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Insurance Awareness Quiz 41

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Insurance Awareness Quiz 41

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 41 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 41 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. What is the required charges that need to be paid for lodging the complaint with the insurance Ombudsman?
    A. Rs 20,000 B. 20% of the relief sought C. 10% of the relief sought D. Nill

Answer: Option D
2. Which of the given is not an example of insurable interest
    A. Father getting insurance policy on his son B. Friends getting insurance on one another C. Spouses getting insurance on one another D. Employer getting insurance on employees

Answer: Option B
3. The premium paid for whole life insurance is _____________ to/than the premium for term assurance.
    A. Equal B. Lower C. Higher D. Cannot be determined

Answer: Option C
Explanation: When the premium charged under a policy remains the same throughout the duration of the contract, it is called level premium
4. The Universal Life Policy was introduced by which country?
    A. United States B. United Kingdom C. Germany D. Philippines

Answer: Option A
Explanation: Universal life insurance is a type of cash value life insurance, sold primarily in the United States.
5. If the policyholder, who has bought a policy, does not want it then he can return it and get a refund during the period called____________
    A. Lock – in- period B. Free – look – period C. Trail period D. Evaluation period

Answer: Option B
1. The policyholder needs to appoint an appointee in which of these cases?
    A. If the insured is a minor B. If policyholder is mentally disabled C. If the nominee is a minor D. All the above

Answer: Option C
Explanation: the nominee is a minor, the policyholder needs to appoint an appointee
2. Which among the following insurance policies do not have surrender value?
    A. money-back policies B. endowment policies C. unit-linked insurance policies D. Term insurance

Answer: Option D
3. Which Section of the Insurance Act 1938, provides for nomination of a nominee?
    A. Section 12 B. Section 40 C. Section 27 D. Section 39

Answer: Option D
Explanation: Section 39 of the Indian Insurance Act, 1938, provides for nomination of a person (called nominee) who gets the benefits of the policy on death of the person whose life has been insured
4. What is the maximum length of the grace period granted in insurance policy?
    A. 3 months B. 1 month C. 12 months D. 6 months

Answer: Option B
Explanation: Depending on the insurance policy, the grace period can be as little as 24 hours or as long as one month or 31 days.
5. The insurance companies are required to process the claim as soon as they receive and any additional queries or documents needed should be asked for within a period of_______ from the date of receipt of claim
    A. 15 days B. 1 week C. one month D. 2 days

Answer: Option A
Explanation: A life insurance company, upon receiving a claim, shall process the claim without delay. Any queries or requirement of additional documents, to the extent possible, shall be raised all at once and not in a piece-meal manner, within a period of 15 days of the receipt of the claim.
1. The Insurance Regulatory and Development Authority (IRDA) was renamed as Insurance Regulatory and Development Authority of India (IRDAI) in which year?
    A. 2010 B. 2002 C. 2000 D. 2014

Answer: Option D
Explanation: The change of name was effected in the Insurance Laws (Amendment) Ordinance, 2014 was promulgated by the President of India on December 26, 2014
2. A type of life insurance policy where several members are included under one ‘master policy’ owned by the employer /nodal agency is known as________
    A. Group insurance B. Variable insurance C. Term plan D. Endowment plans

Answer: Option A
3. How many Insurance Ombudsman centres are active in India?
    A. 10 B. 17 C. 21 D. 15

Answer: Option B
4. MRI is a type of life insurance policy which is taken when applying for a housing loan from a bank. What does MRI stands for?
    A. Mortality Redemption Insurance B. Management Redemption Insurance C. Mortgage Redemption Insurance D. Manifest Redemption Insurance

Answer: Option C
5. Which among the given mode of premium payments earns the highest amount of rebate in insurance policy?
    A. Monthly B. Quarterly C. Half-yearly D. Yearly

Answer: Option D

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