McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance) .
| 1. |
Insurance is a cooperative form of distributing a certain__________over a group of persons who are exposed to it. |
| A. | Uncertainty |
| B. | Risk |
| C. | Peril |
| D. | Hazards |
| Answer» B. Risk | |
| 2. |
In legal sense, Insurance is a |
| A. | Contract |
| B. | Activity |
| C. | Gambling |
| D. | Publicity |
| Answer» A. Contract | |
| 3. |
The principle of indemnity is not applicable to |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | Property Insurance |
| Answer» C. Life Insurance | |
| 4. |
LIC was nationalised in |
| A. | 1956 |
| B. | 1955 |
| C. | 1957 |
| D. | 1948 |
| Answer» A. 1956 | |
| 5. |
The policy for which the premium is payable throughout the life of the assured is known as |
| A. | Annuity Policy |
| B. | Whole Life Policy |
| C. | Term Policy |
| D. | Endowment |
| Answer» B. Whole Life Policy | |
| 6. |
When the same risk and subject matter is insured with more than one insurer is known as |
| A. | Reinsurance |
| B. | Double Insurance |
| C. | Under Insurance |
| D. | Over Insurance |
| Answer» B. Double Insurance | |
| 7. |
The chance of loss from the unforeseen circumstances in future refers to ______. |
| A. | Perils |
| B. | Damage |
| C. | Risk |
| D. | Hazards. |
| Answer» C. Risk | |
| 8. |
Master policy is issued for ___________. |
| A. | Group Insurance |
| B. | Term Insurance |
| C. | Marine Insurance |
| D. | Individual Policy |
| Answer» A. Group Insurance | |
| 9. |
The organisation structure of LIC refers to ___________. |
| A. | Three Tier |
| B. | Four Tier |
| C. | Five Tier |
| D. | Six Tier |
| Answer» B. Four Tier | |
| 10. |
________ can be done by mere endorsement on the policy or by a separate duly stamped deed. |
| A. | Assignment |
| B. | Nomination |
| C. | Renewal |
| D. | Revival |
| Answer» A. Assignment | |
| 11. |
The document which contains the terms and conditions of the life insurance contract is termed as the |
| A. | Agreement |
| B. | Life Insurance Policy |
| C. | Cover Note |
| D. | Proposal Form |
| Answer» B. Life Insurance Policy | |
| 12. |
What is a proposal? |
| A. | A request for an insurance cover |
| B. | An offer to enter into a contract |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 13. |
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 here. |
| Answer» A. A person with criminal record | |
| 14. |
A memorandum added to a policy embodying some alterations to the terms of policy is known as |
| A. | Surrender |
| B. | Endorsement |
| C. | Nomination |
| D. | Breach of Contract |
| Answer» B. Endorsement | |
| 15. |
Which of the following is an evidence of insurance contract? |
| A. | Policy Document |
| B. | payment of premium. |
| C. | cover note |
| D. | acceptance of proposal |
| Answer» A. Policy Document | |
| 16. |
The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called |
| A. | Insured |
| B. | Assurer |
| C. | Agent |
| D. | Underwriter |
| Answer» D. Underwriter | |
| 17. |
Insurance prices are called |
| A. | Commissions |
| B. | Allowances |
| C. | Premiums |
| D. | Discounts |
| Answer» C. Premiums | |
| 18. |
A person employed to do any act for another or to represent another in dealing with a third person refers to |
| A. | Agent |
| B. | Principal |
| C. | Development Officer |
| D. | Surveyor |
| Answer» A. Agent | |
| 19. |
The IRDA was set up in |
| A. | 1919 |
| B. | 1991 |
| C. | 2001 |
| D. | 2000 |
| Answer» D. 2000 | |
| 20. |
______________ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product. |
| A. | Underwriters |
| B. | Surveyors |
| C. | Agents |
| D. | Banker |
| Answer» C. Agents | |
| 21. |
The agents who are selling policies of several life and non life insurance companies at a time are known as |
| A. | Brokers |
| B. | Surveyors |
| C. | Underwriters |
| D. | banks |
| Answer» A. Brokers | |
| 22. |
_____________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy. |
| A. | Surveyors |
| B. | Loss Assessors |
| C. | Both a and b |
| D. | Agents |
| Answer» C. Both a and b | |
| 23. |
Insurance contract is sort of contract which is approved by |
| A. | The Indian Contract Act |
| B. | Indian Factory Act |
| C. | Indian Companies Act |
| D. | The Indian Finance Act |
| Answer» A. The Indian Contract Act | |
| 24. |
General Insurance Corporation was established during the year |
| A. | 1971 |
| B. | 1986 |
| C. | 1956 |
| D. | 1972 |
| Answer» D. 1972 | |
| 25. |
The term Assurance refers to ________. |
| A. | Marine Insurance Business |
| B. | Life Insurance Business |
| C. | Fire Insurance Business |
| D. | Motor Vehicle Business |
| Answer» B. Life Insurance Business | |
| 26. |
Committee of reforms in insurance sectors during 1993 headed by ________. |
| A. | R.N. Malhotra |
| B. | S. Narashiman |
| C. | Manmohan Singh |
| D. | P.Chidambaram |
| Answer» A. R.N. Malhotra | |
| 27. |
Insurance business is based on __________. |
| A. | Newtons Law |
| B. | Boyles Law |
| C. | The Theory of Probability and Law of large numbers |
| D. | Parkinsons Law |
| Answer» C. The Theory of Probability and Law of large numbers | |
| 28. |
Gross Premium means Net Premium plus___________ |
| A. | Margin |
| B. | Profit |
| C. | Expense Loading |
| D. | Loss |
| Answer» C. Expense Loading | |
| 29. |
_____________ is pricing of insurance products driven by market forces |
| A. | De-tariffing |
| B. | Fixed Pricing |
| C. | Tariffing |
| D. | Penetration Pricing____ |
| Answer» A. De-tariffing | |
| 30. |
____________ is the total premium that a policy holder pays to insurance company |
| A. | Net Premium |
| B. | Gross Premium |
| C. | Partial Premium |
| D. | Level Premium |
| Answer» B. Gross Premium | |
| 31. |
Insurance helps to: |
| A. | Prevent adverse situations from occurring |
| B. | Reduce the financial consequences of adverse situations |
| C. | Negate all consequences of adverse situations |
| D. | Make assets continuously productive |
| Answer» B. Reduce the financial consequences of adverse situations | |
| 32. |
An actuary is expected to: |
| A. | Make an exact forecast of the future liabilities of policies |
| B. | Make a reasonable forecast of the future liabilities of policies |
| C. | Calculate the premium required to cover a risk on a long-term basis |
| D. | Find the probability of an insured event to happen in non-life policies |
| Answer» B. Make a reasonable forecast of the future liabilities of policies | |
| 33. |
The principle of _____________ ensures that an insured does not profit by insuring with multiple insurers |
| A. | Subrogation |
| B. | Contribution |
| C. | Co-insurance |
| D. | Indemnity |
| Answer» B. Contribution | |
| 34. |
The principle of average applies when the value is _____________ in the proposal |
| A. | Understated |
| B. | Overstated |
| C. | Not ascertainable |
| D. | Negligible |
| Answer» A. Understated | |
| 35. |
Fidelity Guarantee Policies cover losses due to fraud by ____________ |
| A. | Employees |
| B. | Customers |
| C. | Borrowers |
| D. | Suppliers |
| Answer» A. Employees | |
| 36. |
CTL as used in insurance |
| A. | Contributory Total Loss |
| B. | Constructive Total Loss |
| C. | Construction Totally Lost |
| D. | Contractors’ Total Loss |
| Answer» B. Constructive Total Loss | |
| 37. |
GA as used in insurance |
| A. | General Assurance |
| B. | General Average |
| C. | General Adjustment |
| D. | Guaranteed Assurance |
| Answer» B. General Average | |
| 38. |
Which of the following terms matches closest with ‘Family Floater’? |
| A. | Health insurance |
| B. | Property insurance |
| C. | Accidental injury |
| D. | Consequential loss |
| Answer» A. Health insurance | |
| 39. |
In cases where a Life Insurance Agent collects the premium from the policyholder and remits it to the insurer’s office, he is acting as an agent of _____ |
| A. | IRDA |
| B. | the Insurance Company |
| C. | the Policyholder |
| D. | the broker |
| Answer» B. the Insurance Company | |
| 40. |
A policy where the policyholder makes a one-time payment of premium, is known as a ______________: |
| A. | Money-back policy |
| B. | Single premium policy |
| C. | Salary Savings Scheme policy |
| D. | Half-yearly policy |
| Answer» B. Single premium policy | |
| 41. |
i. State which of the statements given below is correct . |
| A. | An organisation can exist only with employees |
| B. | An organisation can exist only with different sections |
| C. | An organisation can exist only with its own office building |
| D. | An organisation can exist without a purpose |
| Answer» A. An organisation can exist only with employees | |
| 42. |
……… may be described as a social device to reduce or eliminate risk of loss to life and property. |
| A. | investment |
| B. | saving |
| C. | insurance |
| D. | loan |
| Answer» C. insurance | |
| 43. |
State which of the statements given below is correct |
| A. | People generally feel that life related risks are imminent |
| B. | Religious beliefs interfere with the purchase of life insurance |
| C. | People are always keen to buy insurance |
| D. | Life insurance cannot be denied to anyone at any time |
| Answer» B. Religious beliefs interfere with the purchase of life insurance | |
| 44. |
Compared to the premium for a Whole Life plan, the premium for an Endowment plan will be ____________ for the same age |
| A. | more |
| B. | less |
| C. | the same |
| D. | double |
| Answer» A. more | |
| 45. |
Select the expanded form of SA as commonly used in life insurance |
| A. | Sum Assured |
| B. | Surrender of Assurance |
| C. | Supplementary Assurance |
| D. | Stamp Act |
| Answer» A. Sum Assured | |
| 46. |
Select the expanded form of OR as commonly used in life insurance |
| A. | Oral Rehydration |
| B. | Once Renewed |
| C. | Ordinary Rates |
| D. | Ordinary Renewal |
| Answer» C. Ordinary Rates | |
| 47. |
Select the expanded form of SV as commonly used in life insurance |
| A. | Summary Valuation |
| B. | Selected Value |
| C. | Surrender Value |
| D. | Stamp Value |
| Answer» C. Surrender Value | |
| 48. |
Which of the following terms matches closest with ‘Automatic Teller Machines’? |
| A. | Divisional Offices |
| B. | Branch Offices |
| C. | Agents |
| D. | Information Kiosks |
| Answer» D. Information Kiosks | |
| 49. |
Which of the following terms matches closest with ‘Foreclosure’? |
| A. | Surrender Value |
| B. | Nominee |
| C. | Death Claim |
| D. | Maturity Claims |
| Answer» A. Surrender Value | |
| 50. |
Find out which of the given statements is incorrect |
| A. | An organisation must have a purpose |
| B. | An organisation is identified by its actions |
| C. | An organisation is identified by the building it occupies |
| D. | A organisation can sue and be sued |
| Answer» C. An organisation is identified by the building it occupies | |
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