Insurance Awareness Quiz PDF 500+ Questions An Answers

Insurance Awareness Questions PDF – 500+ Q&A
Insurance Awareness Questions PDF for Insurance Exams
SET 1
Q1. The life insurance business in India was first started in which year?
A) 1827 B) 1845 C) 1818 D) 1832
Q2. Name the first life insurance company to function in India

A) United India Insurance Company B) Bombay Mutual Life Assurance Society
C) Agriculture Insurance Company of India D) Oriental Life Insurance Company
Q3. Which among the following is the first Indian life insurance company to begin operations in India?
A) Bombay Mutual Life Assurance Society B) Empire of India Life Assurance Company
C) Albert Life Assurance D) Royal Insurance
Q4. The Life Insurance Companies Act was passed in which year?
A) 1919 B) 1912 C) 1900 D) 1902
Q5. Which among the following is the oldest existing insurance company in India?
A) National Insurance Company B) Life Insurance Corporation of India
C) New India Assurance Company D) United India Insurance Company
Q6. The Life Insurance Corporation of India (LIC) came into existence in which year?
A) 1962 B) 1949 C) 1956 D) 1947
Q7. Name the first General Insurance Company in India?

A) ECGC Ltd B) United India Insurance Company Limited C) Indian Mercantile Insurance Ltd D)
Triton Insurance Company Ltd
Q8. The Insurance Act to govern both life insurance and non-life insurance was passed in which year?
A) 1929 B) 1938 C) 1949 D) 1934
Q9. The Life Insurance Business in India was nationalized in which year?
A) 1956 B) 1949 C) 1938 D) 1962
Q10. The General Insurance Business in India was nationalized in which year?
A) 1951 B) 1962 C) 1973 D) 1949
Answers & Explanations

Q1 (C) Q2 (D) Q3 (A) Q4 (B) Q5 (A) Q6 (C)
Q7 (D) It was set up in the year 1850 in Calcutta by the British
Q8 (B)
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Q9 (A) 19th January 1956. All 245 insurance companies operating then in the country were merged into one
entity, the Life Insurance Corporation of India.
Q10 (C)
SET 2
Q1. The Insurance Regulatory and Development Authority (IRDA) was formed on the recommendation of which
committee?
A) Banarji Committee B) Kutumbe Committee C) Malhotra Committee D) Gupte Committee
Q2. IRDA Act was passed in which year by the Government of India?
A) 1992 B) 2002 C) 2000 D) 1999
Q3. The IRDA was incorporated as a statutory body on______________?

A) 30 April 2001 B) 01 July 2002 C) 31 December 1999 D) 19 April 2000
Q4. What is the FDI limit in the Insurance sector?

A) 26% B) 49% C) 100% D) 74%
Q5. Which section of Insurance Act, 1938 grants power to IRDA to frame regulations?
A) Section 114A B) Section 111B C) Section 110A D) Section 112B
Q6. The headquarter of Insurance Regulatory and Development Authority of India (IRDAI) is in which city?
A) Mumbai B) New Delhi C) Hyderabad D) Kolkata
Q7. The board of IRDAI consists of how many members?

A) 10 B) 5 C) 4 D) 8
Q8. Who is the Chairman of the IRDAI?

A) Sujay Banarji B) P. J. Joseph C) Praveen Kutumbe D) Subhash C. Khuntia
Q9. Which of the following is a reinsurance company in India?

A) The Oriental Insurance Company B) General Insurance Corporation of India
C) Agriculture Insurance Company of India D) SBI General Insurance
Q10. How many insurance companies were merged to form the Life Insurance Corporation of India?
A) 200 B) 176 C) 245 D) 125

Q1 (C) In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor
of RBI, to propose recommendations for reforms in the insurance. Following the recommendations of the
Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was
constituted as an autonomous body to regulate and develop the insurance industry.
Q2 (D) Q3 (D) Q4 (B) Q5 (A) Q6 (C) Q7 (A) Q8 (D) Q9 (B)
Q10 (C) 245 insurance companies operating in the country were merged into one entity, the Life Insurance
Corporation of India.
SET 3
What does U stands for in ULIP with respect to insurance sector?
A) Unique B) Unit C) Umbrella D) Ultimate
How many public sector life insurance companies are functional in India?
A) 1 B) 2 C) 3 D) 4
Bombay Mutual Life Assurance Society was the first life insurance company in India to insure Indian lives. It was
set up in which year?
A) 1890 B) 1832 C) 1818 D) 1870
The Indian Life Assurance Companies Act was passed in which year to regulate life insurance business in India?
A) 1930 B) 1919 C) 1912 D) 1925
The Indian Insurance Companies Act was enacted in which year?

A) 1912 B) 1928 C) 1936 D) 1949
The National Insurance Academy is located in which city?

A) Kolkata B) New Delhi C) Pune D) Hyderabad
The National Insurance Company Limited is a type of __________ insurance company

A) General Insurance B) Life Insurance C) Re-Insurance D) Both A & B
An insurance product that pays out income to the holder at specified intervals usually after retirement is known
as ___________
A) Paid Up B) Annuity C) Premium D) Claim
The General Insurance Corporation of India (GIC) was notified as the Indian Reinsurer in which year?
A) 2014 B) 1987 C) 1999 D) 2000
Who is the present CMD of National Insurance Company Limited (NICL)?

A) K. Sanath Kumar B) G. Srinivasan C) Tajinder Mukherjee D) SS Mallikarajuna Rao

Q1 (B) Unit Linked Insurance Plans
Q2 (A) Only LIC is the single public sector life insurance company in India
Q3 (D) Q4 (C) Q5 (B)
Q6 (C) The National Insurance Academy is situated in Pune, India. Founded in 1980 by the Finance Department
of the Indian government with capital patronage from LIC and public sector general insurance industry.
Q7 (A) Q8 (B) Q9 (D) Q10 (C)
SET 4
Q1. How many public sector non life insurance companies are there in India?
A) 1 B) 3 C) 5 D) 6
Q2. The sole national re-insurer of India, General Insurance Corporation of India (GIC Re) has its headquarter
at__________
A) New Delhi B) Mumbai C) Kolkata D) Chennai
Q3. ‘E@Secure’ is a cyber insurance policy for individuals launched by which company?
A) Bajaj Allianz General Insurance B) ICICI Lombard C) HDFC Ergo D) TATA AIG
Q4. Who is the Chairman and MD of ECGC Ltd.

A) Alamelu T. Lakshmanachari B) Geetha Muralidhar C) K Sanath Kumar D) A V Girija Kumar
Q5. The Oriental Insurance Company Ltd was founded in which year?
A) 1929 B) 1952 C) 1938 D) 1947
Q6. What should be the minimum paid up capital of an entity to start re-insurance business in India?
A) Rs 200 crore B) Rs 100 crore C) Rs 500 crore D) Rs 300 crore
Q7. The Insurance Laws (Amendment) Bill, 2008 has amended which among the following acts?
A) Insurance Act, 1938 B) General Insurance Business (Nationalisation) Act, 1972
C) Insurance Regulatory and Development Authority Act, 1999 D) All the above
Q8. How many Insurance Ombudsman are functional in India?

A) 21 B) 17 C) 9 D) 15
Q9. A person with expertise in measurement and management of risk and uncertainty in insurance business is
known as ________
A) Actuary B) Insurer C) Agent D) Claimant
Q10. The Oriental Insurance Company Ltd does not has its branch in which of the following countries?
A) Nepal B) Kuwait C) UAE D) France

Q1 (D) Q2 (B) Q3 (C) Q4 (B) Q5 (D)
Q6 (A) The minimum equity capital requirement is Rs 100 crore for life insurance or general insurance and Rs
200 crore for a person exclusively in the business of re-insurance
Q7 (D)
Q8 (B) There are at present 17 Insurance Ombudsman in different locations
Q9 (A)
Q10 (D) The company also has branches in Nepal, Kuwait, and Dubai.
SET 5
Q1. The United India Insurance Company has its headquarter in which city?
A) Kolkata B) New Delhi C) Mumbai D) Chennai
Q2. The Insurance Regulatory and Development Authority (IRDA) Act was passed in which year?
A) 1999 B) 2000 C) 1998 D) 1997
Q3. The General Insurance Corporation of India (GIC) was converted into a national re-insurer in which year?
A) 1995 B) 2000 C) 2014 D) 1999
Q4. How many companies were merged to form the United India Insurance Company (UIIC)?
A) 12 B) 19 C) 22 D) 20
Q5. Selling of insurance products through banks is known as __________

A) Banking Insurance B) Inclusive Banking C) Third Party Banking D) Bancassurance
Q6. The person who is specified by the insured to receive the insurance policy in case
premature death is called a ___________.
A) Nominee B) Insured C) Insurer D) Appointee
Q7. The fixed amount of money paid by the insured to the insurance company regularly is
called __________.
A) Capital B) Annuity C) Premium D) Value
Q8. Which among the following banks is a subsidiary of the Life Insurance Corporation of India (LIC)?
A) UCO Bank B) IDBI Bank C) Vijaya Bank D) Dena Bank
Q9. The Insurance plan under which a number of employees and their dependents are insured under a single
policy is known as____________?
A) Group insurance B) Co Insurance C) Double Insurance D) Self Insurance
Q10. Which among the following insurance companies is not based in Mumbai?
A) The New India Assurance Company Limited (NIACL)
B) General Insurance Corporation of India (GIC Re)
C) ECGC Ltd
D) United India Insurance Company Limited

Q1 (D) Q2 (A) Q3 (B)
Q4 (C) Twelve Indian insurance companies, four co-operative insurance societies, five foreign insurers with
Indian operations and the general insurance operations of the southern region of Life Insurance Corporation of
India were merged with United India Insurance Company Limited to form the company
Q5 (D) Q6 (A) Q7 (C) Q8 (B) Q9 (A) Q10 (D)
SET 6
Q1. Life Insurance Corporation of India(LIC) was formed in which year?
A) 1912 B) 1950 C) 1952 D) 1956
Q2. What is the name of Satellite offices of Life Insurance Corporation of India (LIC)?
A) SAMPARK B) SAMADHAN C) SAMPOORNA D) SHATABDI
Q3. Where is the headquarters of Life Insurance Corporation of India (LIC) located?
A) Delhi B) Pune C) Mumbai D) Chennai
Q4. In which year Life Insurance Business in India was nationalized?

A) 1956 B) 1958 C) 1960 D) 1966
Q5. Who is the present Chairman and Managing Director of Life Insurance Corporation of India (LIC)?
A) K Sanath Kumar B) M.R. Kumar C) G Srinivasan D) Atul Sahai
Q6. What is the slogan of Life Insurance Corporation of India (LIC)?

A) Ek Shagun Zindagi Ke Naam B) Rest Assured with Us
C) Muskurate Raho D) Yogakshemam Vahaamyaham
Q7. In which bank has Life Insurance Corporation of India (LIC) bought 51% stake recently?
A) HDFC Bank B) ICICI Bank C) IDBI Bank D) IDFC First Bank
Q8. What is the paid up capital of Life Insurance Corporation of India (LIC)?
Q9. What percentage of annual profit does Life Insurance Corporation of India (LIC) pays to Central government?
A) 2% B) 5% C) 7% D) 10%
Q10. What percentage of annual profit does Life Insurance Corporation of India (LIC) pays its policy holder?
A) 60% B) 85% C) 65% D) 95%

Q1 (D)
Q2 (A) With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the future.
Q3 (C) Q4 (A) Q5 (B)
Q6 (D) Yogakshemam Vahaamyaham which means “Your welfare is our responsibility
Q7 (C) Q8 (C)
Q9 (B) To Government 5%
Q10 (D) 95% to Policy holder; 5% to government
SET 7
Q1. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been launched by __________
A) Life Insurance Corporation of India B) Insurance Regulatory and Development Authority of India
C) Employees’ Provident Fund Organisation D) Pension Fund Regulatory and Development Authority
Q2. IRDAI has permitted the life insurance companies which have completed _______ years of operations, to
raise capital through initial public offerings (IPOs)
A) 12 years B) 5 years C) 8 years D) 10 years
Q3. The insurance in which risks are shared between multiple insurers is known as __________
A) Dual Insurance B) Co Insurance C) Self Insurance D) Reinsurance
Q4. An independent professional person registered under the Insurance Act who represents the insurance buyer
to purchase the insurers policy is known as ___________
A) Agent B) Insurer C) Claimant D) Broker
Q5. The Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time
post the grace period. This period is known as ___________
A) Extended Period B) Lapsed Period C) Revival Period D) Renewed Period
Q6. An insurance policy designed to protect professionals and business owners when they are found to be at
fault for a specific event such as misjudgment is termed as ____________
A) Indemnity Insurance B) Business Default Insurance C) Risk Hall Insurance D) Entrepreneur Hall
Insurance
Q7. What is the paid- up capital of National Insurance Company Ltd?

Q8. The situation where the benefits of insurance policy gets terminated due to non-payment of premium is
called as ___________
A) Surrender B) Lapse C) Terminate D) Dormant
Q9. What does ‘Paid Up’ policy means in insurance?

A) Policy that requires no further premium payments and continues to provide benefits till maturity.
B) Policy that provide a life cover for a specific term
C) Policy for which the premium is paid in a single period together
D) Policy in which the premium gets reduced over a period of time and benefit increases till maturity
Q10. Which among the following is an accidental insurance scheme?

A) PMJJBY B) PMFBY C) PMSBY D) PMVVY

Q1 (A)
Q2 (D) The Insurance Regulatory and Development Authority of India (IRDAI) recently
allowed life insurance companies that have completed 10 years of operations to raise
capital through initial public offerings (IPOs).
Q3 (B)
Q4 (D) Brokers are not appointed by insurers. They solicit insurance quotes and/or policies from insurers by
submitting completed applications on behalf of buyers.
Q5 (C) Q6 (A) Q7 (D) Q8 (B) Q9 (A)
Q10 (C) Pradhan Mantri Surakhsa Beema Yojana (PMSBY); Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY); Pradhan Mantri Fasal Bima Yojana; Pradhanmantri Vaya Vandana Yojana (PMVVY)
SET 8
Q1. Which among the following options is not correct?
A) 1948 – Introduction of The Insurance Act
B) 1956 – Nationalization of Life Insurance business
C) 1972 – General Insurance Business (Nationalization) Act was passed
D) 2000 – GIC was converted into National Re-insurer
Q2. The General Insurance Business (Nationalization) Amendment Act was passed in which year?
A) 2000 B) 2002 C) 1999 D) 1998
Q3. GIC was formed in pursuance of which section of General Insurance Business (Nationalization) Act (GIBNA)?
A) Section 8(1) B) Section 7(1) C) Section 9(1) D) Section 2(1)
Q4. GIC was founded on ___________

A) 1 July 1938 B) 31 January 1994 C) 25 April 1959 D) 22 November 1972
Q5. The General Insurance Corporation of India (GIC) was incorporated as a private company under which act?
A) Insurance Act 1938 B) General Insurance Business (Nationalisation) Act, 1972
C) Companies Act, 1956 D) Insurance Regulatory and Development Authority Act, 1999
Q6. With the nationalization, the General Insurance business in India was merged into how many companies?
A) 10 B) 9 C) 7 D) 4
Q7. How many insurance companies were nationalized under the General Insurance Business (Nationalization)
Act (GIBNA) 1972?
A) 107 B) 255 C) 98 D) 130
Q8. Before GIC became the sole Re-Insurer in India, it had how many fully owned subsidiary companies?
A) 3 B) 1 C) 2 D) 4
Q9. Who is the Chairman-cum-Managing Director of GIC?

A) Ravi Mital B) Alice G Vaidyan C) A. K. Das D) Usha Ramaswamy
Q10. The Indian insurance companies are required by law to cede __________ percent of every policy value to
GIC Re w.e.f. 1 April 2013
A) 5% B) 10% C) 15% D) 20%

Q1 (A) The Insurance Act was introduced in 1938
Q2 (B) The General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) came into force
from March 21, 2003.
Q3 (C) Q4 (D)
Q5 (C) General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was
incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares.
Q6 (D) General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
grouped into 4 companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
Q7 (A) 55 Indian insurance companies and 52 other general insurance operations of other companies were
nationalized
Q8 (D) National Insurance Company Limited. The New India Assurance Company Limited. The Oriental Insurance
Company Limited. United India Insurance Company Limited
Q9 (B) Q10 (A)
SET 9
What is the share of Government of India in the GIC of India (GIC Re)?
A) 70.25% B) 100% C) 51.11% D) 85.78%
The authorized capital of the General Insurance Corporation of India (GIC) is Rs ____________
General Insurance Corporation of India (GIC) has its foreign branches in how many countries?
A) 1 B) 2 C) 3 D) None
Which among the given is the wholly owned subsidiary of GIC Re?
A) GIC-Bhutan RE Ltd. B) GIC Re South Africa Ltd. C) Agricultural Insurance Company of India Ltd D) GIC
Re India Corporate Member Ltd
The New India Assurance Company Limited was founded in which year?
A) 2 March 1928 B) 18 December 1922 C) 28 January 1932 D) 23 July 1919
The headquarter of The New India Assurance Company Ltd is located in which city?
A) Kolkata B) Chennai C) Mumbai D) Delhi
Who is the current CMD of The New India Assurance Company Ltd?
A) Atul Sahai B) Debasish Panda C) Neelam Damodharan D) P. Ramana Murthy
What is the authorized capital of The New India Assurance Company Ltd?
Who is the founder of The New India Assurance Company Ltd?

A) Pallonji Mistry B) Sir Dorabji Tata C) Ardeshir Godrej D) S.K. Burman
The New India Assurance Company Ltd is a _____________ type of company

A) General Insurance Company B) Life Insurance Company C) Pension Regulator D) Asset Reconstruction
Company

Q1 (D) GIC Re was a wholly-owned company of Government of India until its initial public offer (IPO) in October
2017. After the IPO Government of India’s holding in GIC Re declined to 85.78%
Q2 (B) The paid-up equity capital is Rs.430 crore
Q3 (C) It has 3 branches in located at London, Dubai and Kuala Lumpur and 1 representative office in Moscow
Q4 (B) Q5 (D) Q6 (C) Q7 (A)
Q8 (D) The paid-up equity capital of the company is Rs.200 crore
Q9 (B) Q10 (A)
SET 10
The United India Insurance Company (UIIC) Limited was incorporated on ____________
A) 31 December 1919 B) 25 January 1946 C) 18 February 1938 D) 09 March 1952
UIIC was nationalised in which year?

A) 1956 B) 1972 C) 1999 D) 2000
How many companies were merged with the United India Insurance Company Limited with nationalization?
A) 20 B) 14 C) 19 D) 22
What is the authorized capital of the United India Insurance Company Limited?
The headquarter of UIIC is in which city?

A) Kolkata B) Mumbai C) Chennai D) Hyderabad
Name the Chairman cum Managing Director of UIIC?

A) Susmita Mukherjee B) Girish Radhakrishnan C) S. Gopakumar D) B Rajaram
The Oriental Insurance Company Limited was incorporated in which year?

A) 15 July 1938 B) 30 April 1942 C) 21 January 1954 D) 12 September 1947
Where is the headquarter of The Oriental Insurance Company Ltd located?

A) New Delhi B) Mumbai C) Chennai D) Kolkata
Name the Chairman-cum-Managing Director of The Oriental Insurance Company Ltd

A) Dinesh Waghela B) A. V. Girija Kumar C) Soumya Mukherjee D) K.N Nayak
What is the authorized capital of The Oriental Insurance Company Ltd?


Q1 (C) Q2 (B)
Q3 (D) 12 Indian Insurance Companies, 4 Cooperative Insurance Societies and Indian operations of 5 Foreign
Insurers, besides General Insurance operations of southern region of Life Insurance Corporation of India were
merged with United India Insurance Company Limited.
Q4 (A) The authorized capital and paid-up equity capital of the company is Rs.200 crore and Rs.150 crore
respectively.
Q5 (C) Q6 (B) Q7 (D) Q8 (A) Q9 (B)
Q10 (C) The authorized capital and paid-up equity capital of the company is Rs.200 crore
SET 11
Q1. When was the National Insurance Company Limited (NICL) incorporated?
A) 5 December 1906 B) 18 july 1984 C) 22 November 1938 D) 30 April 1919
Q2. Where is the headquarter of NICL located?

A) Hyderabad B) Mumbai C) Kolkata D) Jaipur
Q3. Who is the Chairman cum Managing Director of NICL?

A) K Sanath Kumar B) Tajinder Mukherjee C) Sidharth Pradhan D) Lalit Kumar Chandel
Q4. What is the authorized capital of NICL?

Q5. How many insurance companies were merged with National Insurance Company Limited after
nationalization in 1972?
A) 54 B) 19 C) 32 D) 28
Q6. Apart from being a leading insurance provider in India, NICL also serves which other country?
A) Nepal B) Sri Lanka C) Bhutan D) Bangladesh
Q7. The Agriculture Insurance Company Of India Limited was incorporated on ____________
A) 6 August 1999 B) 29 October 1997 C) 12 February 2000 D) 20 December 2002
Q8. Who is the Chairman cum Managing Director of Agriculture Insurance Company Of India Limited (AIC)?
A) Ashish Kumar Bhutani B) Alamelu T. Lakshmanachari C) N Srinivasa Rao D) Alice G. Vaidyan
Q9. What is the authorized capital of Agriculture Insurance Company (AIC) Limited?
Q10. The headquarter of Agriculture Insurance Company Of India Limited (AIC) is located in which city?
A) Bengaluru B) Pune C) New Delhi D) Hyderabad
Q1 (A) Q2 (C) Q3 (B)
Q4 (D) The authorized capital and paid-up equity capital of the company is Rs.200 crore and Rs.100 crore
respectively.
Q5 (C) After nationalization in 1972 it was merged, along with 21 foreign and 11 Indian companies, to form
National Insurance Company Ltd
Q6 (A)
Q7 (D) ‘Agriculture Insurance Company Of India Limited’ (AIC) was incorporated to exclusively cater to the
insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act,
1956 on 20th December 2002
Q8 (B)
Q9 (A) The Authorized Share Capital of the Company is Rs. 1500 crore with initial Paid-up Equity Share Capital of
the Company of Rs. 200 crore.
Q10 (C)
SET 12
What is the shareholding of National Agricultural and Rural Development Bank (NABARD) in Agriculture
Insurance Company of India Limited (AIC)?
A) 30% B) 35% C) 40% D) 45%
The insurance is listed in which schedule to the Constitution of India?

A) 3rd B) 14th C) 9th D) 7th
Since which year, IRDA started licensing private sector companies to conduct general insurance business in
India?
A) 1999 B) 2001 C) 2004 D) 1992
Name the committee that recommended the entry of the private sector in the insurance business and also
foreign companies be allowed entry by forming joint venture with Indian companies
A) Malhotra Committee B) Gupte Committee
C) Amphora Committee D) Banarji Committee
The Actuaries Act was passed in which year to regulate and develop the profession of Actuaries?
A) 2006 B) 1999 C) 2000 D) 1995
The first ever life insurance industry in India was set up in which city?
A) Bombay B) Delhi C) Madras D) Calcutta
Which among the following was the first life insurance company in India to cater to the needs of Indians?
A) Indian Mercantile Insurance Company Ltd B) Madras Equitable Life Insurance Society
C) Bombay Mutual Life Assurance Society D) Oriental Life Insurance Company
The insurance law in India has its origin from which country?
A) France B) United Kingdom C) United States D) Russia
The first general insurance company was set up in which city of India?
A) Delhi B) Madras C) Bombay D) Calcutta
Which among the given is the first general insurance company in India to be set up by an Indian?
A) Oriental Insurance Company Ltd B) Liberty General Insurance Company Ltd
C) Indian Mercantile Insurance Company Ltd D) Star Health and Allied Insurance Company Ltd
Q1 (A) Indian General Insurance Corporation – 35 % ; National Agricultural and Rural Development Bank
(NABARD) – 30 % ; National Insurance Company Limited – 8.75 % ; The New India Assurance Company Limited –
8.75 % ;The Oriental Insurance Company Limited – 8.75 % ;United India Insurance Company Limited – 8.75 %
Q2 (D) Insurance is a subject listed in the concurrent list in the Seventh Schedule to the Constitution of India
where both center and states can legislate.
Q3 (B) In 2001, Private Sector Companies were also licensed by IRDA to conduct general insurance business in
India.
Q4 (C) Q5 (A) Q6 (D) Q7 (C)
Q8 (B) Insurance law in India had its origins in the United Kingdom with the establishment of a British firm, the
Oriental Life Insurance Company in 1818 in Calcutta
Q9 (D) The first general insurance company Triton Insurance Company Ltd. was promoted in 1850 by British
nationals in Calcutta.
Q10 (C) The first general insurance company established by an Indian was Indian Mercantile Insurance Company
Ltd. in Bombay in 1907
SET 13
The Life Insurance Business is defined in which section of the Insurance Act, 1938?
A) Section 2(11) B) Section 3C(11) C) Section 1(11) D) Section 4A(11)
Who appoints the member of Insurance Regulatory and Development Authority (IRDA)?
A) RBI B) Government of India C) Special panel formed by the RBI D) None of the above
The IRDA board can consist of a maximum of how many members?

A) 12 B) 8 C) 5 D) 10
What is the minimum paid up equity capital requirement to carry insurance business in India?
A) Rs 5 billion B) Rs 1 billion C) Rs 3 billion D) Rs 2 billion
The minimum shareholding limit of promoters / promoter group shall at all times be maintained
at______________ percent of the paid up equity capital of the insurer.
A) 50% B) 20% C) 32% D) 40%
SEBI defines AIF as privately held and managed pool of investment fund. What does AIF stands for?
A) Angel Investment Fund B) Alternative Investment Fund
C) Abundant Investment Fund D) Applicable Investment Fund
The Private equity investors shall not hold more than _________ percent of the paid up equity share capital of
the Indian insurance company.
A) 15% B) 20% C) 5% D) 10%
In case of an individual, the proposed shareholding in the paid up equity capital of the insurance company is
capped at _____________ percent
A) 10% B) 5% C) 20% D) 12%
The amount which the policy holder will get from the insurance company if he exits the policy before maturity is
known as ____________
A) Paid Up value B) Penetration Rate C) Surrendered value D) Annuity value
What is the minimum paid up equity capital requirement to carry Reinsurance business in India?
A) Rs 1 billion B) Rs 2 billion C) Rs 2.5 billion D) Rs 1.5 billion

Q1 (A) Q2 (B) 3 (D)
Q4 (B) A minimum paid up equity capital of rupees one billion (Rs. 100 crores) is required in case of an applicant
which seeks to carry on the business of life insurance or general insurance.
Q5 (A) Q6 (B) Q7 (D)
Q8 (A) Shareholders permitted 10 per cent or more in an insurance company will be subject to a minimum lock-
in period of five years
Q9 (C) Q10 (B)
SET 14
Q1. A company licensed by IRDA for maintaining data of insurance policies in electronic form on behalf of
Insurers is known as ____________
A) Insurance Repository B) Insurance Miner C) Demat Insurance Company D) Insurance
Warehouse
Q2. A policy holder can open how many e Insurance Account (e IA) to keep policies in electronic mode?
A) Unlimited B) Three C) Two D) One
Q3. Which among the following entities offers export credit insurance protection to exporters against payment
risks?
A) IRDA B) ECGC Limited C) ESIC D) AIC Limited
Q4. The Agriculture Insurance Company of India Limited (AIC) was set up in which year?
A) 1982 B) 1999 C) 2002 D) 2014
Q5. The Employment State Insurance (ESI) Act of 1948 is applicable to all establishments having __________or
more workers.
A) 25 B) 50 C) 20 D) 10
Q6. A product offered by insurance companies that provides both insurance and investment product under a
single integrated plan is known as_____________
A) Unit Linked Insurance Plan B) Endowment policy
C) Money Back Policy D) Term Life Insurance
Q7. How many Reinsurance companies have been identified by IRDAI?

A) 4 B) 2 C) 1 D) 5
Q8. Name the Indian Insurance company which was recently honoured with the Golden Peacock Innovative
Product/Services Award 2019?
A) Acko General Insurance Limited B) Bajaj Allianz General Insurance
C) IFFCO TOKIO General Insurance D) Reliance Health Insurance Limited
Q9. The first Employees’ State Insurance (ESI) Scheme was inaugurated in which city?
A) Chennai B) Delhi C) Kanpur D) Mysore
Q10. Which among the following is IRDAI recognized apex body of licensed Insurance Brokers?
A) IBBI B) FICCI C) IAI D) IBAI

Q1 (A)
Q2 (D) A policy holder should open an e Insurance Account (e IA) with one of the Insurance Repositories to be
able to buy and keep policies in electronic mode. An individual can have only one e IA with any one of the
Insurance Repositories.
Q3 (B)
Q4 (C) AIC was incorporated on 20 December 2002
Q5 (D) The act was initially intended for factory workers but later became applicable to all establishments
having 10 or more workers. As on 31 March 2016, the total beneficiaries are around 82.8 million
Q6 (A)
Q7 (B) ITI Reinsurance Limited and General Insurance Corporation of India
Q8 (A)
Q9 (C) The scheme was inaugurated in Kanpur on 24th February 1952 (ESIC Day) by then Prime Minister Pandit
Jawahar Lal Nehru.
Q10 (D) Insurance Brokers Association of India (I.B.A.I.) was incorporated as a Company under Section 25 of the
Companies Act, 1956. The main objects of IBAI are to promote interaction among the Insurance/Re-insurance
Broker members and to encourage, promote, facilitate and protect the interests of the members of IBAI
SET 15
Q1. Which country is the first in the world to introduce the concept of Insurance Repository services?
A) India B) United States C) United Kingdom D) France
Q2. A foreign company is not allowed to hold at any time, more than __________ percent of the total paid-up
equity of the Indian Insurance Company
A) 10% B) 26% C) 50% D) 49%
Q3. What is the authorized capital of the ECGC Limited?

A) Rs 2000 crores B) Rs 5000 crores C) Rs 2500 crores D) Rs 4000 crores
Q4. Which Section of the Insurance Regulatory and Development Authority Act, 1999 specifies the composition
of IRDAI?
A) Section 7 B) Section 2 C) Section 4 D) Section 6
Q5. Which among the following is not a type of intermediaries in insurance business?
A) Insurance Agents B) Insurance Brokers C) Bancassurance D) Distribution Channel
Q6. Which among the following is not an insurance company?

A) National Securities Depository Limited B) ICICI Lombard C) Tata AIG D) New India Assurance
Co. Ltd
Q7. The Insurance Advisory Committee advises IRDAI on development, disclosures and regulatory aspects of the
insurance industry. The Committee cannot have more than ___________ members at any point of time
A) 15 B) 20 C) 25 D) 10
Q8. The amount paid by the policy holder before an insurance provider begins to pay any expenses is known
as___________
A) Premium B) Deductibles C) Co-Payments D) Annuity
Q9. What is the total stake of the Punjab National Bank in the insurance firm PNB MetLife India Ltd?
A) 30% B) 50% C) 35% D) 55%
Q10. Which Section of the IRDA Act 1999, specifies the Duties, Powers and Functions of the Authority?

Q1 (A)
Q2 (D) No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its
equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid up
equity capital of such Indian Insurance company
Q3 (B) The present paid-up capital of the company is Rs. 1200 crores and authorized capital Rs.5000 crores
Q4 (C) Q5 (D) Q6 (A) Q7 (C) Q8 (B)
Q9 (A) PNB MetLife was initially launched as MetLife India Insurance Company Limited in 2001. In 2013,
PNB acquired 30% stake in MetLife India Insurance and the new private sector life insurer was re-branded as
PNB MetLife India Ltd
Q10 (D)
SET 16
Name the first private sector life insurance company in India
A) ICICI Prudential Life Insurance B) HDFC Life C) Birla Sun Life Insurance D) Bajaj
Allianz Life Insurance
What is the maximum age requirement to apply for the Pradhan Mantri Suraksha Bima Yojana?
What is the total number of life insurance companies operating in India?

A) 20 B) 28 C) 19 D) 24
The SBI Life Insurance is a joint venture between the State Bank of India and __________
A) AXA B) Met Life C) BNP Paribas Cardif D) Aviva
Which is the first Private Sector Reinsurance Company in India?

A) Shriram Reinsurance Limited B) ITI Reinsurance Limited
C) Cigna Reinsurance Limited D) Star Reinsurance Limited
A combination of two or more individual polices into a single policy is known as ____________
A) Combined Policy B) Group Policy C) Multiple Policy D) Package Policy
Which among the following is a 100% Indian owned life insurance company?
A) Exide Life Insurance Company B) HDFC Life Insurance
C) Bajaj Allianz Life Insurance D) Reliance Nippon Life Insurance
The IRDA established ‘Institute of Insurance and Risk Management’ is located in which city?
A) Mumbai B) Hyderabad C) Kolkata D) New Delhi
How many Insurance Repositories are functional in India?

A) 8 B) 6 C) 5 D) 4
Which among the following is the first insurance company in India to be listed on NSE and BSE?
A) HDFC Life B) General Insurance Corporation of India C) ICICI Prudential Life Insurance D) SBI
Life

Q1 (B)
Q2 (A) Minimum age- 18 years
Q3 (D) Q4 (C) Q5 (B) Q6 (D) Q7 (A) Q8 (B)
Q9 (D) IRDA originally issued licenses to five entities to act as Insurance Repositories, however, SHCIL Projects
Limited surrendered its Insurance Repository license in September 2015. The remaining four are:
 CDSL Insurance Repository Limited (CDSL IR)

 Karvy Insurance Repository Limited
 National Insurance-policy Repository
 CAMS Insurance Repository Services Limited
Q10 (C)
SET 17
Q1. Name the international body that provides political risk insurance.
A) International Development Association (IDA) B) International Finance Corporation (IFC)
C) Multilateral Investment Guarantee Agency (MIGA) D) International Centre for Settlement of Investment
Disputes (ICSID)
Q2. The IRDA allowed the entry of private sector into the Indian Insurance sector in which year?
A) 2000 B) 2004 C) 2009 D) 2006
Q3. An insurance company that passes the part or all of its risks from its insurance policy portfolio to a
reinsurance firm is known as ______________
A) Relinquishing Company B) Renounced Company C) Dependent Company D) Ceding
Company
Q4. Floater insurance does not provide insurance coverage to ______________

A) Expensive Jewelleries B) Antique Equipments C) House D) Rare coins and collections
Q5. The owner of an asset who grants it at lease to another party is also known as_____________
A) Lapse B) Lessor C) Lessee D) Libel
Q6. Which among the following companies completely acquired the business of ING Vysya Life Insurance?
A) Exide Industries B) Aviva C) Reliance D) Met Life
Q7. The IndiaFirst Life Insurance Company is a joint venture between 2 Indian banks and UK based firm Legal &
General. Name the two banks.
A) UCO Bank and Andhra Bank B) Bank of Baroda and Punjab National Bank
C) Punjab National Bank and United bank of India D) Bank of Baroda and Andhra Bank
Q8. How many entities in India are authorized to open Electronic Insurance Account?
A) 4 B) 10 C) 1 ) All Insurance companies
Q9. HDFC ERGO General Insurance Company Limited is a joint venture between HDFC Ltd. and ERGO
International AG. What is the stake of HDFC in the company?
A) 62% B) 51% C) 49% D) 80%
Q10. Which among the following insurance company is based in Gurgaon?

A) Max Bupa Health Insurance Company Limited B) HDFC General Insurance Company Limited
C) Religare Health Insurance Company Limited D) Bharti AXA General Insurance Company Limited

Q1 (C) Q2 (A) Q3 (D)
Q4 (C) Floater insurance covers property that is easily movable and provides additional coverage over what
normal insurance policies do not. This can cover anything from jewelry to expensive stereo equipment
Q5 (B) Q6 (A) Q7 (D)
Q8 (A) IRDA has granted the Certificate of Registration to four entities to act as ‘Insurance Repositories’ that are
authorized to open e-Insurance Accounts.
Q9 (B) Q10 (C)
SET 18
Q1. The HDFC Life Insurance was previously known as ___________
A) HDFC ERGO Life Insurance B) HDFC Prudential Life Insurance
C) HDFC Standard Life Insurance D) HDFC Sun Life Insurance
Q2. The headquarter of the International Association of Insurance Supervisors (IAIS) is located at
______________
A) Geneva, Switzerland B) Berlin, Germany C) Singapore D) Basel, Switzerland
Q3. ‘Your Welfare is Our Responsibility’ is the slogan of which insurance company?
A) Life Insurance Corporation of India B) United India Insurance Company Limited
C) The Oriental Insurance Company Limited D) National Insurance Company limited
Q4. Which among the following is the largest non-bank private-sector life insurer in India?
A) TATA AIA Life Insurance Company Limited B) Max Life Insurance Company Limited
C) Exide Life Insurance Company Limited D) Bajaj Allianz Life Insurance Company Limited
Q5. GIC Re receives statutory cession of _______ percent on each and every policy subject to certain limits
A) 8% B) 10% C) 2% D) 5%
Q6. Munich Re is a leading reinsurance company based in which country?

A) France B) Switzerland C) Germany D) China
Q7. Name the insurance company which has received the Assocham Non-Life Insurer of the Year Award 2019?
A) Bharti AXA General Insurance Company Limited B) ICICI Lombard General Insurance Company Limited
C) Acko General Insurance Company Limited D) Bajaj Allianz General Insurance Company Limited
Q8. Who is the Chairman cum Managing Director of the ECGC Limited?
A) M Senthilnathan B) Geetha Muralidhar C) Bidyut Behari Swain D) Alice G. Vaidyan
Q9. Besides serving India, the state owned National Insurance Company Limited (NICL) also provides its
insurance service in which country?
A) Pakistan B) Malaysia C) Bhutan D) Nepal
Q10. Name the first wholly Indian-owned Life Insurance Company in the private sector?
A) Exide Life Insurance Company Limited B) Shriram Life Insurance Company Limited
C) Sahara India Life Insurance Company Limited D) IndiaFirst Life Insurance Company

Q1 (C) Q2 (D) Q3 (A) Q4 (B)
Q5 (D) GIC writes reinsurance for every non-life and over half of the life insurance companies in India. GIC Re
receives statutory cession of 5 percent on each and every policy subject to certain limits.
Q6 (C) Q7 (A) Q8 (B) Q9 (D)
Q10 (C) It started operating from 30 October 2004 after being granted license to operate as a life insurer in India
by Insurance Regulatory and Development Authority on 6 February 2004
SET 19
Q1. The Aviva Life Insurance is a joint venture between the Aviva International Holding Limited and
___________
A) Tata Group B) Corporation Bank C) Dabur Invest Corp D) Reliance Capital
Q2. The Insurance Marketing Firm (IMF) was set up by IRDA as distribution channel upon the recommendation
of which committee?
A) Randip Singh Jagpal Committee B) NM Govardhan Committee
C) V Badrinarayanan Committee D) Prashant Mudgil Committee
Q3. What is the shareholding of LIC in the total paid-up equity share capital of the IDBI Bank?
A) 51% B) 49% C) 46.46% D) 58%
Q4. The maximum number of Managing Directors that can be appointed in the Life Insurance Corporation of
India (LIC) is _____________
A) 1 B) 2 C) 3 D) 4
Q5. Name the first insurance company in India to launch the Bank Locker Protector Policy
A) Reliance General Insurance B) HDFC ERGO General Insurance
C) IFFCO Tokio General Insurance D) United India Insurance
Q6. The first general insurance company in India to receive dual certifications of ISO 9001:2008 and ISO
27001:2005 in the first year of its operation is___________
A) Future Generali India Insurance B) Bharti AXA General Insurance
C) Cholamandalam MS General Insurance D) Tata AIG General Insurance
Q7. The SBI Life Insurance has entered into one of the biggest bancassurance pact with which bank in the year
2019, to sell its policies through bank branches?
A) Punjab National Bank B) Allahabad Bank C) Syndicate Bank D) Corporation Bank
Q8. The Times Group has joint venture in which of the following insurance companies?
A) Aegon Life Insurance Company B) Shriram Life Insurance Company
C) Max Life Insurance Company D) Sahara Life Insurance Company
Q9. Name the Indian insurance company which is the largest shareholder of the Infrastructure Leasing &
Financial Services Limited (IL&FS)
A) New India Assurance Company Limited B) Export Credit Guarantee Corporation of India
C) Agriculture Insurance Company of India D) Life Insurance Corporation of India
Q10. Who is the Chairman of the committee formed by IRDAI to identify the Systemically Important Insurers
(SIIs)?
A) Pradip Biswas B) M.R. Kumar C) Pravin Kutumbe D) Hemant Bhargava

Q1 (C) Q2 (B)
Q3 (A)LIC Holds 51% stake in IDBI, Government holds 46.46% stake and the remaining 2.54% is held by the
public
Q4 (D)
Q5 (C) The policy offers seven options of sum insured ranging from Rs 3 lakh to Rs 40 lakh and above.
Q6 (B) Q7 (B)
Q8 (A) It is a joint venture between Dutch Aegon N.V. and The Times Group
Q9 (D) Q10 (C)
SET 20
Q1. The Comprehensive insurance is generally associated with the insurance of____________
A) Bank Lockers B) Life C) Health D) Automobile
Q2. What is the minimum cooling-off period available on all insurance policies?
A) 3 days B) 7 days C) 14 days D) 30 days
Q3. CTP insurance is needed when registering a vehicle. What does it stands for?
A) Compulsory Third Party Insurance B) Common Travel Plan Insurance C) Cover Trip Period Insurance
D) Car Term Policy Insurance
Q4. A situation where the policy holder may not have enough insurance claim to cover the value of the insured
property is known as_____________
A) Co-Insurance B) Underinsurance C) Overinsurance D) Self insurance
Q5. What is Fidelity insurance?

A) insurance taken by a company for the Board members of the company
B) the vehicle insurance provided by a company to its employees
C) insurance of all important bank documents
D) insurance taken out by an employer against losses incurred through dishonesty by employees
Q6. The amount received by the policy holder from the insurance company if he exits the policy before maturity
is known as__________
A) Low value B) Paid up value C) Surrendered value D) Penetration value
Q7. Which among the following insurance company is known for insuring the acclaimed film Bahubali 2?
A) Future Generali India Insurance B) Bharti AXA Life Insurance
C) IDBI Federal Life Insurance D) PNB MetLife India Insurance
Q8. What is the share of Reliance Capital in the total equity capital of the Reliance General Insurance?
A) 51% B) 100% C) 75% D) 69%
Q9. The Bajaj Allianz General Insurance Company Limited has its headquarter in which city?
A) Gurgaon B) Mumbai C) Kolkata D) Pune
Q10. The policy for which all benefits to the policyholder cease and is terminated due to non payment of
premium amount on the due date or even after the grace period is called as _______
A) Locked policy B) Overdue policy C) Lapsed policy D) Knock-out policy

Q1 (D) Comprehensive insurance is a type of automobile insurance that helps to pay for damage to your vehicle
from causes other than a collision like fire, vandalism or falling objects (like a tree or hail).
Q2 (C) By law, all insurance policies have a minimum 14-day cooling-off period. During this period, you can
cancel the policy for any reason and get a refund of any premiums you’ve paid.
Q3 (A) Compulsory Third Party (CTP) Personal Injury Insurance, also known as a Green Slip must be purchased
before you can register your vehicle. CTP insurance is intended for the situation where another person is injured
or killed in an accident, which is caused by the driver of the insured vehicle.
Q4 (B) Underinsurance refers to inadequate insurance coverage held by a policyholder. In the event of a
claim, underinsurance may result in economic losses to the policyholder, since the claim would exceed the
maximum amount that can be paid out by the insurance policy
Q5 (D) Q6 (C) Q7 (A) Q8 (B) Q9 (D) Q10 (C)
SET 21
Q1. Which among the following is the oldest insurance company in India?
A) Life Insurance Corporation of India B) National Insurance Company C) United India Insurance D)
Agriculture Insurance Company of India
Q2. What is Insurable interest?

A) Insurance plans which are made for two annuitants wherein regular payments are provided till the death of
both the beneficiaries
B) A professional who provides specialized guidance and advice for investment in various insurance schemes
C) Probability or likelihood of occurrence of losses relative to the expected return on any particular investment
D) Reasonable concern of a person to obtain insurance for any individual or property against unforeseen events
such as death, losses, etc
Q3. Which principle of Insurance states that ‘when the insured is compensated for the losses due to damage to
his insured property, then the ownership right of such property shifts to the insurer’
A) Principal of Subrogation B) Principle of Contribution C) Principle of Indemnity D) Principle of
CAUSA PROXIMA
Q4. Which of these is an Insurance Repository (IR) operational in India?

A) NSDL Database Management Limited B) CAMS Repository Services Limited C) Karvy Insurance Repository
Limited D) All the above
Q5. IGMS facilitates online registration of policyholders’ complaints and helps track their status. What does
IGMS stands for?
A) Institutional Grievance Management System B) Instant Grievance Management System
C) Internal Grievance Management System D) Integrated Grievance Management System
Q6. ___________ is defined as a fixed amount paid by an insured to insurer each time before receiving a
particular health care service.
A) Re-insurance B) Deductible C) Copayment D) Repayment
Q7. The maximum amount of risk retained by an insurer per life is called as ___________
A) Retention B) Reinsurance C) Retention Limit D) Revival
Q8. The Mortality Charge is levied __________ in life insurance policy

A) Quarterly B) Half Yearly C) Monthly D) Annually
Q9. A company that provides both life insurance and non-life insurance is known as ________
A) Mutual Insurer B) Composite Insurer C) Captive Insurer D) Dual Insurer
Q10. What is the maximum limit for the amount under dispute that can be entertained by the Insurance
Ombudsman?
A) Rs 25 lakhs B) Rs 50 lakhs C) Rs 20 lakhs D) Rs 15 lakhs

Q1 (B) Q2 (D)
Q3 (A) Mr. John insures his house for $ 1 million. The house is totally destroyed by the negligence of his
neighbour Mr.Tom. The insurance company shall settle the claim of Mr. John for $ 1 million. At the same time, it
can file a law suit against Mr.Tom for $ 1.2 million, the market value of the house. If insurance company wins the
case and collects $ 1.2 million from Mr. Tom, then the insurance company will retain $ 1 million (which it has
already paid to Mr. John) plus other expenses such as court fees. The balance amount, if any will be given to Mr.
John, the insured.
Q4 (D) Central Insurance Repository Limited is the fourth IR.
Q5 (D)
Q6 (C) A copayment or copay is a fixed amount for a covered service, paid by a patient to the provider of service
before receiving the service. It may be defined in an insurance policy and paid by an insured person each time a
medical service is accessed.
Q7 (A) The maximum amount of risk retained by an insurer per life is called retention. Beyond that, the insurer
cedes the excess risk to a reinsurer. The point beyond which the insurer cedes the risk to the reinsurer is called
retention limit.
Q8 (D) Q9 (B) Q10 (C)
SET 22
Q1. Any complainant must approach to the Insurance Ombudsman within ___________ period of the rejection
by the insurer
A) 3 months B) 6 months C) 12 months D) 9 months
Q2. The “Nomination by policy-holder” is defined in which section of The Insurance Act, 1938?
Q3. An insurance company owned entirely by its policyholders is known as __________

A) Mutual Insurance Company B) Insured Insurance Company C) Swap Insurance Company D) Co Insurance
Company
Q4. The date from which the annuity holder starts receiving the policy benefits of a regular stream of income is
known as ________
A) Penetration Date B) Coverage Date C) Annuity Date D) Vesting Date
Q5. CGL is a type of insurance policy that provides coverage to a business for bodily injury, personal injury and
property damage caused by the business’ operations, products, or injury that occurs on the business’ premises.
Expand CGL.
A) Combined General Liability B) Commercial General Liability C) Common General Liability D) Captive
General Liability
Q6. A decrease in the value of property over a period of time due to wear and tear or obsolescence is termed as
____________
A) Depreciation B) Decrement C) Wear & Tear D) Outdated
Q7. A __________ is a type of reinsurance in which the reinsurer can accept or reject any risk presented by an
insurance company seeking reinsurance
A) Surplus Reinsurance B) Treaty Reinsurance C) Facultative Reinsurance D) Proportional
Reinsurance
Q8. The Jeevan Dhara Life is an insurance policy launched by which company?
A) Aviva Life Insurance Company B) Life Insurance Corporation of India C) HDFC Life Insurance D) Max
Life Insurance
Q9. A life insurance policy taken by a person on the life of another person who is or was his
employee/connected to his business in any manner whatsoever.
A) With-Profit Policy B) Money Back Policy C) Limited Payment Life Policy D) Keyman Insurance Policy
Q10. _____________ is the restoration of a lapsed policy to in-force status

A) Reinstatement B) Indemnity C) Franchise D) Deferment

Q1 (C) Q2 (B) Q3 (A) Q4 (D) Q5 (B) Q6 (A) Q7 (C) Q8 (B) Q9 (D) Q10 (A)
SET 23
Q1. You can cancel the insurance policy offered by insurers over distance mode within _____ of receipt of the
policy.
Q2. You can seek cancellation a life insurance policy within ____ from the date of receipt of the policy document
in case you disagree with any of the terms or conditions in the policy.
Q3. ___ is the period within which, if you do not agree to the terms and conditions of the insurance policy you
can seek refund?
A) Cancellation Period B) Overlook Period C) Free Look Period D) Down Time Period
Q4. A _______ is the form completed by the policyholder when applying for insurance.
A) acceptance form B) annuity form C) policy form D) proposal form
Q5. The insurer has a duty to furnish free of charge a copy of the proposal form within ______ of the acceptance
of the proposal.
Q6. Insurance company has to comply to the instructions of Insurance Ombudsman within how many days of
receiving the instructions?
Q7. What is the interest rate payable by the Insurer in case of late payment of death claims under the Life
Insurance Policy?
A) Bank rate + 2% B) Bank rate + 1% C) Bank rate + 3% D) Bank rate + 5%
Q8. The ratio of losses suffered to the amount of insurance in effect is known as?
A) Expense Ratio B) Burning Ratio C) Loss Ratio D) Manual Ratio
Q9. _________ refers to increase in probability of loss that result from dishonesty in the character of the insured
person.
A) False Hazard B) Fake Hazard C) Loss Hazard D) Moral Hazard
Q10. ___ refers to the property which an insurance company takes over after paying the claims of any damaged
building?
A) Overtake B) Portability C) Salvage D) Sight

Q1 (B) In case of disagreement with the terms of the policy under all life contracts and covers tied to
credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3
years or more, you have the right to cancel the insurance policy offered by insurers over distance mode within
30 days of receipt of the policy, provided no claim has already been made on the policy.
Q2 (A) For offline mode free cancellation within 15 days; For distance mode- 30 days
Q3 (C) Free Look Period is the period within which, if you do not agree to the terms and conditions of the policy
after reading the same, you can return the policy immediately and seek refund of premium from the insurance
company. Normally, all life insurance policies and health insurance policies having a term of three years or more
have a provision for free look period.
Q4 (D) A proposal form seeks basic information of the proposer and the life assured. This includes the name,
age, address, education and employment details of the proposer.
Q5 (C) Q6 (D)
Q7 (A) A death claim under a life insurance policy shall be paid or be rejected or repudiated giving all the
relevant reasons, within 30 days from the date of receipt of all relevant papers and required clarifications. If
there is delay on the part of Insurer beyond the timelines mentioned above, the insurer shall pay interest at a
rate, which is 2% above bank rate from the date of receipt of last necessary document
Q8 (B) Burning Ratio- The ratio of losses suffered to the amount of insurance in effect.; Loss Ratio- The
proportionate relationship of incurred losses to earned premiums expressed as a percentage.
Q9 (D) Moral Hazard- Moral Hazard refers to increase in probability of loss that result from dishonesty in the
character of the insured person
Q10 (C)
SET 24
Q1. Which of the following Insurance Ombudsman Rules is presently in effect?
A) Insurance Ombudsman Rules 2016 B) Insurance Ombudsman Rules 2015 C) Insurance Ombudsman Rules
2017 D) Insurance Ombudsman Rules 2018
Q2. Executive Council of Insurers of Insurance Ombudsman will consist of how many members (including
chairperson)?
A) eight B) six C) ten D) nine
Q3. An Insurance Ombudsman shall be appointed for a term of _____ years.

A) three B) four C) five D) six
Q4. Presently how many Insurance Ombudsman are there in India?

A) 11 B) 15 C) 17 D) 19
Q5. You can approach Insurance Ombudsman if your Insurance Company did not resond to your complaint
within ___ days.
Q6. What is the maximum amount of award that Insurance Ombudsman can pass?
Q7. The Insurance Ombudsman shall finalise its findings and pass an award within a period of _____ months of
the receipt of all requirements from the complainant.
A) one B) two C) three D) four
Q8. The insurer shall comply with the award passed by Insurance Ombudsman within _____days of the receipt
of the award and intimate compliance of the same to the Ombudsman.
A) 30 B) 15 C) 60 D) 45
Q9. When a complaint is settled through mediation by the Insurance Ombudsman, then the insurer should
comply with the terms of the recommendation within ___ days
A) 30 B) 15 C) 10 D) 45
Q10. The Advisory Committee constituted by IRDAI to review the performance of the Insurance Ombudsman
can have a maximum of how many members?
A) three B) six C) nine D) five

Q1 (C) Q2 (D)
Q3 (A) An Ombudsman shall be appointed for a term of three years and shall be eligible for reappointment.
Provided that no person shall hold office as an Ombudsman after he has attained the age of seventy years.
Q4 (C) There are at present 17 Insurance Ombudsman in different locations and any person who has a grievance
against an insurer, may himself or through his legal heirs, nominee or assignee, make a complaint in writing to
the Insurance ombudsman within whose territorial jurisdiction the branch or office of the insurer complained
against or the residential address or place of residence of the complainant is located.
Q5 (B) You can approach the Ombudsman with complaint if: You have first approached your insurance
company with the complaint and; They have rejected it; Not resolved it to your satisfaction or; Not responded to
it at all for 30 days
Q6 (C) Insurance Ombudsman may not award compensation exceeding rupees thirty lakhs (including relevant
expenses, if any).
Q7 (C)
Q8 (A) If by mediation then 15 days; if by award then 30 days
Q9 (B) The Ombudsman shall send to the insurer, a copy of its recommendation, along with the acceptance
letter received from the complainant and the insurer shall, thereupon, comply with the terms of the
recommendation immediately but not later than fifteen days of the receipt of such recommendation, and
inform the Ombudsman of its compliance.
Q10 (D) An Advisory Committee consisting of eminent persons not exceeding five and including one Central
Government nominee shall be constituted by the IRDAI to review the performance of the Insurance
Ombudsman from time to time.
SET 25
Q1. The Employees State Insurance Act came into force in which year?
A) 1956 B) 1932 C) 1948 D) 1974
Q2. What is the full form of ESIC?

A) Employers’ State Insurance Corporation
B) Employment State Insurance Corporation
C) Employees’ State Insurance Corporation
D) External State Insurance Corporation
Q3. ESIC is an autonomous body under which ministry?

A) Ministry of Corporate Affairs
B) Ministry of Labour and Employment
C) Ministry of Finance
D) Ministry of Health and Family Welfare
Q4. What is the current rate of contribution of employers and employees under ESIC respectively?
A) 4% and 1% B) 3% and 1% C) 4% and 2% D) 3% and 2%
Q5. The headquarter of ESIC is located at___________

A) Hyderabad B) Kolkata C) Mumbai D) New Delhi
Q6. Who is the Director General of ESIC?

A) Sandhya Shukla B) Raj Kumar C) R.K. Kataria D) Garima Bhagat
Q7. ESIC was founded in which year?

A) 1952 B) 1948 C) 1932 D) 1944
Q8. Any establishment employing __________ or more employees are eligible for ESI scheme
A) 25 B) 15 C) 10 D) 30
Q9. Employees who have a maximum salary of Rs. ___________ has to mandatorily register itself with the ESIC
A) Rs 25,000 B) Rs 10, 000 C) Rs 20,000 D) Rs 15,000
Q10. Employees whose salary is less than _______ per day are exempted to make contribution in ESIC
A) Rs 150 B) Rs 100 C) Rs 200 D) Rs 250

Q1 (C)
Q2 (C) Employees’ State Insurance Corporation (ESIC)
Q3 (B) ESIC is an autonomous corporation by a statutory creation under Ministry of Labour and
Employment, Government of India
Q4 (A) Q5 (D) Q6 (B)
Q7 (A) 24 February 1952
Q8 (C) Q9 (D)
Q10 (B) The only exemption to the employee in paying his contribution is whose salary is less than Rs. 100/- per
day.
SET 26
Q1. ___________ is financial protection for a driver who, while operating a vehicle, harms someone else or their
property.
A) Renters’ insurance B) Automobile liability insurance C) Travel insurance D) Vehicle insurance
Q2. The condition where life insurance policy is used as collateral for a loan is termed as_______
A) Collateral Assignment B) Blanket Value C) Maturity Claim D) Contractual Designation
Q3. ____________is the maximum amount an insurer will pay for covered losses during a policy period.
A) Extended Coverage B) Conditional Receipt C) Affirmative Warranty D) Aggregate Limits
Q4. What is meant by Surrender value?

A) The amount of money an insurance policy guarantees to pay up before any bonuses are added
B) Reduced amount of sum assured paid by the insurance company, in case the policyholder
discontinues payment of premiums
C) The sum of money an insurance company pays to a policyholder when he want to discontinue the policy and
take whatever money is due
D) Amount paid by the insurer to the insured at the time of maturity.
Q5. ________ are the additional covers offered to the insured with the main policy so that the insured can get
additional benefits under the single plan.
A) Riders B) Revival C) Settlement D) Add-On
Q6. A person who buys an insurance policy is known as __________

A) Insurer B) Insured C) Nominee D) Beneficiary
Q7. The amount of money charged by the insurance company from the insured for the policy is called
the _____________.
A) Annuity B) Fund C) Liability D) Premium
Q8. Who is an appointee in relation to insurance?

A) The person insured
B) A person appointed to receive the benefit upon the death of the insured
C) The person who will receive the money on behalf of a nominee who is minor
D) Third party who is authorized to receive the money on behalf of the actual beneficiary who is not a minor
Q9. An insurance policy that covers losses resulting from damage to your insured property caused by unlawful
crimes such as Riot, Strike, Malicious Damage and Theft is known as ____________
A) Burglary insurance B) Critical insurance C) Bancassurance D) General insurance
Q10. _____________ is the person or entity you name in a life insurance policy to receive the death benefit
A) Claimant B) Beneficiary C) Insured D) Shareholder

Q1 (B) Automobile liability insurance only covers injuries or damages to third parties and their property, not to
the driver or the driver’s property.
Q2 (A)
Q3 (D) The annual aggregate limit is the total amount an insurer will pay in a given single year.
Q4 (C) Q5 (A) Q6 (B) Q7 (D)
Q8 (C) Where the nominee is a minor, the policyholder is advised to appoint another elder person as an
‘Appointee’ who will not only receive the money on the minor’s behalf but also will undertake to spend for the
minor’s welfare. Hence care should to be taken to appoint only a highly responsible and closely related person
as an “appointee”.
Q9 (A) Burglary insurance is a policy that covers losses resulting from a burglary. Burglary denotes the act of
entering a property unlawfully with the intention of committing a crime and it might not always involve theft.
Q10 (B)
SET 27
Q1. Which among the following is not considered as a national debt?
A) Life Insurance Policies B) Long term Government Bonds C) National Savings Certificates D)
Provident Funds
Q2. Identify the wrong option with respect to the joint venture between Indian and foreign companies in
insurance sector
A) ICICI Bank – Prudential Life Insurance B) HDFC – MetLife India Insurance C) Bajaj – Allianz Life
Insurance D) Bharti – AXA Life Insurance
Q3. Which of the given policies of Life Insurance Corporation of India is related with regular old age pension?
A) Jeevan Sanchay B) Jeevan Chhaya C) Jeevan Kishor D) Jeevan Akshay
Q4. The first ever departmental life insurance policy was designed for which group?
A) Indian Army B) Civil officers In Central Government C) Postal department employees D) All
the above
Q5. __________ is the regulator of insurance sector in India

A) IRDA B) RBI C) SEBI D) LIC
Q6. An entity/individual working on behalf of insurer to investigate damage suffered by the clients of the
insurance company and helps approve the claim is known as___________
A) Actuary B) Assessor C) Broker D) Mediator
Q7. What is the term used for the request made for compensation from insurer for a loss covered by insurance
policy?
A) Claim B) Premium C) Compensation D) Fund
Q8. The situation when you insure something for an amount of money more than its reasonable value is known
as______
A) Excess insurance B) Unlimited insurance C) Unreasonable insurance D) Over insurance
Q9. A document that describes in clear terms the terms and conditions of the insurance policy offered to you by
the insurer is termed as___________
A) Policy Description B) Underwriting C) Product Disclosure Statement D) Financial Statement
Q10. An insurance provider offering coverage in a country other than the company’s home country is known as
______________
A) Agency Company B) Alien Insurance Company C) Admitted Company D) NR Insurance Company

Q1 (A) Q2 (B) Q3 (D) Q4 (C) Q5 (A) Q6 (B) Q7 (A) Q8 (D) Q9 (C) Q10 (B)
SET 28
Q1. The type of agent that represents only one company and sells only its policies is known as__________
A) Sole agent B) Captive agent C) Single agent D) None of these
Q2. The Principles of Insurance are categorized into ________ types

A) 7 B) 10 C) 6 D) 5
Q3. How many types of Insurance Agents are recognised under the Regulations?
A) 8 B) 5 C) 1 D) 3
Q4. An individual agent in insurance sector is issued a licence for a period of _______ years at a time.
Q5. An insurance agents who support financial inclusion by distribution of financial services at an affordable cost
to the masses is known as___________
A) Micro insurance Agents B) Insurance Correspondent C) Corporate agent D) Individual agent
Q6. What should be the minimum paid up capital of the entity to become Third Party Administrator (‘TPA’) to
insurance company?
A) Rs 20 crore B) Rs 1 crore C) Rs 5 crore D) Rd 10 croree
Q7. The powers and functions of IRDA are defined in which section of the IRDA Act?
Q8. Every life insurance company are mandated to maintain a sum equivalent to _______% of the total gross
premium in any financial year with RBI in the form of cash or approved securities
A) 2% B) 4% C) 3% D) 1%
Q9. __________ is the practice of sharing all risks among a group of insurance companies.
A) Risk pooling B) Insurable interest C) Representative insurance D) Open Policy
Q10. The insurance policy especially designed for covering ship damage expenses is referred to as _______
A) Marine insurance B) Hull insurance C) Cargo insurance D) Voyage insurance

Q1 (B) also known as exclusive agent
Q2 (A)
Q3 (D) (a) Individual Agent

(b) Corporate Agent
(c) Micro Insurance Agent
Q4 (C) Q5 (A) 6 (B) Q7 (C)
Q8 (D) Section 7 mandates that every life insurance company shall maintain a sum equivalent to 1% of the total
gross premium written in India in any financial year commending after 31 day of March 2000, but not exceeding
`10 Crores with the Reserve Bank of India in the form of Cash or approved securities.
Q9 (A) Q10 (B)
SET 29
With the nationalization of General Insurance Corporation of India (GIC) 107 insurers were amalgamated and
formed into __________ companies
A) 4 B) 10 C) 1 D) 8
The four subsidiaries of General Insurance Corporation (GIC) were converted into independent companies in
which year?
A) 1999 B) 2002 C) 2000 D) 2005
Under which type of life insurance policy, insured receive periodic payments over the policy term and full sum
assured in case of death during the policy term.
A) Term Insurance B) Whole Life Policy C) Endowment Plan D) Money Back Policy
The Unit Trust of India (UTI) was formed in which year?

A) 1948 B) 1964 C) 1952 D) 1976
Marine insurance, Engineering insurance, Energy insurance or Liability insurance are the types of____________
A) Commercial insurance B) Home insurance C) Money back insurance D) Travel insurance
____________ is a risk management technique in which a company or individual sets aside a pool of money to
be used to remedy an unexpected loss in place of buying an insurance policy from a third party.
A) Under-insurance B) Double insurance C) Self-insurance D) Indemnity Insurance
The portions of the obligations in an insurance company’s policy portfolio that are transferred to a reinsurer is
known as___________
A) Cession B) Commission C) Profit Ratio D) Annuity
The amount of risk or liability that is covered for an individual or entity by an insurer in the event of unforeseen
occurrences by way of insurance services is known as_________
A) Premium B) Insurance coverage C) Policy period D) Risk
The Motor Insurance policy of the General insurance is categorized into how many types?
A) three B) one C) five D) two
What was the initial capital of the Unit Trust of India (UTI)?

Q1 (A) Q2 (C) Q3 (D)
Q4 (B) The Government of India made a financial set up i.e. ‘The Unit Trust of India’ by passing special Unit Trust
of India Act 1963, on 1st of February 1964.
Q5 (A) Q6 (C) Q7 (A) Q8 (B)
Q9 (D) Third Party Liability Cover and Comprehensive Motor Insurance Policy
Q10 (C)
SET 30
Q1. In Insurance, the ratio of premium underwritten in a particular year to the GDP is known as__________
A) Penetration Rate B) Cession C) Lapse Ratio D) Burning Ratio
Q2. Motor third-party insurance is a type of____________

A) Double insurance B) Compulsory Insurance C) Under-insurance D) Self-insurance
Q3. ________ is a type of insurance policy where the proposer as well as the premium payer is the employer
A) Variable Universal Insurance Policy B) Endowment Plan C) Keyman Insurance Policy D) Survivorship
Insurance Policy
Q4. Which among the following does not come under general insurance?
A) Home insurance B) Health insurance C) Marine insurance D) Life insurance
Q5. Property insurance, marine insurance or liability insurance can be classified as which of the following type of
insurance?
A) Rural insurance B) Commercial insurance C) Urban insurance D) Specific insurance
Q6. ________ is known as approaching a client by an insurer or an intermediary with a view to convince the
client to purchase an insurance policy
A) Solicitation B) Reinstatement C) Proposal D) Claim
Q7. The extension in the number of days by the insurance company so that you can make the premium payment
for you insurance plan even after you due date has passed is known as_______
A) Deferment Period B) Free-look Period C) Grace Period D) Waiting Period
Q8. NCB is a type of reward by insurer to the policyholder for not making a claim in the preceding years. Expand
NCB
A) No Claim Bonus B) Net Credit Benefit C) Non Convertible Bond D) New Cost Buffer
Q9. The period during which the insurance company holds all the right to investigate the policy and decide
whether to pay or not to pay to the insured is termed as:
A) Revocable period B) Contestable period C) Declaration period D) Irrevocable period
Q10. The person or institution (Bank) that receives the insurance payment on the loss of the property or vehicle
you own is known as______
A) Third Party Holder B) Additional Insured C) Claimant D) Loss Payee

Q1 (A) Q2 (B) Q3 (C) Q4 (D) Q5 (B) Q6 (A) Q7 (C) Q8 (A) Q9 (B) Q10 (D)
SET 31
Q1. The ratio of premium to the total population (per capita premium) is known as_______
A) Insurance density B) Insurance penetration C) Insurance mitigation D) Insurance assessment
Q2. The process of putting the insurance policy back after a lapse is known as________
A) Settlement Option B) Reinstatement C) Reinsurance D) Co-Insurance
Q3. As per IRDA, the maximum limit to pay insurance premium via cash mode is___________
A) Rs 75,000 B) Rs 1,00,000 C) Rs 25,000 D) Rs 50,000
Q4. When an insurance company enters into a reinsurance contract with another insurance company, then the
same is called as____________.
A) Treaty Reinsurance B) Facultative Reinsurance C) Risk Reinsurance D) Traditional Reinsurance
Q5. What is Vesting Bonus in insurance?

A) The regular flow of income to the insured from the insurer post the maturity of the policy instead of ‘lump-
sum’ payout.
B) The part of the overall premium which is collected by the insurance companies beforehand, but for which
protection is not provided.
C) The bonus given by the insurer to the policy holder at the end of the year after ascertaining its assets and
liabilities.
D) The bonus offered to the policyholders for keeping the policy till its maturity date
Q6. Who appoints the Chairperson of IRDAI?

A) RBI B) Central Government C) High Level Committee of ministers D) Both A & B
Q7. LAE is known as the cost borne by the insurer at the time of settling claims. Expand LAE.
A) Loss Adjustment Expense B) Liability Assessment Expense C) Liquidity Adjustment Expense D) Low
Assured Expense
Q8. What is the term used when insured uses false grounds, and not in accordance with the facts, to enter into
contract with insurer?
A) Settlement Risk B) Falsify C) Misrepresentation D) Intensification
Q9. ______ is a type of vehicle insurance where a device is fitted to your car that measures precise performance
of the vehicle and individual driver to determine the premium accordingly.
A) Auto insurance B) Motor insurance C) Adverse insurance D) Telematics insurance
Q10. Insurance brokers, insurance consultants, corporate agents, third party administrator, surveyors and loss
assessors are also known as________
A) Insurers B) Actuaries C) Intermediaries D) Agents

Q1 (A) Q2 (B)
Q3 (D) Premium is required to be paid in advance and can be paid via cash up to Rs 50,000, (the limit set by IRDA
for cash payments) cheque or DD. Further, most insurance companies have provided
for payment of premium online.
Q4 (A) Q5 (C) Q6 (B) Q7 (A)
Q8 (C) Getting into a contract with a person or a company on false grounds by making statements that are not in
accordance with the facts is known as misrepresentation. In an insurance policy, misrepresentation on the
behalf of the insured gives the insurance company a right to terminate the policy.
Q9 (D) Q10 (C)
SET 32
Q1. The one who purchases the insurance policy and pays the premium is known as __________.
A) Insured B) Proposer C) Beneficiary D) Nominee
Q2. Which among the following is not a valid Principle of Insurance?

A) Principle of Payment B) Principle of Utmost good faith C) Principle of Contribution D) Principle of
Proximate cause
Q3. Which Principle of Insurance defines the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc?
A) Principle of Proximate cause B) Principle of Contribution C) Principle of Subrogation D) Principle of
Insurable interest
Q4. Name the Insurance Principle which requires contracting parties to act honestly and not mislead or withhold
any information that is essential to the contract
A) Principle of Insurable interest B) Principle of Subrogation C) Principle of Utmost good faith
D) Principle of Indemnity
Q5. What is meant by Lapse ratio?

A) The ratio of the number of policies that lapse during a period to the total number of policies in force at the
beginning of that period
B) The ratio between incurred losses to earned premiums expressed as a percentage
C) The ratio of losses suffered to the amount of insurance in effect
D) The portions of the obligations in an insurance company’s policy portfolio that are transferred to a reinsurer
Q6. The Principle of Indemnity does not apply to __________

A) Marine Insurance B) Life Insurance C) Motor Insurance D) Property Insurance
Q7. The “rights of the insurer to assume the rights of the insured” fits best to which principle of insurance?
A) Principle of Indemnity B) Principle of Insurable interest C) Principle of Subrogation D)
Principle Contribution
Q8. The Principle of Proximate cause means:

A) You get compensated for what you lose – no more, no less
B) Disclosure of all material information from both the parties
C) The more the number of members who are insured, the more likely it is that the actual result would be closer
to the expected
D) How the loss or damage actually occurred and whether it is indeed as a result of an insured peril
Q9. Uberrima fides, is the Latin name for which Principle of Insurance?
A) Principle of Utmost good faith B) Principle of Contribution C) Principle of Proximate cause
D) Principle of Indemnity
Q10. What does paid-up value signifies in insurance sector?

A) The amount that the insurer agrees to pay on an occurrence of an insured event like death
B) The value paid to the policyholder who stops paying the premium but does not withdraws the money from
his policy
C) The fee paid by the insurer to agents and brokers for the sale of insurance policies
D) The value payable to the policyholder in the event of his deciding to terminate the policy before the maturity
of the policy

Q1 (B) Proposer (also known as Policy Owner) purchases the policy and pays the premium while Insured is the
one whose life is being insured. Insured and proposer may or may not be same.
Q2 (A) Insurance is based on these 7 Principles: Law of large numbers, Principle of Insurable interest, Principle of
Utmost good faith, Principle of Indemnity, Principle of Subrogation, Principle of Contribution, Principle of
Proximate cause
Q3 (D) Q4 (C) Q5 (A)
Q6 (B) It does not apply to Life and Personal accident insurance
Q7 (C) Q8 (D) Q9 (A) Q10 (B)
SET 33
Q1. Which among the following insurance company has launched Trip Protector insurance policy to cover the
cancellation of pre-booked flights and hotels?
A) ICICI Prudential Life Insurance Company B) HDFC ERGO General Insurance Company C) Aegon Life
Insurance Company D) Kotak Mahindra Life Insurance Company
Q2. ________ is a type of insurance plan which return the basic premiums paid for the Life cover in case of
survival of the Life Assured till the end of the policy duration.
A) PROP B) CROP C) TROP D) DROP
Q3. As per the IRDAI report, the cumulative new business premium of life insurance business in India grew
by_______ percent during April-February 2018-19
A) 5.50% B) 9.20% C) 6.10% D) 7.60%
Q4. The headquarter of Max Life Insurance Company Limited is based in which city?
A) Kolkata B) Mumbai C) New Delhi D) Chennai
Q5. IDV is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of vehicle in a
particular year. What does it stands for?
A) Insurer Deductible Value B) Insured Declared Value C) Insurance Divulge Value D) Insured Data
Vested
Q6. The part of the claim where the policyholder agree to pay an extra amount out of its own pocket at the time
of claim is known as_________
A) Voluntary Deductible B) Compulsory Deductible C) Volatile Deductible D) Discretionary
Deductible
Q7. The total number of years for the policy holder to pay the premium is known as__________
A) Settlement Option B) Penetration Rate C) Risk Assessment D) Premium Paying Term
Q8. IBNR are the reserves for claims that become due with the occurrence of the events covered under the
insurance policy, but have not been reported yet. Expand IBNR.
A) Initiated But Not Reported B) Incurred But Not Reported C) Induced But Not Reported D) Intimidated
But Not Reported
Q9. With respect to insurance industry, the amount of policies and contracts sold by each sales employee is
called ________
A) Productivity B) Durability C) Output D) Work Rate
Q10. ________ is the most important and basic document required for life insurance contract between the
insured and insurance company.
A) Insurance Document B) Insurance Application C) Proposal Form D) Policy Form

Q1 (B)
Q2 (C) TROPs are a variation to the regular Term Insurance Plans. These plans are the preferred option for
customers who do not opt for Term plans because of the live-and- lose dilemma. While Term insurance plans do
not pay any benefits in case the Life Assured survives the policy duration, TROPs return the basic premiums paid
for the Life cover in case of survival of the Life Assured till the end of the policy duration.
Q3 (D) According to Insurance Regulatory and Development Authority of India (Irdai) data, the cumulative new
business premium of all the 24 life insurance firms during April-February 2018-19 rose by 7.60 per cent to Rs
1,77,213.57 crore.
Q4 (C) Q5 (B) Q6 (A) Q7 (D)
Q8 (B) The IBNR is the abbreviated form of incurred but not reported reserves (IBNR)
Q9 (A) Q10 (C)
SET 34
Q1. The Premium paid for term insurance plan is applicable for a tax benefit and the policy holder can claim a
deduction upto Rs _______ lakh per financial year
A) Rs 1 lakh B) Rs 2.5 lakh C) Rs 1.5 lakh D) Rs 2 lakh
Q2. What is the maximum tenure of single premium life insurance (SPLI) policies?
Q3. A type of term insurance where the premiums payable throughout the selected term remains the same for a
pre-fixed sum assured is known as___________
A) Decreasing term insurance B) Term insurance with return of premiums C) Convertible term insurance
D) Level premium term insurance
Q4. The pre-decided amount that the insurance company pays to the policyholder when the insured event takes
place is known as_______
A) Sum assured B) Policy proceeds C) Sum insured D) Policy profitability
Q5. For the life insurance policies issued on or before March 31, 2012, if the premium payable in any year
exceeds ________% of the actual sum assured, then the policy proceeds would be taxable.
A) 10% B) 20% C) 15% D) 5%
Q6. For the life insurance policies issued on or after April 1, 2012, if the premium payable in any year exceeds
________% of the actual sum assured, then the policy proceeds would be taxable.
A) 15% B) 10% C) 20% D) 25%
Q7. What is the TDS applicable towards the life insurance policy proceeds which are taxable?
A) 7% B) 5% C) 2% D) 4%
Q8. In case the life insurance policy proceeds are taxable but does not increase Rs __________, then no TDS is
deducted by the insurer
A) Rs 2 lakh B) Rs 1.5 lakh C) Rs 2.5 lakh D) Rs 1 lakh
Q9. If the policyholder do not provide its PAN number to the insurer at the time of receiving policy proceeds,
then the TDS deducted would be __________ percent
A) 20% B) 15% C) 10% D) 12%
Q10. In case of a life insurance policy issued on or after April 1, 2013, the insured suffers from severe
disability/disease as specified by the Income Tax Act and rules, then the policy proceeds would be taxable if the
premium payable in any year exceeds ________% of the actual sum assured
A) 10% B) 15% C) 20% D) 5%

Q1 (C) Premiums paid towards a term insurance plan qualify for a tax benefit under section 80C of the Income-
tax Act, 1961. You can claim a deduction up to Rs 1.5 lakh a financial year for the premium paid for yourself,
your spouse, and your children.
Q2 (B) There are single premium life insurance (SPLI) policies as well, which provide similar benefits of
protection and savings as the regular premium ones. The term of SPLI policies is usually 10 years, but one can
exit after five years.
Q3 (D) Q4 (A) Q5 (B) Q6 (B)
Q7 (C) As per section 194DA of the Income Tax Act, 1961, any sum received by an insured Indian resident from
an insurer under a life insurance policy shall be subject to TDS @ 2% if the said sum is not exempted under
section 10(10D).
Q8 (D) Even if these proceeds are taxable as per section 10(10D) but do not exceed Rs 100,000, then also no TDS
is to be deducted by the insurer when making the payment to the insured.
Q9 (A) It is important for you to know that you have to submit you PAN to your insurer or else the rate of TDS
would be 20% instead of 2% in cases where TDS is applicable.
Q10 (B)
SET 35
Q1. Reinsurance can be broadly classified into how many categories?
A) Four B) Three C) One D) Two
Q2. A person who represents an insurance firm and sells insurance policies on its behalf is known as______
A) Broker B) Actuary C) Agent D) Beneficiary
Q3. The situation where the bank sells the tied insurance company’s insurance products to its clients is known as
_______________
A) Bancassurance B) Annuitant C) Assignor D) Beneficiary
Q4. __________is the person or entity entitled to receive the claim amount upon the death of the insured or on
the maturity of the policy.
A) Liable B) Beneficiary C) Agent D) Claimant
Q5. The point beyond which the insurer cedes the risk to the reinsurer is called ________.
A) Revival Period B) Holding Limit C) Retention Limit D) Detainment Limit
Q6. The supplementary benefits added in the primary life insurance policy purchased by the insured is known
as____________
A) Sum Assured B) Annuity C) Claim Amount D) Riders
Q7. Under which of the following, the insured receives a regular flow of income from the insurer post the
maturity of the policy?
A) Adverse Selection B) Settlement Option C) Embedded Value D) Deferred Acquisition Cost
Q8. The facility under which the insured person can ask the insurer to start the policy from an earlier date than
the one on which he actually signs the policy is known as_________
A) Dating Back B) Pre-Policy C) Precede D) Anachronize
Q9. In a life insurance policy, the person/entity that gets proceeds from the policy in the event of a demise of
the primary beneficiary at the same time as that of the insured is known as:
A) Random Beneficiary B) Probable Beneficiary C) Contingent Beneficiary D) Incidental Beneficiary
Q10. The first time default on premium payments by a policy holder is termed as ________
A) First Class Default B) Maiden Premium Default C) First Default D) First Unpaid Premium

Q1 (D) Broadly, reinsurance can be classified under two heads – treaty reinsurance and facultative reinsurance.
Q2 (C) Q3 (A) Q4 (B) Q5 (C) Q6 (D) Q7 (B) Q8 (A)
Q9 (C) For instance, the owner of the policy chooses his/her spouse as the primary beneficiary.However, the
spouse dies at the same time as that of the insured. Here the children of the insured will become the contingent
beneficiary.
Q10 (D)
SET 36
Q1. Which among the following is correct with respect to Insurance?
A) Prevent adverse situations from occurring B) Make assets continuously productive C) Reduce the financial
consequences of adverse situations D) Negate all consequences of adverse situations
Q2. Fidelity Guarantee insurance policy covers losses due to fraud by

A) Customer B) Employee C) Supplier D) Borrower
Q3. CTL is a loss in which the item insured is not totally destroyed but is so severely damaged that
the insurance company considers it uneconomical to repair. What does CTL stands for?
A) Constructive Total Loss B) Contributory Total Loss C) Contractors’ Total Loss D) Co-Insurer’s
Total Loss
Q4. The term ‘family floater’ is related to which of the following insurance?
A) Property Insurance B) Accidental Insurance C) Health Insurance D) Marine Insurance
Q5. Identify the incorrect statement with respect to brokers:

A) Brokers are appointed by insured to take care of their interests B) Brokers require to undergo training
before being licensed C) Brokers are allowed to negotiate with different insurers for the same insured D)
Brokers should be registered companies or firms
Q6. The health insurance policy and a personal accident policy falls under which group of the insurance market?
A) Both are life insurance product B) Both are non-life insurance product C) Life insurance for health and
non-life insurance for personal accident D) Non-life insurance for health and life insurance for personal accident
Q7. Which among the following is a method of risk transfer?

A) Insurance B) Equity Shares C) Real Estate D) Bank FD
Q8. A company’s decision to take responsibility for a particular risk it faces, as opposed to transferring the risk
over to an insurance company is known as___________
A) Risk control B) Risk financing C) Risk retention D) Risk avoidance
Q9. Which among the following lowers the cost of your insurance?
A) Reinsurance B) Co-Insurance C) Rebate D) Deductibles
Q10. The ________ is the premium paid by policyholder for life insurance, the ________ will be the
compensation paid to the beneficiary in the event of the death of insured.
A) Lower ; Higher B) Higher ; Higher C) Higher ; Lower D) Higher ; Faster

Q1 (C)
Q2 (B) Fidelity Guarantee insurance is an insurance policy designed to indemnify the Insured (the employer) for
the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in
the course of employment.
Q3 (A) Q4 (C) Q5 (D) Q6 (B) Q7 (A) Q8 (C) Q9 (D) Q10 (B)
SET 37
Q1. Which among the following insurance policy will be used by the employer to insure himself from dishonest
act of his employees?
A) Employees compensation policy B) Fidelity Guarantee Insurance policy C) Public Liability Insurance
policy D) Declaration policy
Q2. In case of Marine insurance, which of the given represents the body of the ship?
A) Cargo B) Jettison C) Hull D) Anchor
Q3. Which of the following policies covers loss or damage to aircraft?

A) Marine Insurance B) Aviation Insurance C) Property Insurance D) Statutory Insurance
Q4. The Consequential Loss (Fire) Insurance offers covers to ____________

A) Loss of Goodwill B) Loss due to fluctuations in foreign exchange C) Loss due to wear and tear of
machinery D) Loss of profit in business due to damage to the property insured
Q5. The Premium to be paid in Burglary is decided on the basis of which of these factors?
A) Security measures B) Location of Premises C) Nature of property D) All of the above
Q6. CAR insurance policy is a non-standard insurance policy designed to cover all types of risk related to
construction projects. What does CAR stands for?
A) Coverage Against Risk B) Construction Aided Risk C) Contractors’ All Risk D) Constructor’s
Additional Risk
Q7. The Money Insurance Policy covers risks related to:

A) Cash in hand B) Money invested in Mutual fund C) Money in bank’s Savings Deposit account
D) Money held in Post Office deposit account
Q8. The risks covered under a bankers indemnity insurance policy includes?
A) Loss of money/securities on premises and in transit due to various threats B) Loss arising from forgery or
alteration of cheques or drafts C) Loss due to dishonest or criminal act of its employees D) All the above
Q9. What is the purpose of deductible clause in insurance policy?

A) Avoid claim payment B) Increase the Premium C) Eliminate payment of small claims D) Harass the
policyholder
Q10. Who among the following decides whether to accept or not to accept the risk?
A) Underwriter B) Surveyor C) Agent D) Insured

Q1 (B) Q2 (C) Q3 (B) Q4 (D) Q5 (D) Q6 (C) Q7 (A) Q8 (D) Q9 (C) Q10 (A)
SET 38
Q1. There are two types of risk burdens namely primary and secondary which an individual/entity suffers. Which
among the following represents the secondary burden of risk?
A) Maintaining reserves as a provision for meeting potential losses in the future B) Goods damaged cost due to
fire C) Loss in Business cost D) Medical cost due to heart attack
Q2. ______ is the measures to reduce chances of occurrence of risk

A) Risk retention B) Risk transfer C) Risk control D) Risk avoidance
Q3. Risk retention in insurance indicates a situation where ___________

A) Insurance company takes the responsibility of the risk associated with property insured B) An entity
decides to take responsibility for a particular risk instead of transferring the risk to an insurance company
C) There is no possibility of occurrence of loss or damage D) Multiple insurance companies come
together to share the risk associated with property insured
Q4. Which among the following statements best defines an insurance?

A) Insurance protects the asset insured B) Insurance reduces possibilities of loss C) Insurance pays for loss of
asset D) Insurance eliminates loss occurrence
Q5. Which among the given insurance is compulsory in India?

A) Travel Insurance B) Fire Insurance C) Property Insurance D) Motor Third Party Insurance
Q6. IRDA monitors the policyholder’s complaints and their progress in real-time through IGMS. Expand it.
A) Integrated Grievance Management System B) Informed Grievance Management System C) Interfaced
Grievance Management System D) Insurance Grievance Management System
Q7. Which among the following consumer disputes redressal agency entertains the complaints, where value of
the goods or services and the compensation claimed does not exceed Rs.20 lakhs.
A) National Commission B) State Commission C) District Forum D) Civil Court
Q8. The __________ entertain complaints where the value of goods/service and compensation, if any claimed
exceeds Rs. 20 lakhs but does not exceed Rs. 100 lakhs.
A) State Commission B) District Forum C) National Commission D) Civil Court
Q9. The National Commission entertain complaints where the value of goods/service and compensation, if any
claimed exceeds Rs ___________
Q10. What is the time limit set for the complainant to approach an Insurance Ombudsman over the rejection of
the complaint by the insurer?
A) 3 months B) 6 months C) 1 year D) 1 month

Q1 (A) The secondary burden of risk involves costs and strains that one has to bear due to the fact that one is
exposed to a loss situation. Even if the said event does not occur, these burdens have still to be borne.
Q2 (C) Q3 (B) Q4 (C) Q5 (D) Q6 (A) Q7 (C) Q8 (A) Q9 (B) Q10 (D)
SET 39
Q1. The Insurance Regulatory and Development Authority (IRDA) was renamed as Insurance Regulatory and
Development Authority of India (IRDAI) in which year?
A) 2010 B) 2002 C) 2000 D) 2014
Q2. A type of life insurance policy where several members are included under one ‘master policy’ owned by the
employer /nodal agency is known as________
A) Group insurance B) Variable insurance C) Term plan D) Endowment plans
Q3. How many Insurance Ombudsman centres are active in India?

A) 10 B) 17 C) 21 D) 15
Q4. MRI is a type of life insurance policy which is taken when applying for a housing loan from a bank. What
does MRI stands for?
A) Mortality Redemption Insurance B) Management Redemption Insurance C) Mortgage Redemption
Insurance D) Manifest Redemption Insurance
Q5. Which among the given mode of premium payments earns the highest amount of rebate in insurance
policy?
A) Monthly B) Quarterly C) Half-yearly D) Yearly
Q6. A life insurance policy that provides for the payment of an additional amount equal to the sum assured in
case of the death of a policyholder owing to an accident is known as__________
A) Double Accident Benefit B) Bonus Loading C) Net Premium Benefit D) Permanent Disability Benefit
Q7. Which of the following is one of the important component for determining the insurance premium?
A) Interest B) Bonus loading C) Expenses of management D) All the above
Q8. What do you understand by policy lapse?

A) Discontinuation of premium payment for a policy B) Completion of premium payment for a policy C)
Policy attains maturity D) Policy is withdrawn from the market
Q9. Who bears the investment risk in case of ULIPs?

A) Insurer B) Insured C) IRDAI D) All the above
Q10. The term premium denote ___________in relation to an insurance policy?

A) Margins earned by an insurer on a policy B) Profit earned by the insurer C) Expenses incurred by an
insurer D) Price paid by an insured for the policy

Q1 (D) Q2 (A) Q3 (B) Q4 (C) Q5 (D) Q6 (A)
Q7 (D) The main components of premium are: Mortality, Interest, Expenses of management, Reserves, Bonus
loading
Q8 (A) Q9 (B) Q10 (D)
SET 40
Q1. What is the required charges that need to be paid for lodging the complaint with the insurance
Ombudsman?
A) Rs 20,000 B) 20% of the relief sought C) 10% of the relief sought D) Nill
Q2. Which of the given is not an example of insurable interest

A) Father getting insurance policy on his son B) Friends getting insurance on one another C)
Spouses getting insurance on one another D) Employer getting insurance on employees
Q3. The premium paid for whole life insurance is _____________ to/than the premium for term assurance.
A) Equal B) Lower C) Higher D) Cannot be determined
Q4. The Universal Life Policy was introduced by which country?

A) United States B) United Kingdom C) Germany D) Philippines
Q5. If the policyholder, who has bought a policy, does not want it then he can return it and get a refund during
the period called____________
A) Lock – in- period B) Free – look – period C) Trail period D) Evaluation period
Q6. The policyholder needs to appoint an appointee in which of these cases?

A) If the insured is a minor B) If policyholder is mentally disabled C) If the nominee is a minor D) All
the above
Q7. Which among the following insurance policies do not have surrender value?
A) money-back policies B) endowment policies C) unit-linked insurance policies D) Term insurance
Q8. Which Section of the Insurance Act 1938, provides for nomination of a nominee?
Q9. What is the maximum length of the grace period granted in insurance policy?
A) 3 months B) 1 month C) 12 months D) 6 months
Q10. The insurance companies are required to process the claim as soon as they receive and any additional
queries or documents needed should be asked for within a period of_______ from the date of receipt of claim
A) 15 days B) 1 week C) one month D) 2 days

Q1 (D) Q2 (B)
Q3 (C) When the premium charged under a policy remains the same throughout the duration of the contract, it
is called level premium
Q4 (A) Q5 (B) Q6 (C) Q7 (D) Q8 (D) Q9 (B)
Q10 (A) A life insurance company, upon receiving a claim, shall process the claim without delay. Any queries or
requirement of additional documents, to the extent possible, shall be raised all at once and not in a piece-meal
manner, within a period of 15 days of the receipt of the claim.
SET 41
Q1. The premium can be related to which element of a valid contract?

A) Free Consent B) Offer & Acceptance C) Consideration D) Capacities of the Parties
Q2. ___________ is a type of permanent life insurance, more similar to mutual funds, with a cash value account.
A) Variable Life Insurance B) Universal Life Insurance C) Unit Linked Insurance D) All the above
Q3. The process of appointment of a person to receive the death claim is termed as______
A) Assignment B) Registration C) Election D) Nomination
Q4. A regular premium policy acquires surrender value after the policyholder has paid the premiums
continuously for ________years.
Q5. In case of delay in payment of claim due to any reason other than that mentioned in the regulation, the
insurance company will be liable to pay an interest on claim @ ______ percent higher than bank rate applicable
at the start of financial year in which claim was reviewed
A) 2% B) 1% C) 3% D) 4%
Q6. Insurance Information Bureau of India (IIBI) was promoted by IRDA in which year?
A) 2004 B) 2009 C) 2011 D) 2000
Q7. Which among the following are the legal entities that help insurance market in redressal of consumer
grievances?
A) Insurance Ombudsman B) Consumer Court C) Civil Court D) All the above
Q8. As per IRDAI (Protection of Policyholders Interests) Regulations, 2002, a claim under a life policy shall be
paid or be disputed, within __________ from the date of receipt of all relevant papers and clarifications
required.
Q9. When the premium charged under a policy remains the same throughout the duration of the contract, it is
called as__________
A) Constant Premium B) Level Premium C) Average Premium D) Static Premium
Q10. The insurable interest in case of life insurance is required at the time of________?
A) Insurance Claim B) Third-party insurance C) Insurance Policy Purchase D) Insurable interest is
not needed

Q1 (C) Q2 (A) Q3 (D) Q4 (C)
Q5 (A) Where there is a delay on the part of the insurer in processing a claim for a reason other than the one
covered by sub-regulation (iv), the life insurance company shall pay interest on the claim amount at a rate which
is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.
Q6 (B) Q7 (D) Q8 (A) Q9 (B) Q10 (C)
SET 42
Q1. Which among the following is the primary source of information about an applicant for the underwriter?
A) PAN Card B) Medical Records C) Aadhar Card D) Proposal form
Q2. ________ is the transfer of all rights and remedies with respect to the subject matter of insurance from
insured to insurer
A) Pooling B) Diversification C) Subrogation D) Contribution
Q3. Getting into a contract with insurance company on false grounds by making statements that are not in
accordance with the facts is known as ___________.
A) Cheating B) Misrepresentation C) Falsify D) Manipulation
Q4. A temporary document issued by an insurance company that provides proof of insurance coverage until a
final insurance policy can be issued is called as
A) Cover Note B) Proposal Form C) Certificate of Insurance D) Standard Form
Q5. Which among the following is not a valid mode to pay premium
A) Cash B) Cheque C) Credit Card D) Promissory Note
Q6. Which insurance product is offered by the New India Assurance Co Ltd?
A) Personal Insurance B) Commercial Insurance C) Industrial Insurance D) All the above
Q7. ___________is a fixed amount for a covered service, paid by a patient to the provider of service before
receiving the service
A) Copay B) Deductible C) Claim D) Surrender Value
Q8. Which of these is not one of the main products of life insurance?
A) Term insurance B) Personal accident insurance C) Whole life insurance D) Endowment Policy
Q9. Which among the following provides insurance cover to exporters?

A) GIC B) IRDAI C) LIC D) ECGC
Q10. The National Agricultural Insurance Scheme has been set up to provide insurance cover to which of the
following?
A) Farmer’s Land B) Farmer’s Life C) Farmer’s Crops D) Animals used for agricultural activities

Q1 (D) Q2 (C) Q3 (B) Q4 (A) Q5 (D) Q6 (D) Q7 (A)
Q8 (B) The main products of life insurance includes: Whole life, Endowment, Term, Investment-linked, Life
annuity plan, Medical and health. The general insurance products includes – Motor insurance, Fire/House
owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance.
Q9 (D) Q10 (C)
SET 43
Q1. An insurance company owned entirely by its policyholders is known as________
A) Stock Insurance Company B) Policyholder Insurance Company C) Mutual Insurance Company D)
Shared Insurance Company
Q2. Authority that is not specifically expressed or defined in writing, but which an employee or agent assumes to
possess in order to conduct business on behalf of an agency is known as________
A) Express authority B) Specific authority C) Actual authority D) Implied authority
Q3. Which among the following is not a valid consideration in an insurance policy?
A) Application form given to insured B) Promise to pay for loss C) Premium paid at the time of
purchasing policy D) Exchange of something valuable between the two parties
Q4. An insurance company incorporated in a country other than the country where it is providing insurance
coverage is termed as:
A) Foreign insurer B) Alien insurer C) International insurer D) Domestic insurer
Q5. Which among the following insurance contract is based on ‘either accept or leave’ strategy?
A) Contract of conditions B) Contract of mutual understanding C) Contract of adhesion D) Contract of
binding
Q6. Which among the given civilizations were the first to have life insurance?
A) Chinese B) Greek C) Egyptians D) Romans
Q7.The maximum length of the period offered by most term insurance policy is ________
Q8. In life insurance, the amount that the policy’s beneficiaries receive upon the death of the insured is known
as_______
A) Total value B) Face value C) Pay out D) Cash value
Q9. Life Insurance Corporation of India (LIC) is not allowed to hold more than ___________ percent of stake in
any company without special permission
A) 20% B) 8% C) 22% D) 15%
Q10. The Hindusthan Insurance Society, which later became Life Insurance Corporation, was founded by?
A) Prafulla Chaki B) Anita Bhavsar C) Surendranath Tagore D) Surya Sen

Q1 (C) Q2 (D) Q3 (A) Q4 (B) Q5 (C) Q6 (D)
Q7 (A) Minimum length is 10 years
Q8 (B) Q9 (D) Q10 (C)
SET 44
Q1. Which among the following insurance entity is not regulated by the IRDAI?
A) SBI Life Insurance B) Postal Life Insurance C) Sahara India Life Insurance D) IDBI Federal Life Insurance
Q2. When was the Postal Life Insurance (PLI) launched?

A) 11 March 1896 B) 31 January 1906 C) 1 February 1884 D) 30 April 1986
Q3. What is the maximum sum assured limit for plans under PLI?
Q4. The maximum sum assured limit for the Children Policy under PLI is________
Q5. The Rural Postal Life Insurance (RPLI) was launched on the recommendation of which committee?
A) Rangarajan Committee B) Venkitaramanan Committee C) Malhotra Committee D) Tagore Committee
Q6. What is the maximum sum assured limit under RPLI Policy?
Q7. What is the maximum sum assured limit for the Children Policy under RPLI?
Q8. Under PLI/RPLI, the policyholder below the age of ________can take a Children’s Policy for its children.
Q9. What should be the maximum age of the child for whom Children’s Policy can be undertaken by the policy
holder?
Q10. How many children per family are eligible for the Children’s policy of the PLI/RPLI?
A) One B) Two C) Three D) No limit

Q1 (B) Sec. 44 of the LIC Act describes Postal Life Insurance (PLI) as a “scheme run by the Central Government’.
So, PLI is neither a company nor a body corporate, but is part of a department of the Central government and so
will not come under the definition of ‘insurer’. Consequently, the IRDA can only advise PLI, and that too not in its
capacity as a regulator but just as a well-wisher.
Q2 (C) PLI was launched on February 1, 1884, as a welfare measure for employees of the Post & Telegraph
department and then extended gradually, over a century, to cover employees of Central and State governments,
local bodies, nationalised banks, public sector undertakings and government aided schools.
Q3 (D) Minimum ₹ 20,000 and maximum ₹ 50 lakhs for all plans except children policy.
Q4 (A) For Children Policy, maximum sum assured limit is ₹ 3 lakh.
Q5 (C) As per the recommendations of the Malhotra Committee, rural postal life insurance was launched on
March 24, 1995 to extend insurance benefits to the rural population.
Q6 (B) Minimum ₹ 10,000 and maximum ₹ 10 lakhs for all the plans except children policy.
Q7 (A) Q8 (C)
Q9 (D) Any PLI/RPLI policy holder who is below the age of 45 years having children between 5 years and 20
years
Q10 (B)
SET 45
Q1. LIC’s Executive Board consists of how many Managing Directors?
A) One B) Two C) Three D) Four
Q2. CAGR is a measure to determine the rate of increase or decrease of investment over multiple time period in
a business. What does it stands for?
A) Compound Annual Growth Rate B) Cost Accounting Growth Ratio C) Credit Analysis Gross Return
D) Calculative Annual Gross Rate
Q3. The IRDAI (Re-insurance) Regulations, 2018 (“Regulations”), which came into force on January 1, 2019,
repeal which of the following regulations?
A) IRDAI (General Insurance – Reinsurance) Regulations, 2016 B) IRDAI (Life Insurance – Reinsurance)
Regulations, 2013 C) Both A & B D) None of the above
Q4. Which among the following is the First Private Sector Reinsurance Company in India to be wholly promoted
by Indian Entrepreneurs?
A) Munich Re B) ITI Re C) Gen Re D) SCOR SE
Q5 Which of the given insurance covers are compulsory by law in India?

A) Motor Vehicle Insurance B) DICGC Insurance C) Employees’ State Insurance D) All of the above
Q6 The banks can withdraw from DICGC coverage after a period of__________
A) One year B) Two years C) Five years D) Cannot Withdraw
Q7. The Insurance Act 1938 restricts the insurers to reject a claim in life insurance policy on any ground,
including frauds or misrepresentation, after a period of ____________
A) Five years B) Three years C) Two years D) Six years
Q8. Which Section of the Insurance Act 1938, allows the life insurers to call a policy into question, within the
initial 3 years, on the ground of misrepresentation or fraud?
Q9. What is the duration of time provided by RBI to LIC to reduce its stake in IDBI Bank by 10 percent?
Q10. Under the Prime Minister’s Crop Insurance Scheme, farmers will have to pay a uniform premium of
_______ percent for Kharif crops?
A) 1.5% B) 1% C) 5% D) 2%

Q1 (D)
Q2 (A) CAGR stands for Compound Annual Growth Rate and is a financial investment calculation that measures
the percentage an investment increases or decreases year over year
Q3 (C) Q4 (B) Q5 (D)
Q6 (D) The deposit insurance scheme is compulsory and no bank can withdraw from it.
Q7 (B) The initial three years in a life insurance contract between the life insurance company and the
policyholder is an important milestone. While the rules allow insurers to repudiate (or reject) death claims
within the initial three years of a life insurance policy on the ground of misrepresentation or suppression of a
material fact, their hands are tied for repudiation of claims, if a death happens after this period.
Q8 (C) Q9 (A) Q10 (D)
SET 46
Q1. Which among the given is not a key component of insurance?
A) Interest B) Deductible C) Premium D) Policy Limit
Q2. The IRDAI has instructed insurance companies to make available a tracking mechanism latest by ________
for policyholders to enable them to know the status of their claims.
A) 1 June 2019 B) 1 May 2019 C) 1 August 2019 D) 1 July 2019
Q3. As per IRDAI data, the cumulative new business premium of all the 24 life insurance firms during April-
February 2018-19 rose by ____________ percent
A) 9.10% B) 8.20% C) 7.60% D) 6.60%
Q4. Which among the following represents a provision or modification to terms of an existing insurance policy to
provide additional coverage to the policy
A) Jackets B) Riders C) Protocol D) Fence
Q5. How many Zonal office of LIC is operational in India?

A) 10 B) 4 C) 5 D) 8
Q6. Which among the given insurance company is not the promoter of Agriculture Insurance Company of India
Limited (AIC)?
A) Life Insurance Corporation of India B) NABARD C) General Insurance Corporation of India D)
United India Insurance Company Limited
Q7. Which among the given best represents Micro Finance?

A) Life Insurance Policy B) Self Help Group C) Investment in Mutual Fund D) ULIP
Q8. Identify which of the listed policies is not launched by the LIC?
A) Jeevan Akshay B) Jeevan Saral C) Jeevan Swarna D) Jeevan Anand
Q9. Passengers would be able to avail free-of-cost travel insurance of Rs 50 lakh if they book their tickets
through the IRCTC. The railway catering and tourism arm has partnered with which insurance company for the
service?
A) Bharti AXA General Insurance B) Life Insurance Corporation of India C) HDFC Life Insurance D) ICICI
Prudential Life Insurance
Q10. “Insuring Lives, Ensuring future” is the punch line of which insurance provider?
A) SBI Life Insurance B) HDFC Life Insurance C) Kotak Mahindra Life Insurance D) Postal Life Insurance

Q1 (A) Q2 (D)
Q3 (C) The cumulative new business premium of all the 24 life insurance firms during April-February 2018-19
rose by 7.60 per cent to Rs 1,77,213.57 crore.
Q4 (B) Q5 (D)
Q6 (A) LIC is not the promoter of AIC. NABARD hold 30% stake in it.
Q7 (B) Q8 (C) Q9 (A) Q10 (D)
SET 47
Q1. Inadequate insurance coverage held by a policy holder where the limits may not be high enough to cover
the full expenses of a claim is known as__________
A) Low-insurance B) Under-insurance C) Doubtful-insurance D) Cheap-insurance
Q2. ____________ is where an insurer deposits premiums from policies it underwrites and from which it funds
day-to-day operations of the business.
A) General Account B) Insurance Account C) Savings Account D) Business Account
Q3. Which of these best defines the “maximum you have to pay for covered services in a plan year”?
A) actual cash value B) up-to-date maximum C) Gross premiums written D) out-of-pocket maximum
Q4. What does EOB stands for in insurance?

A) Extra offer Benefits B) Existence of Beneficiary C) Explanation of Benefits D) Emergence of
Bancassurance
Q5. The period during which claim is not admitted in a health insurance is known as________
A) Waiting Period B) Turning Period C) Halt Period D) Grace Period
Q6. An insurance policy issued at a higher premium rate than standard because of less than average health
conditions or undesirable lifestyles is known as____________.
A) Loss policy B) Rated policy C) With-Profit policy D) Systematic policy
Q7. The duration of period during which an insurer has the right to investigate the policy and decide upon the
claim is called as _______
A) Waiting period B) Finite period C) Recoupment D) Contestable period
Q8. Which class of policy holders pay generally higher insurance premiums
A) Female B) Male C) Children D) There is no such distribution
Q9. Suppose an individual purchase mortgage life insurance and is paying down the principal, what will happen
to his coverage?
A) Decrease B) No change C) Increase D) Cannot be determined
Q10. HMOs are a type of health insurance plan. Here HMO stands for_______
A) Health Management Obligation B) Health Medicare Office C) Health Maintenance Organization
D) Health Monitoring Ombudsman

Q1 (B) Q2 (A)
Q3 (D) Your out-of-pocket maximum is the most you have to pay each year toward your medical services or
prescription drugs before your insurance pays for all your care. This amount does not include what you pay in
premiums.
Q4 (C) An explanation of benefits (EOB) is a statement sent by a health insurance company to covered
individuals explaining what medical treatments and/or services were paid for on their behalf.
Q5 (A) Q6 (B) Q7 (D) Q8 (B)
Q9 (A) The coverage decreases at the same rate as the party pay off the principal of the mortgage
Q10 (C)
SET 48
Q1. BCAR is a rating agency that focuses on the insurance industry. What does R stands for in BCAR?
A) Ratings B) Ratio C) Relativity D) Rate
Q2. __________ is a basic measure of how financially sound an insurer is and its ability to pay claims.
A) Covered Ratio B) Incurred Claim Ratio C) Preference Ratio D) Solvency Ratio
Q3. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss.
Such risks are known as___________
A) Horizon Risk B) Uninsurable Risk C) Concentration Risk D) Longevity Risk
Q4. The tax imposed by each state on gross premium written by insurers to risks located in that state is known
as___________
A) Premium Tax B) Insurance Tax C) Policy Tax D) Indirect Tax
Q5. The Annuity that pays periodic income over the life of an annuitant, and stops only with his or her death is
called:
A) Time annuity B) Fixed annuityC) Pure Life annuity D) Subsequent annuity
Q6. What is the full form of CPA in insurance

A) Common Person Annuity B) Compulsory Personal Accident C) Covering Projected Aspect D)
Closed Policy Assurance
Q7. Which of the following terms means to reduce risk and the liability burden of the initial reinsurer by
spreading out the risk to other reinsurance companies.
A) Retrocession B) Reinsurance C) Retention D) Retrospection
Q8. A __________ rating plan can be defined as a rating plan in which the final premium is determined based on
the insured’s actual loss experience during the policy term
A) Retrocession B) Reinsurance C) Retention D) Retrospective
Q9. Comprehensive insurance coverage is related with __________

A) health B) car C) life D) house
Q10. A type of life insurance policy designed to pay off a borrower’s debt if the borrower dies is known
as_________
A) Debt Policy B) Credit Life C) Support Plan D) Death Benefit

Q1 (C) Best’s Capital Adequacy Relativity (BCAR) was developed by A.M. Best, a rating agency that focuses on
the insurance industry. BCAR depicts the quantitative relationship between an insurance company’s balance
sheet strength and its operating risks.
Q2 (D) Q3 (B) Q4 (A) Q5 (C) Q6 (B) Q7 (A) Q8 (D)
Q9 (B) Comprehensive insurance is a type of automobile insurance that covers damage to your car from causes
other than a collision such as hail, storms, falling tree limbs or other acts of nature.
Q10 (B)
SET 49
Q1. A type of car insurance contract under which insured’s and its passengers’ are indemnified by their own
insurance company in case of car accident, regardless of who caused the accident, is known as_____
A) Freebie Insurance B) No Fault Insurance C) Affectionate Insurance D) Remedial Insurance
Q2. A type of risk where large group of policy holders are adversely affected by a single phenomenon such as a
natural disaster is known as________
A) Particular Risk B) Speculative Risk C) Specific Risk D) Covariant Risk
Q3. The IRDAI has raised the compulsory personal accident coverage for owner-driver to Rs _____ lakh
Q4. ICR is the measure of total value of all claims paid by the company divided by the total amount of premium
collected in a financial year. Expand ICR.
A) Immediate Claims Rectified B) Insured Claims Rendered C) Incurred Claims Ratio D) Insurance Claims Rate
Q5. When an Agent collects the premium from the policyholder and remits it to the insurer’s office, he is acting
as an agent of __________
A) IRDAI B) Insurance Company C) Policy Holder D) Insured
Q6. The premium for a Whole Life plan is always ________ than compared to the premium for an Endowment
plan for the same age
A) Less B) Half C) Double D) More
Q7. IRDAI has mandated all insurance companies to maintain a minimum Solvency ratio of _______ percent to
minimise the risk of bankruptcy
A) 75% B) 100% C) 150% D) 90%
Q8. Which of the following rates are used by an actuary to determine the premiums to be charged to customers
for likelihood of getting a disease?
A) Mortality rates B) Morbidity rates C) Valuation rates D) Policy rates
Q9. A nomination can be made in favour of ______

A) Any individual B) spouse C) children D) parents
Q10. ________ is a type of an extra liability insurance to provide an additional layer of security to the insured
against significant claims and lawsuits and protect insured’s assets and the business future.
A) Special Protection Insurance B) Parasol Insurance C) Patronage Insurance D) Umbrella Insurance

Q1 (B) Q2 (D) Q3 (A)
Q4 (C) Incurred claims ratio (ICR) metric indicates a general insurer’s ability to pay claims. It is calculated as the
total value of all claims paid by the company divided by the total amount of premium collected in a financial
year.
Q5 (B) Q6 (D) Q7 (C) Q8 (B) Q9 (A) Q10 (D)
SET 50
Q1. Under the Motor Vehicle Act, the victims of fatal injuries are paid compensation on the basis of __________
A) Income and Size of Family B) Age and Gender C) Income and Number of Dependents D) Age and
Income
Q2. The Insurance Act mandates every insurer to prepare which of the following at the end of financial year?
A) Balance Sheet B) Profit and Loss Account C) Revenue Account for each class of Insurance business
D) All the above
Q3. What is the role of the Third Party Administrator?

A) Process insurance claims B) Canvassing business for the insurer C) Issue documents on behalf of the
insurer D) Arranging for reinsurance
Q4. FPA is an insurance contract clause that eliminates an insurer’s liability for partial losses. Expand FPA.
A) Freight Payable Assured B) Free of Particular Average C) Fire Perils Added D) Fixed Peripherals
Added
Q5. The Board of Trustees of the Unit Trust of India (UTI) consists of how many members?
A) 15 B) 5 C) 11 D) 8
Q6. The Corporate Office of the UTI is situated in Mumbai. The headquarter of its Eastern Zone is in which city?
A) Kolkata B) Patna C) Asansol D) Bhubaneshwar
Q7. Which among the following types of insurance policies are much cheaper as compared to others?
A) Term insurance with guaranteed renewal B) Decreasing term insurance C) Term insurance with riders
D) E-term insurance
Q8. IRDA Regulations allow Brokers and Corporate Agents licensed by IRDA to become ‘AP’ of Insurance
Repositories for better service their customers. What does AP stands for?
A) Agents Permitted B) Assured Professional C) Approved Persons D) Authorized Party
Q9. A Company having paid up capital of above Rs ________ lakh are eligible to be appointed as an Approved
Person of an insurance repository
A) Rs 3 lakh B) Rs 5 lakh C) Rs 2 lakh D) Rs 4 lakh
Q10. The ‘NEW CHILDREN’S MONEY BACK PLAN’ has been launched by which among the following insurance
companies?
A) LIC B) New India Assurance C) National Insurance Company D) United India Insurance

Q1 (B) Q2 (D) Q3 (A) Q4 (B)
Q5 (C) The management of the affairs and business of the trust are vested in the Board of trustees, which
consists of 11 trustees including a full-time chairman appointed by the Government of India, in consultation with
The Industrial Development Bank of India
Q6 (A) West Zone – Mumbai, East Zone – Kolkata, North Zone – New Delhi and South Zone – Chennai
Q7 (D) Policies sold online are cheaper because agent commissions get cut out.
Q8 (C) In order to discharge its services and obligations, an Insurance Repository may appoint Approved Persons
(APs) to represent it before policy holders, subject to prior permission of IRDA.
Q9 (B) Only a company registered under the Companies Act, 1956 and having a paid up capital of more than Rs.
5 lakhs is eligible to be appointed as an Approved Person of an insurance repository. A Corporate Agent or an
Insurance Broker licensed by the Authority can become an AP provided his license is valid.
Q10 (A)
SET 51
Q1. Who is the head of the committee formed by IRDAI to review the regulatory framework on microinsurance?
A) Suresh Mathur B) Pankaj Tiwari C) Ajit D Warakari D) Subhasis Ghosh
Q2. Webassurance is a new insurance product launched by which bank for its customers?
A) HDFC Bank B) Punjab National BankC) State Bank of India D) Canara Bank
Q3. Name the Health Insurance company that has launched the ‘AnyTimeHealth (ATH)’ machines in partnership
with HDFC Bank.
A) Oriental Insurance B) Max Bupa Health Insurance C) Aditya Birla Health Insurance D) Religare Health
Insurance
Q4. The Star Union Dai-ichi Life Insurance is a joint venture between which Indian banks apart from Japan’s Dai-
ichi Life Insurance Company?
A) Allahabad Bank and Bank of India B) Bank of Baroda and United Bank of India C) Bank of India and
Union Bank of India D) Punjab National Bank and Union Bank of India
Q5. Who among the following has become the first female to be appointed as the Zonal Manager of Life
Insurance Corporation of India for South Central Zone
A) Mini Ipe B) Rajni Patwardhan C) Sarojini Dikhale D) Usha Sangwan
Q6. Cyber Defence Insurance is a new insurance product launched by which firm?
A) Reliance General Insurance B) United India Insurance Company C) Max Bupa Health Insurance D) SBI
General Insurance
Q7. Who among the following has been felicitated with the ‘Freedom of the City of London’ to promote
insurance ties between India and UK?
A) M Sashikala B) Usha Ramaswamy C) Alice G. Vaidyan D) Reena Bhatnagar
Q8. IRDAI has mandated all the insurance companies to devise a mechanism for sharing status of claims with
policyholders with effect from________
A) 1 June 2019 B) 1 July 2019 C) 1 May 2019 D) 1 August 2019
Q9. Which among the following banks has recently announced to sell its 25.05% equity stake in Star Union Dai-
Ichi Life Insurance Company (SUD Life)?
A) Bank of India B) Union Bank of India C) Bank of Baroda D) United Bank of India
Q10. What is the Share of Canara Bank in Canara HSBC OBC Life Insurance?
A) 15% B) 23% C) 26% D) 51%

Q1 (A) The Insurance Regulatory and Development Authority of India (IRDAI) has set up a 13-member
committee to review the regulatory framework on microinsurance and recommend measures to increase the
demand for these insurance products. IRDAI Executive Director Suresh Mathur will be the Chairman of the
committee.
Q2 (D) Public Sector Bank, Canara Bank in association with its life insurance partner,
Canara HSBC Oriental Bank of Commerce Life Insurance has announced the launch of ‘Webassurance’.
Q3 (B) HDFC Bank and Max Bupa (insurance company) have launched a ‘‘AnyTimeHealth (ATH)’ machines. ATH
machine is completely automated, technology-based model which allows customers to avail health assessment
and buy a policy instantly, without any manual intervention.
Q4 (C) Star Union Dai-Ichi Life Insurance is a JV between BoI (holds 28.96 per cent), Union Bank of India (holds
25.10 per cent), and Japan’s Dai-ichi Life Insurance Company ( holds 45.94 per cent)
Q5 (A) Mini Ipe has been appointed as the Zonal Manager of Life Insurance Corporation of India for South
Central Zone. with this, she has become the first woman zonal manager (in-charge) of LIC. Before this, she has
worked as Executive Director (International Operations) of LIC.
Q6 (D)
Q7 (C) Alice G. Vaidyan, the Chairman and Managing Director of the General Insurance Corporation (GIC) of
India (GIC Re), has been awarded with the ‘Freedom of the City of London’ in recognition of her work to
promote insurance ties between India and the UK.
Q8 (B)
Q9 (A) Bank of India (BoI) has announced that it will sell 25.05% equity stake in Star Union Dai-Ichi Life Insurance
Company (SUD Life) at a floor price of Rs. 170.50 per share.
Q10 (D) Canara HSBC OBC Life is jointly owned by two public sector banks Canara Bank (51 percent) and Oriental
Bank of Commerce (23 per cent) and HSBC Insurance (Asia Pacific) Holdings (26 per cent).
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Insurance Awareness Questions PDF – 500+ Q&A

Insurance Awareness Questions PDF for Insurance Exams

Q2. Name the first life insurance company to function in India

Q7. Name the first General Insurance Company in India?

Answers & Explanations

Q7 (D) It was set up in the year 1850 in Calcutta by the British

Q3. The IRDA was incorporated as a statutory body on______________?

Q4. What is the FDI limit in the Insurance sector?

Q7. The board of IRDAI consists of how many members?

Q8. Who is the Chairman of the IRDAI?

Q9. Which of the following is a reinsurance company in India?

Answers & Explanations

Q2 (D) Q3 (D) Q4 (B) Q5 (A) Q6 (C) Q7 (A) Q8 (D) Q9 (B)

The Indian Insurance Companies Act was enacted in which year?

The National Insurance Academy is located in which city?

The National Insurance Company Limited is a type of __________ insurance company

Who is the present CMD of National Insurance Company Limited (NICL)?

Answers & Explanations

Q3 (D) Q4 (C) Q5 (B)

Q7 (A) Q8 (B) Q9 (D) Q10 (C)

Q4. Who is the Chairman and MD of ECGC Ltd.

Q8. How many Insurance Ombudsman are functional in India?

Answers & Explanations

Q8 (B) There are at present 17 Insurance Ombudsman in different locations

Q5. Selling of insurance products through banks is known as __________

Answers & Explanations

Q5 (D) Q6 (A) Q7 (C) Q8 (B) Q9 (A) Q10 (D)

Q4. In which year Life Insurance Business in India was nationalized?

Q6. What is the slogan of Life Insurance Corporation of India (LIC)?

Answers & Explanations

Q3 (C) Q4 (A) Q5 (B)

Q6 (D) Yogakshemam Vahaamyaham which means “Your welfare is our responsibility

Q10 (D) 95% to Policy holder; 5% to government

Q7. What is the paid- up capital of National Insurance Company Ltd?

Q9. What does ‘Paid Up’ policy means in insurance?

Q10. Which among the following is an accidental insurance scheme?

Answers & Explanations

Q5 (C) Q6 (A) Q7 (D) Q8 (B) Q9 (A)

Q4. GIC was founded on ___________

Q9. Who is the Chairman-cum-Managing Director of GIC?

Answers & Explanations

Q9 (B) Q10 (A)

Who is the founder of The New India Assurance Company Ltd?

The New India Assurance Company Ltd is a _____________ type of company

Answers & Explanations

Q2 (B) The paid-up equity capital is Rs.430 crore

Q4 (B) Q5 (D) Q6 (C) Q7 (A)

Q8 (D) The paid-up equity capital of the company is Rs.200 crore

Q9 (B) Q10 (A)

UIIC was nationalised in which year?

The headquarter of UIIC is in which city?

Name the Chairman cum Managing Director of UIIC?

The Oriental Insurance Company Limited was incorporated in which year?

Where is the headquarter of The Oriental Insurance Company Ltd located?

Name the Chairman-cum-Managing Director of The Oriental Insurance Company Ltd

What is the authorized capital of The Oriental Insurance Company Ltd?

Answers & Explanations

Q5 (C) Q6 (B) Q7 (D) Q8 (A) Q9 (B)

Q2. Where is the headquarter of NICL located?

Q3. Who is the Chairman cum Managing Director of NICL?

Q4. What is the authorized capital of NICL?

Answers & Explanations

Q1 (A) Q2 (C) Q3 (B)