1. The Government of India started publishing the returns of the insurance companies in India from the year -

A.1914 B.1915 C.1916 D.1917 E.1918

Answer - Option A
Explanation - 1912, The Indian Life Assurance Companies Act was passed in order to regulate the life insurance business in India. It was the first ever such legislation in the country. The government started publishing the returns of the insurance companies officially from the year 1914. This brought more clarity regarding the business of such companies in the country.
Hence, option A is correct.
2. Which among the following enabled the government to collect statistical information regarding insurance companies in India?

A.Indian Life Assurance Companies Act 1912 B.Indian Insurance Companies Act 1928 C.Insurance Act 1938 D.British Insurance Act 1870

Answer - Option B
Explanation - The Indian Insurance Companies Act was passed in the year 1928. It enabled the government to collect statistical information regarding all the life and non-life companies transacting business in India. It also included all the provident insurance societies operating in India. This ensured more compliance regarding the insurance industry in India.
Hence, option B is correct.
3. The Life Insurance Corporation was formed in 1956 merging ________ Indian insurers and ________ on-Indian insurance companies.

A.152, 85 B.189, 78 C.154, 16 D.145, 26

Answer - Option C
Explanation - The Life Insurance Corporation of India was established in the year 1956 with the enactment of the LIC Act 1956. It was formed merging 154 Indian, 16 non-Indian and 75 provident societies then operating in India. In total, 245 Indian and foreign insurance companies were merged to form LIC. It is the only public sector life insurance company in India and is based in Mumbai, Maharashtra.
Hence, option C is correct.
4. The Triton Insurance Company was established in 1850 in which among the following cities in India?

A.Bombay B.Calcutta C.Madras D.Allahabad

Answer - Option B
Explanation - The general insurance business mainly had its roots in the industrialization in the western countries that had given rise to the marine insurance business. The first ever general insurance company in India was established in 1850 by the name of Triton Insurance Company Ltd. It was based in Calcutta and was established by the British. Indian Mercantile Insurance Limited, started in 1907, became the first ever general insurance company in India to conduct all classes of general insurance business.
Hence, option B is correct.
5. Which among the following was formed in order to ensure fair business practices in the general insurance industry, in 1957?

A.Insurance Association of India B.Insurance Institute of India C.National Insurance Academy D.General Insurance Council

Answer - Option D
Explanation - General Insurance Council was set up in 1957, as a part of the Insurance Association of India, in order to make sure that fair business practices are being followed in the general insurance industry in India.
Similarly, Life Insurance Council is also there to oversee the life insurance industry in India.
National Insurance Academy was established in 1982 in Pune to make sure that the training and education purposes for the insurance industry are met properly.
Insurance Institute of India was set up in 1955 in Mumbai for imparting insurance training in India.
Hence, option D is correct.

1. Which among the following describes that the insurer is liable to pay in order to make good of the losses suffered by the insured?

A.Principle of Utmost Good Faith B.Principle of Utmost Good Faith C.Principle of Loss Minimization D.Principle of Subrogation

Answer - Option B
Explanation - Principle of Utmost Good Faith deals with the fact that the insured should disclose all the material information at the time of taking the policy failing which the insurance contract becomes null and void.
Principle of Indemnity deals with the fact that the insured is liable for compensation up to the extent of the loss incurred by the insured.
Principle of Loss Minimization deals with the fact that the insured is supposed to take all the measures to make sure that loss does not happen to the insured item.
Principle of Subrogation deals with the fact that once the insurer pays the compensation the ownership of the damaged insured item changes hands and the insurer is in charge of the same after that. The insured is not entitled for its ownership post that.
Hence, option B is correct.
2. The Principle of Subrogation is applicable in case of which among the following?

A.Life Insurance B.Fire Insurance C.Marine Insurance D.Both B and C

Answer - Option D
Explanation - The Principle of Subrogation deals with the fact that the ownership of the damaged goods shifts to the insurer once the compensation is paid to the insured. It is applicable in case of fire and marine insurance in which the salvage is disposed by the insurance company once the claim is settled. It is not applicable in case of life insurance contracts.
Hence, option D is correct.
3. Which among the following is the minimum net worth required in order to apply for a license of web aggregator in India?

A.Rs 10 lakhs B.Rs 20 lakhs C.Rs 25 lakhs D.Rs 50 lakhs

Answer - Option C
Explanation - Web Aggregators are licensed by IRDAI in order to promote and sell insurance policies in India. Such web aggregators are required to have minimum net worth of Rs 25 lakhs as per the IRDAI Regulations 2017. These companies mainly function as the lead generators for the insurance companies. IRDAI requires that these aggregators submit a certificate of compliance at the end of each financial year duly certified by its Principal Officer without fail otherwise the registration of such companies gets cancelled.
Hence, option C is correct.
4. The maximum number of companies for which an Insurance Marketing Firm can generate solicit business at one point of time is –

A.4 B.5 C.6 D.8

Answer - Option C
Explanation - The IMFs can solicit business for two life insurance companies, two general insurance companies and two health insurance companies at one point of time, under intimation to the regulator. Any change in the names of the companies will have to be carried out with the prior approval of the regulator i.e. IRDAI only. The capital requirement to start IMF is now Rs 10 lakhs and the main objective is to increase the insurance penetration in the country.
Hence, option C is correct.
5. Which among the following is /are correct regarding the regulatory norms applicable for the Third Party Administrators (TPAs)?

A.Both I and II B.Both II and III C.Both I and III D.Only III

Answer - Option A
Explanation - The TPAs are mainly related to the health insurance segment in India. The TPAs should have minimum working capital of Rs 1 Crore at all points of time during the course of their business. The license is granted by IRDAI for 3 years and one of the members of the TPA should be a doctor registered with the Medical Council of India. The maximum FDI allowed is 49% in these companies whereas any transfer of 5% paid up equity capital should be intimated by the TPA to the IRDAI without fail.
Hence, option A is correct.

1. Which of the following is true about India Post Payments Bank? I. Central government owns 75% of equity in it. II. It can accept deposits upto Rs 1.5 lakh. III. It is not allowed to extend loans/credit.

A.Only II B.Only III C.Only I and II D.Only II and III

Answer - Option B
Explanation - Statement I: Central government owns 100 % of equity in it.
Statement II: It can accept deposits upto Rs 1 lakh.
Statement III is correct.
Hence, option B is correct.
2. The annual interest rate offered on the Sukanya Samriddhi Account scheme for the quarter October-December 2018 is –

A.8.1% B.8.2% C.8.3% D.8.5%

Answer - Option D
Explanation - The annual interest rate offered on the Sukanya Samriddhi Account scheme for the quarter October-December 2018 is 8.5%. This is an increase from 8.1% offered in the July-September quarter.
Hence, option E is correct.
3. The compounding frequency of the Kisan Vikas Patra scheme is-

A.Monthly B.Monthly and Paid C.Quarterly D.Annually

Answer - Option D
Explanation - The compounding frequency of the Kisan Vikas Patra scheme is annual.
Hence, option E is correct.
4. The five pronged approach called SASHAKT to deal with NPAs in banks was recommended by –

A.Sunil Mehta Committee B.Priyanka Deshmukh committee C.Urjit Patel Committee D.Abhijit Sen Committee

Answer - Option A
Explanation - The Sunil Mehta Committee was setup to deal with resolution of stressed assets and recommended creating an asset management company for the resolution of stressed loans worth more than Rs. 500 crores. It also recommended the five-pronged strategy Project called 'SASHAKT' to deal with Non-performing Assets in the country's banking system. The five-pronged strategy includes: 1. SME resolution approach, 2. Bank-led resolution approach, 3. AMC/AIF led resolution approach, 4. NCLT/IBC approach, & 5. Asset-trading platform.
Hence, option A is correct.
5. FSR stands for –

A.Fiscal Standard Report B.Financial Stability Report C.Foreign Stressed Reserves D.Financially Stressed Reserves

Answer - Option B
Explanation - FSR stands for Financial Stability Report. This report is released by RBI and talks about risks to financial stability in the economy.
Hence, option B is correct.

1. This is the field of science which deals with mathematics and statistics to determine the risks assessment in finance?

A.Actuarial Science B.Data Interpretation C.Data Crunching D.Data Science

Answer - Option A
Explanation - Actuarial Science is that branch of study of science which utilizes mathematical and statistical methods in order to assess the risks associated with insurance, finance, investment banking etc. The person who is proficient in this and is employed by the insurance companies to decide the magnitude of risk associated and the premium is decided accordingly.
Hence, option A is correct.
2. A policy in which all the benefits have ceased for non-payment of premium is known as -

A.Lapsed Policy B.Terminated Policy C.External Policy D.Extended Policy

Answer - Option A
Explanation - If an insurance policy ceases to exist because of non-payment of premium on time, it is a lapsed policy. A policy lapses if the premium is not paid within the grace period also. It can be revived by payment of premium and penalty as decided by the insurer.
Hence, option A is correct.
3. Which among the following is known as a Paid-up Policy?

A.It is a policy for which all the premium are paid. B.It is a policy for which the one time premium is paid and the final amount is due. C.It is a policy that only covers for the amount paid to the insurance company. D.It is a policy in which the policyholder has discontinued the payment of the premium after a specified period as decided by the insurer.

Answer - Option D
Explanation - Paid-up policy is such that the policyholder has stopped the payment of premium and the insurer pays only a reduced value if the policyholder surrenders a paid-up policy. It is to be noted that a policy can only be considered as a paid-up policy after three continuous years of payment of premium to the insurance company.
Hence, option D is correct.
4. If a loss occurs by chance and not by the intention of any person it is known as -

A.Expired Risk B.Earned Risk C.Fortuitous Risk D.Unearned Risk

Answer - Option C
Explanation - If any loss is because of chance and not for the intention of anybody the same is known as fortuitous loss. Insurance policies cover against any loss that is accidental and the insured is not in control of the cause of such accident.
Hence, option C is correct.
5. The insurers maintain _______ in order to make provisions for future payments towards losses.

A.Premium Reserve B.Loss Reserve C.Accidental Reserve D.Future Reserve

Answer - Option B
Explanation - Loss reserves are maintained by the insurers in order to make sure that the future losses reported to the company are taken care of. These reserves comprise of liquid assets, and they allow the insurer to cover against claims in policies underwritten by the insurer.
Hence, option B is correct.

1. For fire insurance policies, ALOP stands for -

A.Advance Loss of Profit B.Admission of Loss of Profit C.Additional Loss of Profit D.Assisted Loss of Profit

Answer - Option A
Explanation - ALOP stands for Advance Loss of Profit. It refers to a clause in the fire insurance policy by which the insurer will cover against the losses due to the incident of fire along with the loss due to business interruption. Additional premium is paid for opting for the ALOP cover.
Hence, option A is correct.
2. LAE stands for -

A.Loss Adjusted Expenses B.Loss Adjustment Expenses C.Loss Additional Expenses D.Liability Automated Expenses

Answer - Option B
Explanation - LAE stands for Loss Adjustment Expenses. These are the expenses incurred by the insurer in order to investigate and settle a claim. If such expenses are allocated to a single claim they are known as Allocated LAE whereas for such expenses not allocated to a single claim are the Unallocated Loss Adjustment Expenses.
Hence, option B is correct.
3. We know about IDV in motor insurance policies that stands for -

A.Insurance Determination Vertical B.Insured Declared Value C.Insured Detrimental Value D.Institutional Declared Value

Answer - Option B
Explanation - IDV stands for Insured Declared Value and it is mainly applicable to the motor insurance policies issued by the insurers. It is the maximum sum assured payable in case of theft or loss to the vehicle and it is decided by the insurer. This amount is payable on total loss reported by the insured to the insurance company.
Hence, option B is correct.
4. CAC stands for -

A.Combined Alteration Coverage B.Combined Additional Coverage C.Combined Attention Coverage D.Combined Assessment Coverage

Answer - Option B
Explanation - The Combined Additional Coverage refers to an absolute auto physical damage coverage term used to refer to hazards other than fire and theft. It is actually an additional cover other than fire and theft by payment of additional premium.
Hence, option B is correct.
5. In terms of insurance, CSL refers to -

A.Combined Structural Liability B.Combined Statistical Liability C.Combined Single Limit D.Combined Status Limit

Answer - Option C
Explanation - The Combined Single Limit is defined as the predetermined single number for the combined total of the bodily injury liability coverage and Property Damage Liability coverage per accident per occurrence. Since these policies offer a wider coverage the premium charged is higher than the normal policies.
Hence, option C is correct.