1. The only public sector company in the field of life insurance is _________

A. General insurance company B. New India assurance company C. Oriental insurance company D. Life Insurance Corporation of India E. None of these

2. The regulator of insurance sector in India is

A. RBI B. AMFI C. IRDA D. SEBI E. None of these

3. The person who identifies the customer and gets the necessary insurance for him is called

A. Intermediary B. Retailer C. Broker D. Agent E. None of the above

4. How many members of IRDA are appointed as full time members?

A. Four members B. Three members C. Five members D. Ten members E. Nine members

5. India First Life Insurance Company Limited, a joint venture between which of the following? 1. Bank of Baroda 2. Andhra Bank 3. Legal and General

A. Only 1 B. Only 1 and 2 C. Only 1 and 3 D. Only 2 and 3 E. All are correct

Answers and Explanations
1. Answer - Option D
Explanation -
Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of ₹1,560,482 crore.
2. Answer - Option C
Explanation -
The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India. The agency’s headquarters are in Hyderabad.
3. Answer - Option D
Explanation -
An agent is a person who represents an insurance firm and sells insurance policies on its behalf. Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance.
4. Answer - Option C
Explanation -
According to IRDAI act 1999 IRDA has 10 members consisting of a chairman, five full and four part time members. Tenure of Chairman and full time members is five years from the date of joining.
5. Answer - Option E
Explanation -
India First Life Insurance Company Limited, a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), has announced its tie-up with Oxigen Services India Pvt. Ltd. It will establish the distribution of its insurance products at Oxigen retail outlets. Oxigen is one of the leading providers of money transfers and prepaid recharges as low as Rs. 10.

1. A type of reinsurance in which the reinsurance company accepts all of a particular type of risk from ceding company is known as _____

A. Facultative reinsurance B. Treaty reinsurance C. Non-proportional reinsurance D. Risk-attaching reinsurance E. Proportional reinsurance

2. _______ is an expense associated with investigating and settling an insurance claim.

A. Fixed expense B. Periodic expense C. Underwriting expense D. Loss adjustment expense E. Indirect expense

3. ______ is a provision in an insurance policy that eliminates coverage for certain risks.

A. Rebating B. Exclusion C. Provision D. Guaranteed term E. Estoppel

4. Institute of Insurance and Risk Management has been incorporated as a company under section _______ of the Companies Act, 1956.

A. 22 B. 23 C. 24 D. 25 E. 26

5. The General Insurance Corporation of India subscribed AIC of India Limited with an initial paid-up capital of _______ crores.

A. 200 B. 100 C. 260 D. 430 E. 500

Answers and Explanations
1. Answer - Option B
Explanation -
Treaty reinsurance is a type of reinsurance in which the reinsurance company accepts all of a particular type of risk from the ceding insurance company. Treaty reinsurers are obliged to accept all risks outlined in the treaty reinsurance contract.
2. Answer - Option D
Explanation -
A loss adjustment expense (LAE) is an expense associated with investigating and settling an insurance claim. Loss adjusted expenses that are allocated to a specific claim are called allocated loss adjustment expenses (ALAE), while expenses not allocated to a specific claim are called unallocated loss adjustment expenses (ULAE).
3. Answer - Option B
Explanation -
Exclusion is a provision within an insurance policy that eliminates coverage for certain acts, property, types of damage or locations. Things that are excluded are not covered by the plan.
Estoppel is a legal principle that precludes a person from alleging facts that are contrary to his previous claims or actions.
A provision is a condition in an insurance contract or agreement, it protect the interests of one or both parties in a contract.
4. Answer - Option D
Explanation -
Institute of Insurance and Risk Management (IIRM) is an educational and research organization, set up in the year 2002, by the Insurance Regulatory and Development Authority of India [IRDAI] in association with the Government of Andhra Pradesh, under a Memorandum of Understanding. IIRM has been incorporated as a company under Section 25 of the Companies Act, 1956.
5. Answer - Option A
Explanation -
Agriculture Insurance Company of India Limited (AIC) is the largest provider of crop insurance. It was formed under the Indian Companies Act 1956 and Based in New Delhi. The company provides insurance coverage to farmers for protection against crop damages. The Government of India had authorized a capital of Rs. 1500 crore to Agriculture Insurance Company of India. The General Insurance Corporation of India subscribed AIC of India Limited with an initial paid-up capital of Rs. 200 crores.

1. As per the recent data of IRDAI, _________ has topped the industry charts with the highest claims paid ratio in terms of the number of policies for 2017-18.

A. Max Life Insurance Company B. Life Insurance Corporation of India C. Bharti AXA Life Insurance D. New India Assurance Company E. ICICI Prudential Life Insurance

2. PNB Metlife has launched AI-powered customer service app named _______ to provide assistance to policyholders for their insurance related queries.

A. Pay money B. PayPay C. MOPAD D. Khushi E. ELA

3. IRCTC has been partnered with Bharti AXA General Insurance for providing free of cost travel insurance of __________ rupees for air travellers.

A. ₹ 10 Lakh B. ₹ 20 Lakh C. ₹ 30 Lakh D. ₹ 25 Lakh E. ₹ 50 Lakh

4. Recently, IRDAI has increased compulsory personal accident (CPA) cover premium to ₹ 750 per annum from _______.

A. ₹ 250 per annum B. ₹ 500 per annum C. ₹ 50 per annum D. ₹ 100 per annum E. ₹ 600 per annum

5. The Indian Insurance Industry is expected to grow to $ 280 billion by ________.

A. FY 2018-19 B. FY 2019-20 C. FY 2020-21 D. FY 2021-22 E. FY 2022 -23

Answers and Explanations
1. Answer - Option A
Explanation -
Max Life Insurance Company has topped the industry charts with the highest claims paid ratio in terms of the number of policies at 98.26% for 2017-18.
The company has outperformed insurance behemoth LIC, whose claims paid ratio came in at second rank (98.04%). The overall private industry average has improved to 95.24% in 2017-18 from 93.72% in the previous year.
2. Answer - Option D
Explanation -
PNB MetLife has launched an Artificial Intelligence-powered customer service app ‘Khushi’, which aims to provide assistance to policyholders for their insurance-related queries.
It empowers the customer and ensures the customized experience for policyholders.
3. Answer - Option E
Explanation -
Indian Railways Catering and Tourism Corporation has been partnered with Bharti AXA General Insurance for providing free-of-cost travel insurance of Rs 50 lakh for air passengers if they book their tickets through the IRCTC.
This facility would be available for passengers irrespective of the class of tickets and for both domestic and international flights. The insurance would provide them financial protection against accidental death and total or permanent disability.
The premium for insurance will be borne by the IRCTC. The insurance cover will be for both one-way and round trip.
4. Answer - Option C
Explanation -
IRDAI has increased compulsory personal accident (CPA) cover premium from Rs 50 per annum to Rs 750 per annum.
Also, The Insurance Regulatory and Development Authority of India clarified that the owner-driver should have the choice to opt for a one-year Compulsory Personal Accident (CPA) cover or long-term CPA cover.
5. Answer - Option B
Explanation -
The Indian insurance industry is expected to grow to $280 billion by 2019-20.
According to the study by ASSOCHAM, the insurance penetration in the country to have reached 3.7% in 2017, from 2.71% in 2001, and that gross premium had increased from Rs 3.2 lakh crore ($49 billion) in 2011-12 to reach Rs 5 lakh crore ($72 billion) in 2017-18.