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Insurance Awareness Quiz 40

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Insurance Awareness Quiz 40

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 40 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 40 is extremely important for aspirants of Insurance related recruitments such as UIIC, OICL, LIC, HFL, AAO, etc.


shape Quiz

1. Which insurance product is offered by the New India Assurance Co Ltd?

    A. Personal Insurance
    B. Commercial Insurance
    C. Industrial Insurance
    D. All the above


Answer: Option D


2. ___________is a fixed amount for a covered service, paid by a patient to the provider of service before receiving the service

    A. Copay
    B. Deductible
    C. Claim
    D. Surrender Value


Answer: Option A

Explanation:
A copayment or copay is a fixed amount for a covered service, paid by a patient to the provider of service before receiving the service


3. Which of these is not one of the main products of life insurance?

    A. Term insurance
    B. Personal accident insurance
    C. Whole life insurance
    D. Endowment Policy


Answer: Option B

Explanation:
The main products of life insurance includes: Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical and health. The general insurance products includes – Motor insurance, Fire/House owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance.


4. Which among the following provides insurance cover to exporters?

    A. GIC
    B. IRDAI
    C. LIC
    D. ECGC


Answer: Option D


5. The National Agricultural Insurance Scheme has been set up to provide insurance cover to which of the following?

    A. Farmer’s Land
    B. Farmer’s Life
    C. Farmer’s Crops
    D. Animals used for agricultural activities


Answer: Option C

1. The premium can be related to which element of a valid contract?

    A. Free Consent
    B. Offer & Acceptance
    C. Consideration
    D. Capacities of the Parties


Answer: Option C

Explanation:
Consideration means that the contract must contain some mutual benefit for the parties. The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.


2. ___________ is a type of permanent life insurance, more similar to mutual funds, with a cash value account.

    A. Variable Life Insurance
    B. Universal Life Insurance
    C. Unit Linked Insurance
    D. All the above


Answer: Option A


3. The process of appointment of a person to receive the death claim is termed as______

    A. Assignment
    B. Registration
    C. Election
    D. Nomination


Answer: Option D


4. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for ________years.

    A. 2 years
    B. 5 years
    C. 3 years
    D. 10 years


Answer: Option C


5. In case of delay in payment of claim due to any reason other than that mentioned in the regulation, the insurance company will be liable to pay an interest on claim ______ percent higher than bank rate applicable at the start of financial year in which claim was reviewed

    A. 2%
    B. 1%
    C. 3%
    D. 4%


Answer: Option A

Explanation:
Where there is a delay on the part of the insurer in processing a claim for a reason other than the one covered by sub-regulation (iv), the life insurance company shall pay interest on the claim amount at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.

1. Insurance Information Bureau of India (IIBI) was promoted by IRDA in which year?

    A. 2004
    B. 2009
    C. 2011
    D. 2000


Answer: Option B

Explanation:
Insurance Information Bureau of India was promoted in year 2009 by IRDA and is a registered society with a governing council of 20 members mostly from the insurance sector.


2. Which among the following are the legal entities that help insurance market in redressal of consumer grievances?

    A. Insurance Ombudsman
    B. Consumer Court
    C. Civil Court
    D. All the above


Answer: Option D

Explanation:
Legal entities such as the Insurance Ombudsman, Consumer courts as well as civil courts also play a role in the health insurance market when it comes to redressal of consumer grievances.


3. As per IRDAI (Protection of Policyholders Interests) Regulations, 2002, a claim under a life policy shall be paid or be disputed, within __________ from the date of receipt of all relevant papers and clarifications required.

    A. 30 days
    B. 7 days
    C. 15 days
    D. 45 days


Answer: Option A


4. When the premium charged under a policy remains the same throughout the duration of the contract, it is called as__________

    A. Constant Premium
    B. Level Premium
    C. Average Premium
    D. Static Premium


Answer: Option B


5. The insurable interest in case of life insurance is required at the time of________?

    A. Insurance Claim
    B. Third-party insurance
    C. Insurance Policy Purchase
    D. Insurable interest is not needed


Answer: Option C



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