fault system. 91. Which of the following is the basic argument in favor of no-fault auto insurance systems currently used in the United States? 1) No-fault systems eliminate fraudulent claims. 2) No-fault systems offer rich benefits at lower overall cost. 3) No-fault systems offer unlimited medical benefits. 4) No-fault systems settle auto claims more quickly at lower cost. 5) No-fault systems eliminate all attorney involvement in auto injury cases. 92. Under which type of auto insurance arrangement are all auto insurers in a state required to issue policies and service their proportionate share of high-risk drivers based on the insurer s auto Downloaded From:

13 insurance premium written in the state? 1) Joint underwriting association. 2) Automobile insurance plan. 3) Unsatisfied judgment fund. 4) Reinsurance facility. 5) Specialty automobile plan. 93. Which of the following Insurance Companies was launched with NABARD as one of its promoter s with 30% stake in it? 1) General Insurance Corporation Ltd. 2) National Insurance Cornpany Ltd. 3) Agriculture Insurance Company Ltd, 4) SBI Life Insurance Company Ltd. 94. 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 95. All of the following is true regarding ULIPs EXCEPT: 1)Unit Holders acn choose between different kind of funds. 2) Life insurers provide Guarantee for all unit values. 3)Units may be purchased by payment of single premium or via regular premium payments. 4)ULIP policy structure is transparent with regards to insurance expenses components. 96. Insurance business in India is regulated by which of the following authorities? 1) NFCG 2) IRDA 3) CII 4) FICCI 5) All of these 97. 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 98. 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 99. Which of the following insurance plan is not launched by LIC? 1) Jeevan Abhaya 2) Jeevan Saral 3) Child Career Plan 4) Child Future Plan 5) Life Mahalife Gold Plan 100. Which of the following terms is Not used in the world of finance, banking and insurance? 1) Amnesty 2) Devaluation 3) Hard currency 4) Preference share 5) Sinking fund Downloaded From:

14 101. How many maximum children from a family are covered for the benefits under the Shiksha Sahyog Yojana launched by the LIC? 1) One only 2) Two only 3) Three only 4) One Girl Child only 102. Which of the following schemes launched in the year 2000 by the LIC replaced social Securitty group Insurance Schemes (SSIGS) and Rural Group Life Insurance Schemes (RGLIS)? 1) Janshree Bima Yojana 2) Bhagyashree Child Welfare Bima Yojana 3) Jan Arogya Bima Yojana 4) Raj Rajeshwari Mahila Kalyan Yojana 103. 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 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 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 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 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. Downloaded From:

15 108. 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) 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 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, 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 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 Which of the following Scheme was launched by the LIC to provide life insurance protection, perodical lumpsum survival benefit and pension to the agricultural workers in India? 1) Krishi Shramik Samajik Suraksha Yojana 2) Jan Shree Bima Yojana 3) Mahila Kalyan Yojana 4) Sampurna Arogya Bima Policy 114. Insurance company transfers the insurance which cannot bear by them to which of the following? 1)TPAs 2)Bancassurance 3)Reinsurance 4)Actuaries 115. Which of the following is customer of a Reinsurer? 1)Insurance Companies 2)High Networth Individual 3)Licenced Insurance Agents 4)NGOs Downloaded From:

16 116. 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 117. Investment by foreign direct investors in to Insurance companies is restricted to what percent? 1)22% 2)24% 3)30% 4)26% 118. 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 119. 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 120. A missing person is considered to be dead after how many years of missing? 1)3years 2)5years 3)15 years 4)7years 121. 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 122. MWP- If the policy is endorsed under MWP then the beneficiaries are wife and? 1)ex-wife 2)children 3)mother 4)parents 123. How is complaint to be launched with an insurance ombudsman? 1)Made face to face 2)made in writing 3)through newspaper advertisement 4)orally over the phone 124. Which Insurance Company started its operation in the year in which India got Independence? 1)UIICL 2)GIC 3)LIC 4)OICL 125. Who was the actual Pioneer of LIC? 1)Debendranath Tagore 2)S.K.Roy. 3)Surendranath Tagore 4)A.K.Roy Who among the following was appointed as member(actuary) in Insurance Regulatory Authority of India (IRDA) recently? 1)Pournima Gupte 2)Pournima Sarkar 3) Jyotsna Suri 4) None of these 127. GIC was incorporated in the year? 1) ) ) ) NIACL s pioneer was: Downloaded From:

17 1) Sir Jamshedji Tata 2) Sir Dorabji Tata 3) Sir Ratan Tata 4)None of these 129. What does the term Actuary stands for in Insurance: 1) A specialist in Insurance claimsettlement 2) A specialist in insurance marketing 3) A specialist in Insurance calculations 4) None of this 130. 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 Which is not a part of Life insurance? 1) Endowment 2) Term 3) Priority 4) Annuity 132. Prithvi Agni Jal Akash,Sab ki suraksha humare pas this tagline is associated with: 1.NICL 2.OICL 3.DHFL 4.NIACL 133. General Insurance(Public Sector) Association of India s HQ is situtated in? 1)Telengana 2)Mumbai 3)Delhi 4)Chennai 134. IIB stands for: 1)International Insurance Board 2)Intellectual Insurance Board 3)Insurance Information Bureau 4)NONE 135. India s Agricultural Insurer is: 1.NABARD 2.GIC 3.KIshan Bima Sanstha 4.AIC 136. RTI facility is not completely applicable in: 1)ICICI Lombard General Insurance Company 2)Export Credit Guarantee Corporation 3)United India Insurance Company 4)None Of these 137. IRDA has the power to frame the regulations under of the Insurance Act )Section 112A 2)Section 114A 3)Section 114B 4)None of these 138. Parliament passed a bill delinking its 4 General insurance subsidaries in: 1)June )August )July )July Tsunami Jan Bima Yojona was a special insurance plan associated with: 1)UIICL 2)LIC 3)GIC 4)NICL 140. NIACL was started in the year: 1)1938 2)1947 3)1973 4) The Chairman of Agricultural Insurance Company of India is: Downloaded From:

18 1)Mr.Millind Kharat 2)Mr. Joseph Plappallil J. 3)Mr.G.Srinivasan 4)Mr.K.P.Brahma 142. Rest Assured with us This tagline is associated with: 1)SBI Life Insurance 2)NIACL 3)Kotak Mahindra Life Insurance 4)UIICL 143. Which of the following insurance companies is the sole reinsurer in the domestic reinsurance market in India? It provides reinsurance to the insurance companies. 1) National Insurance Company Limited 2) General Insurance Corporation of India 3) The New India Assurance Company Limited 4) The Oriental Insurance Company Limited 5) United India Insurance Company Limited 144. Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates and develops the insurance industry in India. Which of the following statements is/are correct about IRDA? 1) It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, ) The agency operates from its headquarters at Hyderabad in Andhra Pradesh where it shifted from Delhi in ) It works to bring about speedy and orderly growth of the insurance industry, protect the interest of policyholders and put in place effective grievance redressal machinery. 4) Only 1) and 2) 5) All 1), 2) and 3) 145. Jeevan Anand is an insurance policy of Life Insurance Corporation of India (LIC). It is which of the following types of plan? 1) It is a unit-linked basic insurance plan. 2) It is a pension plan. 3) It is a whole-life plan. 4) It is a group gratuity scheme Which of the following is NOT one of the schemes offered by the LIC? 1) Jeevan Saral 2) Jeevan Arogya 3) Jeevan Bharati 4) Jeevan Mitra 5) All the above policies are offered by LIC Life Insurance Corporation of India provides its policy holders the facility to deposit premium at which of the following intervals? 1) Yearly 2) Half-Yearly 3) Quarterly 4) Monthly (through ECS) 5) All the above 148. Consider the following statements with respect to Unit Linked Insurance Plans (ULIPs) offered by insurance companies in India: (A) A ULIP plan is basically a combination of insurance and investment products where the investor gets the benefits of insurance as well as investment. (B) The fund collected under ULIP is used to invest in various market instruments (debt and equity) in varying proportions just the way it is done in mutual funds. (C) LIC Samridhi Plus is a ULIP plan offered by LIC. Which of the above statements is/are correct? 1) Only (A) 2) Only (B) 3) Only (A) and (B) 4) Only (A) and (C) 5) All (A), (B) and (C) Downloaded From:

19 149. Which of the following terms is NOT associated with insurance? 1) Annuity 2) Actuary 3) Death Benefit 4) Hotlisting 5) Rider 150. Which of the following statements defines the Net Asset Value (NAV) in the context of ULIP plans offered by insurance companies? 1) ULIP policy holders are allotted units, and each unit carries a value called NAV, which is de clared on a daily basis. 2) NAV is valuebased on which the net rate of returns on ULIPs are determined. The NAV varies from one ULIP to another based on market conditions and the fund s performance. 3) Policy holders have an option to lock and unlock the NAV any time during the policy tenure to ascertain the maximum return. 4) Only 1) and 2) 5) All 1), 2) and 3) 151. The Forward Market Commission (FMC), the regulatory authority for commodity future market, is a 1) Constitutional Body 2) Quasi-Judicial Organization 3) Statutory Body 4) Advisory Body 5) Consultative Body 152. NAV stands for 1) Nominal Average Value 2) National Average Value 3) Net Asset Value 4) Net Asset Volume 5) Net Average Value 153. "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 154 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 155. 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 156. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called? 1) Instalment 2) Contribution 3) Premium 4) EMI 157. Which of the following public sector companies/organizations provides insurance cover to exporters? 1) ECGC 2) NABARD 3) SIDBI 4) IRDA 158. With which of the fields is actuarial science associated? 1) Insurance 2) Banking 3) Micro-finance 4) Space technology 159. Expand the term IFRS. Downloaded From:

20 1) Indian Financial Reporting Standards 2) Indian Financial Reporting Systems 3) International Financial Reporting Standards 4) International Financial Reporting Systems 160. 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 161. 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 162. 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 163. Under the ESOP, who of the following are offered shares in the company? 1) Employees 2) Existing Shareholders 3) Promoters 4) NRIs 164. State financial Corporations give assistance mainly to develop which of the following? 1) Small and medium scale industries 2) Agricultural sector 3) Cotton industry 4) Large scale industries 165. Which of the following is the regulator of the credit rating agencies in India? 1) RBI 2) SBI 3) SEBI 4) ICRA 166. Which of the following terms is NOT related to the insurance sector? 1) Indemnity 2) Coverage 3) Misuse Alert 4) Annuity 167. 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 168. On which one of the following issues can SEBI penalize any company in India? (a) Violation of Banking Regulation Act (b) Violation of foreign portfolio investment guidelines (c) For violation of Negotiable Instrument Act 1) Only (a) 2) Only (b) 3) Only (c) 4) All the three 169. Which of the following is NOT a part of India s money market? 1) Bill market 2) Call money market 3) Banks 4) Indian Gold council 170. Fiscal policy is concerned with which of the following? Downloaded From:

21 1) Export and import 2) Public revenue and expenditure 3) Issue of currency 4) Population control 171. Foreign exchange reserves of India are kept in the custody of which of the following? 1) Reserve Bank of India 2) All public sector banks 3) Foreign banks in India 4) Government treasury 172. Expand the term CCEA as used in administrative circles 1) Cabinet Committee on External Affairs 2) Cabinet Committee on Economic Affairs 3) Cabinet Council on External Affairs 4) Cabinet Council on Economic Affairs Answers: Downloaded From: