613v1-Principles and Practice of General Insurance
613v1-Principles and Practice of General Insurance
613v1-Principles and Practice of General Insurance
9. The nationalization of insurance sector was undertaken by GIC and _____ companies were mereged
A. 245
B. 950
C. 200
D. 100
ANSWER: A
12. Those risks which are more than normal risk are called
A. Super standard risk
B. Sub standard risk.
C. Both of the above
D. Neither of them
ANSWER: C
18. The claim amount received from insurer are treated as ----------------.
A. Nontaxable Income
B. Taxable Gain
C. Gains
D. Reserve
ANSWER: B
19. The post of chief agents and special agents was terminated in 1956 through ___________.
A. GIC Act
B. LIC Act
C. IRDA
D. None of the above
ANSWER: A
28. The Oriental Life Insurance Company came to India during ______.
A. 1919.
B. 1818.
C. 1899.
D. 1888.
ANSWER: B
29. The policies where the premium is payable through out the life of the assured is called ___________.
A. Whole life policies.
B. Renewable term policies.
C. Sinking fund policies.
D. Annuity policies.
ANSWER: A
31. The Insurer who grants a guarantee from the direct insurer is called as _________.
A. Direct Insurer.
B. Ceding Insurer.
C. Re-Insurer.
D. Double Insurer.
ANSWER: C
32. The proportion of the risk which the direct insurer holds on his own account refers to ___________.
A. Line.
B. Retention.
C. Retrocession.
D. Ceding insurer.
ANSWER: B
33. When the same risk and subject matter is insured with more than one insurer is called as_______.
A. Double insurance.
B. Over insurance.
C. Reinsurance.
D. External insurance.
ANSWER: A
34. When the amount for which a subject matter is insured is more than its actual value is called __________.
A. Double insurance.
B. Over insurance.
C. Reinsurance.
D. Crop insurance.
ANSWER: B
37. The danger of loss from the unforeseen circumstances in future refers to ______.
A. Perils.
B. Hazards.
C. Risk.
D. Damage.
ANSWER: C
38. ________ involved those losses that occur even if there were no changes in the economic environment
A. Dynamic risk.
B. Static risk.
C. Fundamental risk.
D. Particular risk.
ANSWER: B
41. Unemployment, war, inflation, earthquakes etc., are the examples of ________.
A. Pure risk.
B. Fundamental risk.
C. Particular risk.
D. Personal risk.
ANSWER: B
42. Any risk involved a situation where there is a possibility of gain refers to ________.
A. Liability risk.
B. Personal risk.
C. Pure risk.
D. Speculative risk.
ANSWER: D
46. Rashtriya Krishi Yojana of Crop Insurance Scheme came into India during _________.
A. 1999.
B. 1888.
C. 1988.
D. 1977.
ANSWER: A
47. Corpus fund is created with contributions from the Central Government and State Government on ____________.
A. 75:25 basis.
B. 50:25 basis.
C. 60:40 basis.
D. 70:30 basis
ANSWER: B
49. The constitution of the IRDA consists of not more than _________ members.
A. 10 members.
B. 7 members.
C. 9 members.
D. members.
ANSWER: C
51. The insurance plays a role in the economic development of the country in following Ways ___________.
A. Releases capital for new investments.
B. The job potential increases.
C. Money collected is invested in infrastructure.
D. All of the above.
ANSWER: D
52. On the death of the bread-earner, two losses occur in the family one is loss of human life and the other is
__________.
A. earning power of family.
B. loss of insurance.
C. loss of investment.
D. loss of bank deposits.
ANSWER: A
57. Name the Indian insurance organisation which for the first time started charging normal rates of premium on
Indian ________.
A. Bombay Mutual Life Assurance society.
B. Oriental Life Assurance Company.
C. New India Assurance Company.
D. Hindustan C-operating Insurance Society.
ANSWER: A
58. In case a business firm sets up a private fund to payout the losses if happens, then that is called as ___________.
A. Individual insurance.
B. family insurance
C. Self-insurance.
D. group insurance
ANSWER: C
66. The burden of proof of the loss within the scope of policy is upon the __________.
A. Insurer.
B. Insured.
C. Surveyor.
D. Defence Lawyer.
ANSWER: B
68. If the interest rates in the market are higher, then cost of insurance _________.
A. Increases.
B. moderate.
C. Decreases.
D. no change.
ANSWER: C
69. The expenses which do not vary with the amount of business written are called _________.
A. Direct expenses.
B. Overhead expenses.
C. Indirect expenses.
D. Trading expenses.
ANSWER: B
71. Foreign equity participation is allowed in insurance sector up to a limit of ____ percent.
A. 80.
B. 73.
C. 49.
D. 26 .
ANSWER: D
72. ________ provides guidelines to decide whether the loss is caused by an insured peril or an expected peril.
A. Indemnity.
B. Proximate clause.
C. Standard claims.
D. Trip sheet.
ANSWER: B
73. _______ means those risks which involve a situation where there is a possibility of gain.
A. Personal risk.
B. Speculative risk.
C. Liability risk.
D. Other risk.
ANSWER: B
74. _________ is concerned with the conversion of a firms asset and earning power against risks of accidental loss.
A. Risk retention.
B. Risk control .
C. Risk management.
D. Risk identification.
ANSWER: C
75. __________ is a contract between the insurer and the insured under which the insurer undertakes to compensate
the insured for the loss arising from the risk.
A. Insurance.
B. Agreement.
C. Indemnity.
D. Proximate clause.
ANSWER: A
78. The ________ has the right to receive the amount assured in the event of death of the insured.
A. Employer.
B. Nominee.
C. Friend.
D. third party.
ANSWER: B
80. Nomination can be done only by a _________ who is a major holding Policy Bond in his own name.
A. Employer.
B. legal advisor.
C. insurance company.
D. policy holder.
ANSWER: D
81. Under Nomination, the Nominee gets only the right to receive the policy money in the ___________ of the
policyholder.
A. event of sickness.
B. event of death.
C. event of credit.
D. event of happiness.
ANSWER: B
82. ________ is a means whereby the beneficial interest, right and title under a policy gets transferred from the
assignor to the assignee.
A. Nomination.
B. Selection.
C. Election.
D. Assignment.
ANSWER: D
83. ________ is the policyholder who transfers the title of the policy.
A. Assignee.
B. Nominee.
C. Assignor.
D. Consignee.
ANSWER: C
84. ______ is the person who derives the title from the assignor.
A. Assignee.
B. Nominee.
C. Assignor.
D. Consignee.
ANSWER: A
85. ________ can be done by mere endorsement on the policy or by a separate duly stamped deed.
A. Nomination.
B. Election.
C. Justification.
D. Assignment.
ANSWER: D
86. A insurance policy from GIC may be assigned only after a period of ________.
A. 10 years.
B. Immediately.
C. 3 years.
D. 1 year.
ANSWER: B
89. The insurance plays a role in the economic development of the country in following Ways ______
A. Releases capital for new investments. increases.
B. The job potential increases.
C. Money collected is invested in infrastructure.
D. All of the above.
ANSWER: D
90. In GICs ______ office almost 90% of the functions relate to policy holders are met in .
A. Zonal.
B. Central.
C. Divisional.
D. branch.
ANSWER: D
92. The document which contains the terms and conditions of the life insurance contract is termed as the __________.
A. Cover note.
B. Life insurance policy.
C. Agreement.
D. Other document.
ANSWER: B
93. The person to whom the policy proceeds will be paid in the event of the death of the insured is known as _______.
A. Assignee.
B. Nominee.
C. Consignee.
D. Beneficiary.
ANSWER: D
94. A ________ is the person who sends the proposal form for taking an insurance policy and pays the premium.
A. Proposer.
B. Nominee.
C. legal advisor.
D. employer.
ANSWER: A
95. The cash value of the policy, paid by the company upon the surrender of a policy before it becomes payable by
maturity is known as __________.
A. Premium.
B. Cash surrender value.
C. Consideration.
D. Commission.
ANSWER: B
96. One who shares the risk under an insurance policy or policies is known as __________.
A. Assurer.
B. Insurer.
C. Co-insurer.
D. Agent.
ANSWER: C
97. A policy protecting a group of persons, usually employees of a firm generally called as ___________.
A. Fire insurance policy.
B. Group insurance policy.
C. Marine insurance.
D. Automobile insurance.
ANSWER: B
98. The period of time for which the policy will normally remain in existence is known as _______.
A. Policy term.
B. Policy note.
C. Proposed time.
D. Grace time.
ANSWER: A
100. If a life insured has died a few days before date of maturity, but after signing discharge form, to whom should the
claim be paid?.
A. Surviving heirs.
B. Nominee.
C. The policy holders bank account.
D. Any of the above three above mentioned.
ANSWER: B
101. What is a proposal?.
A. A request for an insurance cover.
B. An offer to enter into a contract.
C. Both a request and an offer to enter an insurance contract.
D. None of the above.
ANSWER: C
102. If the premium was due on 15th July and 16 August is a Sunday.
A. the grace period will end on 14th august (Friday).
B. the grace period will end on 15th august (Saturday).
C. the grace period will end on 17th august (Monday).
D. the grace period will end as per the discretion of the insurer.
ANSWER: C
103. A policy which has been assigned, will revert to the assignor.
A. if the assignor survives till maturity.
B. whenever the assignor demands it.
C. when the conditions specified in a conditional assignment happen.
D. on maturity of the policy.
ANSWER: C
107. Which of these persons will not be given a license to work as an insurance agent?
A. A person with criminal record.
B. A corporate insurance executive.
C. An employee of an insurance company.
D. All the three mentioned above.
ANSWER: A
108. A type of insurance contract through which protection is given against loss of crop from risk is known as ______.
A. Fire insurance.
B. Crop insurance.
C. Marine insurance.
D. Automobile insurance.
ANSWER: B
109. A memorandum added to a policy embodying some alterations to the terms of policy is known as ___________.
A. Endorsement.
B. Discharge of contract.
C. Breach of contract.
D. Nomination.
ANSWER: A
110. A kind of insurance which provides for indemnity for loss against health such as loss of time and medical
expenses due to sickness is called _________.
A. Fidelity insurance.
B. Crop insurance.
C. Health insurance.
D. Fire insurance.
ANSWER: C
113. In which of the following types of insurance should insurable interest be present only at the time when policy is
taken?
A. Fire insurance.
B. Life insurance.
C. Marine insurance.
D. Life and marine insurance.
ANSWER: B
116. A person insured his goods worth Rs. 2000 for Rs. 1600 and suffers a loss of Rs. 1800. His claim can be
for__________.
A. Rs. 2000.
B. Rs. 1800.
C. Rs. 1600.
D. Rs. 3800.
ANSWER: C
121. Which of the following is the similarity between insurance and gambling?.
A. The amount of loss to be paid is known before hand.
B. Promise to pay on the happening of an event.
C. Both the parties win on happening of an event.
D. Both are enforceable at law.
ANSWER: A
133. As per the Principle of Insurable interest, it should be present in the case of life Insurance _________.
A. at the time of claim settlement.
B. at the time of survival only.
C. only at the inception of the policy.
D. at inception and at the time of revival.
ANSWER: D
134. European started the Oriental Life Insurance Company in Kolkata in the year ________.
A. 1870.
B. 1872.
C. 1818.
D. 1906.
ANSWER: B
136. ________ is the extra payment done for administrative and capital cost.
A. Premium.
B. Premium loading.
C. Interest.
D. Contingency.
ANSWER: B
137. The clause which sets out the essence of the contract is ______________.
A. The Preamble.
B. Recital Clause.
C. Conditions.
D. Operative Clause.
ANSWER: D
139. Corpus fund is created with contributions from the Central Government and State Government on
________________.
A. 50:50
B. 60:40
C. 70:30
D. 75:25
ANSWER: A
140. The danger of loss from the unforeseen circumstances in future refers to __________.
A. Perils
B. Hazard
C. Damage
D. Risk
ANSWER: D
142. . The proportion of the risk which the direct insurer holds on his own account refers to ___________.
A. Line.
B. Retention
C. Retrocession
D. Ceding insurer
ANSWER: B
143. When the same risk and subject matter is insured with more than one insurer is called as_______.
A. Double insurance
B. . Over insurance
C. Reinsurance
D. External insurance
ANSWER: A
144. . When the amount for which a subject matter is insured is more than its actual value is called __________.
A. Double insurance
B. Over insurance
C. Reinsurance.
D. Crop insurance
ANSWER: B
145. Except life assurance the maximum term of other insurance is--------------.
A. twelve months.
B. One Month
C. Three Months
D. Twenty four months
ANSWER: A
147. ___ is the first insurance company to transact the general insurance busienss
A. Trition Insurance
B. LIC.
C. GIC
D. None of the above
ANSWER: A
Staff Name
Senthil Kumar R.