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Insurance Awareness Quiz 42

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Insurance Awareness Quiz 42

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 42 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 42 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.

shape Quiz

1. A life insurance policy that provides for the payment of an additional amount equal to the sum assured in case of the death of a policyholder owing to an accident is known as__________
    A. Double Accident Benefit B. Bonus Loading C. Net Premium Benefit D. Permanent Disability Benefit

Answer: Option A
2. Which of the following is one of the important component for determining the insurance premium?
    A. Interest B. Bonus loading C. Expenses of management D. All the above

Answer: Option C
Explanation: The main components of premium are: Mortality, Interest, Expenses of management, Reserves, Bonus loading
3. What do you understand by policy lapse?
    A. Discontinuation of premium payment for a policy B. Completion of premium payment for a policy C. Policy attains maturity D. Policy is withdrawn from the market

Answer: Option A
4. Who bears the investment risk in case of ULIPs?
    A. Insurer B. Insured C. IRDAI D. All the above

Answer: Option B
5. The term premium denote ___________in relation to an insurance policy?
    A. Margins earned by an insurer on a policy B. Profit earned by the insurer C. Expenses incurred by an insurer D. Price paid by an insured for the policy

Answer: Option D
1. There are two types of risk burdens namely primary and secondary which an individual/entity suffers. Which among the following represents the secondary burden of risk?
    A. Maintaining reserves as a provision for meeting potential losses in the future B. Goods damaged cost due to fire C. Loss in Business cost D. Medical cost due to heart attack

Answer: Option A
Explanation: The secondary burden of risk involves costs and strains that one has to bear due to the fact that one is exposed to a loss situation. Even if the said event does not occur, these burdens have still to be borne.
2. ______ is the measures to reduce chances of occurrence of risk
    A. Risk retention B. Risk transfer C. Risk control D. Risk avoidance

Answer: Option C
Explanation: Risk control is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.
3. Risk retention in insurance indicates a situation where ___________
    A. Insurance company takes the responsibility of the risk associated with property insured B. An entity decides to take responsibility for a particular risk instead of transferring the risk to an insurance company C. There is no possibility of occurrence of loss or damage D. Multiple insurance companies come together to share the risk associated with property insured

Answer: Option B
4. Which among the following statements best defines an insurance?
    A. Insurance protects the asset insured B. Insurance reduces possibilities of loss C. Insurance pays for loss of asset D. Insurance eliminates loss occurrence

Answer: Option C
5. Which among the given insurance is compulsory in India?
    A. Travel Insurance B. Fire Insurance C. Property Insurance D. Motor Third Party Insurance

Answer: Option D
1. IRDA monitors the policyholder’s complaints and their progress in real-time through IGMS. Expand it.
    A. Integrated Grievance Management System B. Informed Grievance Management System C. Interfaced Grievance Management System D. Insurance Grievance Management System

Answer: Option A
Explanation: The Integrated Grievance Management System (IGMS) is an online consumer complaints registration system created by IRDA
2. Which among the following consumer disputes redressal agency entertains the complaints, where value of the goods or services and the compensation claimed does not exceed Rs.20 lakhs.
    A. National Commission B. State Commission C. District Forum D. Civil Court

Answer: Option C
3. The __________ entertain complaints where the value of goods/service and compensation, if any claimed exceeds Rs. 20 lakhs but does not exceed Rs. 100 lakhs.
    A. State Commission B. District Forum C. National Commission D. Civil Court

Answer: Option A
4. The National Commission entertain complaints where the value of goods/service and compensation, if any claimed exceeds Rs ___________
    A. Rs 5 crore B. Rs 1 crore C. Rs 2 crore D. Rs 3 crore

Answer: Option B
5. What is the time limit set for the complainant to approach an Insurance Ombudsman over the rejection of the complaint by the insurer?
    A. 3 months B. 6 months C. 1 year D. 1 month

Answer: Option D

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