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) .
| 51. |
Find out which of the given statements is incorrect |
| A. | Accounts department has to monitor cash flow from subordinate offices |
| B. | Marketing department has to monitor business inflow |
| C. | Marketing department has to monitor performance of agents |
| D. | Actuarial department is responsible for settling death claims |
| Answer» D. Actuarial department is responsible for settling death claims | |
| 52. |
Which of the following terms is dissimilar to the other four in the context of death claims in life insurance? |
| A. | Early claims |
| B. | Non-early claims |
| C. | Foreclosure |
| D. | Claimant’s statement |
| Answer» C. Foreclosure | |
| 53. |
As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of: |
| A. | Age and sex |
| B. | Age and number of dependents |
| C. | Income and size of family |
| D. | Age and income |
| Answer» D. Age and income | |
| 54. |
Time Policies relate to: |
| A. | Fire insurance |
| B. | Hull insurance |
| C. | Personal Accident insurance |
| D. | Workmen’s Compensation insurance |
| Answer» B. Hull insurance | |
| 55. |
Which clause specifies the perils insured in a scheduled form of policy? |
| A. | Preamble Clause |
| B. | Recital Clause |
| C. | Operative Clause |
| D. | Consideration Clause |
| Answer» C. Operative Clause | |
| 56. |
Which of the following types of insurances is mandatory? |
| A. | Motor Own Damage |
| B. | Motor Third Party Legal Liability |
| C. | Personal Accident Insurance |
| D. | Product Liability |
| Answer» B. Motor Third Party Legal Liability | |
| 57. |
The minimum paid up capital required for a General Insurance Company is Rs. ____ |
| A. | 25 crores |
| B. | 50 crores |
| C. | 75 crores |
| D. | 100 crores |
| Answer» D. 100 crores | |
| 58. |
In ‘Hit and Run’ cases, claims are settled from _______ |
| A. | Solatium Fund |
| B. | IRDA’s contingency Fund |
| C. | Insuring Company’s reserves |
| D. | Motor Third Party Pool |
| Answer» A. Solatium Fund | |
| 59. |
Select the expanded form of FPA as used in insurance |
| A. | Freight Payable Assured |
| B. | Free of Particular Average |
| C. | Fire Perils Added |
| D. | Fixed Peripherals Added |
| Answer» B. Free of Particular Average | |
| 60. |
Select the expanded form of ALOP used in insurance |
| A. | Advance Loss of Profits insurance |
| B. | Agreed Loss of Profits insurance |
| C. | Additional Loss of Profits insurance |
| D. | Associated Loss of Profits insurance |
| Answer» A. Advance Loss of Profits insurance | |
| 61. |
Insurance cannot prevent the occurrence of risk but it provides for the……… |
| A. | losses of risk |
| B. | occurrence of risk |
| C. | chance of risk |
| D. | none of these |
| Answer» A. losses of risk | |
| 62. |
The document which embodies the contract in insurance is called………… |
| A. | security |
| B. | policy |
| C. | certificate |
| D. | none of these |
| Answer» B. policy | |
| 63. |
……… principle in insurance means maximum truth. |
| A. | subrogation |
| B. | causa proxima |
| C. | insurable interest |
| D. | uberrima fides |
| Answer» D. uberrima fides | |
| 64. |
Which of the following terms matches closest with ‘Composite Policy’? |
| A. | Shopkeepers’ insurance |
| B. | Janatha Personal Accident insurance |
| C. | Critical Care Health insurance |
| D. | Marine Cargo insurance |
| Answer» A. Shopkeepers’ insurance | |
| 65. |
Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like: |
| A. | Surveyors, agents, advocates |
| B. | Commerce, transport, |
| C. | Consumer fora, industry, intermediaries, |
| D. | Research bodies, organisations engaged in safety and loss prevention |
| Answer» A. Surveyors, agents, advocates | |
| 66. |
Which of the following covers is dissimilar to the other four options? |
| A. | Loss of Passport |
| B. | Loss of Profits |
| C. | Loss of checked in baggage |
| D. | Delay in receiving checked in baggage |
| Answer» B. Loss of Profits | |
| 67. |
Which of the following types of insurances is dissimilar to the other four options? |
| A. | Builders’ Risks insurance |
| B. | Hut insurance |
| C. | Crop insurance |
| D. | Livestock insurance |
| Answer» A. Builders’ Risks insurance | |
| 68. |
Which of the following terms matches closest with ‘Asbestosis’? |
| A. | Products |
| B. | Pension |
| C. | Rough Weather |
| D. | Workmen’s Compensation |
| Answer» D. Workmen’s Compensation | |
| 69. |
Regarding ‘Exclusions’ find out the incorrect statement. |
| A. | Exclusions are indicated in the policy |
| B. | Exclusions are perils or circumstances not covered |
| C. | Exclusions limit the coverage under the policy |
| D. | Exclusions do not deal with risk coverage |
| Answer» D. Exclusions do not deal with risk coverage | |
| 70. |
Which of the following statements is incorrect in respect of brokers? |
| A. | Brokers require to undergo training before being licensed |
| B. | Brokers are appointed by insured to take care of their interests |
| C. | Brokers have to pass examinations before being licensed |
| D. | Brokers should be registered companies or firms |
| Answer» D. Brokers should be registered companies or firms | |
| 71. |
Which of the following terms is dissimilar to the other four options? |
| A. | Jettison |
| B. | Hit and Run |
| C. | Sue and Labour |
| D. | Salvage |
| Answer» B. Hit and Run | |
| 72. |
Which of the following terms is dissimilar to the other four options? |
| A. | Post-hospitalisation expenses |
| B. | Expenses on treatment of pre-existing diseases |
| C. | Reinstatement value |
| D. | Funeral expenses |
| Answer» C. Reinstatement value | |
| 73. |
Principle of utmost good faith is also known as ……….. |
| A. | subrogation |
| B. | causa proxima |
| C. | insurable interest |
| D. | uberrima fides |
| Answer» D. uberrima fides | |
| 74. |
…………….principle means that the insured is not entitled to make a profit on his loss. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | uberrima fides |
| Answer» C. indemnity | |
| 75. |
The purpose of ………. Are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | uberrima fides |
| Answer» A. subrogation | |
| 76. |
………..principle in insurance mention the cause of loss must be direct and an insured one in order to claim for compensation. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | uberrima fides |
| Answer» B. causa proxima | |
| 77. |
………… principle in insurance mention the assured must have insurable interest in the life or property insured. |
| A. | subrogation |
| B. | causa proxima |
| C. | indemnity |
| D. | insurable interest. |
| Answer» D. insurable interest. | |
| 78. |
The first insurance contract was entered into by European maritime nations in 1347 to accept ……..insurance as a practice. |
| A. | life |
| B. | vehicle |
| C. | marine |
| D. | fire |
| Answer» C. marine | |
| 79. |
Dr.Nicholas Barbon set up in 1967 the first fire insurance company known as the ……….. |
| A. | Nicolas company |
| B. | fire company |
| C. | fire insurance company |
| D. | fire office |
| Answer» D. fire office | |
| 80. |
The oldest life insurance company in existence today is the society for the equitable assurance of lives and survivorship, known as ……… |
| A. | Eqitable insurance |
| B. | Old equitable |
| C. | socity for insurance |
| D. | none of these. |
| Answer» B. Old equitable | |
| 81. |
The ……………discovered by Jakob Bernoulls around 1700 forms the basis of modern insurance. |
| A. | law of insurance |
| B. | law of large numbers |
| C. | law of modern insurance. |
| D. | none of these |
| Answer» B. law of large numbers | |
| 82. |
The Sanskrit term …………..,the name of LIC of India corporate headquarters,is found in Rig Veda. |
| A. | Yogaraksha |
| B. | Yogakarma |
| C. | Yogakshema |
| D. | all of these. |
| Answer» C. Yogakshema | |
| 83. |
The …………..company was the first insurance company to be set up in India to help the widows of the Europian community. |
| A. | Life insurance corporation of India. |
| B. | Oriental Life Insurance Company |
| C. | National insurance company |
| D. | Bajaj insurance |
| Answer» B. Oriental Life Insurance Company | |
| 84. |
………..is the first comprehensive legislation governed both life and non-life branches of insurance was enacted to provide strict state control over the insurance business in India. |
| A. | Insurance Act-1938 |
| B. | Insurance Act-1939 |
| C. | Insurance Act-1940 |
| D. | Insurance Act-1941 |
| Answer» A. Insurance Act-1938 | |
| 85. |
The LIC of India was set up in ……..to take over 245 life companies. |
| A. | 1955 |
| B. | 1956 |
| C. | 1957 |
| D. | 1958 |
| Answer» B. 1956 | |
| 86. |
………….committee suggested the re-opening up of the insurance sector to private players. |
| A. | K.N.Malhotra |
| B. | R.N.Malhothra |
| C. | Nrasimham |
| D. | Goyal |
| Answer» B. R.N.Malhothra | |
| 87. |
The IRDA was set up in………….. |
| A. | 1999 |
| B. | 1991 |
| C. | 2000 |
| D. | 2001 |
| Answer» C. 2000 | |
| 88. |
The IRDA stands for |
| A. | Insurance Regulatory and Development Activity. |
| B. | Insurance Reconstruction and Development Activity. |
| C. | Insurance Regulatory and Development Authority. |
| D. | Insurance Regulatory and Department Activity. |
| Answer» C. Insurance Regulatory and Development Authority. | |
| 89. |
The insurance industry till august 2000 had only two nationalised players ,LIC and …. |
| A. | NI |
| B. | GIC |
| C. | IRDA |
| D. | none of these |
| Answer» B. GIC | |
| 90. |
The ………….,has allowed cooperative societies to carry on insurance business. |
| A. | Insurance (amendment)Act,2000 |
| B. | Insurance (amendment)Act,2001 |
| C. | Insurance (amendment)Act,2002 |
| D. | Insurance (amendment)Act,2003 |
| Answer» C. Insurance (amendment)Act,2002 | |
| 91. |
……….. was constituted as an autonomous body to regulate and develop the business of insurance and reinsurance in India. |
| A. | LIC |
| B. | GIC |
| C. | IRDA |
| D. | NBFC |
| Answer» C. IRDA | |
| 92. |
Objective of IRDA includes |
| A. | policy holder protection |
| B. | healthy growth of the insurance market |
| C. | both a and b |
| D. | only a |
| Answer» C. both a and b | |
| 93. |
IAIS stands for…… |
| A. | Internal Association of Insurance Supervisors |
| B. | International Association of Insurance Supervisors |
| C. | International Academy of Insurance Supervisors |
| D. | International Association of Insurance Surveyors |
| Answer» B. International Association of Insurance Supervisors | |
| 94. |
To provide the insured a speedy and inexpensive grievance redressal system ,the Govt.of India promulgated………… |
| A. | Redressel of public grievance Rule 1987 |
| B. | Redressel of public grievance Rule 1988 |
| C. | Redressel of public grievance Rule 1989 |
| D. | Redressel of public grievance Rule 1990 |
| Answer» B. Redressel of public grievance Rule 1988 | |
| 95. |
RPG rule 1988 set up an institution for building the confidence of the policy holders in insurance. |
| A. | management |
| B. | ombudsman |
| C. | council |
| D. | committee |
| Answer» B. ombudsman | |
| 96. |
An ombudsman is entrusted with………..functions |
| A. | managing & concilling |
| B. | conciliation and award making |
| C. | agency and principal |
| D. | none of the above |
| Answer» B. conciliation and award making | |
| 97. |
The ……….associated with the insurance business are agents, surveyors, loss assessors, brokers, third party administrators and banks. |
| A. | management |
| B. | organisation |
| C. | intermediaries |
| D. | regulators |
| Answer» C. intermediaries | |
| 98. |
…………..in the insurance are just like the retailers of any consumer product who help in selling and distributing the product. |
| A. | surveyors |
| B. | loss assessors |
| C. | agents |
| D. | banks |
| Answer» C. agents | |
| 99. |
…………are independent professionals appointed by an insurance company to assess the loss or damage when a claim is notifed under a policy issued by them. |
| A. | surveyors |
| B. | loss assessors |
| C. | agents |
| D. | both a and b |
| Answer» D. both a and b | |
| 100. |
…………are agents but they can sell policies of several life and non-life insurance companies at a time. |
| A. | surveyors |
| B. | loss assessors |
| C. | brokers |
| D. | banks |
| Answer» C. brokers | |
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