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1. The Life Insurance Companies Act was passed in b. 176

which year? c. 245
a. 1919 d. 125
b. 1912 e. None of these
c. 1900 5. The central office of the Life Insurance
d. 1902 Corporation of India (LIC) is located at?
e. None of these a. Kolkata
2. The Life Insurance Corporation of India (LIC) b. New Delhi
came into existence in which year? c. Chennai
a. 1962 d. Pune
b. 1949 e. Mumbai
c. 1956 6. In which year, the Indian Life Assurance
d. 1947 Companies Act came into force ?
e. None of these a.1910
3. The Life Insurance Business in India was b.1932
nationalized in which year? c.1920
a. 1956 d.1912
b. 1949 e. None of these
c. 1938 7. In which year New India Assurance Co Ltd was
d. 1962 found?
e. None of these a. 1918
4. How many insurance companies were merged to b. 1818
form the Life Insurance Corporation of India? c. 1919
a. 200 d. 1945
Page 1 of 92
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e. None of these 12. Which among the following is the first Indian
8. What percent shares of New India Assurance Co life insurance company to begin operations in India?
Ltd is owned by Government of India? a. Bombay Mutual Life Assurance Society
a. 50% b. Empire of India Life Assurance Company
b. 85% c. Albert Life Assurance
c. 99.4% d. Royal Insurance
d. 100% e. None of these
e. None of these 13. Which among the following is the oldest existing
insurance company in India?
9. In which year New India Assurance Co Ltd a. National Insurance Company
nationalized? b. Life Insurance Corporation of India
a. 1945 c. New India Assurance Company
b. 1947 d. United India Insurance Company
c. 1973 e. None of these
d. 1969 14. Name the first General Insurance Company in
e. None of these India?
10. The life insurance business in India was first a. ECGC Ltd
started in which year? b. United India Insurance Company Limited
a. 1827 c. Indian Mercantile Insurance Ltd
b. 1845 d. Triton Insurance Company Ltd
d. 1832 15. The Insurance Act to govern both life insurance
e. None of these and non-life insurance was passed in which year?
11. Name the first life insurance company to a. 1929
function in India? b. 1938
a. United India Insurance Company c. 1949
b. Bombay Mutual Life Assurance Society d. 1934
c. Agriculture Insurance Company of India e. None of these
d. Oriental Life Insurance Company 16. The General Insurance Business in India was
e. None of these nationalized in which year?
Page 2 of 92
a. 1951 c. 1936
b. 1962 d. 1949
d. 1949 21. The General Insurance Corporation of India
e. None of these (GIC) was notified as the Indian Reinsurer in which
17. IRDAI Act was passed in which year by the year?
Government of India? a. 2014
a. 1992 b. 1987
b. 2002 c. 1999
c. 2000 d. 2000
d. 1999 e. None of these
e. None of these 22. Which of the following is the first life insurance
18. The IRDAI was incorporated as a statutory body company in India?
on? a. United India Insurance
a. 30 April 2001 b. Oriental Insurance
b. 01 July 2002 c. LIC
c. 31 December 1999 d. New India Assurance
d. 19 April 2000 e. None of these
e. None of these 23. In 1818, India’s first insurance company
19. How many public sector life insurance Oriental Life Insurance Company has established in
companies are functional in India? which city?
a. 1 a. New Delhi
b. 2 b. Mumbai
c. 3 c. Kolkata
d. 4 d. Pune
e. None of these e. None of these
20. The Indian Insurance Companies Act was 24. Which insurance company is the first general
enacted in which year? insurance company in India ?
a. 1912 a. The Oriental Insurance Company
b. 1928 b. GIC Re
Page 3 of 92
c. New India Assurance e. None of these

d. Triton Insurance Company Ltd 29. Which act was the first legislation governing all
e. None of these forms of insurance to provide strict state control
25. In which year the General Insurance Business over insurance business?
Nationalization Act was passed in India? 1. Insurance Act of 1938
a.1972 2. General Insurance Business Act of 1972
b.1980 3. Life Insurance Corporation Act
c.1991 4. Insurance Act of 1988
d.1985 5. None of these
e. None of these 30. In which year, the Actuaries Act was passed by
26. The Insurance Act has __________sections and Indian government?
______ schedules. a. 2000
a.10, 100 b. 2006
b.8, 120 c. 1999
c.120, 8 d. 1985
d.17, 110 e. None of these
e. None of these 31. The Indian insurance industry is governed by
27. Which of the following is the biggest non-life which of the following act ?
insurer in the entire Afro-Asia region ? a. IRDA Act 1999
a. Life Insurance Corporation of India b. Life Insurance Corporation Act, 1956
b. General Insurance Company c. General Insurance Business (Nationalization) Act,
c. United India Insurance Company 1972
d. New India Assurance d. Insurance Act, 1978
e. None of these e. All of these
28. Insurance is listed in which schedule of the 32. The Oriental Insurance Company Ltd was
Indian constitution ? founded in which year?
a. Eighth Schedule a. 1929
b. Sixth Schedule b. 1952
c. Seventh Schedule c. 1938
d. Fifth Schedule d. 1947
Page 4 of 92
e. None of these 37. The General Insurance Corporation of India

33. The General Insurance Corporation of India (GIC) was incorporated as a private company under
(GIC. was converted into a national re-insurer in which act?
which year? a. Insurance Act 1938
a. 1995 b. General Insurance Business (Nationalization) Act,
b. 2000 1972
c. 2014 c. Companies Act, 1956
d. 1999 d. Insurance Regulatory and Development Authority
e. None of these Act, 1999
34. How many companies were merged to form the e. None of these
United India Insurance Company (UIIC)? 38. Where is the headquarters of Religare Health
a. 12 Insurance Company Limited located?
b. 19 a. New Delhi
c. 22 b. Chennai
d. 20 c. Gurgaon
e. None of these d. Mumbai
35. The General Insurance Business e. None of these
(Nationalization) Amendment Act was passed in 39. The New India Assurance Company Ltd is what
which year? type of company?
a. 2000 a. General Insurance Company
b. 2002 b. Life Insurance Company
c. 1999 c. Pension Regulator
d. 1998 d. Asset Reconstruction Company
e. None of these 40. The United India Insurance Company (UIIC)
36. GIC was founded on? Limited was incorporated on?
a. 1 July 1938 a. 31 December 1919
b. 31 January 1994 b. 25 January 1946
c. 25 April 1959 c. 18 February 1938
d. 22 November 1972 d. 09 March 1952
Page 5 of 92
41. UIIC was nationalized in which year? b. Section 3C(11)

a. 1956 c. Section 1(11)
b. 1972 d. Section 4A(11)
d. 2000 46. The Agriculture Insurance Company of India
e. None of these Limited (AIC) was set up in which year?
42. The Oriental Insurance Company Limited was a. 1982
incorporated in which year? b. 1999
a.15 July 1938 c. 2002
b. 30 April 1942 d. 2014
c. 21 January 1954 e. None of these
d. 12 September 1947 47. Which country is the first in the world to
e. None of these introduce the concept of Insurance Repository
43. The Agriculture Insurance Company Of India services?
Limited was incorporated on? a. India
a. 6 August 1999 b. United States
b. 29 October 1997 c. United Kingdom
c. 12 February 2000 d. France
d. 20 December 2002 e. None of these
e. None of these 48. Which of the following is the first Indian Life
44. The insurance law in India has its origin from Insurance Company established in India?
which country? a. Oriental Life Insurance Company
a. France b. Bombay Mutual Life Assurance Company
b. United Kingdom c. Life Insurance Corporation
c. United States d. Empire of India
d. Russia e. None of these
e. None of these 49 . The headquarters of LIC is located in?
45. The Life Insurance Business is defined in which a. Mumbai
section of the Insurance Act, 1938? b. Chennai
a. Section 2(11) c. Pune
Page 6 of 92
d. Hyderabad Answer
e. None of these
50. Which government body regulates Insurance
Industry?
a. NFCG
b. IRDAI
c. CII
d. FICCI
e. None of these
51. The headquarters of IRDAI is located in?

a. Mumbai
b. Chennai
c. Pune
d. Hyderabad
e. None of these
52. The headquarters of National Insurance
Company Ltd (NIC)is located in?
a. Mumbai
b. Chennai
c. Pune
d. Kolkata
e. None of these
53. The headquarters of New India Assurance is
located in?
a. Mumbai
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b. Chennai c. Pune
c. Pune d. Hyderabad
d. Hyderabad e. None of these
e. None of these 58. The headquarters of General Insurers Public
54. The headquarters of United India Insurance Ltd Sector Association of India (GIPSA) is situated in ?
is located in? a. New Delhi
a. Mumbai b. Bengaluru
b. Chennai c. Mumbai
c. Pune d. Kolkata
d. Hyderabad e. None of these
e. None of these 59. The head office of Insurance Institute of India is
in ?
55. The headquarters of Oriental Insurance a. Mumbai
Company is located in? b. Bengaluru
a. Mumbai c. Chennai
b. New Delhi d. New Delhi
c. Pune e. None of these
d. Hyderabad 60. National Insurance Academy is located in which
e. None of these city of India?
56. The headquarters of Agriculture Insurance a. Pune
Company is located in? b. Ahmedabad
a. Mumbai c. Bengaluru
b. New-Delhi d. Kolkata
d. Hyderabad 61. The Institute of Insurance and Risk
e. None of these Management is located in?
57. The headquarters of Export Credit Guarantee a. Chennai
Corporation of India is located in? b. Mumbai
a. Mumbai c. New Delhi
b. New-Delhi d. Hyderabad
Page 8 of 92
e. None of these 66. Where is the headquarters of Birla Sun Life

62. The sole national re-insurer of India, General Insurance Co. Ltd located?
Insurance Corporation of India (GIC Re) has its a. Mumbai
headquarter at? b. Chennai
a. New Delhi c. Pune
b. Mumbai d. Bengaluru
c. Kolkata 67. Where is the headquarters of PNB Metlife India
d. Chennai Insurance Co. Ltd. located?
e. None of these a. Pune
63. Where is the headquarters of Bajaj Allianz Life b. Mumbai
Insurance Co. Ltd. Located? c. Chennai
a. Mumbai d. Bengaluru
b. Gurugram e. None of these
c. Pune 68. Where is the headquarters of HDFC Standard
d. Bengaluru Life Insurance Co. Ltd located?
e. None of these a. Mumbai
64. Where is the headquarters of Exide Life b. Pune
Insurance Co. Ltd. located? c. Gurgaon
a. Mumbai d. Bengaluru
b. New Delhi e. None of these
c. Gurgaon 69. Where is the headquarters of Tata AIA Life
d. Bengaluru Insurance Co. Ltd. located?
e. None of these a. Mumbai
65. Where is the headquarters of SBI Life Insurance b. Hyderabad
Co. Ltd located? c. Pune
a. Ahmedabad d. Bengaluru
b. Jaipur e. None of these
c. Mumbai 70. Where is the headquarters of ICICI Prudential
d. Pune Life Insurance Co. Ltd located?
e. None of these a. New Delhi
Page 9 of 92
b. Pune c. Gurgaon
c. Mumbai d. Bengaluru
d. Gurgaon e. None of these
e. None of these 75. Where is the headquarters of Max Life
Insurance Co. Ltd located?
71. Where is the headquarters of Reliance Nippon a. Mumbai
Life Insurance Co. Ltd. located? b. Chennai
a. Mumbai c. Gurgaon
b. Jaipur d. Bengaluru
d. Bengaluru 76. Where is the headquarters of IDBI Federal Life
e. None of these Insurance Co. Ltd. located?
72. Where is the headquarters of Kotak Mahindra a. Mumbai
Old Mutual Life Insurance Co. Ltd located? b. Chennai
a. New Delhi c. Jaipur
b. Jaipur e. Bengaluru
d. Mumbai 77. Where is the headquarters of Bharti AXA Life
e. None of these Insurance Co. Ltd. located?
73. Where is the headquarters of Aviva Life a. Ahmedabad
Insurance Company India Limited located? b. Jaipur
a Mumbai c. Mumbai
b. Agra d. Hyderabad
c. Gurgaon e. None of these
d. Lucknow 78. Where is the headquarters of Canara HSBC
e. None of these Oriental Bank of Commerce Life Insurance Co. Ltd.
74. Where is the headquarters of Shriram Life located?
Insurance Co. Ltd. located? a. New Delhi
a. Lucknow b. Chennai
b. Hyderabad c. Hyderabad
Page 10 of 92
d. Bengaluru 83. Where is the headquarters of DHFL Pramerica

e. None of these Life Insurance Co. Ltd. located?
79. Where is the headquarters of Future Generali a. Mumbai
India Life Insurance Co. Ltd. located? b. Hyderabad
a. New Delhi c. Gurgaon
d. Mumbai 84. Where is the headquarters of IFFCO Tokio
e. None of these General Insurance Co. Ltd. located?
80. Where is the headquarters of Sahara India Life a. New Delhi
Insurance Co. Ltd. located? b. Gurgaon
a. New Delhi c. Pune
b. Lucknow d. Mumbai
c. Mumbai e. None of these
e. Gurgaon 85. Where is the headquarters of Royal Sundaram
e. None of these General Insurance Co. Limited located?
81. Where is the headquarters of AEGON Life a. Gurgaon
Insurance Co. Ltd. located? b. Agra
a. Pune c. Chennai
b. Mumbai d. Lucknow
c. Chennai e. None of these
d. Lucknow 86. Where is the headquarters of Cholamandalam
e. None of these MS General Insurance Co. Ltd. located?
82. Where is Indian Institute of Banking and a. Chennai
Finance (IIBF) located? b. Pune
a. Pune c. Gurgaon
b. Mumbai d. Bengaluru
c. Bengaluru e. None of these
d. Jaipur 87. Where is the headquarters of Apollo Munich
e. None of these Health Insurance Company Limited located?
Page 11 of 92
a. Gurgaon c. Pune
b. New Delhi d. Bengaluru
c. Chennai e. None of these
d. Lucknow 92. Where is the headquarters of Star Union Dai-
e. None of these ichi Life Insurance Co. Ltd. located?
88. Where is the headquarters of HDFC ERGO a. Mumbai
General Insurance Co. Ltd. located? b. Jaipur
a. Ahmedabad c. Pune
c. Mumbai e. None of these
d. Hyderabad 93. Where is the headquarters of Edelweiss Tokio
e. None of these Life Insurance Co. Ltd. located?
89. Where is the headquarters of Max Bupa Health a. New Delhi
Insurance Company Ltd. located? b. Lucknow
a. New Delhi c. Mumbai
b. Gurgaon d. Gurgaon
d. Mumbai 94. “We know Healthcare” is the tagline of?
e. None of these a. LIC
90. Where is the headquarters of Star Health and b. Apollo Munich
Allied Insurance Company Limited located? c. UIICL
a. New Delhi d. Oriental Insurance
b. Chennai e. None of these
c. Hyderabad 95. “You Focus on Exports. We recover the risks.”is
d. Mumbai the tagline of which insurance company?
e. None of these a. LIC
91. Where is the headquarters of Universal Sompo b. New India Assurance
General Insurance Co. Ltd. located? c. National Insurance
a. Mumbai d. ECGC
b. Jaipur e. None of these
Page 12 of 92
96. “Zimmedarikahumsafar” is the tagline of which 100. “THODA SIMPLE SOCHO” is the tagline of
insurance company? which insurance company?
a. SBI Life a. LIC
b. ICICI Prudential Life b. New India Assurance
c. National Insurance c. National Insurance
d. ECGC d. Oriental Insurance
97. “Rest Assured with Us” is the tagline of which
insurance company?
a. LIC
b. New India Assurance
c. UIICL
d. Oriental Insurance
e. None of these
98. Answer
“SampannBharathkipehchan,BeemithPhasalKhusal
Kisan”is the tagline of which insurance company?
a. LIC
c. National Insurance
d. Agricultural Insurance
e. None of these
99. “With Us, You’re Sure” is the tagline of which
insurance company?
a. SBI Life
c. National Insurance
d. ECGC
e. None of these 101. “Leadership and Beyond” is the tagline of
which insurance company?
Page 13 of 92
a. LIC 105. What is the insurance of commercial property

b. New India Assurance that protects the property from such perils as fire,
c. UIICL theft and natural disaster?
d. Oriental Insurance a. Personal Insurance
e. None of these b. Commercial Insurance
102. “Prithvi, Agni, Jal, Akash, c. Industrial Insurance
SabkiSurakshaHamarePaas” is the tagline of which d. Liability Insurance
insurance company? e. None of these
a. LIC 106. Coverage for bodily injury and property
b. New India Assurance damage incurred through ownership or operation of
c. National Insurance a vehicle is called?
d. Oriental Insurance a. Personal Insurance
e. None of these b. Commercial Insurance
103. “YogakshemamVahamyaham” is the tagline of c. Industrial Insurance
which insurance company? d. Automobile Liability Insurance
a. LIC e. None of these
b. New India Assurance 107. What is a type of reinsurance in which the re-
c. UIICl insurer can accept or reject any risk presented by
d. Oriental Insurance an insurance company seeking reinsurance ?
e. None of these a. Treaty Insurance
104 . What is the insurance of human life values b. Health Insurance
against the risks of death, injury, illness or against c. Facultative Insurance
expenses incidental to the latter? d. None of the Above
a. Personal Insurance e. None of these
b. Commercial Insurance 108. __________ in insurance is the splitting or
c. Industrial Insurance spreading of risk among multiple parties.
d. Liability Insurance a. Reinsurance
e. None of these b. Coinsurance
c. Blanket Assign
d. Blanket Bond
Page 14 of 92
e. None of these b. Hull Insurance

109. Commercial coverage against losses resulting c. Group Insurance
from the failure of business debtors to pay their d. Theft Insurance
obligation to the insured, usually due to insolvency e. None of these
is termed as? 113. The result of the policyholder’s failure to buy
a. Credit Insurance sufficient insurance is termed as?
b. Contingent Liability a.. Hospital Insurance
c. Contractual Liability b. Hull Insurance
d. Convertible c. Under Insurance
e. none of these d. Title Insurance
110. A coverage that protects businesses engaged in e. None of these
electronic commerce from losses caused by hackers 114. Insurance that indemnifies the owner of real
is termed as? estate in the event that his or her clear ownership of
a. Hospital Insurance property is challenged by the discovery of faults in
b. Hull Insurance the title is called?
c. Hacker Insurance a. Hospital Insurance
d. Identity theft Insurance b. Hull Insurance
e. None of these c. Group Insurance
111. A single policy covering a group of individuals, d. Title Insurance
usually employees of the same company or members e. None of these
of the same association and their dependents is 115. A standing agreement between insurers and re-
called? insurers. Under a treaty each party automatically
a. Hospital Insurance accepts a specific percentage of the insurer’s
b. Hull Insurance business is termed as?
c. Group Insurance a. Catastrophe Reinsurance
d. Identity theft Insurance b. Excess of Loss Reinsurance
e. None of these c. Facultative Reinsurance
112. Coverage against loss through stealing by d. Treaty Reinsurance
individuals not in a position of trust is called? e. None of these
a. Hospital Insurance
Page 15 of 92
116. A form of reinsurance that indemnifies the d. Term Insurance

ceding company for the accumulation of losses in e. None of these
excess of a stipulated sum arising from a single 120. ________ is reinsurance for a single risk or a
catastrophic event or series of events is termed as? defined package of risks.
a. Catastrophe Reinsurance a. Catastrophe Reinsurance
b. Excess of Loss Reinsurance b. Excess of Loss Reinsurance
c. Facultative Reinsurance c. Facultative Reinsurance
d. Treaty Reinsurance d. Treaty Reinsurance
117. A type of reinsurance in which the re-insurer 121. A type of insurance often used for high
indemnifies the ceding company for losses that frequency low severity risks where risk is not
exceed a specified limit is called? transferred to an insurance company but retained
a. Catastrophe Reinsurance and accounted for internally is known as?
b. Excess of Loss Reinsurance a. Hospital Insurance
c. Facultative Reinsurance b. Hull Insurance
d. Treaty Reinsurance c. Group Insurance
e. None of these d. Self-Insurance
118. What is a form of non-proportional e. None of these
reinsurance? 122. A form of life insurance coverage payable to a
a. Catastrophe Reinsurance third party lender/mortgagee upon the death of the
b. Excess of Loss Reinsurance insured/mortgagor for loss of loan payments is
c. Facultative Reinsurance termed as?
d. Treaty Reinsurance a. Hospital Insurance
e. None of these b. Renewable Term Insurance
119. What is a type of life insurance policy that c. Mortgage Insurance
provides coverage for a certain period of time, or a d. Multi-Peril Insurance
specified “term” of years? e. None of these
a. Catastrophe Reinsurance 123. Which Insurance is a compulsory insurance
b. Excess of Loss Reinsurance plan administered by a government agency with the
c. Facultative Reinsurance primary emphasis on social adequacy?
Page 16 of 92
a. Hospital Insurance 127. Insurance that is renewable for a limited

b. Hull Insurance number of successive terms by the policyholder and
c. Group Insurance is not contingent upon medical examination is
d. Social Insurance called?
e. None of these a. Hospital Insurance
b. Renewable Term Insurance
124. A generic term applying to all types of c. Group Insurance
insurance indemnifying or reimbursing for losses d. Social Insurance
caused by bodily injury or illness including related e. None of these
medical expenses is called? 128. A policy purchased by, for the benefit of, a
a. Health Insurance business insuring the life or lives of personnel
b. Renewable Term Insurance integral to the business operations is called?
c. Key-Person Insurance a. Hospital Insurance
d. Multi-Peril Insurance b. Renewable Term Insurance
e. None of these c. Key-Person Insurance
125. Which is liability coverage for contents within a d. Multi-Peril Insurance
renter’s residence? e. None of these
a. Renters Insurance 129. Personal and business property coverage
b. Hull Insurance combining several types of property insurance in
c. Group Insurance one policy is called?
d. Social Insurance a. Hospital Insurance
e. None of these b. Renewable Term Insurance
126. Which of the following insurance is coverage c. Mortgage Insurance
for damage to a vessel or aircraft and affixed items? d. Multi-Peril Insurance
a. Renters Insurance e. None of these
b. Hull Insurance 130. A Life insurance policy for which the cost is
c. Group Insurance equally distributed over the term of the premium
d. Social Insurance period, remaining constant throughout is called?
e. None of these a. Hold-Harmless Agreement
b. Incontestability Provision
Page 17 of 92
c. Level Premium Insurance 134. Which term referring to property coverage for
d. Limited Payment Life Insurance the perils of burglary, theft and robbery?
e. None of these a. Personal Insurance
131. An adjustable life insurance under which b. Commercial Insurance
premiums and coverage are adjustable, company’s c. Industrial Insurance
expenses are not specifically disclosed to the insured d. Crime Insurance
but a financial report is provided to policyholders e. None of these
annually is called? 135. What is a Coverage protecting property against
a. Universal Life Insurance losses caused by a fire or lightning that is usually
b. Unauthorized Reinsurance included in home owners or commercial multiple
c. Underwriter peril policies?
d. Underwriting Risk a. Finite Risk Reinsurance
e. None of these b. Fire Insurance
132. Reinsurance placed with a company not c. Escrow Account
authorized in the reporting company’s state of d. Earned Premium
domicile is called? e. None of these
a. Universal Life Insurance 136. What is coverage for flood damage is available
b. Unauthorized Reinsurance from the federal government under the National
c. Underwriter Flood Insurance Program but is sold by licensed
d. Underwriting Risk insurance agents?
e. None of these a. Flood Insurance
133. A form of whole-life insurance with a pre- b. Commercial Insurance
defined number of premiums to be paid is known c. Industrial Insurance
as? d. Liability Insurance
a. Hold-Harmless Agreement e. None of these
b. Incontestability Provision 137. An auto-mobile insurance option, available in
c. Level Premium Insurance some states, that covers the difference between a
d. Limited Payment Life Insurance car’s actual cash value when it is stolen or wrecked
e. None of these and the amount the consumer owes the leasing or
finance company is called?
Page 18 of 92
a. Double Insurance 141. This broad type of coverage was developed for
b. Commercial Insurance shipments that do not involve ocean transport is
c. Industrial Insurance known as?
d. Gap Insurance a. Double Insurance
e. None of these b. Inflation Guard Clause
138. Which of the following insurance is mainly used d. Inland Marine Insurance
for leased cars? d. Gap Insurance
a. Double Insurance e. None of these
b. Commercial Insurance 142. What is a coverage designed to protect
c. Industrial Insurance businesses from liabilities that arise from the
d. Gap Insurance conducting of business over the Internet, including
e. None of these copyright infringement, defamation, and violation of
139. What is an insurance purchased by a bank or privacy?
creditor on an uninsured debtor’s behalf so if the a. Internet Liability Insurance
property is damaged, funding is available to repair b. Inflation Guard Clause
it? c. Inland Marine Insurance
a. Flood Insurance d. Gap Insurance
b. Forced Place Insurance e. None of these
c. Industrial Insurance 143. A professional liability coverage for physicians,
d. Liability Insurance lawyers, and other specialists against suits alleging
e. None of these negligence or errors and omissions that have
140. What is a coverage for glass breakage caused harmed clients is termed as?
by all risks? a. Malpractice Insurance
a. Glass Insurance b. Inflation Guard Clause
b. Commercial Insurance c. Inland Marine Insurance
c. Industrial Insurance d. Gap Insurance
d. Gap Insurance e. None of these
e. None of these 144. What is a coverage that guarantees
bondholders timely payment of interest and
principal even if the issuer of the bonds defaults?
Page 19 of 92
a. Internet Liability Insurance 148. Insurance Policy which is provided as an

b. Kidnap/Ransom Insurance additional layer of security to those who are at risk
c. Municipal Bond Insurance for being sued for damages to other people’s
d. Gap Insurance property or injuries caused to others in an accident
e. None of these is known as?
145. ________covers operators of nuclear reactors a. Internet Liability Insurance
and other facilities for liability and property b. Kidnap/Ransom Insurance
damage in the case of a nuclear accident and c. Inland Marine Insurance
involves both private insurers and the federal d. Umbrella Insurance
government. e. None of these
a. Internet Liability Insurance 149. What covers professionals for negligence and
b. Kidnap/Ransom Insurance errors or omissions that injure their clients?
c. Inland Marine Insurance a. Nursing Home Insurance
d. Nuclear Insurance b. Kidnap/Ransom Insurance
e. None of these c. Inland Marine Insurance
146. What is a life insurance policy that remains in d. Professional Liability Insurance
force for the policyholder’s lifetime? e. None of these
a. Nursing Home Insurance 150. What is an insurance to cover problems
b. Ordinary Life Insurance associated with travelling, generally including trip
c. Inland Marine Insurance cancellation due to illness, lost luggage and other
d. Occurrence Policy incidents?
e. None of these a. Nursing Home Insurance
147. A form of long-term care policy that covers a b. Kidnap/Ransom Insurance
policyholder’s stay in a nursing facility is called? c. Inland Marine Insurance
a. Nursing Home Insurance d. Travel Insurance
b. Kidnap/Ransom Insurance e. None of these
c. Inland Marine Insurance
d. Nuclear Insurance Answer and explanation
e. None of these 101. B 102. D 103. A
104. A
Page 20 of 92
Insurance purchased for personal or family protection after the deductible is satisfied. In health insurance, a
purposes as contrasted with insurance of business coinsurance provision is similar to a co-payment
property or interests provision, except co-pays require the insured to pay a
105. B set dollar amount at the time of the service.
Coverage for businesses for protection against potential 109. A
losses through unforeseen circumstances like theft, Credit insurance is an insurance policy that pays off an
liability, property damage, and for coverage in the outstanding debt in the event of the policy holder's
event of an interruption of business or injured death, disability, or termination of employment.
employees 110. C
106. D An insurance product used to protect businesses and
Automobile liability insurance is financial protection individual users from Internet-based risks, and more
for a driver who, while operating a vehicle, harms generally from risks relating to information technology
someone else or their property. Automobile liability infrastructure and activities. Coverage provided by
insurance only covers injuries or damages to third cyber-insurance policies may include first-party
parties and their property, not to the driver or the coverage against losses such as data destruction,
driver's property. extortion, theft, hacking, and denial of service attacks;
107. C liability coverage indemnifying companies for losses to
Facultative insurance is reinsurance for a single risk or others caused, for example, by errors and omissions,
a defined package of risks. The ceding company (the failure to safeguard data, or defamation; and other
primary insurer) is not compelled to submit these risks benefits including regular security-audit, post-incident
to the reinsurer, but neither is the reinsurer compelled public relations and investigative expenses, and
to provide reinsurance protection. Each risk under a criminal reward funds.
facultative contract is individually underwritten by the 111. C
reinsurer. Agreement to provide reinsurance Group Insurance covers a defined group of people, for
“facilitates” the primary insurer’s desire to write the example members of a professional association, or a
business; without the reinsurance, the primary insurer society or employees of an organization. Group
may be unable to provide coverage for the agent. Insurance may offer life cover, health cover, and/or
108. B other types of personal insurance.
Coinsurance is the amount, generally expressed as a 112. D
fixed percentage, an insured must pay against a claim
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Theft generally covers all acts of stealing. There are reinsurance is one of the three main types of
three major types of insurance contracts for burglary, reinsurance contracts, the others being facultative
robbery, and other theft. Burglary is defined to mean reinsurance and excess of loss reinsurance. Treaty
the unlawful taking of property within premises that reinsurers are obliged to accept all risks outlined in the
have been closed and in which there are visible marks treaty reinsurance contract.
evidencing forcible entry. Such narrow definition is 116. A
necessary to restrict burglary coverage to a particular Catastrophe reinsurance is purchased by an insurance
class of criminal act. Robbery is defined as that type of company to reduce its exposure to the financial risks
unlawful taking of property in which another person is associated with a catastrophic event occurring.
threatened by either force or violence. In the robbery Catastrophe reinsurance allows the insurer to shift some
peril, therefore, the element of personal contact is or all of the risk associated with policies that it
necessary. underwrites in exchange for a portion of the premiums
113. C that it receives from policyholders.
A situation wherein the owner of a property or the 117. B
person suffering a health condition does not have Excess of loss reinsurance is a type of reinsurance in
enough insurance to cover the value of the item or the which the reinsurer indemnifies the ceding company for
health care costs. losses that exceed a specified limit. Excess of loss
reinsurance is a form of non-proportional reinsurance.
114. D Depending on the language of the contract, it can apply
Title insurance is indemnity insurance that protects the to either all loss events during the policy period or
holder from financial loss sustained from defects in a losses in aggregate. Treaties may also use bands of
title to a property. The most common type of title losses that are reduced with each claim.
insurance is lender's title insurance, which the borrower 118. B
purchases only to protect the lender. Owner's title 119. D
insurance, paid for by the seller to protect the buyer's Term insurance is a type of life insurance policy that
equity in the property, is available separately. provides coverage for a certain period of time, or a
115. D specified "term" of years. If the insured dies during the
Treaty reinsurance is a type of reinsurance in which the time period specified in the policy and the policy is
reinsurance company accepts all of a particular type of active - or in force - then a death benefit will be paid.
risk from the ceding insurance company. Treaty Term insurance is initially much less expensive when
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compared to permanent life insurance. Unlike most • it is funded by taxes or premiums paid by (or on
types of permanent insurance, term insurance has no behalf of) participants (but additional sources of
cash value. funding may be provided as well
120. C • the program serves a defined population, and
121. D participation is either compulsory or so heavily
Self-insure is a risk management technique in which a subsidized that most eligible individuals choose to
company or individual sets aside a pool of money to be participate.
used to remedy an unexpected loss. Theoretically, one 124. A
can self-insure against any type of loss. In practice, Health insurance is a type of insurance coverage that
however, most people choose to purchase insurance pays for medical and surgical expenses incurred by the
against potentially large, infrequent losses. insured. Health insurance can reimburse the insured for
122. C expenses incurred from illness or injury, or pay the care
Mortgage insurance is an insurance policy that protects provider directly.
a mortgage lender or title holder in the event that the 125. A
borrower defaults on payments, dies or is otherwise Renter's insurance is property insurance that provides
unable to meet the contractual obligations of the coverage for a policyholder's belongings, liabilities and
mortgage. Mortgage life insurance, on the other hand, possibly living expenses in case of a loss event.
which sounds similar, is designed to protect heirs if the Renter's insurance is available to persons renting or
borrower dies while owing mortgage payments. It may subletting a single family home, apartment, duplex,
pay off either the lender or the heirs, depending on the condo, studio, loft or townhome
terms of the policy. 126. B
123. D Hull insurance is an insurance policy especially
Social insurance is any government-sponsored program designed for covering ship damage expenses. Where
with the following four characteristics: the ‘Hull’ refers to the main body of the ship. Hull
• The benefits, eligibility requirements and other insurance also includes any fixtures attached to the hull
aspects of the program are defined by statute of the ship as a functional part, into the definition of
• explicit provision is made to account for the income hull. Since the policy mostly applies to water going
and expenses (often through a trust fund vessels, it is more popularly called Marine Hull
Insurance, and is a part of marine insurance. It covers
all types of vessels operating into the oceans, lakes, or
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rivers like bulk carriers, fishing boats, ships, tankers, the same amount but has access to increased benefit
cruises, yachts, jetties, and wharfs. coverage as the policy matures.
127. B 131. A
A renewable term is a clause in a term insurance Universal life insurance is permanent life insurance
contract that allows the beneficiary to extend the with an investment savings element and low premiums
coverage term for a set period of time without having to like term life insurance. Most universal life insurance
requalify for coverage. A renewable term is contingent policies contain a flexible premium option. However,
on premium payments being up to date, as well as a some require a single premium (single lump-sum
renewal premium being paid by the beneficiary. premium) or fixed premiums (scheduled fixed
128. C premiums).
A life insurance policy that a company purchases on a 132. B
key executive's life. The company is the beneficiary of Underwriters represent the group of representatives
the plan and pays the insurance policy premiums. This from an investment bank whose main responsibility is
type of life insurance is also known as "key man to complete the necessary procedures to raise
insurance," "key woman insurance" or "business life investment capital for a company issuing securities.
insurance." Underwriters do not necessarily make guarantees
129. D concerning selling an initial public offering (IPO).
Multiple-peril insurance coverage is a kind of insurance 133. D
that bundles together multiple coverages that typically Life insurance is a contract between an insurer and a
would be needed with each other. Typically the policyholder in which the insurer guarantees payment
package may include coverage for business crime, of a death benefit to named beneficiaries upon the death
business automobile, boiler and machinery, marine, or of the insured. The insurance company promises a
farm. death benefit in consideration of the payment of
130. C premium by the insured with a pre-defined number of
Level-premium insurance is term life insurance for premiums
which the premiums are guaranteed to remain the same 134. D
throughout the contract, while the amount of coverage Protection through the policy can cover cash, assets,
provided increases. As a result, the coverage can be merchandise or other property loss when a someone
advantageous over time as a policyholder keeps paying perpetrates fraud, embezzlement, forgery,
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misrepresentation, robbery, theft or any other type of the coverage they were required to purchase to lapse.
business-related crime on the company. Lapses may be due to non-payment of premium, filing
135. B false claims, or other reasons. Forced place insurance
Fire insurance is property insurance covering damage will protect the property, the homeowner, and the lien
and losses caused by fire. The purchase of fire holder. Future mortgage payments will reflect the
insurance in addition to homeowner’s or property added cost of the insurance. Forced place insurance is
insurance helps to cover the cost of replacement, repair, also known as creditor-placed, lender-placed, or
or reconstruction of property, above the limit set by the collateral protection insurance.
property insurance policy. Fire insurance policies 140. A
typically contain general exclusions, such as war, 141. C
nuclear risks, and similar perils. Insurance provided to cover the loss to movable or
136. A moving property that is a subset of ocean marine
Flood insurance is a type of property insurance that insurance. The insurance policy covers the property
covers a dwelling for losses sustained by water damage, while in transit including while crossing an ocean, and
as it specifically relates to flooding. A separate utilizing bridges and tunnels as a method of
coverage rider is needed to cover sewer backup, if the transportation.
backup was not caused by the rising floodwaters. 142. A
137. D 143. A
Gap insurance is a type of auto insurance that car Malpractice insurance is a type of of professional
owners can buy to protect themselves against losses liability insurance purchased by health care
that can arise when the amount of compensation professionals (and sometimes by other types of
received from a total loss does not fully cover the professionals, such as lawyers). This insurance
amount the insured owes on the vehicle's financing or coverage protects health care providers against patients
lease agreement. This situation arises when the balance who sue them under the claim that they were harmed by
owed on a car loan is greater than the book value of the the physician's negligent or intentionally harmful
vehicle. treatment decisions.
138. D 144. C
139. B A municipal bond is a debt security issued by a state,
Lien holders will put forced place insurance onto a municipality or county to finance its capital
mortgaged property in cases where the borrower allows expenditures, including the construction of highways,
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bridges or schools. Municipal bonds are exempt from provides an additional layer of security to those who
federal taxes and most state and local taxes, making are at risk for being sued for damages to other people's
them especially attractive to people in high income tax property or injuries caused to others in an accident. It
brackets. also protects against libel, vandalism, slander and
145. D invasion of privacy. An umbrella insurance policy is
Nuclear hazards clause is property insurance policy very helpful when the insurance owner is sued and the
language that excludes from coverage any damage dollar limit of the original policy has been exhausted.
caused by nuclear reactions, nuclear radiation or 149. D
radioactive contamination. The nuclear hazards clause Professional liability insurance protects professionals
is intentionally broad to protect insurers against paying such as accountants, lawyers and physicians against
the extraordinarily large claims that could otherwise negligence and other claims initiated by their clients. It
result from such events, whether they are controlled or is required by professionals who have expertise in a
accidental and whether the damage is direct or indirect. specific area because general liability insurance policies
However, an insurance policy will still cover losses do not offer protection against claims arising out of
from certain otherwise covered events, such as fires or business or professional practices such as negligence,
theft, even if those events are caused by a nuclear malpractice or misrepresentation.
event. 150. D
146. B Travel insurance is insurance that is intended to cover
147. A medical expenses, trip cancellation, lost luggage, flight
Long-term care (LTC) insurance is coverage that accident and other losses incurred while traveling,
provides nursing-home care, home-health care, either internationally or domestically.
personal or adult day care for individuals above the age
of 65 or with a chronic or disabling condition that needs 151. A policy that combines protection against
constant supervision. LTC insurance offers more premature death with a savings account that can be
flexibility and options than many public assistance invested in stocks, bonds, and money market mutual
programs. funds at the policyholder’s discretion is called?
148. D a. Variable Life Insurance
An umbrella insurance policy is extra liability b. Kidnap/Ransom Insurance
insurance coverage that goes beyond the limits of the c. Inland Marine Insurance
insured's home, auto or watercraft insurance. It d. Uninsured Motorist Coverage
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e. None of these a. Principle of Proximate Cause

152. Which of the following insurance compensates b. Principle of Subrogation
for the cost of repairing or replacing defective c. Double insurance
products past the normal warranty period provided d. Principle of Indemnity
by manufacturers? e. None of these
a. Warranty Insurance
b. Kidnap/Ransom Insurance 156. The Insurance Regulatory and Development
c. Inland Marine Insurance Authority (IRDAI) was formed on the
d. Uninsured Motorist Coverage recommendation of which committee?
e. None of these a. Banarji Committee
153. An insurance policy designed to protect b. Kutumbe Committee
professionals and business owners when they are c. Malhotra Committee
found to be at fault for a specific event such as d. Gupte Committee
misjudgment is termed as? e. None of these
a. Indemnity Insurance 157. Bombay Mutual Life Assurance Society was the
b. Business Default Insurance first life insurance company in India to insure
c. Risk Hall Insurance Indian lives. It was set up in which year?
d. Entrepreneur Hall Insurance a. 1890
e. None of these b. 1832
154. What is the term for the insurance that the c. 1818
insurance company buys for its own insurance? d. 1870
a. General Insurance e. None of these
b. Life Insurance 158. An insurance product that pays out income to
c. Re- Insurance the holder at specified intervals usually after
d. Public Insurance retirement is known as?
e. None of these a. Paid Up
155. Which of the following principles of Insurance b. Annuity
denotes insurance of same subject matter with two c. Premium
different companies or with the same company d. Claim
under two different policies? e. None of these
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159. An individual who sells, services, or negotiates 163. An individual who may become eligible to
insurance policies either on behalf of a company or receive payment due to will, life insurance policy,
independently is called? retirement plan, annuity, trust, or other contract is
a. Seller known as?
b. Agent a. Adjuster
c. Service Provider b. Beneficiary
d. Aggregate c. Service Provider
e. None of these d. Aggregate
160. A demand made by the insured, or the e. None of these
insured’s beneficiary, for payment of the benefits as 164. The person who receives the proceeds or the
provided by the policy is known as? benefits under the plan when the nominee is less
a. Claim than 18 years of age is called?
b. Request a. Adjuster
c. Demanding b. Appointee
d. Aggregate c. Service Provider
e. None of these d. Aggregate
161. A person who investigates claims and e. None of these
recommends settlement options based on estimates 165. What is an actual ownership interest in a
of damage and insurance policies held is called? specific asset or group of assets?
a. Adjuster a. Fund
b. Agent b. cover
c. Service Provider c. Equity
d. Aggregate d. Liquidity
162. Who among the following can take Fire policy? 166. Which is used to determine the actual cash
a. God own Keepers. value of property at time of loss?
b. Shop Keepers. a. appreciation
c. Educational/ Research Institutions. b. Depreciation
d. All of the Above c. Realization
e. None of these d. Recognition
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e. None of these c. Annuity

167. The amount which is payable by you during the d. Liquidity
premium paying term at regular intervals for a e. None of these
limited period as specified in the plan schedule is 171. The person in whose name the insurance policy
called? is made is referred to as?
a. Fund a. Insured or Policyholder
b. cover b. Nominee or Beneficiary
c. Limited premium c. Insurer
d. Liquidity d. Agent
168. What is the period between the date of 172. What refers to the insurance company that
subscription to an insurance-cum-pension policy offers the policy.
and the time at which the first installment of a. Insured or Policyholder
pension is received. b. Nominee or Beneficiary
a. Appreciation c. Insurer
b. Depreciation d. Agent
c. Deferment e. None of these
d. Recognition 173. The one who will get the insured amount if you
e. None of these die, is referred to as?
169. ________ is the amount you pay to the a. Insured or Policyholder
insurance company to buy a policy. b. Nominee or Beneficiary
a. Fund c. Insurer
b. Premium d. Agent
c. Annuity e. None of these
d. Liquidity 174. ________ is the amount of money an insurance
e. None of these policy guarantees to pay before any bonuses are
170. Which principle specifies an insured should not added.
collect more than the actual cash value of a loss? a. Fund
a. Indemnity b. Annuity
b. Premium c. Sum Assured
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d. Maturity Value b. Subrogation

e. None of these c. Structured Settlement
175. __________ is the amount the insurance d. Subjective Risk
company has to pay you when the policy matures e. None of these
that would also include the sum assured and the 179. A life annuity in which there is no refund to
bonuses. any beneficiary at the death of the annuitant is
a. Fund termed as?
b. Annuity a. Straight Life Annuity
c. Sum Assured b. Subrogation
d. Maturity Value c. Straight Life
e. None of these d. Subjective Risk
176. Which of the following is an optional feature e. None of these
that can be added to a policy? 180. The portion of an insurance premium that
a. Rider reflects the basic costs of loss, not including over-
b. Annuity head or profit is called?
c. Sum Assured a. Mixed Premium
d. Maturity Value b. Pure Premium
e. None of these c. Impure Premium
177. An individual receiving benefits under an d. None of the Above
annuity is called? e. None of these
a. Insured or Policyholder 181. A person who identifies examines and classifies
b. Nominee or Beneficiary the degree of risk represented by a proposed
c. Insurer insured in order to determine whether or not
d. Annuitant coverage should be provided and, if so, at what rate.
e. None of these That person is known as?
178. The legal process by which an insurance a. Universal Life Insurance
company, after paying a loss, seeks to recover the b. Unauthorized Reinsurance
amount of the loss from another party who is legally c. Underwriter
liable for it is termed as? d. Underwriting Risk
a. Straight Life Annuity e. None of these
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182. An amount of premium for which payment has e. None of these

been made by the policyholder but coverage has not 186. Selling insurance through groups is called?
yet been provided is known as? a. Affinity sales
a. Universal Life Insurance b. Pure Risk
b. Unauthorized Reinsurance c. Non-admitted Insurer
c. Unearned Premium d. Proximate Clause
d. Unpaid losses e. None of these
e. None of these 187. An insurance company not licensed to do
183. Which include claims that have been incurred business within a given state is called?
but not reported? a. Product Liability
a. Universal Life Insurance b. Pure Risk
b. Unauthorized Reinsurance c. Non-admitted Insurer
c. Underwriter d. Proximate Clause
d. Unpaid losses e. None of these
e. None of these 188. The conversion of the account balance of a
184. The person other than the insured or insurer deferred annuity contract to income payments is
who has incurred losses or is entitled to receive termed as?
payment due to acts or omissions of the insured is a. Affinity sales
called? b. Pure Risk
a. First Person c. Annuitization
b. Second Person d. Proximate Clause
c. Third Person e. None of these
d. Last Person 189. A survey to determine a property’s insurable
e. None of these value, or the amount of a loss is termed as?
185. Contingencies outlined in an insurance policy is a. Affinity sales
called? b. Pure Risk
a. Product Liability c. Annuitization
b. Pure Risk d. Appraisal
c. Provisions e. None of these
d. Proximate Clause
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190. The period during which the owner of a d. Fiduciary

deferred annuity makes payments to build up assets e. None of these
is called? 194. Funds that a lender collects to pay monthly
a. Affinity sales premiums in mortgage and home owners insurance,
b. Annuity Accumulation Phase and sometimes to pay property taxes is called?
c. Annuitization a. Affinity sales
d. Proximate Clause b. Demutualization
e. None of these c. Escrow Account
191. A person who holds something in trust for d. Earned Premium
another is known as? e. None of these
a. Affinity sales
b. Pure Risk 195. Insurance premiums are payable in advance
c. Annuitization but the insurance company does not fully earn them
d. Fiduciary until the policy period expires is termed as?
e. None of these a. Affinity sales
192. A person who represents only one insurance b. Demutualization
company and is restricted by agreement from c. Annuitization
submitting business to any other company is termed d. Earned Premium
as? e. None of these
a. Seller 196. A written form attached to an insurance policy
b. Captive Agent that alters the policy’s coverage, terms, or
c. Service Provider conditions is termed as?
d. Aggregate a. Endorsement
e. None of these b. Exclusion
193. The conversion of insurance companies from c. Escrow Account
mutual companies owned by their policyholders into d. Earned Premium
publicly traded stock companies is termed as? e. None of these
a. Affinity sales 197. A provision in an insurance policy that
b. Demutualization eliminates coverage for certain risks, people,
c. Annuitization property classes, or locations is called?
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a. Affinity sales Answer and explanation

b. Exclusion 151. A
c. Escrow Account Variable life insurance is a permanent life insurance
d. Earned Premium policy with an investment component. The policy has a
e. None of these cash value account, which is invested in a number of
198. _______ is coverage for the policyholder’s own sub-accounts available in the policy. A sub-account acts
property or person. similar to a mutual fund, except it's only available
a. First Party Coverage within a variable life insurance policy.
b. Second Party Coverage 152. A
c. Third Party Coverage A warranty is a type of guarantee that a manufacturer or
d. None of the Above similar party makes regarding the condition of its
e. None of these product. It also refers to the terms and situations in
199. A period of up to one month during which the which repairs or exchanges will be made in the event
purchaser of an annuity can cancel the contract that the product does not function as originally
without penalty is known as? described or intended.
a. Lock Period 153. A
b. Demutualization Indemnity is compensation for damages or loss, and in
c. Annuitization the legal sense, it may also refer to an exemption from
d. Free Lock Period liability for damages. The concept of indemnity is
e. None of these based on a contractual agreement made between two
200. What is coverage for expenses incurred as the parties, in which one party agrees to pay for potential
result of an identity theft. losses or damages caused by the other party. A typical
a. Glass Insurance example is an insurance contract, whereby one party
b. Commercial Insurance (the insurer or the indemnitor) agrees to compensate the
c. Identity Theft Insurance other (the insured or the indemnitee) for any damages
d. Gap Insurance or losses, in return for premiums paid by the insured to
e. None of these the insurer.
154. C
General insurance or non-life insurance policies,
including automobile and homeowners policies,
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provide payments depending on the loss from a loss or policy event. The insurance company validates
particular financial event. General insurance is typically the claim and, once approved, issues payment to the
defined as any insurance that is not determined to be insured or an approved interested party on behalf of the
life insurance. insured.
155. C 161. A
Situation in which the same risk is insured by two A claims adjuster investigates insurance claims to
overlapping but independent insurance policies. It is determine the extent of the insuring company's liability.
lawful to obtain double insurance, and the insured can Claims adjusters may handle property claims involving
make claim to both insurers in the event of a loss damage to structures, and/or liability claims involving
because both are liable under their respective polices. personal injuries or third-person property damage. A
The insured, however, cannot profit (recover more than claims adjuster reviews each case by speaking with the
the loss suffered) from this arrangement because the claimant, interviewing any witnesses, researching
insurers are law bound only to share the actual loss in records (such as police or medical records) and
the same proportion they share the total premium. Also inspecting any involved property.
called dual insurance. 162. D
156. C 157. D 163. B
158. B A beneficiary is any person who gains an advantage
It's the specified amount of payment required and/or profits from something. In the financial world, a
periodically by an insurer to provide coverage under a beneficiary typically refers to someone who is eligible
given insurance plan for a defined period of time. The to receive distributions from a trust, will or life
premium compensates the insurer for bearing the risk of insurance policy. Beneficiaries are either named
a payout should an event occur that triggers coverage. specifically in these documents or have met the
159. B stipulations that make them eligible for whatever
An agent is any person who has been legally distribution is specified.
empowered to act on behalf of another person. Agents 164. B
are employed to represent their client in negotiations or Appointee is the person who receives the proceeds or
dealings with third parties. the benefits under the plan when the nominee is less
160. A than 18 years of age.
An insurance claim is a formal request to an insurance 165. C
company for coverage or compensation for a covered
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Liquidity describes the degree to which an asset or Policyholder is the person in whose name the insurance
security can be quickly bought or sold in the market policy is made
without affecting the asset's price. 172. C 173. B
166. B 174. C
Depreciation is an accounting method of allocating the Sum assured is the amount of money an insurance
cost of a tangible asset over its useful life and is used to policy guarantees to pay before any bonuses are added.
account for declines in value. Businesses depreciate 175. D
long-term assets for both tax and accounting purposes. Maturity value is the amount payable to an investor at
For tax purposes, businesses can deduct the cost of the the end of a debt instrument's holding period (maturity
tangible assets they purchase as business expenses; date). For most bonds, the maturity value is the face
however, businesses must depreciate these assets amount of the bond. For some certificates of deposit
according to IRS rules about how and when the (CD) and other investments, all of the interest is paid at
company can take the deduction. maturity.
167. C 176. A
The amount which is payable by you during the A rider is a provision of an insurance policy that adds
premium paying term at regular intervals for a limited to or amends the coverage or terms. Most riders add
period as specified in the plan schedule coverages for an additional cost. However, some
168. C restrict coverages for named conditions. Standard
Deferment period is a time during which a borrower policies usually leave little room for modification or
does not have to pay interest or repay the principal on a customization beyond choosing deductibles and
loan. Deferment period also refers to the period after coverage amounts.
the issue of a callable security during which the 177. D
security cannot be called by the issuer. An annuitant is a person who collects the benefits of an
169. B annuity or pension, or named in a specialized life
170. A insurance contract. The annuitant is the beneficiary of
Legal principle that specifies an insured should not an annuity or pension. An annuitant can be the contract
collect more than the actual cash value of a loss but holder or another person. The beneficiary receives the
should be restored to approximately the same financial proceeds of the annuity contract upon the annuitant's
position as existed before the loss. death to shield the beneficiary from a loss of income.
171. A 178. B
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Subrogation is a term describing a legal right held by Underwriters do not necessarily make guarantees
most insurance carriers to legally pursue a third party concerning selling an initial public offering (IPO).
that caused an insurance loss to the insured. This is 182. C
done in order to recover the amount of the claim paid Unearned premium is the premium corresponding to
by the insurance carrier to the insured for the loss. the time period remaining on an insurance policy.
These are proportionate to the unexpired portion of the
179. A insurance and appear as a liability on the insurer's
A straight life annuity is a retirement income product balance sheet, since they would be paid back upon
that pays a benefit until death but forgoes any further cancellation of the policy.
beneficiary payments or a death benefit. Like all 183. D
annuities, a straight life annuity provides a guaranteed 184. C
income stream until the death of the annuity owner. A third party is an individual or entity that is involved
What makes a straight life unique is that, once the in a transaction but is not one of the principals and has
annuitant dies, all payments stop and no more money or a lesser interest. An example of a third party would be
death benefits are due to the annuitant, their spouse or the escrow company in a real estate transaction that acts
heirs. This has the effect of making the straight life as a neutral agent collecting the documents and money
annuity less expensive than many other types of that the buyer and seller exchange when completing the
annuities and retirement income products. transaction. As another example, if a debtor owes a
180. B creditor a sum of money and hasn't been making the
Loss cost, also known as pure premium or pure cost, is scheduled payments, the creditor is likely to hire a third
the amount of money an insurer must pay to cover party, a collection agency, to ensure that the debtor
claims, including the costs to administer and investigate honors his agreement.
such claims. Loss cost, along with other factors, is used 185. C
to calculate premiums. A provision is a stipulation in a contract, legal
181. C document, or law. Often the stipulation requires action
Underwriters represent the group of representatives by a specific date or within a specified period of time.
from an investment bank whose main responsibility is Provisions are intended to protect the interests of one or
to complete the necessary procedures to raise both parties in a contract.
investment capital for a company issuing securities. 186. A
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The sale of insurance through groups such as business 190. B

or professional associations. Accumulation phase has two meanings for investors
187. C and those saving for retirement. It refers to the period
Admitted insurance is insurance purchased from an when an individual is working and planning and
insurance company that has been formally admitted or ultimately building up the value of their investment
licensed to operate by the state insurance agency where through savings. The accumulation phase is then
the company operates. Admitted insurance companies followed by the distribution phase, in which retirees
are subject to various state laws that govern begin accessing and using their funds.
organization, capitalization, policy forms, rate 191. D
approvals and claims handling, whereas non-admitted A fiduciary is a person who acts on behalf of another
insurance companies are not subject to these person, or persons to manage assets. Essentially, a
regulations. fiduciary is a person or organization that owes to
188. C another the duties of good faith and trust. The highest
Annuitization is the process of converting an annuity legal duty of one party to another, it also involves being
investment into a series of periodic income payments. bound ethically to act in the other's best interests.
Annuities may be annuitized for a specific period or for 192. B
the life of the annuitant. Annuity payments may only be A captive agent is an insurance agent who only works
made to the annuitant or to the annuitant and a for one insurance company. A captive agent is paid by
surviving spouse in a joint life arrangement. Annuitants that one company, either with a combination of salary
can arrange for beneficiaries to receive a portion of the and commissions or with just commissions.
annuity balance upon their death. 193. B
189. D Demutualization is when a mutual company owned by
An appraisal is a valuation of property, such as real its members converts into a company owned by
estate, a business or an antique, by the estimate of an shareholders.
authorized person. To make a valid appraisal, the 194. C
authorized person must have a designation from a Escrow is a legal concept in which a financial
regulatory body governing the jurisdiction of the instrument or an asset is held by a third party on behalf
appraiser. Appraisals are typically used for taxation of two other parties that are in the process of
purposes or to determine a possible selling price for the completing a transaction. The funds or assets are held
property in question by the escrow agent until it receives the appropriate
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instructions or until predetermined contractual without penalties, such as surrender charges. A free
obligations have been fulfilled. Money, securities, look period often lasts 10 or more days (depending on
funds and other assets can all be held in escrow. the insurer), allowing the contract holder to decide
195. D whether or not to keep it; if he or she is not satisfied
Earned premium is a pro-rated amount of paid-in- and wishes to cancel, the policy purchaser can receive a
advance premiums that has been "earned" and now full refund.
belongs to the insurer. The amount of the earned 200. C
premium equates to the sum of the total premiums Identity theft insurance is designed to cover some of the
collected by an insurance company over a period of costs related to identity theft. It reimburses victims for
time. money spent on reclaiming their financial identities and
196. A repairing their credit reports. Those costs can range
a signature authorizing the legal transfer of a negotiable from phone bills to legal help. Policies often provide
instrument between parties is an endorsement. specialists who can help guide victims through the
Endorsements can be an amendment to a contract or identity restoration process.
document such as a life insurance policy or a driver's
license. 201. An organization such as a bank or insurance
197. B company that buys and sells large quantities of
Exclusion is a provision in an insurance policy that securities is called?
eliminates coverage for certain risks, people, property a. Major Investor
classes, or locations. b. Minor Investor
198. A c. Institutional Investor
First party coverage refers to a compensation received d. Giant
under one’s own insurance policy as opposed to e. None of these
receiving payment from someone else's insurance 202. _____ is a coverage up to specific limits for the
policy. If an insured causes damage to his/her property, cost of ransom or extortion payments and related
the loss covered under the terms of a policy of expenses
insurance is commonly known as a first party coverage. a. Internet Liability Insurance
199. D b. Kidnap/Ransom Insurance
A free look period is a period of time in which a new c. Inland Marine Insurance
life insurance policy owner can terminate the policy d. Gap Insurance
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203. A technique that consists of staggering the 207. A state tax on premiums paid by its residents
maturity dates and the mix of different types of and businesses and collected by insurers is called?
bonds is termed as? a. Income Tax
a. Laddering b. Direct Tax
b. Fire Insurance c. Premium Tax
c. Escrow Account d. Indirect Tax
d. Earned Premium e. None of these
e. None of these 208. A policy that is made mandatory for the
204. Auto insurance coverage that pays for each customer to buy is called?
driver’s own injuries, regardless of who caused the a. Annuity
accident is called? b. Compulsory Cover
a. No Fault c. Pure Life Annuity
b. No Pay d. None of the Above
c. Default e. None of these
d. None of the Above 209. A form of annuity that ends payments when the
e. None of these annuitant dies is termed as?
205. A single Insurance company offers both life and a. Annuity
non-life policies are known as? b. No Pay
a. Service Provider c. Pure Life Annuity
b. Composite Insurer d. None of the Above
c. Mutual Insurance Company e. None of these
d. None of the Above 210. The reinsurance bought by re-insurers to
e. None of these protect their financial stability is termed as?
206. What is the total benefit an insured person will a. Retention
receive at the time of claim. b. Retrocession
a. Total Insured Benefit c. Pure Life Annuity
b. Fire Insurance d. All the Above
c. Escrow Account e. None of these
d. Earned Premium
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211. The amount of risk retained by an insurance 215. Portion of an auto insurance policy that
company that is not reinsured is termed as? protects a policyholder from uninsured and hit-and-
a. Retention run drivers is known as _______
b. Retrocession a. Nursing Home Insurance
c. Pure Life Annuity b. Kidnap/Ransom Insurance
d. None of the Above c. Inland Marine Insurance
e. None of these d. Uninsured Motorist Coverage
212. An insurance cover that is linked with credit e. None of these
activities and aims to protect the credit is called? 216. A form of annuity contract that gives
a. claims purchasers the freedom to choose among certain
b. Retrocession optional features in their contract is known as?
c. Retrospective Rating a. Salvage
d. credit life b. Schedule
e. None of these c. Retrospective Rating
213. Which refers damaged property an insurer d. Unbundled Contracts
takes over to reduce its loss after paying a claim? e. None of these
a. Salvage 217. A deductible is usually mentioned in
b. Schedule a. Rupee
c. Retrospective Rating b. Dollar
d. credit life c. Euro
e. None of these d. Any currency
214. Insurance companies’ ability to pay the claims e. None of these
of policyholders is termed as _______ 218. The Coinsurance is specified by
a. Solvency a. All of the below
b. Schedule b. Equity
c. Retrospective Rating c. Ratio
d. credit life d. Percentage
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219. _________is a sum of money paid by an d. Automobile Liability Insurance

employer to an employee for services rendered in e. None of these
the company 223. A demand made by the insured, or the
a. Pension insured’s beneficiary, for payment of the benefits is
b. Gratuity known as?
c. Salary a. Claim
d. Premium b. Reward
e. None of these c. Premium
220. Mortality Charge is the amount charged d. Coverage
_____________ by the insurer e. None of these
a. Every month 224. Gratuity is paid when an employee?
b. Every year a. Retirement
c. Every day b. Resigns
d. Every 6 months c. Death
e. None of these d. Illness or disable due to accident
221. A risk or damage covered by an insurance e. All of these
policy is called as? 225. When a contract ceases to be enforceable at
a. Coverage law, then it is called as?
b. Annuity a. Legal Contract
c. Lapse b. Void contract
d. Peril c. Life contract
e. None of these d. Voidable contract
222. A form of liability insurance providing e. None of these
coverage for negligent acts and omissions such as 226. _____________ is the sum paid on the policy’s
workers compensation, errors and omissions, maturity date
fidelity, crime, glass, boiler, and various malpractice a. Final Cost
coverage is called? b. Face Value
a. Casualty Insurance c. Final Payment
b. Commercial Insurance d. Face Amount
c. Industrial Insurance e. None of these
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227. The temporary assignment of the monetary 231. What is the maximum amount an insurance
value of a life insurance policy is known as? company will pay if an insured asset is deemed a
a. Cash Value total loss?
b. Decedent a. Insurance value
c. Cash Surrender value b. Actual value
d. Collateral c. Replacement value
e. None of these d. Guaranteed Replacement Cost
228. A reinsurance company providing services to e. None of these
another by insuring the activities of another 232. Which type of insurance usually requires
reinsurance company is known as? higher premium ?
a. Resession a. Broad Form insurance
b. Subrogation b. Whole life insurance
c. Reorganization c. Health insurance
d. Retrocession d. Term insurance
229. __________________ is /are the monopoly of 233. Which of the following is an example of Broad
General Insurance Company Form Insurance?
a. Life Insurance a. Mortgage insurance
b. Crop Insurance b. Automobile insurance
c. Health Insurance c. Liability insurance
d. All of these d. Property insurance
230. Which is the provision of insurance products by 234. The insurance in which risks are shared
a bank? between multiple insurers is known as?
a. Credit a. Dual Insurance
b. Loan b. Co-Insurance
c. Bancassurance c. Self- Insurance
d. Mortgages d. Reinsurance
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235. An independent professional person registered e. None of these

under the Insurance Act who represents the 239. What is the minimum paid up equity capital
insurance buyer to purchase the insurers policy is requirement to carry insurance business in India?
known as? a. Rs 5 billion
a. Agent b. Rs 1 billion
b. Insurer c. Rs 3 billion
c. Claimant d. Rs 2 billion
d. Broker e. None of these
e. None of these 240. What is the minimum paid up equity capital
236. The situation where the benefits of insurance requirement to carry Reinsurance business in
policy gets terminated due to non-payment of India?
premium is called as? a. Rs 1 billion
a. Surrender b. Rs 2 billion
b. Lapse c. Rs 2.5 billion
c. Terminate d. Rs 1.5 billion
d. Dormant e. None of these
e. None of these 241. The amount which the policy holder will get
237. The IRDA board can consist of a maximum of from the insurance company if he exits the policy
how many members? before maturity is known as?
a. 12 a. Paid Up value
b. 8 b. Penetration Rate
c. 5 c. Surrendered value
d. 10 d. Annuity value
238. Who appoints the member of Insurance 242. A policy holder can open how many e
Regulatory and Development Authority (IRDA)? Insurance Account (e IA. to keep policies in
a. RBI electronic mode?
b. Government of India a. Unlimited
c. Special panel formed by the RBI b. Three
d. None of the above c. Two
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d. One d. Commission
243. Which among the following is not a type of 247. A person who makes an insurance claim is
intermediaries in insurance business? called?
a. Insurance Agents a. Claimant
b. Insurance Brokers b. Churner
c. Bancassurance c. Insured
d. Distribution Channel d. Insurer
244. The amount paid by the policy holder before an 248. _____ is the length of time after a premium is
insurance provider begins to pay any expenses is due and unpaid during which the policy, including
known as? all riders, remains in force.
a. Premium a Null Period
b. Deductibles b. Grace Period
c. Co-Payments c. Void Period
d. Annuity d. Prompt Period
245. If a policy holder stops paying the premium 249. ____________ is the ratio of the number of life
after three years, but does not withdraw the money insurance policy that lapsed within a given period to
from his policy, then the policy is said to be? the number of policy in Force at the beginning of
a. Annuity that period.
b. AD&D a. Force ratio
c. Paid UP b. Annuity ratio
d. Terminated c. Lapse ratio
e. None of these d. Paid up ratio
246. What is the Fee paid to an agent or insurance e. None of these
salesperson as a percentage of the policy premium? 250. _______ is the time which must pass after filing
a. Annuity a claim before policyholder can collect insurance
b. Paid up benefits.
c. Semi-premium a. Waiting period
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b. Benefit period who is at fault. You don't have to go after the at-fault
c. Elimination period driver for compensation.
d. Off period 205. B
e. None of these A single Insurance company offers both life and non-
life policies are known as composite insurer.
206. A
207. C
Answer and explanation A premium tax is a tax that insurers often have to pay
201. C on the premiums that they receive from their
An institutional investor is a nonbank person or policyholders.
organization that trades securities in large enough share 208. B
quantities or dollar amounts that it qualifies for Compulsory insurance is any type of insurance an
preferential treatment and lower commissions. individual or business is legally required to buy.
202. B Compulsory insurance is mandatory for individuals and
Kidnap insurance is a kind of insurance coverage businesses that want to engage in certain financially
designed to protect individuals from the risk of risky activities, such as operating an automobile or
kidnapping. operating a business with employees.
203. A 209. C
Laddering is the promotion of inflated pre-IPO prices A life annuity is an insurance product that features a
for the sake of obtaining a greater allotment of the predetermined periodic payout amount until the death
offering. Laddering is an illegal IPO practice in which of the annuitant. They are commonly used to provide
the underwriter engages in the sale of IPO shares to for a guaranteed income in retirement that cannot be
clients with the implicit agreement that more shares outlived.
will be purchased post IPO, leading to big gains for 210. B
both parties. Once the price increases a certain level, Retrocession refers to kickbacks, trailer, or finders fees
"insiders" then sell their shares and take their profits. that asset managers pay to advisers or distributors.
204. A These payments are often done discreetly and are not
The term "no-fault" insurance simply means if you are disclosed to clients, although they use client funds to
injured or your car is damaged in an accident, then you pay the fees.
deal with your own insurance company, regardless of 211. A
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Retention refers to the amount of money an insured Underinsured motorist coverage is designed to provide
person or business becomes responsible for in the event the injured party with compensation above the limit of
of a claim. the at-fault party's policy. Underinsured coverage is not
212. D the same as uninsured coverage, which includes cases
Credit life insurance is a type of life insurance policy where the at-fault driver had no insurance at all.
designed to pay off a borrower's debt if the borrower 216. D 217. B
dies. The face value of a credit life insurance policy 218. D
decreases proportionately with the outstanding loan Coinsurance is the amount, generally expressed as a
amount as the loan is paid off over time, until both fixed percentage, an insured must pay against a claim
reach zero value. after the deductible is satisfied. In health insurance, a
213. A coinsurance provision is similar to a co-payment
Salvage value is the estimated value that an owner is provision, except co-pays require the insured to pay a
paid when the item is sold at the end of its useful life set dollar amount at the time of the service. Some
and is used to determine annual depreciation. The property insurance policies contain coinsurance
salvage value is used to determine annual depreciation provisions. Coinsurance also applies to the level of
in the accounting records, and salvage value is used to property insurance that an owner must buy on a
calculate depreciation expense on the tax return. structure for the coverage of claims.
214. A 219. B
Solvency is the ability of a company to meet its long- Gratuity is the sum of money paid by an employer to an
term financial obligations. Solvency is essential to employee for his/her rendered services to the
staying in business as it demonstrates a company’s organization for the tenure of his/her services.
ability to continue operations into the foreseeable 220. B
future. While a company also needs liquidity to thrive, 221. D
liquidity should not be confused with solvency. A A hazard is an action, condition, circumstance or
company that is insolvent must often enter bankruptcy. situation that makes a peril more likely to occur or a
215. D loss more likely to be suffered as the result of a peril.
Underinsured motorist coverage is an auto insurance Examples of hazards include dangerous behaviors, such
policy provision which extends coverage to include as skydiving or base jumping, that increase the
property and bodily damage caused by a motorist who likelihood of injury.
has insufficient auto insurance of their own. 222. A
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Casualty insurance is a broad category of coverage lender can seize the collateral to recoup its losses. Since
against loss of property, damage or other liabilities. collateral offers some security to the lender should the
Casualty insurance includes vehicle insurance, liability borrower fail to pay back the loan, loans that are
insurance, theft insurance and elevator insurance. secured by collateral typically have lower interest rates
223. A than unsecured loans. A lender's claim to a borrower's
An insurance claim is a formal request to an insurance collateral is called a lien.
company for coverage or compensation for a covered 228. D
loss or policy event. Retrocession refers to kickbacks, trailer, or finders fees
224. E that asset managers pay to advisers or distributors.
225. B These payments are often done discreetly and are not
A void contract is a formal agreement that is disclosed to clients, although they use client funds to
illegitimate and unenforceable from the moment it is pay the fees.
created. There is some overlap in the causes that can 229. B
make a contract void and the causes that can make it Crop insurance refers to an insurance which insures
voidable. The fundamental difference between these farmers and crop producers against the their loss of
two types of contracts is a void contract is not legally crops due to natural disasters, such as hail drought, and
valid or enforceable at any point in its existence, while floods.
a voidable contract can be legal and enforceable 230. C
depending on how the contract defect is handled. Bancassurance is an arrangement between a bank and
226. D an insurance company allowing the insurance company
Sum of money for which an insurance cover is to sell its products to the bank's client base. This
obtained, usually shown on the top sheet (face) of the partnership arrangement can be profitable for both
policy. In life insurance, face amount is the sum paid on companies. Banks earn additional revenue by selling
the policy's maturity date, on the death of the insured, insurance products, and insurance companies expand
or (if the policy terms permit) on his or her total their customer bases without increasing their sales force
disability. or paying agent and broker commissions.
227. D 231. A
Collateral is a property or other asset that a borrower Amount for which an insurance cover is bought on a
offers as a way for a lender to secure the loan. If the building, and the basis on which insurance premium is
borrower stops making the promised loan payments, the computed. According to the coinsurance clause, it must
Page 47 of 92
not be lower than a certain percentage (usually 80 A lapse is the cessation of a privilege, right or policy
percent) of the insurable value of the building to be able due to the passage of time or inaction. A lapse of a
to claim a partial loss in full. privilege due to inaction occurs when the party that is
232. A to receive the benefit does not fulfill the conditions or
Broad form insurance coverage extends beyond the requirements set forth by a contract or agreement.
basics to include rare events that may be of serious risk 237. D 238. B 239. C 240. B
to the insured. This type of insurance usually requires 241. C
that a higher premium, and often a deductible, be paid. Market penetration is a measure of the amount of sales
Broad form insurance can be applied to nearly all forms or adoption of a product or service compared to the
of insurance, including investments, assets, etc. total theoretical market for that product or service. In
233. B addition, market penetration can also include the
An auto insurance is a policy purchased by vehicle activities that are used to increase the market share of a
owners to mitigate costs associated with getting into an particular product or service.
auto accident. Instead of paying out of pocket for auto 242. D 243.D
accidents, people pay annual premiums to an auto 244.B
insurance company; the company then pays all or most Deductibles are the tax-deductible expenses subtracted
of the costs associated with an auto accident or other from adjusted gross income. Deductibles reduce taxable
vehicle damage. income and thereby reduce the tax liability. A
234. B deductible is also the amount paid out-of-pocket for
Coinsurance is the amount, generally expressed as a covered expenses before an insurance company will
fixed percentage, an insured must pay against a claim pay the remaining costs.
after the deductible is satisfied. 245. C
235. D Paid-up capital is the amount of money a company has
A broker is an individual or firm that charges a fee or received from shareholders in exchange for shares of
commission for executing buy and sell orders submitted stock. Paid-up capital is created when a company sells
by an investor. A broker also refers to the role of a firm its shares on the primary market directly to investors.
when it acts as an agent for a customer and charges the 246.D
customer a commission for its services. A commission is a service charge assessed by a broker
236. B or investment advisor in return for providing
investment advice and/or handling the purchase or sale
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of a security. Most major, full-service brokerages a. Cooling date

derive much of their profits from charging commissions b. Vesting date
on client transactions. c. Preferred date
247.A d. Bonus date
Claimant as a person who makes a claim e. None of these
248.B 252 . _________ indicates the level of development of
A grace period is the provision in most loan and insurance sector in a country.
insurance contracts that allows payment to be received a Revenue Rate
for a certain period of time after the actual due date. b. Policy Rate
During this period, no late fees are charged, and the late c. Penetration Rate
payment does not result in default or cancellation of the d. Core Rate
loan. A typical grace period is 15 days. e. None of these
249.C
Lapse ratio is the number of policies that are that are 253. Which of the following principles of Insurance
not renewed compared to the number of policies that assures about the financial interest that the assured
were active at the beginning of that same period. The possesses in whatever is being insured?
lapse ratio represents the percentage of policies that a. Insurable Interest
were not renewed, and thus have lapsed in coverage. b. Utmost Good Faith
Lapsed policies are not the same as canceled policies. c. Principle of Contribution
250.A d. Principle of Indemnity
A waiting period is the amount of time an insured must e. None of these
wait before some or all of their coverage comes into 254. Which of the following principles of Insurance
effect. The insured may not receive benefits for claims denotes a positive duty of the person seeking
filed during the waiting period. Waiting periods may insurance to voluntarily disclose all facts material to
also be known as elimination periods and qualifying the risk being proposed whether requested or not?
periods. a Insurable Interest
b. Utmost Good Faith
251. _________ is the date from which the annuity c. Principle of Contribution
holder starts receiving the policy benefits of a d. Principle of loss Minimization
regular stream of income. e. None of these
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255. Which of the following principles of Insurance a Nature of contract

enables the insured to claim the amount from the b. Utmost Good Faith
third party responsible for the loss? c. Principle of Contribution
a Insurable Interest d. Double Insurance
b. Principle of Subrogation e. None of these
c. Principle of Contribution 259. Which of the following principles of Insurance
d. Double insurance tells that an insured may not be compensated by the
e. None of these insurance company in an amount exceeding the
256. What is the Principle of Insurance called under insured’s economic loss?
which insured must always try his level best to a Insurable Interest
minimize the loss of his insured property, in case of b. Utmost Good Faith
uncertain events? c. Principle of Contribution
a. Principle of Loss Minimization d. Principle of Indemnity
b. Principle of Subrogation e. None of these
c. Principle of Proximate Cause 260. How many days does it take to open an e-
d. Principle of Indemnity Insurance account after all the necessary formalities
e. None of these are completed?
257. What is the Principle of Insurance called under a 14
which the insured can claim the compensation only b. 10
to the extent of actual loss either from all insurers or c. 7
from any one insurer? d. 15
a Insurable Interest e. None of these
b. Principle of Subrogation 261. Life Insurance business started in Indian in
c. Principle of Contribution 1818 with the advent of which of the following
d. Double insurance company?
e. None of these a Bharat Insurance Company
258. What is called when insurance contract comes b. Oriental Life Insurance Company
into existence when one party makes an offer or c. United India Insurance
proposal of a contract and the other party accepts d. National Indian Insurance
the proposal? e. None of these
Page 50 of 92
266. . Insurance coverage for more than one item of

262. What is the FDI limit in the Insurance sector? property at a single location, or two or more items
a. 26% of property in different locations is known as?
b. 49% a. Blanket Coverage
c. 100% b. Blanket Value
d. 74% c. Blanket Assign
e. None of these d. Blanket Bond
263. If you might want to discontinue the policy, e. None of these
and take whatever money is due to you. The amount 267.________ is a fidelity bond that covers all
the insurance company then pays is known as? employees of a given class and may also cover perils
a. Surrender Value other than infidelity.
b. Paid-up value a. Blanket Coverage
c. Sum Assured b. Blanket Value
d. Maturity Value c. Blanket Assign
e. None of these d. Blanket Bond
264. The Payment to the policyholder at the end of e. None of these
the stipulated term of the policy is called? 268. The ratio of losses incurred to premiums
a. Surrender Value earned actually experienced in a given line of
b. Paid-up value insurance activity in a previous time period is
c. Sum Assured called?
d. Maturity Claim a. Actual Loss Ratio
e. None of these b. Acts Of God
265. The payment of sum assured to the insured c. Actuarial Cost Assumptions
person which has become due by installments under d. Combined Ratio
a money back policy is known as? e. None of these
a. Surrender Value 269. _______ is the age at which the receipt of
b. Paid-up value pension starts in an insurance-cum-pension plan.
c. Sum Assured a. Surrender age
d. Survival Benefit b. Starting age
e. None of these c. Vesting age
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d. Maturity age c. Assignee

e. None of these d. Agent
270. Percentage of each premium rupee a e. None of these
property/casualty insurer spends on claims and 274. A clause that allows the transfer of rights
expenses is called? under a policy from one person to another, usually
a. Actual Loss Ratio by means of a written document is called?
b. Acts of God a. Assignment
c. Actuarial Cost Assumptions b. Automatic Treaty
d. Combined Ratio c. Arbitration
e. None of these d. Appraisal
271. Perils that cannot reasonably be guarded e. None of these
against, such as floods and earthquakes is known 275 . _______ is legal contract in which the outcome
as? depends on an uncertain event.
a. Actual Loss Ratio a. Affirmative Warranty
b. Acts of God b. Aggregate Limits
c. Actuarial Cost Assumptions c. Aleatory contract
d. Combined Ratio d. All-Risk Agreement
272. Once an insurance company has paid up to the 276. A contract, such as an insurance contract,
limit, it will pay no more during that year is known requiring that certain acts be performed if recovery
as? is to be made is known as?
a. Affirmative Warranty a. Conditional Contract
b. Aggregate Limits b. Conditional Receipt
c. Aleatory contract c. Conditional Renewable
d. All-Risk Agreement d. Consequential loss
273. The party to whom the rights of the insured 277. Coverage for losses incurred as a result of the
under a policy are transferred is known as? failure of an insured object on the insured’s
a. Policyholder premises is referred as?
b. Appointee a. Conditional Contract
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b. Conditional Receipt 281 . A document given to an applicant for life

c. Conditional Renewable insurance stating that the company’s acceptance is
d. Consequential Damage Endorsement contingent upon determination of the applicant’s
e. None of these insurability is known as?
278. A policy that can be cancelled or have the a. Conditional Contract
premiums raised by the insurer on a specific b. Conditional Receipt
anniversary date, subject to certain reasons written c. Conditional Renewable
into the policy is known as? d. Consequential loss
a. Conditional Contract e. None of these
b. Conditional Receipt 282. A person named in a life insurance contract to
c. Conditional Renewable receive the benefits of the policy if other named
d. Consequential loss beneficiaries are not living is referred as?
e. None of these a. Contingent Beneficiary
279. A term policy that can be converted to b. Contingent Liability
permanent coverage rather than expiring on a c. Contractual Liability
specific date is called? d. Convertible
a. Contingent Beneficiary e. None of these
b. Contingent Liability 283. Losses other than property damage that occur
c. Contractual Liability as a result of physical loss to a business for example,
d. Convertible the cost of maintaining key employees to help
e. None of these reorganize after a fire is called?
280. The ratio of losses incurred to premiums a. Conditional Contract
earned; anticipated when rates are first formulated b. Conditional Receipt
is termed as? c. Conditional Renewable
a. Expected Loss Ratio d. Consequential loss
b. Expense Ratio e. None of these
c. Extended Coverage 284. The consequential property insurance that
d. Extra Expense Insurance covers the extra expense incurred by the
e. None of these interruption of a business is called?
a. Expected Loss Ratio
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b. Expense Ratio 288. An environment where insurance is plentiful

c. Extended Coverage and sold at a lower cost, also known as a Buyer’s
d. Extra Expense Insurance market is called?
e. None of these a. Hard Market
285. In a life insurance contract, the stated sum of b. Soft Market
money to be paid to the beneficiary upon the c. Alternative Market
insured’s death is termed as? d. None of the Above
a. Face Amount e. None of these
b. Expense Ratio 289. A life insurance and annuity provision limiting
c. Extended Coverage the time within which the insurer has the legal right
d. Extra Expense Insurance to void the contract on grounds of material
e. None of these misrepresentation in the policy application is
286. An endorsement added to an insurance policy, termed as?
or clause within a policy that provides additional a. Hold-Harmless Agreement
coverage for risks other than those in a basic policy b. Incontestability Provision
is termed as? c. Level Premium Insurance
a. Expected Loss Ratio d. Limited Payment Life Insurance
b. Expense Ratio e. None of these
c. Extended Coverage 290. Contract under which the ultimate liability of
d. Extra Expense Insurance the reinsurer is capped and on which anticipated
e. None of these investment income is expressly acknowledged as an
287. A whole life policy in which premiums are underwriting component is called?
payable as long as the insured lives is called? a. Finite Risk Reinsurance
a. Straight Life Annuity b. Fire Insurance
b. Subrogation c. Escrow Account
c. Straight Life d. Earned Premium
d. Subjective Risk e. None of these
e. None of these 291. A company owned by its policyholders that
returns part of its profits to the policyholders as
dividends is known as?
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a. Service Provider e. Both 1 and 2

b. Composite Insurer 295. Who will sells both casualty insurance and life
c. Mutual Insurance Company insurance ?
d. profit holding a. Composite insurer
e. None of the Above b. Combined insurer
c. General insurer
292. _______ is a policy contract that for some d. Life insurer
reason specified in the policy becomes free of all e. None of these
legal effect. 296. Life Insurance Companies cannot reject
a. Salvage insurance claim after how many years ?
b. Schedule a. One
c. Retrospective Rating b. Two
d. Void c. Three
e. None of these d. Four
293. Which is a fixed amount for a covered service e. None of these
in health sector ? 297. Which type of insurance can covers two or
a. Coinsurance more items or location ?
b. Deductible a. Life Insurance
c. Copay b. General Insurance
d. Health Insurance c. Blanklet Insurance
e. None of these d. All of these
294. What is lapse in insurance ? e. None of these
a. Termination of an insurance policy due to the 298. Which of the following is true ?
insured’s failure to pay the premium. a. Insurance is the business carried on by an
b. It is a policy that does not pay benefits to the organisation
beneficiary if the cause of death is an accident b. Insurance is the sum of money that is borrowed
c. It is a policy that pays benefits to the beneficiary if c. Insurance is the business that can provide some
any emergency occur services
d. It is a policy that pays benefits to the beneficiary if d. Insurance is a collective bearing of risk
the cause of death is an accident e. None of these
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299. __________________ is /are the monopoly of A person has an insurable interest in something when
General Insurance Company loss of or damage to that thing would cause the person
a. Life Insurance to suffer a financial or other kind of loss. Normally,
b. Crop Insurance insurable interest is established by ownership,
c. Health Insurance possession, or direct relationship.
d. All of these 254. B
e. None of these The principle of Utmost Good Faith is also known as
300. ________________ is some amount of money Uberrimae Fides. It means that both the policyholder
will paid before insurance will pay 100% for an and the insurer need to disclose all material and
individual’s health-care expenses. relevant information to each other before
a. Out-of-Pocket Limit commencement of the contract.
b. Surplus 255. B
c. Point-of-Service Plan This principle is the right for an insurance company to
d. Personal Injury Protection legally approach a third-party for causing insurance
e. None of these losses to the policyholder. This is done when the
insurer pays for the loss to the insured, and then
Answer and explanation pursues recovery of that amount
251. B 256. A
The vesting date is the annuity holder stops making The Principle of Loss Minimization, insured must
contributions to the policy. After this, the policy holder always try his level best to minimize the loss of his
is entitled to receive benefits in the form of a regular insured property, in case of uncertain events like a fire
flow of income. The flow of income is dependent on outbreak or blast, etc
the return from the investment made by the insurer on 257. D
different assets Double insurance is a type of insurance where the same
252. C subject matter is insured more than once. In case of loss
Penetration rate indicates the level of development of the insured can claim from both the insurers and the
insurance sector in a country. Penetration rate is insurers are liable to pay under their respective policies.
measured as the ratio of premium underwritten in a 258. A
particular year to the GDP. Insurance contract come into existence when the person
253. A seeking insurance make an offer to the insurance
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company. If the insurance company accepts, this completes its tenure, a certain amount of money called
therefore become a contract between them and the Maturity Claim amount is settled towards the life
insured has to pay some premium as consideration assured.
259. D 265. D
Indemnity means security or compensation against loss It provides life coverage during the term of the policy
or damage. The principle of indemnity is such principle and the maturity benefits are paid in installments by
of insurance stating that an insured may not be way of survival benefits in every 5 years. ... In the
compensated by the insurance company in an amount event of death within the policy term, the death claim is
exceeding the insured's economic loss. made up of full sum assured without deducting any of
260. C the survival benefit amounts already paid.
eIA stands for "e-Insurance Account" or "Electronic 266. A
Insurance Account". This e-Insurance account gives Blanket insurance is a single property insurance policy
policyholders access to their life insurance portfolio at a that covers more than one type of property at the same
few clicks. location, the same kind of property at multiple
261. B locations, or multiple kinds or property at two or more
Life Insurance in its modern form came to India from locations. It covers personal possessions as well as the
England in the year 1818. Oriental Life Insurance actual dwelling, "blanketing" all the homeowners'
Company started by Europeans in Calcutta was the first possessions.
life insurance company on Indian Soil 267. D
262. B Banker's blanket bond (BBB) is a fidelity bond
263. A purchased from an insurance broker that protects a bank
The cash surrender value is the sum of money an against losses from a variety of criminal acts carried out
insurance company pays to a policyholder or an annuity by employees. Some states require blanket bond
contract owner in the event that his or her policy is coverage as a condition of operating a bank.
voluntarily terminated before its maturity or an insured 268. A
event occurs. The loss ratio is the ratio of total losses incurred (paid
264. D and reserved) in claims plus adjustment expenses
Maturity Claim is associated with the Maturity Benefit divided by the total premiums earned. ... Conversely,
of the Policy i.e. the claim which arises when the policy insurers that consistently experience high loss ratios
matures. It simply means that when the policy may be in bad financial health.
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269. C when an option contract is assigned, the option writer

Once it is attached to the policy, it becomes the has an obligation to complete the requirements of the
guaranteed benefit to be paid to the policyholder. The contract. If the option was a call, the writer would have
age at which the receipt of pension starts in an to sell the underlying security at the stated strike price.
insurance-cum-pension plan or annuity is called the If it was a put, the writer would have to buy the
Vesting Age. A period set forth in a policy which must underlying security at the stated strike price.
pass before some or all coverage begins. 275. C
270. D In an aleatory contract type, the parties involved do not
The combined ratio is a quick and simple way to have to perform a particular action until a specific event
measure the profitability and financial health of an occurs..Aleatory contracts are commonly used in
insurance company. ... The combined ratio is calculated insurance policies. The insurer does not have to pay the
by adding the loss ratio and expense ratio. The loss insured until an event, such as a fire, results in property
ratio is calculated by dividing the incurred losses, loss
including the loss adjustment expense, by earned 276. A
premiums. A legal agreement that requires the prior performance
271. B of another agreement or clause in order to be
An accident or event resulting from natural causes, enforceable. A conditional contract remains conditional
without human intervention or agency, and one that and performance under its terms is suspended until the
could not have been prevented by reasonable foresight required conditions are met.
or care—for example, floods, lightning, earthquake, or 277. D
storms. Consequential damages, otherwise known as special
272. B damages, are damages that can be proven to have
The aggregate limit is the maximum amount an insurer occurred because of the failure of one party to meet a
will pay for covered losses during a policy period. The contractual obligation. They go beyond the contract
annual aggregate limit is the total amount an insurer itself and into the actions that flow from the failure to
will pay in a given single year. fulfill. The type of claim giving rise to the damages can
273. C affect the rules or calculations associated with a given
274. A type of damages, including consequential damages
An assignment is the transfer of an individual's rights or 278. D
property to another person or business. For example,
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A consequential loss is an indirect loss resulting from may increase the insurance premium on the policy if it
an insured's inability to use business property or decides to let the policyholder renew for another
equipment. A business owner may purchase insurance period.
to protect them against the secondary loss of property 284. D
and equipment due to a natural disaster or accident Extra expense insurance is designed to cover a business
279. D from expenses that it may incur while normal business
Liability imposed on an entity by the terms of a operations are disrupted. ... This type of coverage
contract. As used in insurance, the term refers not to all provides a level of security, but may be inadequate if
contractually imposed liability but to the assumption of the damage is severe enough as to disrupt normal
the other contracting party's liability under specified business operations for an extended period of time
conditions. 285. A
280. A Sum of money for which an insurance cover is
The expected loss ratio is the ratio of ultimate losses to obtained, usually shown on the top sheet (face) of the
earned premiums. policy. In life insurance, face amount is the sum paid on
281. B the policy's maturity date, on the death of the insured,
Life insurance policy receipt issued upon payment of or (if the policy terms permit) on his or her total
the first premium by an applicant. It makes the policy disability.
in force before the policy documents are issued, 286. C
provided the applicant meets all requirements.is called Extended coverage added insurance against loss by the
conditional receipt. perils of windstorm, hail, explosion, civil commotion,
282. A riot and riot attending a strike, aircraft damage, vehicle
A contingent beneficiary is specified by an insurance damage, and smoke damage
contract holder or retirement account owner as 287.C
receiving proceeds if the primary beneficiary is "straight life" or "ordinary life," is a life insurance
deceased, unable to be located or refuses the policy which is guaranteed to remain in force for the
inheritance at the time the proceeds are to be paid. insured's entire lifetime, provided required premiums
283. D are paid, or to the maturity date
The conditionally renewable provision that allows an 288. B
insurance company to cancel or not renew a policy A soft market is a market that has more potential sellers
benefits the insurer, not the policyholder. ... The insurer than buyers. A soft market can describe an entire
Page 59 of 92
industry, such as the retail market, or a specific asset, A copayment or copay is a fixed amount for a covered
such as lumber. This is often referred to as a buyer's service, paid by a patient to the provider of service
market, as the purchasers hold much of the power in before receiving the service. It may be defined in an
negotiations. insurance policy and paid by an insured person each
289. B time a medical service is accessed.
An incontestability clause is a clause in most life 294. E
insurance policies that prevents the provider from 295. A
voiding coverage due to a misstatement by the insured Composite insurer.A company that provides both life
after a specific amount of time has passed insurance (such as term insurance or group life cover)
290. A and non-life insurance (such as property, motor or
Finite risk insurance is the term applied within the travel insurance).
insurance industry to describe an alternative risk 296. C 297. C 298. D 299. B
transfer product that is typically a multi-year insurance 300. A
contract where the insurer bears limited underwriting, Out-of-pocket maximum/limit. The most you have to
credit, investment and timing risk pay for covered services in a plan year. After you spend
291. C this amount on deductibles, copayments, and
A mutual insurance company is an insurance company coinsurance, your health plan pays 100% of the costs of
owned entirely by its policyholders. Any profits earned covered benefits. The out-of-pocket limit doesn't
by a mutual insurance company are either retained include your monthly premiums
within the company or rebated to policyholders in the
form of dividend distributions or reduced future 301. Which of the following will provide “insurance
premiums. repository” services ?
292. D a. LIC
Void/Cancel of Prior Claim Use to entirely eliminate a b. EXIM Bank
previously submitted claimfor a specific provider, c. RBI
patient, insured and "statement covers period." File d. IRDA
electronically, as usual. Include all charges that were
e. None of these
on the original claim. BCBSIL will void the
302. A method of valuing insured property, or the
original claim from records based on request.
value computed by that method is known as
293. C
a. Actual cost validity
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b. Actual cash value b. Rs 2 crore

c. Replacement cash value c. Rs 5 crore
d. Normal cost value d. Rs 15 crore
303. Which of the following is a combination of 307. In which bank has Life Insurance Corporation
insurance as well as investment ? of India (LIC. bought 51% stake recently?
a. Money back policy a. HDFC Bank
b. Endowment plan b. ICICI Bank
c. Unit Link Insurance Plan c. IDBI Bank
d. Mutual Funds d. IDFC First Bank
304. Which of the following form is designed to be 308. What percentage of annual profit does Life
used by many different insurers and has exactly the Insurance Corporation of India (LIC. pays its policy
same provisions ? holder?
a. Guaranteed Replacement Form a. 60%
b. Standard insurance Form b. 85%
c. Standard Endorsement Form c. 65%
d. Standard Policy Form d. 95%
305. What percentage of annual profit does Life 309. The PradhanMantriVayaVandanaYojana
Insurance Corporation of India (LIC. pays to (PMVVY) has been launched by?
Central government? a. Life Insurance Corporation of India
a. 2% b. Insurance Regulatory and Development Authority of
b. 5% India
c. 7% c. Employees’ Provident Fund Organisation
d. 10% d. Pension Fund Regulatory and Development
e. None of these Authority
306. What is the paid up capital of Life Insurance e. None of these
Corporation of India (LIC)? 310. What does ‘Paid Up’ policy means in
a. Rs 10 crore insurance?
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a. Policy that requires no further premium payments 314. The first ever life insurance industry in India
and continues to provide benefits till maturity. was set up in which city?
b. Policy that provide a life cover for a specific term a. Bombay
c. Policy for which the premium is paid in a single b. Delhi
period together c. Madras
d. Policy in which the premium gets reduced over a d. Calcutta
period of time and benefit increases till maturity e. None of these
e. None of these 315. The Private equity investors shall not hold
311. Which among the following is an accidental more than _________ percent of the paid up equity
insurance scheme? share capital of the Indian insurance company.
a. PMJJBY a. 15%
b. PMFBY b. 20%
c. PMSBY c. 5%
d. PMVVY d. 10%
312. Since which year, IRDA started licensing 316. In case of an individual, the proposed
private sector companies to conduct general shareholding in the paid up equity capital of the
insurance business in India? insurance company is capped at _____________
a. 1999 percent
b. 2001 a. 10%
c. 2004 b. 5%
d. 1992 c. 20%
e. None of these d. 12%
313. The insurance is listed in which schedule to the e. None of these
Constitution of India? 317. The Employment State Insurance (ESI) Act of
a. 3rd 1948 is applicable to all establishments having
b. 14th __________or more workers.
c. 9th a. 25
d. 7th b. 50
e. None of these c. 20
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d. 10 cannot have more than ___________ members at

e. None of these any point of time
318. Which among the following is IRDAI a. 15
recognized apex body of licensed Insurance b. 20
Brokers? c. 25
a. IBBI d. 10
b. FICCI e. None of these
c. IAI 322. Which Section of the IRDA Act 1999, specifies
d. IBAI the Duties, Powers and Functions of the Authority?
e. None of these a. Section 12
b. Section 8
319. The first Employees’ State Insurance (ESI) c. Section 10
Scheme was inaugurated in which city? d. Section 14
a. Chennai e. None of these
b. Delhi 323. What is the liability of individuals,
c. Kanpur corporations, or partnerships for accidents caused
d. Mysore by people other than employees for whose acts or
e. None of these omissions the corporations or partnerships are
320. A foreign company is not allowed to hold at any responsible?
time, more than __________ percent of the total a. Contingent Beneficiary
paid-up equity of the Indian Insurance Company b. Contingent Liability
a. 10% c. Contractual Liability
b. 26% d. Convertible
c. 50% e. None of these
d. 49% 324. ___________ is the liability arising from
e. None of these contractual agreements in which it is stated that
321. The Insurance Advisory Committee advises some losses, if they occur, are to be borne by specific
IRDAI on development, disclosures and regulatory parties.
aspects of the insurance industry. The Committee a. Contingent Beneficiary
b. Contingent Liability
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c. Contractual Liability cities have filed lawsuits based on this concept is

d. Convertible termed as?
e. None of these a. Gun Liability
325. _______ is an insurance coverage protecting the b. Commercial Insurance
manufacturer, distributor, seller of a product c. Industrial Insurance
against legal liability resulting from a defective d. Gap Insurance
condition causing personal injury, or damage, to e. None of these
any individual or entity, associated with the use of 329. A section of the risk-based capital formula
the product. calculating requirements for reserves and premiums
a. Product Liability is termed as?
b. Unauthorized Reinsurance a. Universal Life Insurance
c. Retro cession b. Unauthorized Reinsurance
d. Retrospective Rating c. Underwriter
e. None of these d. Underwriting Risk
326. In Insurance, CGL stands for? e. None of these
a. Commercial General Liability 330. Circumstance including possibility of loss or no
b. Common General Liability loss but no possibility of gain is termed as?
c. Captive General Liability a. Product Liability
d. Control General Liability b. Pure Risk
e. None of these c. Pure Premium
327. Legal responsibility of a fiduciary to safeguard d. Retrospective Rating
assets of beneficiaries is termed as? e. None of these
a. Endorsement 331. Event covered under insured’s policy
b. Fiduciary Liability agreement is called?
c. Escrow Account a. Product Liability
d. Earned Premium b. Pure Risk
e. None of these c. Provisions
328. A legal concept that holds gun manufacturers d. Proximate Clause
liable for the cost of injuries caused by guns. Several e. None of these
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332. A provision added to a home owners insurance d. Risk Retention Groups

policy that automatically adjusts the coverage limit e. None of these
on the dwelling each time the policy is renewed to 336. Risks for which it is difficult for someone to get
reflect current construction costs is termed as? insurance is called?
a. Double Insurance a. Partial Risk
b. Inflation Guard Clause b. Uninsurable Risk
c. Industrial Insurance c. Covariant Risk
d. Gap Insurance d. Pure Risk
333. Any insurance risk resulting from a human 337. Which type of risks are not insurable ?
decision is called? a. Static risk
a. Partial Risk b. Liability Pure Risk
b. Static Risk c. Dynamic risk
c. Dynamic Risk d. Diversifiable risk
d. Pure Risk e. None of these
e. None of these
334. Risks that affect simultaneously a great 338. A method of permitting the final premium for a
number of policyholders is called? risk to be adjusted, subject to an agreed-upon
a. Partial Risk maximum and minimum limit based on actual loss
b. Static Risk experience is called?
c. Covariant Risk a. Retention
d. Pure Risk b. Retrocession
e. None of these c. Retrospective Rating
335. Insurance companies that band together as d. None of the Above
self-insurers and form an organization that is e. None of these
chartered and licensed as an insurer in at least one 339. A single insurance policy that combines several
state to handle liability insurance is called? coverage previously sold separately is termed as?
a. Retention a. Package Policy
b. Retrocession b. Multiple Policy
c. Retrospective Rating c. Combined Policy
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d. None of the Above 344. How many Insurance Ombudsman are

e. None of these functional in India?
340. Insurance that pays claims arising out of a. 21
incidents that occur during the policy term, even if b. 17
they are filed many years later is known as? c. 9
a. Nursing Home Insurance d. 15
b. Kidnap/Ransom Insurance e. None of these
c. Inland Marine Insurance 345. What is the CRISIL rating for New India
d. Occurrence Policy Assurance Co Ltd located?
e. None of these a. AA/Stable
341. What is an extension of endowment plans? b. AAA/Stable
a. Health insurance policy c. AA/Negative
b. Money back policy d. AAA/Negative
c. Term insurance policy e. None of these
d. General insurance policy 346. New India Assurance Co Ltd is a type of ?
e. None of these a. Life Insurance Company
342. The Complaint to Insurance Ombudsman b. General Insurance Company
must be registered within ____ year(s) c. Re-insurance Company
A. 4 d. All of these
B. 3 e. None of these
C. 2 347. The New India Assurance Co. Ltd. was a
D. 1 subsidiary of which of the following company?
e. None of these a. General Insurance Corporation of India (GIC)
343. What is the maximum claim amount for an b. Life Insurance Corporation of India (LIC)
Insurance Ombudsman complaint? c. The Oriental Insurance Company
a. 10 lakh d. United India Insurance Company
b. 15 lakh e. None of these
c. 5 lakh 348. Which section of Insurance Act, 1938 grants
d. 20 lakh power to IRDA to frame regulations?
e. None of these a. Section 114A
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b. Section 111B 303.C

c. Section 110A A Unit Linked Insurance Plan (ULIP) is a product
d. Section 112B offered by insurance companies that, unlike a pure
e. None of these insurance policy, gives investors both insurance and
349. Which of the following is a reinsurance investment under a single integrated plan.
company in India? 304.D
a. The Oriental Insurance Company The insurance policy is a contract (generally a standard
b. General Insurance Corporation of India form contract) between the insurer and the insured,
c. Agriculture Insurance Company of India known as the policyholder, which determines the
d. SBI General Insurance claims which the insurer is legally required to pay. ...
e. None of these with both parties' consent, are part of the written
350. Coverage for property taken or destroyed by policy".
breaking and entering the insured’s premises, 305.B 306.C 307. C 308.D
burglary or theft, forgery or counterfeiting, fraud, 309.A
kidnap and ransom, and off-premises exposure is PradhanMantriVayaVandanaYojana (PMVVY) is a
known as? Pension Scheme announced by the Government of
a. Fire Policy India exclusively for the senior citizens aged 60 years
b. Burglary Policy 310. B
c. Jewelers Block Policy A life insurance policy in which if all the premium
d. None of the Above payments are complete and the insured is free of all
e. None of these payment obligations, the policy stays intact until
Answer and explanation insured's death or termination of the policy is called
301. D paid-up policy. Description: Paid-up policy falls into
302.B the category of traditional insurance plans.
In the property and casualty insurance industry, Actual 311.C
Cash Value (ACV) is a method of valuing insured PradhanMantriSurakshaBimaYojana is available to
property, or the value computed by that method. Actual people between 18 and 70 years of age with bank
Cash Value (ACV) is not equal to replacement cost accounts.
value (RCV). ACV is computed by subtracting 312. B 313. D 314. D 315.D 316.A 317.D
depreciation from replacement cost. 318.D 319.C 320.D 321.C 322.D
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323.B 328.A
Coverage for losses to a third party for which the Most individuals have some property and liability
insured is vicariously liable. Contingent liability can be coverage for firearms in their standard homeowners'
assumed—for example, for losses arising from product policy. Additional liability coverage is available
or service failure, where the insurer has assumed through a personal umbrella policy. A few policies
liability by providing a performance warranty. cover losses from accidental shootings in excess of the
homeowners' coverage.
329.D
324.C Underwriting risk is the risk of loss borne by an
Insurance that covers liability of the insured assumed in underwriter. In insurance, underwriting risk may arise
a contract. Under the standard commercial general from an inaccurate assessment of the risks associated
liability (CGL) policy, such coverage is limited to with writing an insurance policy or from uncontrollable
liability assumed in any of a number of specifically factors.
defined insured contracts or to liability that the insured 330.B
would have even in the absence of the contract. Pure risk, also known as absolute risk, is a category of
325. A hazard in which the outcomes are a loss or no loss, and
Product liability insurance protects against claims of there is no opportunity for gain. ... There are products
personal injury or property damage caused by products available to mitigate pure risk hazards, such as
sold or supplied through your business. It is designed to homeowners insurance, which helps protect
help protect your business by ensuring that if this homeowners against the destruction of their homes.
happens, you don't have to pay any legal or court costs. 331.D
326.A Proximate cause is a key principle of insurance and is
327.B concerned with how the loss or damage actually
Fiduciary liability insurance (and management liability occurred and whether it is indeed as a result of an
insurance) is targeted at protecting businesses' and insured peril.
employers' assets against fiduciary-related claims 332.B
(PDF) of mismanagement of a company's employee Inflation guard coverage is an optional endorsement
benefit plans. It is not required by the Employee that protects the rebuild cost of your home. It
Retirement Income Security Act (ERISA) or any automatically increases the amount of insurance on
federal statute.
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your home a certain percentage each year to account for provisional premium based on projected losses.
the disparity caused by inflation. Retrospective rating is commonly used in workers
333.C compensation insurance.
Integral part of a speculative decision where only three 339. A
alternatives are possible: gain, loss, or breakeven. 2. A Package Policy is a type of insurance policy that
Exposure to loss from changes in the environment, such usually includes more than one kind of insurance
as fashions, people's tastes, and regulatory coverage. The most common Package Policy combines
requirements. Dynamic risks are not insurable. property coverage, such as for buildings or business
334.C contents, with liability coverage, such as premises
Covariant risk arises when many farms/households in liability or product liability.
one area are adversely affected by a single phenomenon
such as a natural disaster, epidemic, unexpected change 340.D
in world prices, macroeconomic crisis or civil conflict. An Occurrence policy protects you from any covered
335.D incident that “occurs” during the policy period,
Risk Retention Groups (RRGs) are liability insurance regardless of when a claim is filed. An occurrence
companies owned by its members. RRGs allow policy will respond to claims that come in – even after
businesses with similar insurance needs to pool their the policy has been canceled – so long as the incident
risks and form an insurance company that they operate occurred during the period in which coverage was in
under state regulated guidelines. force.
336.B 341.B
Uninsurable risk is a condition that poses unknowable Money back plan simply means that money comes back
or unacceptable risk of loss or a situation in which the to the life insured after a specific interval of time as
insurance would be against the law. Insurance survival benefit. The money back is guaranteed on the
companies limit their losses by not taking on certain survival of the policyholder.
risks that are very likely to result in a loss. 342. D 343.D 344.B 345.B
337. C 346.B
338.C General insurance or non-life insurance policies,
Retrospective rating is an insurance pricing method in including automobile and homeowners policies,
which the premium is directly affected by losses that provide payments depending on the loss from a
occur during the policy period. The insured pays a particular financial event. General insurance is typically
Page 69 of 92
defined as any insurance that is not determined to be b. Aggregate Limits

life insurance. c. Aleatory contract
347.A 348.A 349.B d. All-Risk Agreement
350.B e. None of these
It also covers damage to your premises caused by 354. The free-look period is of how many days ?
burglars during burglary or attempts at burglary. The a. 10
Policy pays actual loss/damage to your insured property b. 15
caused by burglary/house breaking subject to the limit c. 20
of Sum Insured. ... The Policy can be extended to cover d. 30
Riot, Strike, Malicious Damage and Theft. e. None of these
351. What are the assumptions about rates of 355. The process of determining the cost of an
investment earnings, mortality, turnover and insurance policy based on the actual loss experience
distribution or actual ages at which employees are determined as an adjustment to the initial premium
likely to retire? payment is termed as?
a. Actual Loss Ratio a. Universal Life Insurance
b. Acts of God b. Unauthorized Reinsurance
c. Actuarial Cost Assumptions c. Unearned Premium
d. Combined Ratio d. Retrospective Rating
352. An agreement between an insurance company 356. The portion of risk that a reinsurance company
and an agent, granting the agent authority to write cedes or amount of insurance the company chooses
insurance from that company is called? not to retain is called?
a. Affirmative Warranty a. Universal Life Insurance
b. Aggregate Limits b. Unauthorized Reinsurance
c. Aleatory contract c. Retro cession
d. All-Risk Agreement d. Retrospective Rating
353. A property or liability insurance contract in 357. What is a coverage for bodily injury or
which all risks of loss are covered is called? property damage caused by an intoxicated person
a. Affirmative Warranty who was served liquor by the policyholder?
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a. Liquor Liability d. National Insurance Company

b. Inflation Guard Clause e. None of these
c. Inland Marine Insurance 362. An Insurance company has been in business
d. Gap Insurance for how many years to launch IPO ?
e. None of these a. 12
358. Which section of the Indian Insurance Act 1938 b. 8
provides for nomination of a person? c. 5
a. Section 39 d. 10
b. Section 38 e. None of these
c. Section 37 363. In 2016 , First IPO launched by which
d. Section 36 insurance company ?
e. None of these a. Oriental Insurance Company Ltd
359. The maturity age of a whole life policy is? b. ICICI Prudential Life Insurance
a. 100 c. LIC
b. 65 d. GIC Re
d. 80 364. _____________ is the only public sector
e. None of these company in the field of life insurance in India
360. Which committee is associated with insurance a. NIACL
sector ? b. NICL
a. Malhotra Committee c. LIC
b. Adhyarjuna Committee d. GIC Re
c. A C Shah Committee e. None of these
d. A Ghosh Committee 365. ULIP is a product offered by?
e. None of these a. Government
361. The first ULIP was launched by which of the b. Public Sector Banks
following ? c. Financial Institutions
a. United India Insurance Company d. Insurance companies
b. Unit Trust of India e. None of these
c. Aviva India
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366. Which of the following organization provides 370. Which among the following banks is a
export credit insurance support to Indian subsidiary of the Life Insurance Corporation of
exporters? India (LIC)?
a. ECGC a. UCO Bank
b. IRDA b. IDBI Bank
c. LIC c. Vijaya Bank
d. GIC Re d. Dena Bank
367. Which bank becomes the first bank to set up a 371. Which of the following is NOT contained in the
wholly-owned non-life insurance company? Declarations page of the Personal Auto Policy
a. Kotak Mahindra Bank (PAP)?
b. ICICI a. Policy period.
c. HDFC b. Insuring agreement.
d. SBI c. Policy number.
e. None of these d. Name of the insurer.
368. Section 39 of Insurance Act related with which e. Limits of insurance for each coverage provided
of the following ? 372. Which of the following is NOT a duty of an
a. Nomination by Policyholder insured after an auto accident covered under the
b. Sufficiency of assets Personal Auto Policy (PAP)?
c. Duration of insurance a. Submit proof of loss.
d. All of these b. Submit to a physical examination if requested.
e. None of these c. Agree to an examination under oath.
369. Which type of insurance policy provides d. Admit negligence to the police if at fault.
additional coverage to easily movable property ? e. Provide prompt notice to the insurer.
a. General Insurance 373. Which of the following is not the name of an
b. Floater Insurance Insurance Scheme launched by the Government of
c. Life Insurance India?
d. General Liability Insurance a. JanashreeBimaYojana
e. None of these b. KrishiShramikSarnajikSurakshaYojana
c. ShikshaSahyogYojana
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d. VarshaBimaYojana 377. SWIFT provides a network that enables

e. National Saving SchemeProgramme financial institutions worldwide to send and
374. Which of the following words/ terms is closely receiveinformation about financial transactions
associated with the insurance business? securely. It is headquartered at?
a. Archives a. LaHulpe, Belgium
b. Donation b. Manila, Philippines
c. Actuary c. Basel, Switzerland
d. Quest d. Toulouse, France
e. All are associated with insurance e. Frankfurt, German y
378. The practice of buying or selling of a security
375. A contract between you and an insurance by someone who has access to material
company in which you make a lumpsum paymentor nonpublic information about the security, is termed
a series of payments and in return obtain regular as?
disbursements beginning either immediately or at a. confidential trading
some point in the future is called? b. private trading
a. term insurance c. insider trading
b. annuity plan d. secure trading
c.ULIP e. cross trading
d. hybrid policy 379. A Mutual Fund’s SIP is essentially a staggered
e. None of these payment over a defined period of time with a
376. The Financial Stability and Development defined contribution by the investors. What is the
Council (FSDC. was constituted vide Govt of India expansion of the term SIP?
notification dated 30 Dec, 2010. Who among the a. Social Investment Plan
following is NOT a member of FSDC? b. Systematic Investment Plan
a. Chairman, IRDAI c. Strategic Investment Plan
b. Chairman, SEBI d. Scientific Investment Plan
c. Governor, RBI e. Other than those given as options
d. ChiefEconomic Advisor, Fin Min 380. The Non-Governmentorganizations(NGO)
e. None of these helps the insurance industry mainly in?
a. Linking third party administrators
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b. Promotional activities c. 30 days

c. Drafting new regulations d. 15 days
d. Linking buyers and sellers e. None of these
e. None of these 385. Which one of the following does not belong to
381. A missing person is considered to be dead after the main products of life insurance?
how many years of missing ? a. Endowment
a. 3years b. Personalaccident insurance
b. 5years c. Term
c. 15 years d. Whole life
d. 7years e. Life Annuity Plan
e. None of these 386. In Insurance policies we always find a date
382. Which Insurance Company started its which is “Date of Maturity”. What does it mean?
operation in the year in which India got a. This is the date on which the policy was sold to the
Independence? customer/person insured.
a. UIICL b. This is the date on which the policy holder will have
b. GIC to submit his/her claim seeking the amount of the
c. LIC policy. Otherwise the company will not make any
d. OICL payment to him/her.
383. A insurer advertises through daily newspaper. c. This is the date on which the contract between the
What type of marketing is person and insurance company will come to an end.
a. cross selling d. The date on which the insurance company makes the
b. policy selling final payment to the insured person which is normally
c. Solicitation of Policy fifteen days after the “payment due date”.
d. Insurance selling e. None of these
e. None of these 387.A seller’s market in which insurance is
384. What is the maximum Time in which the expensive and in short supply is termed as?
insurer should settle a claim when all documents are a. Hard Market
submitted? b. Soft Market
a. 5 days c. Alternative Market
b. 20 days d. None of the Above
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e. None of these d. Letter of Credit

388. Which of the following is NOT one of the e. All of these
schemes offered by the LIC? 392. How many maximum children from a family
a. JeevanSaral are covered for the benefits under the
b. JeevanArogya ShikshaSahyogYojana launched by the LIC ?
c. JeevanBharati a. One only
d. JeevanMitra b. Two only
e. All the above policies are offered by LIC. c. Three only
389. Life Insurance Corporation of India provides d. One Girl Child only
its policy holders the facility to deposit premium at e. None of these
which of the following intervals? 393. Which amongs t the following is not an
a. Yearly insurance company functioning in India?
b. Half-Yearly a. ICICI prudential
c. Quarterly b. INGVysya
d. Monthly (through ECS) c. National Securities Depository Limited
e. All the above d. New India Assurance company
390. Which of the following terms is NOT associated e. General insurance company
with insurance?
a. Annuity 394. The insurance companies collect a fixed
b. Actuary amount from its customers at a fixed interval of
c. Death Benefit time. What is it called?
d. Hotlisting a. Instalment
e. Rider b. Contribution
391. As we know, the Government is paying much c. Premium
attention to “Micro Finance” these days. Which of d. EMI
the following is one of the examples of Micro e. Non e of these
Finance? 395. Which of the following is/are the various types
a. Insurance for life of insurance?
b. Investment in Mutual Funds 1. Life insurance
c. Self Help Groups 2. Health insurance
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3. Liability insurance 399. What is the CRISIL rating for New India
a. Only 1. Assurance Co Ltd ?
b. Only 1 and 2 a. A
c. Only 2. and 3 b. BBB
d. All the three c. AA
e. Only 1 and 3 d. AAA
396. Which of the following types of e. None of these
companies/organisations issue ULIP? 400. Which of the term is the used when a policy has
a. Insurance companies lapsed due to non-payment of premium?
b. Banks a. Policy Backed
c. NABA RD b. Policy Unforced
d. RBI c. Policy in variance
e. None of these d. Policy not in force
397. If an organization wishes to venture into e. None of these
Insurance Business it has to obtain a licence
firstfrom which of the following ? Answer and explanation
a. Indian Banks Association (IBA). 351. C
b. Security and Exchange Board of India (SEBI) Actuarial cost assumptions include the expected benefit
c. Tariff Advisory Committee (TAC). of the policy or pension, the age at which the pensioner
d. Insurance Regulatory and Development Authority of is expected to retire, and the return on investment on
India (IRDAI) the premiums the pensioner makes, among other things.
e. None of these 352.A
398. Insurance Repository is a company formed and An affirmative warranty is a statement regarding a fact
registered under which act? at the time the contract was made.
a. Insurance Act, 1938 353.D
b. Companies Act, 1956 All risks is a type of insurance coverage that
c. The IRDA Act 1999 automatically covers any risk that the contract does not
d. Banking and Insurance Companies Act, 1949 explicitly omit. For example, if an all-risks
e. None of these homeowner's policy does not expressly exclude flood
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coverage, then the house will be covered in the event of An annuity is a plan that helps you to get a regular
flood damage. payment for life after making a lump sum investment.
354.B The life insurance company invests the money of the
355.D investor and pays back the returns generated from it.
Retrospective rating is an insurance pricing method in 376.E 377.A
which the premium is directly affected by losses that 378.C
occur during the policy period. The insured pays a Insider trading is the buying or selling of a security by
provisional premium based on projected losses. someone who has access to material nonpublic
Retrospective rating is commonly used in workers information about the security. Insider trading can be
compensation insurance. illegal or legal depending on when the insider makes
356.C the trade. It is illegal when the material information is
Retrocession is a type of insurance wherein a still nonpublic
reinsurance company takes on part of the risk assumed 379.B
by another reinsurance company. A Systematic Investment Plan (SIP) is an investment
357.A vehicle offered by mutual funds to investors, allowing
Liquor liability policies cover the cost of claims arising them to invest small amounts periodically instead of
from damages or injuries caused by inebriated patrons. lump sums. The frequency of investment is usually
Alcohol-related incidents are excluded from general weekly, monthly or quarterly.
liability policies, making liquor liability insurance 380.D 381.D 382.D
necessary. 383.C
358.A 359.A 360. A 361.B 362.D 363.B 364.C Consent solicitation is the process by which a security's
365.D 366.A 367.A 368.A 369.B 370.B 371.B issuer proposes changes to the material terms of the
372.E 373.E security agreement. These changes are for investors,
374.C who hold a stake in the security. Given that mutual
An actuary is a business professional who analyzes the consent is usually required for such critical changes, the
financial consequences of risk. Actuaries use consent solicitation is usually a request for permission
mathematics, statistics, and financial theory to study to make a change on behalf of the stakeholder.
uncertain future events, especially those of concern to 384.C 385.B
insurance and pension programs. 386.C
375.B
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The maturity date is the date on which the principal a. Claims letter
amount of a note, draft, acceptance bond or another b. Cost leakage
debt instrument becomes due and is repaid to the c. Claims leakage
investor and interest payments stop. It is also the d. Claims legal
termination or due date on which an installment loan e. None of these
must be paid in full. 403. What is the abbreviation of ARMP?
387.C a. Amount in Risk Management for Public Enterprises
Alternative Markets Types. Seafood alternative markets b. Associate in Risk Management for Public Entities
come in many forms. They can be used singly or in c. Associate in Risk Management for Private Entities
combination with one another and/or traditional d. Associate in Rate Management for Private Entities
markets. ... Fishermen's/Farmers' Markets: Sell your e. None of these
catch directly to consumers as part of an established 404. What is the abbreviation of HII?
community market. a. Health Insurance Implement
388.E 389.E 390.D 391.C 392.B 393.C b. Health Institute on Innovation
394.C c. Health Institutional Invention
An insurance premium is the amount of money that an d. Health Insurance Innovation
individual or business must pay for an insurance policy. e. None of these
The insurance premium is income for the insurance 405. What is the abbreviation of MDO?
company, once it is earned, and also represents a a. Monthly Debenture Ordinary Life Insurance
liability in that the insurer must provide coverage for b. Monthly Debit Ordinary Life Insurance
claims being made against the policy. c. Monthly Debit Ombudsman Life Insurance
395.D 396.A 397.D 398.B 399.D 400.D d. Maximum Debit Ordinary Life Insurance
e. None of these
401. What is the abbreviation of ADB in insurance? 406. What is the abbreviation of MPL?
a. Accelerated death benefit a. Minimum Possible Loss
b. Actual deal benefit b. Maximum Payment Loss
c. Age death benefit c. Minimum Payment Loss
d. American deal benefit d. Maximum Possible Loss
402. What is the abbreviation of CL? 407. What is the abbreviation of PAP?
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a. Personal Auto Policy a. Annual Financial Statistics

b. Personal Auto Party b. Annuity Foreign Statement
c. Personal Associate Policy c. Annual Financial Statement
d. Payment Auto Policy d. Annual Foreign Settlement
408. What is the abbreviation of WPI? 413. What is the abbreviation of BI?
a. Workers Payment Index a. Bodily Injury
b. Wholesale Primary Insurer b. Business Investment
c. Wholesale Price Index c. Body Injury
d. Wholesale Policy Insurance d. Basic Information
409. What is the abbreviation of CPI? 414. What is the abbreviation of CIC?
a. Consumer Price Index a. Certified Insurance Corporaion
b. Cost Price Insurer b. Certified Insurance Counselor
c. Currency Price Index c. Contract Insurance Counselor
d. Consumer Payment Index d. Casualty Insurance Cost
410. What is the abbreviation of IIS? 415. What is the abbreviation of CPCU?
a. International Insurance Support a. Chartered Property Cash Underwriter
b. International Insurance Service b. Chartered Property Casualty Underwriter
c. International Insurance Summit c. Commodity Property Casualty Underwriter
d. International Insurance Society d. Combined Property Certified Underwriter
411. What is the abbreviation of GIMAR? 416. What is the abbreviation of DOD?
a. General Insurance Market Ratio a. Date Of Deposit
b. Global Insurance Market Report b. Date Of Dealing
c. Growing Insurance Market Report c. Date Of Delay
d. Growing Insurance Money Ratio d. Date Of Death
412. What is the abbreviation of AFS? 417. What is the abbreviation of EAP?
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a. Enrolled Annual program 422. What is the abbreviation of GWP?

b. Experience Account program a. Gross Written Premium
c. Economic Annual program b. Guarantee Written Premium
d. Employee assistance program c. Guarantee Written Policy
e. None of these d. Gross Written Policy
418. What is the abbreviation of EP? e. None of these
a. Earned Premium 423. What is the abbreviation of HLV?
b. Estimated Premium a. Human Life Value
c. Economic Premium b. Health Life Value
d. Employee Premium c. Hospital Life Value
e. None of these d. Human Liability Value
419. What is the abbreviation of FCPL? e. None of these
a. Family Comprehensive Personal Liability 424. What is the abbreviation of HRS?
b. Financial Comprehensive Post Liability a. Household Ranking System
c. Farmers Comprehensive Personal Liability b. Hazardous Ranking System
d. Fast Comprehensive Personal Liability c. Hazardous Repair System
e. None of these d. Health Ranking System
420. What is the abbreviation of FVD? e. None of these
a. Full Value Declared 425. What is the abbreviation of LAE?
b. Full Value Date a. Loss Adjustment Expense
c. Free Value Declared b. Liability Adjustment Expense
d. Financial Value Declared c. Life Amount Expense
e. None of these d. Loss Amount Expense
421. What is the abbreviation of FTCAC? e. None of these
a. Finance, Tax, And Combined Additional Coverage 426. What is the abbreviation of IIAC?
b. Fire, Theft, And Communication Additional a. Immediate Insurance Advisory Council
Coverage b. Irish Insurance Advisory Council
c. Fire, Theft, And Combined Additional Coverage c. International Insurance Advisory Council
d. Fire, Tax, And Combined Additional Coverage d. International Insurance Agent Council
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427. What is the abbreviation of MAS? 432. What is the abbreviation of MET?
a. Municipal Advisory Service a. Multiple Export Trust
b. Management Advisory Service b. Multiple Employment Trust
c. Minimum Account Service c. Multiple Enterprises Trust
d. Management Accident Service d. Multiple Employer Trust
428. What is the abbreviation of LMU? 433. What is the abbreviation of MLE?
a. Loss Mitigation Underwriting a. Minimum Loss Expectancy
b. Liability Mitigation Underwriting b. Maximum Loss Expectancy
c. Loss Manufacture Underwriting c. Maximum Liability Expectancy
d. Loss Multi-peril Underwriting d. Minimum Liability Expectancy
429. What is the abbreviation of LTA? 434. What is the abbreviation of NDI?
a. Low Trade Agreement a. National Disaster Insurance Agreement
b. Lost Time Accident b. National Deposit Insurance Agreement
c. Long Term Agreement c. National Disaster Insurance Association
d. Both b and c d. National Disaster Insurance Agent
430. What is the abbreviation of LTD? 435. What is the abbreviation of NRRA?
a. Long-Term Disability a. National Repository Retention Agreement
b. Long-Term Disagreement b. National Reduction Retention Association
c. Long-Term Deposit c. National Risk Registered Agreement
d. Long-Term Disclosure d. National Risk Retention Association
431. What is the abbreviation of M&D? 436. What is the abbreviation of OCA?
a. Maximum And Dwelling a. Organization Claims Account
b. Minimum And Deposit b. Overseas Claims Account
c. Minimum And Deposit c. Outstanding Claims Account
d. Maximum And Discount d. Outstanding Claims Account
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437. What is the abbreviation of OD? 442. What is the abbreviation of SCOPE?
a. Occupational Discount a. Standard, Construction, Occupancy, Protection,
b. Overseas Discount Exposure
c. Occupational Data b. Supervision, Construction, Occupancy, Post,
d. Occupational Disease Employment
e. None of these c. Supervision, Construction, Occupancy, Protection,
438. What is the abbreviation of PIA? Exposure
a. Post Insurance Account d. Supervision, Cost, Occupancy, Protection, Exposure
b. Primary Insurance Account e. None of these
c. Public Insurance Account 443. What is the abbreviation of SPAP?
d. Private Insurance Account a. Special Personal Auto Policy
e. None of these b. Standard Personal Auto Policy
439. What is the abbreviation of RAM? c. Simplified Personal Auto Policy
a. Reverse-Annuity Mortgage d. Security Personal Auto Policy
b. Risk-Annuity Mortgage e. None of these
c. Reinsurance-Annuity Mortgage 444. What is the abbreviation of TDB?
d. Reverse-Annual Mortgage a. Temporary Disability Benefits
e. None of these b. Tax Discount Benefits
440. What is the abbreviation of ACV? c. Temporary Discount Benefits
a. Actual Cash Value d. Total Disability Benefits
b. Actual Commodity Value e. None of these
c. Actual Certificate Value 445. What is the abbreviation of TDI?
d. Actual Commercial Value a. Trade Discount Insurance
e. None of these b. Tax Direct Insurance
441. What is the abbreviation of RC? c. Trade Digital Insurance
a. Replacement Cost d. Trade Disruption Insurance
b. Risk Cost e. None of these
c. Return Cost 446. What is the abbreviation of TERI?
d. Replacement Commodity a. Targeted Enterprise Risk Insurance
e. None of these b. Targeted Emergency Risk Insurance
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c. Tax Expected Risk Insurance An accelerated death benefit (ADB) is a benefit that
d. Total Enterprise Risk Insurance can be attached to a life insurance policy that enables
e. None of these the policyholder to receive cash advances against the
447. What is the abbreviation of UJF? death benefit in the case of being diagnosed with a
a. Unearned Judgment Fund terminal illness.
b. Unsatisfied Judgment Fund 402.C
c. Uniform Joint Fund Claims Leakage is simply defined as lost dollars
d. Under Judgment Fund through claims management inefficiencies that
e. None of these ultimately result from failures in existing processes
448. What is the abbreviation of UMV? (manual and automated). Or, as one unnamed claims
a. Uniform Motor Vehicle executive said "the difference between what you did
b. Uninsured Market Value spend and what you should have spent on a claim
c. Uninsured Motor Vehicle 403.B
d. Uninsured Management Variable The Associate Risk Management Professional
e. None of these certification is for those who are new to risk
449. What is the abbreviation of UNL? management. ARMP certification supports entry-level
a. Ultimate Nation Liability proficiency with knowledge in risk management. It is
b. Ultimate Net Life designed for those who have not yet acquired a great
c. Ultimate Network Loss deal of experience in the field.
d. Ultimate Net Loss 404.D
e. None of these Health Insurance Innovations is a technology platform
450. What is the abbreviation of WC? focused on Health and Life insurance, Critical Illness,
a. Workers Commodity Telemedicine, Dental and other related products.
b. Women Compensation 405.B
c. Workers Compensation Monthly Debit Ordinary insurance (MDO) coverage in
d. Worldwide Commodity which premiums are collected monthly on an ordinary
e. None of these life insurance policy.
Answer and explanation 406.D
401.A A file with the MPL file extension is an AVCHD
playlist file. As for playlist files, they're not the actual
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recordings made with your camcorder or other video insurance policy typically states that it covers only
recording device. ... A HotSauce Graphics file is a less bodily injury.
common format that uses the MPL extension. 414.B
407.A The CIC program is for agency owners, producers,
The personal auto policy (PAP) is a standardized design agents, brokers, and agency and company personnel. To
for auto insurance. These policies offer coverage for be eligible to attend CIC institutes and obtain the CIC
liability, medical payments, damage to the vehicle and designation, an individual must:
damage from uninsured/underinsured motorists. A • be a licensed agent, broker, adjuster, or solicitor, or
personal auto policy has a set layout of six sections • have at least two years of full-time experience in
408.C the insurance industry or as a risk management
wholesale price index (WPI) is an index that measures practitioner, or
and tracks the changes in the price of goods in the • have served as a full-time insurance faculty member
stages before the retail level – that is, goods that are at an accredited college or university
sold in bulk and traded between entities or businesses 415.B
instead of consumers. Chartered Property Casualty Underwriter (CPCU) is a
409.A professional designation in property-casualty insurance
The CPI is a statistical estimate constructed using the and risk management, administered by The Institutes.
prices of a sample of representative items whose prices 416.D
are collected periodically. 417.D
410.D 411.B An employee assistance program (EAP) is an
412.C arrangement between a corporation, academic
Annual financial statements are financial reports based institution or government agency and its employees that
on a 12-month consecutive time period. The most provides a variety of support programs for the
common set of financials are based on the calendar employees.
year, but they can also be based on a company's fiscal 418. A
year. Earned premium (EP) is the total amount of premiums
413.A that an insurance company has collected at a specific
Additional damages for mental injury without a time in an insurance policy.
physical injury are less clearly covered, as the 419.C 420.A 421.C
422.A
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Gross Broking Income excludes the policy fees Primary insurance.Property or liability insurance policy
imposed by the insurer, it also excludes IPT and any that covers up to the policy's limit (usually after
premium passed on to the insurer as a “risk premium”. deductibles) whether or not other policies cover the
Wayne says that insurers also struggle with Gross same risk. In contrast, excess insurance is triggered
Written Premium and that definitions of the term vary only when the primary insurance is exhausted
from insurer to insurer. 439. A
423.A 424.B Lender-insured reverse mortgages generally charge
425.A higher fees than FHA-insured reverse mortgages. They
A loss adjustment expense (LAE) is an expense can also stipulate that payments to the borrower will
associated with investigating and settling an insurance continue even if he or she sells the home and moves
claim. 440.A
426.C 427.B 428.A 429.D 430.A In the property and casualty insurance industry, Actual
431.C Cash Value (ACV) is a method of valuing insured
Contingency insurance, such as event cancellation property, or the value computed by that method. Actual
cover, is commonly underwritten on the basis that Cash Value (ACV) is not equal to replacement cost
premium is paid on a minimum and deposit basis value (RCV). ACV is computed by subtracting
(M&D premium). However in our experience insured’s depreciation from replacement cost
misunderstand the operation and effect of M&D 441.A
premium in contingency policies. Replacement cost insurance is a policy option that can
432.D 433.A 434.C 435.D 436.D be added o your homeowners insurance and often used
437.D to help protect your property. Replacement cost value is
Occupational Disease Coverage under Workers' the amount it would cost to repair or replace a lost,
Compensation Statutes. Occupational diseases are stolen or damaged item with one of the same material
generally defined as ailments that are contracted or and quality as the original — in today's market.
aggravated due to the nature of a particular kind of 442.C
work. State workers' compensation statutes usually 443. A
allow workers to receive benefits for occupational personal auto policy (PAP) The most common type of
diseases auto policy that covers the insured for personal liability,
438.B physical damage, medical expenses, uninsured or
underinsured motorist protection in case of an accident.
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444. A c. Securities and Export Commission

445.D d. Securities and Enterprises Commission
Disruption Insurance covers the financial consequences e. None of these
- loss of business income and profits, as well as the
incurrence of extraordinary, unplanned expenses - 454. What does R stands for in SARFAESI?
when a company's 'Supply Chain' is disrupted and/or a. Rate
interrupted beyond your control. b. Rating
446.A 447.B 448.C 449.D c. Reconstruction
Ultimate net loss. Total sum an insurer pays (or is d. Regulatory
obligated to pay) as a result of a claim. It includes all e. None of these
related costs less recoveries made from reinsurance, 455. What does S stands for in NASDAQ?
salvage, and the exercise of its rights under the a. Sector
subrogation principle against the third party that caused b. Swap
the loss. c. Services
450. C d. Securities
451. What is the abbreviation of YRT? e. None of these
a. Yearly Risk Term 456. What does R stands for in FRBMA?
b. Yearly Renewable Term a. Regional
c. Yearly Renewable Tax b. Research
d. Yearly Real Technique c. Responsibility
e. None of these d. Regulatory
452. What is the abbreviation of YRCT? e. None of these
a. Yearly Risk Convertible Technology 457. What does A stands for in AMFI?
b. Yearly Renewable Convertible Tax a. Association
c. Yearly Renewable Convertible Term b. Asset
d. Yearly Renewable Commodity Term c. Agreement
e. None of these d. Adequacy
453. What is the abbreviation of SEC? e. None of these
a. Surety and Exchange Commission 458. What is the abbreviation of UL?
b. Securities and Exchange Commission a. Uniform Liability
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b. Umbrella Liability b. Income Before Taxes

c. Uniform Loss c. Income Business Taxes
d. Underwriter Liability d. Insurance Before Taxes
459. What is the abbreviation of FINO? 464. What is the abbreviation of IFEBP?
a. Financial Inclusion Network Operation a. Insurance Foundation Of Employee Benefit Plans
b. Financial Inclusion National Organization b. Independent Finance Of Employee Benefit Plans
c. Financial Investment Network Operation c. International Federation Of Employee Benefit Plans
d. Free Investment Network Owners d. International Foundation Of Employee Benefit Plans
460. What is the abbreviation of GDR? 465. What is the abbreviation of ILCA?
a. Gross Deposit Receipt a. International Loss Control Association
b. Global Depository Risk b. Immediate Loss Control Association
c. Gross Depository Receipt c. Insurance Loss Control Association
d. Global Depository Receipt d. Insurance Liability Control Association
461. What is the abbreviation of GAAR? 466. What is the abbreviation of ILF?
a. Gross Agreement Avoidance Rule a. Increased Limits Factor
b. General Anti Avoidance Research b. Increased Liability Factor
c. General Agreement Avoidance Rule c. Increased Limits Federation
d. General Anti Avoidance Rule d. Increased Loss Factor
462. What is the abbreviation of CSO? 467. What is the abbreviation of IMCA?
a. Claim Service Only a. Insurance Money Communications Association
b. Commodity Supplement Only b. Insurance Marketing Communications Association
c. Claim Special Ordinance c. Insurance Multi Commodity Agreement
d. Cash Service Only d. Insurance Mitigation Communications Association
463. What is the abbreviation of IBT? 468. What does C stands for in NACIA?
a. Interest Before Taxes a. Commodity
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b. Crop b. Multiple
c. Cash c. Maximum
d. Communication d. Minimum
469. What does A stands for in IPAC? 474. What does N stands for in NRMC?
a. Average a. National
b. Association b. Net
c. Affairs c. Nuclear
d. Advance d. Nonprofit
470. What does 2ndI stands for in ITI? 475. What does I stands for in SIO?
a. Insurance a. Information
b. Income b. Income
c. Interest c. Liability
d. Institute d. Loss
471. What is the abbreviation of IR? 476. Who is the chairman of IRDAI?
a. Insurance Risk a. SujayBanarji
b. Incident Recall b. P. J. Joseph
c. Interest Reduction c. Praveen Kutumbe
d. Income Rate d. Subhash C. Khuntia
472. What does L stands for in LPT? 477. Who is the chairman of ECGC?
a. Loss a. SujayBanarji
b. Liability b. N.Shankar
c. Limits c. Sridharan
d. Low d. M.R. Kumar
473. What does M stands for in MIB? 478. Who is the chairman of LIC?
a. Medical a. M.R. Kumar
Page 88 of 92
b. Praveen Kutumbe e. None of these

c. P. J. Joseph 483. Who is the chairman of Future Generali Life
d. Subhash C. Khuntia Insurance?
e. None of these a. SujayBanarji
479. Who is the CEO of NIA (New India b. G N Bajpai
Assurance)? c. AtulSahai
a. M.R. Kumar d. M.R. Kumar
b. A K Shah e. None of these
c. AtulSahai 484. Who is the chairman of ICICI Prudential Life
d. Gupta Kumar Insurance Company Limited?
e. None of these a. BhargavDasgupta
480. Who is the chairman of GIC? b. NS Kannan
a. Alice Vaidyan c. AshishMehrotra
b. Sridharan d. Rahul Khosla
c. Rahul Khosla e. None of these
d. RoopamAsthana 485. Who is the chairman of Birla Sun Life
e. None of these Insurance Company Limited?
481. Who is the chairman of Tata AIA life a. Sushil Chandra
insurance? b. AshishMehrotra
a. Rishi Srivastava c. M K Gopal
b. ShobanaKamineni d. PankajRazdan
c. Sridharan e. None of these
d. P. J. Joseph 486. Who is the chairman of HDFC Standard Life
482. Who is the chairman of Kotak Mahindra Old a. AtulSahai
Mutual Life Insurance Limited? b. M.R. Kumar
a. BhargavDasgupta c. VibhaPadalkar
b. Subhash C. Khuntia d. RoopamAsthana
c. RoopamAsthana e. None of these
d. UdayKotak
Page 89 of 92
487. Who is the chairman of SBI Life Insurance a. Sridharan

Company Limited? b. NagarajaSarma
a. Sridharan c. Trevor Bull
b. SanjeevNautiyal d. ¬ RoopamAsthana
c. P. J. Joseph e. None of these
d. ShobanaKamineni 492. Who is the CFO of Cholamandalam MS
e. None of these General Insurance?
488. Who is the chairman of Oriental Insurance a. P. J. Joseph
Company Limited? b. AtulSahai
a. A V Girija Kumar c. G N Bajpai
b. Subhash C. Khuntia d. Sridharan
c. SujayBanarji e. None of these
d. Sridharan 493. Who is the chairman of National Insurance
e. None of these Company Limited?
489. Who is the CEO of IFFCO Tokio General a. AshishMehrotra
Insurance? b. Tajinder Mukherjee
a. WarendraSinha c. Rahul Khosla
b. ShobanaKamineni d. SujayBanarji
c. Trevor Bull e. None of these
d. BhargavDasgupta 494. Who is the chairman of Bajaj Alliance Life
490. Who is the chairman of Apollo Munich Health a. TarunChugh
Insurance? b. ShobanaKamineni
a. M.R. Kumar c. BhargavDasgupta
b. Rahul Khosla d. Subhash C. Khuntia
c. P. J. Joseph e. None of these
d. ShobanaKamineni 495. Who is the CEO of Aviva Indian Life
e. None of these Insurance?
491. Who is the chairman of United India a. RoopamAsthana
Insurance Company Limited? b. P. J. Joseph
Page 90 of 92
c. Trevor Bull e. None of these

d. G N Bajpai 500. Who is the chairman of PNB Metlife India
496. Who is the chairman of Max Bupa Health a. Ashish Kumar Srivastava
Insurance? b. AshishMehrotra
a. Rahul Khosla c. SujayBanarji
b. AshishMehrotra d. AtulSahai
c. Subhash C. Khuntia e. None of these
d. BhargavDasgupta
e. None of these Answer and explanation
497. Who is the CEO of Liberty Videocon General 451. B 452.C 453.B 454.C
Insurance? Securitisation and Reconstruction of Financial Assets
a. Trevor Bull and Enforcement of Security Interest Act, 2002. Banks
b. ShobanaKamineni utilize this act as an effective tool for bad loans (NPA)
c. Subhash C. Khuntia recovery.
d. RoopamAsthana 455.D
e. None of these Nasdaq" was initially an acronym for the National
498. Who is the chairman of Max Life Insurance Association of Securities Dealers Automated
Company Limited? Quotations. It was founded in 1971 by the National
a. AtulSahai Association of Securities Dealers (NASD), which
b. G N Bajpai divested itself of Nasdaq in a series of sales in 2000 and
c. Rahul Khosla 2001
d. ShobanaKamineni 456.C
e. None of these The Fiscal Responsibility and Budget Management
499. Who is the CEO of ICICI Lombard General Act, 2003 (FRBMA) is an Act of the Parliament of
Insurance Company Limited? India to institutionalize financial discipline, reduce
a. BhargavDasgupta India's fiscal deficit, improve macroeconomic
b. Trevor Bull management and the overall management of the public
c. G N Bajpai funds by moving towards a balanced budget and
d. ShobanaKamineni strengthen fiscal
Page 91 of 92
457.A 469.C
The AMFI(association of mutual funds in india) Code IPAC stands for International Public Affairs Consultants
has been drawn up to supplement that schedule, to 470.D
encourage standards higher than those prescribed by the ITI stands for Industrial Training Institute.
Regulations for the benefit of investors in the mutual 471.B 472.A
fund industry. A loss portfolio transfer (LPT) is a reinsurance treaty in
458. B which an insurer cedes policies that have already
Umbrella insurance is extra liability insurance. This incurred losses to a reinsure
type of insurance policy is designed to help protect you 473. A
from major claims and lawsuits and as a result it helps MIB stands for Medical Information Bureau
protect your assets and your future. ... Provides 474.D
additional liability coverage above the limits of your NRMCstands for Nonprofit Risk Management Center
homeowners, auto, and boat insurance policies 475.A
459.A 460.D 461.D 462.A 463.B 464.D 465.C SIO stands for Surety Information Office.
466.A 467.B 476.D 477.B 478.A 479.C 480.A 481.A 482.D
468.B 483.B 484.B 485.D 486.C 487.B 488.A 489.A
NACIA stands for National Association of Crop 490.D 491.B 492.D 493.B 494.A 495.C 496.B
Insurance Agents 497.D 498.B 499.A 500.A
Page 92 of 92

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Best 500 Insurance Awareness MCQs PDF

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e. None of these 37. The General Insurance Corporation of India

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51. The headquarters of IRDAI is located in?

e. None of these 66. Where is the headquarters of Birla Sun Life

d. Bengaluru 83. Where is the headquarters of DHFL Pramerica

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e. None of these c. Annuity

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b. Conditional Receipt 281 . A document given to an applicant for life

b. Expense Ratio 288. An environment where insurance is plentiful

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269. C when an option contract is assigned, the option writer

b. Actual cash value b. Rs 2 crore

d. 10 cannot have more than ___________ members at

c. Contractual Liability cities have filed lawsuits based on this concept is

332. A provision added to a home owners insurance d. Risk Retention Groups

d. None of the Above 344. How many Insurance Ombudsman are

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a. Liquor Liability d. National Insurance Company

d. VarshaBimaYojana 377. SWIFT provides a network that enables

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a. Personal Auto Policy a. Annual Financial Statistics

a. Enrolled Annual program 422. What is the abbreviation of GWP?

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