1. In Insurance, CGL stands for?

A. Commercial General Liability B. Common General Liability C. Captive General Liability D. Control General Liability E. None of these

2. ________ is an insurance coverage protecting the manufacturer, distributor, seller of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product.

A. Product Liability B. Unauthorized Reinsurance C. Retro cession D. Retrospective Rating E. None of these

3. Which Section of the IRDA Act 1999, specifies the duties, powers and functions of the authority?

A. Section 12 B. Section 8 C. Section 10 D. Section 14 E. None of these

4. 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 E. None of these

5. Which among the following is an IRDAI recognized apex body of licensed Insurance Brokers?

A. IBBI B. FICCI C. IAI D. IBAI E. None of these

Answers and Explanations
1. Answer - Option A
Explanation -
In Insurance, CGL stands for Commercial General Liability. General liability coverage for organizations is provided under the Commercial General Liability Policy (CGL).
The CGL is designed to ensure those general liability exposures that are common to most organizations, premises and operations, products and completed operations, liability arising out of independent contractors, and contractual assumptions of liability.
2. Answer - Option A
Explanation -
Product Liability is an insurance coverage protecting the manufacturer, distributor, seller of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product.
Retrocession: The amount of risk that a reinsurance company reinsures or the amount of cession that the reinsurer passes on.
Retrospective Rating: The process of determining the cost of an insurance policy after the expiration of the policy, based on the loss experience under the policy while it was in force.
3. Answer - Option D
Explanation -
The Section 14 of Chapter IV of Insurance Regulatory and Development Authority Of India Act, 1999 specifies the duties, powers and functions of the authority.
4. Answer - Option C
Explanation -
The Insurance Regulatory and Development Authority of India released a notification on 21st March, 2017 for the Reconstitution Insurance Advisory Committee. The decision was taken according to sub section (1) of Section 25 of the IRDA Act, 1999. Total members of the Insurance Advisory Committee are 25.
5. Answer - Option D
Explanation -
IBAI is an IRDAI recognized apex body of licensed Insurance Brokers.

1. 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% E. None of these

2. The first ever life insurance industry in India was set up in which city?

A. Bombay B. Delhi C. Madras D. Calcutta E. None of these

3. Since which year, IRDA started licensing private sector companies to conduct general insurance business in India?

A. 1999 B. 2001 C. 2004 D. 1992 E. None of these

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

A. PMJJBY B. PMFBY C. PMSBY D. PMVVY E. None of these

5. What does ‘Paid Up’ policy mean in insurance?

A. Policy that requires no further premium payments and continues to provide benefits till maturity. B. Policy that provides 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 E. None of these

Answers and Explanations
1. Answer - Option A
Explanation -
In case of an individual, the proposed shareholding in the paid-up equity capital of the insurance company is capped at ten (10) per cent. Paid-up capital is defined as the amount of money a company has received from shareholders in exchange for shares of stock. IRDAI (Transfer of Equity Shares of Insurance Companies) Regulations, 2015 mentions the provisions related to paid-up equity capital of the insurance company.
2. Answer - Option D
Explanation -
The first life insurance company on Indian Soil was the Oriental Life Insurance Company, started by Europeans in Calcutta in the year 1818.In 1870, the Bombay Mutual Life Assurance Society started its operations as the first Indian life insurance company.
3. Answer - Option B
Explanation -
Since 2001, IRDA started licensing private sector companies to conduct general insurance business in India.The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%.
The Insurance Regulatory and Development Authority (IRDA) was constituted in 1999 as an autonomous body to regulate and develop the insurance industry according to the recommendations of the Malhotra Committee.
Chairman, IRDAI : Dr. Subhash C. Khuntia
4. Answer - Option C
Explanation -
Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental insurance coverage.
5. Answer - Option A
Explanation -
Paid-up Insurance Policy: An insurance policy that requires no further premium payments but continues to provide coverage.
Participating Policy: A type of insurance policy that allows policy owners to receive policy dividends. Also known as par policy.
Package Policy: A single insurance policy that combines several coverages previously sold separately.

1. 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

2. What do you understand by term “Revival Period” used extensively in insurance sector?

A. Period offered by the insurer to revive the policy before grace period B. Period offered by the insurer to revive the policy post grace period C. Period to claim the policy post maturity D. Period to reclaim the unearned premium after termination E. Period allow to claim maturity amount

3. DICGC insures all bank deposits up to the limit of Rs. 100,000 of each deposit in a bank. “G” in ‘DICGC’ stands for which of the following term?

A. Growth B. GDP C. Government D. Guarantee E. Gilts

4. Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver up to what amount?

A. Rs. 5 lakhs B. Rs. 10 lakhs C. Rs. 15 lakhs D. Rs. 20 lakhs E. Rs. 2 lakhs

5. 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. Pre-mature Value D. Surrender Value E. Holder Value

Answers and Explanations
1. Answer - Option D
Explanation -
German insurance company “Allianz” has signed up as a global Olympic sponsor for a 4-Games period of 10 years.
2. Answer - Option B
Explanation -
Insurance policy lapses when the insured defaults on the payments of renewal premium beyond a grace period. Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. This period offered by the insurer to revive the policy and avail benefits pertaining to it is termed as revival period.
3. Answer - Option D
Explanation -
G in “DICGC” stands for – Guarantee (Deposit Insurance and Credit Guarantee Corporation). Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India) It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.
4. Answer - Option C
Explanation -
Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs. 15 lakhs for a premium of Rs.750 per annum, a move to provide some succour to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs. 1 lakh and Rs.2 lakh, respectively.
5. Answer - Option D
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.