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100

State whether the following statements are TRUE or FALSE

Principle of large numbers is applicable to the Insurance

Life insurance contract is long term contract

In life insurance premium payable changes every year of the contract

In life Insurance premium depends on the age of the Insured

In life Insurance Net premium is the chargeable premium

Long term sickness is the unpredictable event

Income needed in the retirement is unpredivtable event

Financial planning is the process of making advance provision for the financial needs arising i

In life insurance contract absense of insurable interest does not render the contract void.

Every person possesses unlimited insurable interest in his own life

PLEASE TICK THE CORRECT ANSWER FROM THE CHOICES GIVEN

A creditor has insurable interest in life of the debtor

A policyholder transfers his rights under a policy to another person. this is called

Level premium means

In life insurance insurable interest is to be proved

Under Term assurance policy sum assured is payable

ULIP plan is

As per sec.45 of the Insurance act 1938early death clam is one that occurs

Where the life policy is absolutely assigned the death claim amount is paid to

Life Insurance policies cover which type of risk?

Mr. XYZ has taken an Insurance plan for Rs. 10 lakhs for 15 years which stipulates that
Sum assured will be paid only if Mr. XYZ survives the policy tenure of 15 years. Which type is

How are the risks are measured in General Insurance ?

PML (Probable Maximum loss) is determined by MPL (Maximum Loss) and

If the cost of damages is met through internal resource, how the risk is managed?

The Proposers payment of consideration is known as

Export and Import risks are covered by

Life Insurance Corooration of India was formed on

Which of the four is the Reinsurance company

What treatmrnt is given by the insurer to the difference between Rvnenue and expenses

An arrangement wherein the reinsurer steps only if the loss excceds the certin limit is called as

Where would insurer find the guidelines for investments

Insurer mansges the risk by

Underwriting is

TPA should have the educational qualification of

Which is the Dept. of an insurance company that settles the claim

Which is the dept. of an insurance company that deals with the selection of the risk

part of the policy money paid to the policy during the term of the policy is termed as

claim paid to the policy holder at the end of the policy term is known as

policy money paid to the policy holder before the policy term at the request of the policy holder is

Nomination is governed under

Assignment of the life policy

A policy holder transfers his rights under the policy to another person. This is called

The person who assesses the risk associated with the life proposal is called

floating policy

specic policy is for

Rienstatement policy is

The terrorist risk cover fund pool is managed by

Fraud and dishinesty of the employees is covered by

which of the following statement is false

hull insurance under marine insurance is

The freight can be insured under marine insurance

In a life cycle which of the following is not a predictable need

which of the fillowing is not a life cycle stage

Insurance cotract is void if the party to the contract is

Find out where the insurable interest does not exsists

policy reserve of the insurer is

as per Life insurance act 1956 valuation of liabilities of the insurer is to be done

EDLI is

IRDA was formed in the year

The consumer protection act was enacted in the year

IRDA has its head quarter at

which one is not the method of surplus distribution

Mortality rate

Policy reserve can be calculated by

damages due to wrongful acts of Directors and Officers while managing company affairs are covered

PML is

Which is not the physiological human need

ceding

solvency margin in general insurance is

Sub standard life is the person

which of the following is not a physical hazard

Retrosession means

appointment of the insurance Ombudsman is done by

No default liability under motor vehicle act means

which of the items are covered under money in transit insurance

In group insurance group to be insured should be

in group insurance profit sharing is done by way of

product liability policy does not cover

MATCH THE NEEDS IN COLUMN B WITH THE PRODUCTS IN THE COLUMN C

INSTANT ACCESS TO FUND

ASSURED GUARANTED INCOME

ASSURED IMMEDIATE MLY INCOME FOR 20YRS

MAXIMUM GROWTH OF INVESTIBLE FUND

TICK THE CORRECT ANSWERS FROM THE CHOICES GIVEN

Proximate cause is the

Fund for hit snd run cases is called as

nomination under the life policy can br done by the policy holder

In the Decclaration policy under fire Insurance initial premium paid is at the rate of

assignment

on the death of the assignee rights under the policy will vest

Early death claim is investigated by the

which policy provides for loss due tostoppage of work

As per section 45 of the insurance act 1938 the burden 0f proof lies with the insurer for repudiating th
for the statements false and material to the risk ,if claim occurs

which is not the step in risk managemenr

factors for measuring the risk are

Which of the following is not relevant to the insurance

under motor vehicle third party insurance- this is not covered

The period within which the policy holder can revoke the life insurance contact is called as

Under ULIP type of policy opting one type of investment fund from the other type of fund is called as

ESIC is

motor vehicle act amendment of 1999 provides for

GSLI is

in general insurance maximum amount the insurer wishes to keep on risk is known as

Column B--The Questions /Statements Column C - Multiple Choices / mactching statements Column
EACH question carries 1 mark. No negative matks.

a)to the extent of his liabilities

b)to the extent of his liabilities
c)to the extent of his debts
d)Unlimited.
a) Nomination
b) Assignment
c) Surrender
d) Deferment
a)
b)
c)
d)

Uniform premium in earlier half term of the policy

Increasing premium with the term of the policy
Decreasing premium with the term of the policy
Uniform premium throughout the term of the policy.

a) Only at the time of taking the insurance

b) At the time of claim
c) At the time of taking the policy and also at the time of claim
d) None of the above.
a) Only on survival at the end of the policy term
b) Only on death during the term of the policy
c) On both the contingencies as in a) and b) above
d) None of the above.
a) Protection plan
b) Investment plan
c) Both protection and investment plan
d) None of the above.
a)
b)
c)
d)

Within one year of the policy

Within two years of the policy
Within three years of the policy
None of the above.

a) To the assignee

b) To the legal heirs of the insured

c) To the original nominee under the policy
d ) Jointly to the a) and c) above.
a) Risk of unexpected early death
b) Risk of living too long
c) Both of the a) and b) above
d) None of the above.
a)Term assurance plan
b)Pure endowment plan
c)Endowment plan
d)Whole life plan.
a)
b)
c)
d)

The cost of actual loss

The cost of consequential loss
The likely loss that may occur if a peril strikes
The like hood for a peril striking

a) The probability of the peril striking

b) The cost of actual loss
c) the cost of consequential loss
d) None of the above
a)
b)
c)
d)

Prevention
Transfer
Reduction
Retaining

a) Enrollment fee
b) Premium
c) Installment
d) Bonus

a-IRDA
b-Depoosit insurance and credit gurantee Corporstion
c-Export Credit and Gurantee Corporation
d-Life Insurance Corporation

a)1st January 1956

b) 1st September 1956

c)- 1st January 1956

d)- 1st September 1947

a)-General Insurance Corporation

b)- Life Insurance Corpotation
c) Oriental Insurance company
d)-Unitrd insurance Company

a) It is included as profit
b) It is paid to shareholders as dividend
c) Hald in reserve to play the claim cost
d) Reurned to the policy holdrers
a) Excess of loss
b) Quota share
c) Ceding
d)Pool arrangement

a) IRDA regulations
b) Company guidelines
c)The Insurance Act
d) None of the above
a) transfer
b) retention
c) avoidance
d None of the above
a) where insurer decides the premium chargeable
b) an attempt by the insurer to screen out the sub standard lives
c) exercise by the insurer to deny the insurance
d) none of the above
a) of graudation
b) passing of MBA
c) passing of course on Hospital Management
d) none of the above
a) setvicing dept.
b) marketing dept.

c)
acturial dept.
d) new business dept.
a)
b)
c)
d)

underwriting dept.
servicing dept.
matketing dept.
customer relations dept.

a) survival benefit claim

b) mid-term claim
c)ex-gratia claim
d)maturity claim
a)survival claim
b) maturity vlaim
c) end term claim
d) surrender
a) mid term claim
b) policy closure
c) surrender of policy
d) none of the above

a) section 38 of insurance act 1938

b)section 39 of insurance act 1938
c) section 40 of insurance sct 1938
d) none of the above

a) suspends the nomination

b)cancels the nomination
c) does not affect the nomination
d) continues at the request of the life assured
a)transfer of rights
b) Surrender of rights
c) Assignment
d) Deferement of rights
a)
b)
c)
d)

Actuary
underwriter
Arbitrator
Assessor

a) is policy with floating rates

b) policy where value is determined at the time of the claim
c) insures goods of different types and at different locations
d) is the policy where value of the policy varies during contract
a)
b)
c)
d)

specific period
specific property
specific sum
all the above

a)policy started again after lapse

b)continued after the term
c) where property is restored to the state before destruction
d) none of the above
a) govt. of India.
b) IRDA
c)LIC Of India
d) General Insurance Corporation
a) Dishonesty insurance
b) fraud insurance
c) Dishonesty and fraud insurance
d) Fidelity gurantees insurance
a) coinsurance is sharing of risks between insurers
b)The reinsurer is the insurer of the insurer
c) Insurer has contractualrelatinship with the insurer
d) Insured has a contractual relationship with the reinsurer
a) cargo insurane
b)cargo and fright insurance
c) insurance of vessel and its equipments
d insurave of cargo and crew on the board
a) when it is pre paid
b) when it is post paid
c) both the a) and b) above
d) when it is partially paid
a) children's education
b) Income at retirement
c) capital for purchase of house
d) Death of the income provider

a)childhood
b) young married
c) old unmarried
d) post retirement
a) unemployed
b) handicapped
c) minor
d)Non resident Indian
a) husbsnd-wife
b) creditor-debtor
c)
seller-customer
d) employer-employee
a) profit
b) liability
c)profit before tax
d) none of the above
a) every year
b) every two years
c) every three years
d) every four years
a)Employees Deposit Linked Insurance scheme
b) Employees Debt Linked Insurance scheme
c) Employees Data Linked Insurance scheme
d) Employees Diversity Linked Insurance scheme
a)2000
b)2001
c)1999
d)2003
a)1983
b) 1984
c)1985
d) 1986
a) Mumbai
b) Bangalore
c)Hyderabad
d)Chennai

a) simple reversionary
b) compound reversionary
c)interim
d)ad hoc
a) increases with the age
b) decreases with age
c) remains constant in early age
d)remains constant in later years of age
a) Prospective method
b) Retrospective method
c) both the methods a) and b)
d)None of the above methods
a) director and officers individual policy
b) pool of fund formed by the company
c) directors and Officers liability policy
d)terminal benefits of the director and officer
a) permanent maxinun loss
b)permanent minium loss
c)probable maxium loss
d) probable minium loss
a )security
b) food
c) shelter
d) clothing
a) passing the risk
b) retaining the risk
c)reducing the risk
d)avoiding the risk
a) 20% of the net premium or 30% of the increased claims whichever is higher
b) 20% of the increased claims or 30% of the net premium whivhever is hig
c)50% of the net increased claims
d) 50% of the net premium

a) who has less income

b)who is of higher age
c ) who is minor in age
d) who has higher mortality than the normal mortality

a) certain diseases
b) engaged in aviation
c) family longevity
d)excessive body weight
a) sharing insurance with other insurer
b) curtailing the risk
c) avoiding the risk
d) reinsurer insuring with the other insurer
a)IRDA
b)Govt. of India
c)GIC and LIC
d) by chief justice o f india
a) no liability ,if no default
b) liability of both the claimant an the vehicle owner
c)claimant need not prove the fault of the vehicle owner
d)claimant has to justify the claim

a)cash
b)cntract documents
c) gold ornaments
d) postal orders
a)large
b)fairly homogenius
c) of age below 40
d) of all the above characteristics
a)-cash bonus
b) ex gratia bonus
c) reduction in renewal premium
d)reversionary bonus
a)damages arising out of injuries
b) damages arising out of death
c) damages to the property
d cost of repairing
a)-at the time of the contract
b)-at the time of the claim
c) both at the times of contract and claim
d) none of the above

a) ANNUITY CERTAIN FOR 20 YEARS PENSION

b) ULIP

c) GOVT SECURITY CORPORATE BOND DEBENTURE

d) SAVINGS BANK DEPOSIT

a) intervening cause
b) indirect csuse
c) direct cause
d) non intervrning cause
a) Hit and run fund
b)
Emergency fund
c) Solatium fund
d)liquid fund
a) at the time of taking the policy only
b) at any time but within 2 years of the policy
c) at any time but before maturity of the policy
at any time but within one year of the policy
a) 80% of the initial declaration
b)75% of thr initial declaration
c)50%vof the initial declaration
d) 60% of the initial declaration

a)suspends the nomination

b) does not affect the nomination
c)cancels the nomination
d) suspends or cancels asper desire of the polic

a) policy holder
b)legal heirs of the assignee
c) both a) and b) above
d)in the person as directed by the court of law
a) an officer of the insurer
b) surveyor
c)investigating agency
d) IRDA personnel
a)consequential loss policy
b)floating policy
c) declaration policy
d)secific policy
a) within 1 year of the policy
b) within2 years of the policy
c) after 2 years of the policy
d) none of the above

a)risk assessment
b)risk transfer
c) risk pricing
d) risk evaluation
a) probability
b)severety
c ) ownership
d) financial
a) the Indian penal code
b)The Indian contract act
c) The Indian stamp act
d)Thr consumer protection act
a) personal injury to third party
b) death of third party
c) damage to vehicle
d) damage to third party property
a) initial period
b) gestation period
c) mandatoty period

oice/s /Matches

d) cooling off period

a) change over of thfund
b)shift over of the fund
c)Switch over of the fund
d)Opting of the fund
a) Employees SpecialIinsurance Corporation
b) Employees Strategic Insurance Corporation
c) Employees State Insurance Corporation
d) Employees Sole Insurance Cprporation
a) fixed compensation to the accident victim
b)compensation based on age of the victim
c)compensation based on income of the victim
d) compensation based on age and income of the victim
a)
Group Superannuation linked Scheme
b)
Group Savings Linked Scheme
c) Group Social Linked Scheme
d) Group Society linked Scheme

a) Capacity
b)
Retention
c) Ceding
d) Maximum limit

true

false

true

false

true

false

true

false

true

c- to the extent of his debts

b-assignment

d-Uniform premium throughout the term

a-only at the time of taking the insurance

b-only on thr death during the term of the policy

b-invrstment plan

b-within two years of policy

a to the assignee

c- both of the a) and b) above

b-pure endowment plan

c- the likely loss that may occur if the peril strikes

a-the probability of the peril strikimg

d- retaining

b- premium

c-Export Credit and Gurantee Corporation

b-1st September 1956

a-General Insurance Corporation

c-held in reserve to pay the claims cost

a-excess of loss

c- The Insurance Act

a- transfer

b)- an attempt to screen out the sub standard lives

c)-passing of a course course on Hospital Management

a)- servicing dept.

a)- underwriting dept..

a-survival benefit claim

b-matutity claim

c-surrender of the policy

b- section 39 of the insurance acy1938

b)- cancels the nomination

c- assignment

b-underwriter

c- insures goods of different tyoes and at different locations

d- All the avove

c-where property is restored to the state before destruction

d- Genrral Insurance Corporation

d-Insured has a contractual relationship with the reinsurer

c-insurance of vessel and its equipments

b) when it is post paid

d- Death of the income provider

c- old unmarried

c- minor

c-seller- customer

b- liability

a- every year

a-Employees Deposit linked Insurance scheme

c-in the year 1999

d-1986

c- Hyderabad

d)ad hoc

a-increases with age

c-both the methods a) and b)

c-directors and officefs liability policy

c-probable maximum loss

a-security

a-passing the risk

a-20% or the net premium or 30% of the increased claims

d- who has higher mortality than the normal mortality

b-ongaged in aviation

d-reinsurer insuring with the other insurer

b-Govt.of India

c-claimant need not prove the fault of the vehicle owner

a-cash and d- postal orders

a- large and b-faitly homogenius

c-reduction in renewal premium

d- cost of repairing

b-at the time of the claim

d-saving bank depositt

c- Govt. Security corporate bonds, debentures

a-annuity certain for 20years pension

b-ulip

c- direct and d) non intervening

c-solatium fund

c-at any time but before maturity of the policy

b-75% of the initial declaration

c-cancels the nomination

e policy holder

b-legal heirs of the assignee

a- an officer of the insurer

a-conswquential loss policy

c- after 2 years of the policy

c-risk pricing

a-probability and b-severety

a- The Indian penal code

c-damage to vehicle

d-cooling off period

c- Switch over the fund

c- Employees State Insurance Corporation

d- compensation based on age and income of the victim

b-Group Savings Linked Scheme

b-Retention