1. The Government reduced the Employees State Insurance (ESI) contribution rate from 6.5% to ____.

A. 4% B. 4.5% C. 5% D. 5.5% E. 6.5%

2. If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as _____.

A. Termination Value B. Maturity Value C. Surrender Value D. Pre-mature Value E. Holder Value

3. Events or circumstances, such as fire, flooding, hailstorms, tornadoes, auto accidents, or home accidents such as slipping, that causes or may cause a loss are known as ________.

A. Hazards B. Vesting C. Arbitration D. Perils E. Concealment

4. Which of the following is NOT true regarding the life insurance cover scheme PMJJBY?

A. PMJJBY stands for ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ B. People in the age group of 18 to 50 having bank account are eligible for scheme C. The premium payable is Rs.300/- per annum per subscriber. D. The scheme offers a risk Coverage of Rs.2 Lakh in case of death for any reason E. All the given statements are true

5. LIC Housing Finance in association with Lok Bharti Education Society has recently (May 2019) launched a skill centre in Bengaluru. What’s the name of Skill centre?

A. UDYAM B. Skill Insurance C. MANORATH D. Skill India E. SHRAM

Answers and Explanations
1. Answer - Option A
Explanation -
The Government reduced the Employees State Insurance (ESI) contribution rate to 4% from 6.5%. The reduced rates will be effective from July 1, 2019.
2. Answer - Option C
Explanation -
If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.
3. Answer - Option D
Explanation -
A peril is an event or circumstance that causes or may potentially cause a loss. Examples: fire, flooding, hailstorms, tornadoes, hurricanes, auto accidents, or home accidents, such as falling.
4. Answer - Option C
Explanation -
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Scheme for Life Insurance Cover
Eligibility: Available to people in the age group of 18 to 50 and having a bank account.
Premium: Rs.330 per annum. It will be auto-debited from account in one installment.
Risk Coverage: Rs.2 Lakh in case of death for any reason
The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with participating banks for this purpose.
5. Answer - Option A
Explanation -
LIC Housing Finance in association with Lok Bharti Education Society has launched ‘UDYAM’ a skilling centre in Bengaluru. Centres of Excellence (CoE) have been launched in Delhi and Bengaluru. The Centres of Excellence will provide training to marginalised youth in the BFSI, retail, and IT/ ITES sectors.

1. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. ______ from the Government of India.

A. 5 Crore B. 10 Crore C. 50 Crore D. 100 Crore E. 500 Crore

2. Which global insurance company has become the latest Olympic Games sponsorship partner, signing a 10-year deal with the International Olympic Committee?

A. Metlife Insurance Company B. Aviva Insurance Company C. ING Insurance Company D. Allianz Insurance Company E. AXA Insurance Company

3. Institute of Insurance and Risk Management (IIRM) is located in which among the following cities?

A. Manila B. New Delhi C. Singapore D. Hyderabad E. London

4. Life Insurance Corporation of India (LIC) has signed an agreement with _____to provide group insurance coverage to all eligible demat account holders.

A. NESL B. SEBI C. NSDL D. CDSL E. BSE

5. LICHFL has partnered with which company to offer home buyers enhanced loan eligibility and easy loans?

A. National Housing Bank (NHB) B. Housing Development Finance Corporation (HDFC) C. India Mortgage Guarantee Corporation (IMGC) D. PNB Housing Finance Ltd. E. L & T Finance Ltd.

Answers and Explanations
1. Answer - Option A
Explanation -
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised in 1956.
2. Answer - Option D
Explanation -
German insurance company “Allianz” has signed up as a global Olympic sponsor for a 4-Games period of 10 years.
3. Answer - Option D
Explanation -
Institute of Insurance and Risk Management (IIRM) is located in Hyderabad. It is promoted by IRDAI with the sole aim of developing the required workforce for the entire Insurance Sector.
4. Answer - Option D
Explanation -
Life Insurance Corporation of India signed an agreement with Central Depository Services (India) to provide group insurance coverage to all eligible demat account holders. The facility will be available to demat account holders between the age of 18 years and 59 years.
5. Answer - Option C
Explanation -
Life Insurance Corporation Housing Finance Ltd. (LICHFL) has partnered with India Mortgage Guarantee Corporation (IMGC) to offer home buyers enhanced loan eligibility and easy loans. Now, it can offer extended loan tenure for borrower till the age of 75 years.

1. The premium charged by the insurer must incorporate the risk premium that covers not only the claims but also the capital requirements, also called the ________.

A. Liability Requirements B. Reinsurance C. Term Insurance D. General Insurance E. Solvency Requirements

2. Which of the following is NOT included in motor insurance?

A. Fire and Burglary B. Riot and Strike C. Terrorism Act D. Drunken driving E. Flood and Storm

3. Which of the following is NOT true regarding the life insurance cover scheme PMSBY?

A. PMSBY stands for ‘Pradhan Mantri Suraksha BimaYojana’ B. All individual (single or joint) bank account holders in the 18-70 year age group are eligible for scheme C. The premium payable is Rs 18 per annum per member D. The risk coverage available is Rs 2 lakh for accidental death and permanent total disability, and Rs 1 lakh for permanent partial disability E. All of the above

4. Which of the followings payment banks has tied up with Bharti AXA General Insurance to offer two-wheeler insurance recently?

A. Fino Payments Bank B. Airtel Payments Bank C. Jio Payments Bank D. Paytm Payments Bank E. India Post Payments Bank

5. Which among the following Insurance company has launched Mosquito Disease Protection Policy recently?

A. Bajaj Allianz General Insurance B. Bharti AXA General Insurance C. HDFC ERGO General Insurance D. National Insurance Company Limited E. Reliance General Insurance

Answers and Explanations
1. Answer - Option E
Explanation -
The premium charged by the insurer must incorporate the risk premium that covers not only the claims but also the capital requirements, also called the solvency requirements. In the event that the matching is not done in a pragmatic manner, the underwriting risk arises.
2. Answer - Option D
Explanation -
Fire and Burglary, Riot and Strike, Terrorism Act, Flood and Storm, Earthquake etc. all such incidents are covered under motor insurance.
The auto insurance does not include: Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage, When vehicle is used outside the geographical area, War or nuclear perils and drunken driving.
3. Answer - Option C
Explanation -
Pradhan Mantri Suraksha BimaYojana (PMSBY – for Accidental Death Insurance):

4. Answer - Option B
Explanation -
Airtel Payments Bank has tied up with Bharti AXA General Insurance for a two-wheeler insurance product offering which is available on My Airtel App and at over 40,000 Airtel Payments Bank points across India.
5. Answer - Option C
Explanation -
HDFC ERGO General Insurance Company launched a scheme termed ‘Mosquito Disease Protection Policy’ which will cover a person against common mosquito-borne diseases, namely, Dengue Fever, Malaria, Chikungunya, Kala-azar, Zika Virus etc.