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Insurance Awareness Quiz 32

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Insurance Awareness Quiz 32

shape Introduction

What is an Insurance? According to the dictionary and different insurance policies, Insurance is defined as “an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for the payment of a specified premium.” Thus, Insurance is a means of protection from financial loss. Insurance, in short, is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. The insurance provider is known as an insurer, insurance company, insurance carrier or underwriter. Insurance Awareness is an important section in several recruitment exams in India, primarily in the insurance sector.
Insurance Awareness Quiz 32 includes Questions and Answers related to the following topics: History of Insurance sectors in India, Insurance Organizations in India, Important Insurance Terms, Insurance Abbreviations & Insurance related information. Insurance Awareness Quiz 32 is extremely important for aspirants of Insurance related recruitment's such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. As per Insurance Act, a report from certified surveyor is mandatory if the claims exceed _________.
    A. Rs 5,000 B. Rs 10,000 C. Rs 20,000 D. Rs 25,000

Answer: Option C
Explanation: If the claim exceeds Rs 20,000 then a report from a certified surveyor is required.
2. What is the minimum share capital requirement for a TPA (Third Party Administrator)?
    A. Rs 50 lakhs B. Rs 1 crore C. Rs 2 crore D. Rs 10 crore

Answer: Option B
3. How much is the amount of claim payable, if the sum insured is Rs 1 lakhs and the excess limit is Rs 10,000 and the loss suffered is Rs 15,000.
    A. Rs 10,000 B. Rs 15,000 C. Rs 5,000 D. Rs 2,000

Answer: Option C
Explanation: Claim payable = loss suffered – excess limit
4. How much is the amount of claim payable, if the sum insured is Rs 1 lakhs and the excess limit is Rs 15,000 and the loss suffered is Rs 10,000.
    A. Rs 10,000 B. Rs 15,000 C. Rs 5,000 D. Nil

Answer: Option D
Explanation: Nil; if loss suffered is less than excess limit.
5. How much is the amount of claim payable, if the sum insured is Rs 3 lakhs and the excess limit is Rs 30,000 and the loss suffered is Rs 40,000.
    A. Rs 30,000 B. Rs 40,000 C. Rs 10,000 D. Rs 1 lakh

Answer: Option C
Explanation: 40 - 30 = 10,000
1. In insurance, the members of a community subscribe to a common pool/fund which is collected by the insurer to __________ the losses arising out of the risks.
    A. indemnify B. pay C. intermediate D. fix

Answer: Option A
Explanation: indemnify- compensate (someone) for harm or loss.
2. Which of the following is not an aspect of insurance?
    A. Asset B. Risk Insured against C. Principle of product D. Principle of pooling

Answer: Option C
Explanation: Insurance involoves four aspects: Asset; Risk insured against; The principle of pooling; The contact
3. Who amongst the following is also known as an underwriter?
    A. insured B. assured C. insurer D. agent

Answer: Option C
Explanation: The insurer is also known as assurer or underwriter.
4. Which of the following insurance principle is also known as principle of utmost good faith?
    A. Principle of indemnity B. Principle of Subrogation C. Principle of causa proxima D. Principle of ‘uberrima fides’

Answer: Option D
Explanation: Principle of ‘uberrima fides’
5. Which of the following is the license issuing authority for non-life insurance business in India?
    A. GIC B. LIC C. IRDAI D. GIC Re

Answer: Option C
Explanation: IRDAI for both life and non-life insurance
1. Where is the headquarters of International Association of Insurance Supervision (IAIS) located?
    A. London B. Beijing C. New Delhi D. Basel

Answer: Option D
Explanation: Basel, Switzerland
2. A person who is authorized to sell a policy of only one life insurance company at a time is known as?
    A. Broker B. Agent C. Surveyors D. Loss Assessors

Answer: Option B
3. A person who is authorized to sell a policy of more than one life insurance company at a time is known as?
    A. Broker B. Agent C. Surveyors D. Loss Assessors

Answer: Option A
4. TPAs are the middleman in ____ industry for insurance.
    A. transport B. healthcare C. education D. automobile

Answer: Option B
5. Bancassurance term first appeared in ________ in 1980, to define the sale of insurance products through banks’ distribution channels
    A. India B. Germany C. France D. US

Answer: Option C

Insurance Awareness - Related Information
Insurance Awareness Practice Set 15
Insurance Awareness Practice Set 16
Insurance Awareness Practice Set 17
Book for Insurance Awareness
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