Insurance Multiple Choice Question MCQ
Categories: OTHERS EDUCATION
Ques 1. A nomination can be made only in favour of ________________ a. a bank b. spouse and children with guardian c. spouse and minor children d. parents, spouse and children e. any individual Ans. e Ques 2. Select the expanded form of SA as commonly used in life insurance a. Sum Assured b. Surrender of Assurance c. Supplementary Assurance d. Stamp Act e. Survivor’s Annuity Ans. a Ques 3. Select the expanded form of OR as commonly used in life insurance a. Oral Rehydration b. Once Renewed c. Ordinary Rates d. Ordinary Renewal e. Ombubsman’s Assurance Ans. c Ques 4. Select the expanded form of SV as commonly used in life insurance a. Summary Valuation b. Selected Value c. Surrender Value d. Stamp Value e. Survivor Value Ans. c Ques 5. Which of the following terms matches closest with ‘Automatic Teller Machines’? a. Divisional Offices b. Branch Offices c. Agents d. Information Kiosks e. Interactive Voice Response Systems Ans. d Ques 6. Which of the following terms matches closest with ‘Foreclosure’? a. Surrender Value b. Nominee c. Death Claim d. Maturity Claims e. Bonus Ans. a Ques 7. Find out which of the given statements is incorrect a. An organisation must have a purpose b. An organisation is identified by its actions c. An organisation is identified by the building it occupies d. A organisation can sue and be sued e. A organisation can own assets Ans. c Ques 8. Find out which of the given statements is incorrect a. Accounts department has to monitor cash flow from subordinate offices b. Marketing department has to monitor business inflow c. Marketing department has to monitor performance of agents d. Actuarial department is responsible for settling death claims e. Underwriting department has to assess risk and determine premium Ans. d Ques 9. Which of the following terms is dissimilar to the other four in the context of insurable interest in life insurance? a. Employer b. Creditor c. Surety d. Employee Ans. e Ques 10. Which of the following terms is dissimilar to the other four in the context of death claims in life insurance? a. Early claims b. Non-early claims c. Foreclosure d. Claimant’s statement e. Deeds of Assignment Ans. c Ques 11. As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of: a. Age and sex b. Age and number of dependents c. Income and size of family d. Age and income e. Income and number of dependents Ans. d Ques 12. As per the Insurance Act, every insurer has to prepare at the end of financial year a. Balance Sheet b. Profit and Loss Account c. Revenue Account for each class of Insurance business d. Accounts of receipts and payments in respect of share-holders’ funds e. All of the above Ans. e Ques 13. The Third Party Administrator’s role mainly involves a. Canvassing business for the insurer. b. Issuing documents on behalf of the insurer c. Arranging for reinsurance d. Sending renewal notices e. Checking and paying insurance claims Ans. e Ques 14.Time Policies relate to: a. Fire insurance b. Hull insurance c. Personal Accident insurance d. Workmen’s Compensation insurance e. Motor vehicles insurance Ans. b Ques 15. Which clause specifies the perils insured in a scheduled form of policy? a. Preamble Clause b. Recital Clause c. Operative Clause d. Consideration Clause e. Attestation Clause Ans. c Ques 16. Which of the following types of insurances is mandatory? a. Motor Own Damage b. Motor Third Party Legal Liability c. Personal Accident Insurance d. Product Liability e. Professional Liability Ans. b Ques 17. The minimum paid up capital required for a General Insurance Company is Rs. ____ a. 25 crores b. 50 crores c. 75 crores d. 100 crores e. 200 crores Ans. d Ques 18. In ‘Hit and Run’ cases, claims are settled from _______ a. Solatium Fund b. IRDA’s contingency Fund c. Insuring Company’s reserves d. Motor Third Party Pool e. State Government’s funds. Ans. a Ques 19. Select the expanded form of FPA as used in insurance a. Freight Payable Assured b. Free of Particular Average c. Fire Perils Added d. Fixed Peripherals Added Ans. b Ques 20. Select the expanded form of ALOP used in insurance a. Advance Loss of Profits insurance b. Agreed Loss of Profits insurance c. Additional Loss of Profits insurance d. Associated Loss of Profits insurance e. Authorised Loss of Profits insurance Ans. a