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Insurance Awareness Quiz 39

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Insurance Awareness Quiz 39

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 39 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 39 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.

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1. 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

Answer: Option C
Explanation: A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums
2. 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

Answer: Option D
3. 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

Answer: Option A
4. 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

Answer: Option B
Explanation: An alien insurer is an insurance provider offering coverage in a country other than the company’s home country. Tthe relationship between the country of incorporated and the location where it sells a given policy defines if an insurer is alien.
5. 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

Answer: Option C
1. Which among the given civilizations were the first to have life insurance?
    A. Chinese B. Greek C. Egyptians D. Romans

Answer: Option D
Explanation: Ancient Romans are the first people on record who had a life insurance system
2. The maximum length of the period offered by most term insurance policy is ________
    A. 30 years B. 10 years C. 15 years D. 20 years

Answer: Option A
Explanation: Minimum length is 10 years
3. 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

Answer: Option B
Explanation: For any life insurance policy, the face value is the death benefit. This is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. In most cases, the face value is transferred to the beneficiaries tax-free
4. 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%

Answer: Option D
Explanation: Regulations prohibit insurers from holding more than 15% stake in any company
5. 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

Answer: Option C
1. 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

Answer: Option D
Explanation: The primary source of information about an applicant, for the underwriter is his proposal form or application form, in which all the critical information related to the health and personal details of the proposer are collected
2. ________ 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

Answer: Option C
3. 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

Answer: Option B
4. 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

Answer: Option A
5. Which among the following is not a valid mode to pay premium
    A. Cash B. Cheque C. Credit Card D. Promissory Note

Answer: Option D

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