Assessment Title: Chapter1
Module : Chapter 1-History Of Life Insurance
Q1. If Hema takes a policy to whom she transfers the risk?
A. agent
B. IRDA
C. insurance company
D. none of the above
Q2. Why is Insurance required
A. To Cover Risks of Life
B. To plan for Future goals
C. For Savings
D. All of the above
Q3. Insurance is a good investment option because
A. Policyholder gets advantage of market linked investments
B. Policyholder gets returns on their investment
C. Policyholder can withdraw money whenever they need it
D. Insurance products offer flexibility to the policyholders
Q4. Marine insurance circumstances in marine insurance?
A. Inception
B. at the time of claim
C. both are correct
D. both wrong
Q5. What facility do insurers use to cover risks beyond their exposure limits
A. Bancassurance
B. Reinsurance
C. Both a & b
D. Neither a nor b
Q6. Agent who is a licensed intermediary is actually is ?
A. A legal person to act on behalf of the re-insurer
B. A legal person to act on behalf of the insurer
C. A legal person to act on behalf of the contract
D. An authorized agent to act on behalf of the legal co.
Q7. Under current regulations what is the maximum stake that the Foreign Partner in Insurance Company hold?
A. 0%
B. 1%
Q8. Risk transfer provides a sense of
Financial instability
Financial distress
Financial security
Financial deficit
Q9. Reinsurance means
Purchase of additional insurance by an insured person
Bringing into force a lapsed policy
Insurers seeking transfer of risk to shield themselves from over insurance
An individual insuring with different insurance companies
Q10. In life insurance business if a person is working in calculating premium rates of insurance products then he is mostly
likely a member of
institutes of actuaries of India
insurance institute of India
Chartered institute of insurance
Insurance institute of risk management
Q11. Currently major percentage of insurance sales in India takes place through
Insurance Brokers
Corporate agents
Bancassurance channel
Individual insurance agents
Q12. In life insurance industry which mechanism operates so as to enable the individuals to reduce the impact of risks
Prevention of risk
Pooling of risk
Transfer of risk
Sharing of risk
Q13. Which of the following is not a benefit of online insurance sales?
The cost is lower
No percentage to be passed to intermediaries
Benefit of low cost are passed on to Agents
Benefit of low cost are passed on to Customers
Q14. Vinay doesn t want to take insurance on himself. He feels that his family will survive with the funds available in the
bank and monthly rentals received from village. This comes under Risk ______
Transfer
Control
Retaining
Avoidance
Q15. The Non Government Organisations (NGO) help the Insurance Industry immensely in
Promotional activities
Drafting new regulations
Linking buyers and sellers
Linking third party administrators
Q16. The insurance products designed by the insurance Companies may not
Take care of the needs of individuals in different life stages
Provide varied investment options
Provide flexibility and add-on benefits
Guarantee capital appreciation
Q17. Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the
insurance market do these products normally fall into
Life insurance in both cases
Life insurance for health and non-life insurance for personal accident.
Non-life insurance in both cases
Non-life insurance for health and life insurance for personal accident.
Q18. Which of the following is not a type of life insurance product
Health insurance
Whole life policy
Term insurance
Pension and Savings plans
Q19. Which of the following is not a type of insurance organization?
Ombudsman
Life insurance
Non-Life insurance
Reinsurance
Q20. Which of the following statement does not characterize the Professional Insurance market
Transparency in its dealings with customers
It keeps the interest of its customers at the forefront of all that it does
That the customers get what they are looking for
Will have profit making as its only motive.
Q21. Investment by foreign direct investors in to Insurance co's is restricted to
0%
0%
0%
0%
Q22. Principleof Indemnity applicable to
Life Insurance
General Insurance
Both a&b
Neither a nor b
Q23. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 3000000/- for 30years. This is an
example for
Risk retention
Risk transfer
Risk avoidance
Risk tolerance
Q24. Benefit of a professional insurance market is/are:
Need based selling customer will be sold a product that meets his need
Client can get the smart agents who know how to sell insurance quickly
Insurance agents can exploit business from a large market
The employees working for a life insurance company are professional.
Q25. Who is the customer of a Re insurer
High Net worth Individual
Insurance Companies
Licensed Insurance Agents
Non Government organization
Q26. Micro insurance is made specifically for people from.
High income.
Middle class.
Low income.
Affluent class.
Q27. The constituents who participate in deeper penetration of micro insurance and awareness of insurance in rural
areas are
The Surveyors
Underwriters
Non- Governmental Organizations
The Regulator IRDA
Q28. Insurance is a mechanism of
Risk retention
Pooling of risk
Risk transfer
none of the above
Q29. I.R.D.A was incorporated as a Statutory body in
Dec-1999
Jun-1994
Apr-2000
Jun-2001
Q30. The concept of insurance involves a transfer of
liability
needs
ownership
risk
Q31. Which of the following is not an indirect marketing channel
Individual agent
Bancassurance
Direct broker
E sales
Q32. Which of the following does not form part of the regular function of I.R.D.A.?
Ensuring smooth running of the insurance sector
Granting of licenses to insurance companies agents intermediaries and Loss adjusters Surveyors.
Monitoring the solvency position of the insurance companies
Fixing up the premium rates for the products of the insurers
Q33. .includes banks and brokers?
insurance underwriters
Intermediaries
Actuary
Compostie agents
Q.34. Bancassurance as envisaged in India means
Designing and marketing of insurance products by commercial banks
Guaranteeing the benefits of insurance products of insurance companies by Banks
Banks acting as corporate agents of insurance Companies to cross-sell insurance products to their own customers
Offering free insurance cover for its customers
Q35. Insurance Agents are
Who work only for insurance company
Who work for customers
Who work in their own interest
Intermediaries
Q36. ..means before loss what was his financial status and for the same financial status to bring him is called
A indemnity
material information
utmost goodfaith
none of the above
Q37. The most important recent development in Insurance business is
Set up of customer services desk
Set up of Grievance Redressal procedure
Set up of Call center
Set up of Health Insurance companies
Q38. includes banks and brokers?
insurance underwriters
Intermediaries
Actuary
Compostie agents
Q39. The main role of an underwriter in a non-life insurance company is normally to
assess the acceptability of particular risks
certify a loss when claims are submitted
design the structure of the products to be offered
negotiate with the industry regulator
Q40. Which of the following statements does not apply to Direct Marketing in life insurance ?
Sourcing the business through agent advisors
Contract is concluded between the insurance companies and insured with no middlemen.
E sales refers to sales of insurance product through internet where no intermediaries are involved
The Insurance companies can sell the products much cheaper as no intermediary commissions are eliminated
Q41. Amit is looking for term insurance plan for protection of his family he is advised to approach for
Property Insurance
Life Insurance
Health Insurance
Liability Insurance
Q42. includes banks and brokers?
insurance underwriters
Intermediaries
Actuary
Compostie agents
Q43. _____________ is an insurer for the insurance company
RDA
Reinsurance company
LIC
GIC
Q44. ..means before loss what was his financial status and for the same financial status to bring him is called
A indemnity
material information
utmost goodfaith
none of the above
Q45. Micro insurance is transacted by
Life Insurers only
Non-Life Insurers only
non-life and life insurers
None of them
Q46. Insurance company selling products through newspaper advertisements is called
ndirect Selling
Awareness
Direct Selling
Wrong Selling
Q47. Vinay doesn t want to take insurance on himself. He feels that his family will survive with the funds available in the
bank and monthly rentals received from village. This comes under Risk ______
Transfer
Control
Retaining
Avoidance
Q48. includes banks and brokers?
insurance underwriters
Intermediaries
Actuary
Compostie agents
Q49. Which one of the following is not a recent development in insurance industry?
Insurance Agents have to go for a financial training
Increased use of IT
Bancassurance
E-sales
Q50. The Foreign Firect Investment (FDI) in Indian Insurance Industry is allowed up to.....
0%
0%
0%
0%
Q51. Mr. Varun who owns a multi chain company would like to take an insurance. What will be the bestoption for him from
the following ?
He can take Surety insurance
He can take Business Partner insurance
He can take Key man Insurance
He Can take company insurance
Q52. One of the most sought after advantage of Insurance is
Huge sum received in case of death
Huge sum assured by paying small premium
Tax benefits on payment of premium and all the payouts
Can get the surrender value as per the terms and conditions
Q53. An insurer advertises through daily newspaper. What type of marketing is
Cross selling
Direct selling
Solicitation of policy
Brand building
Q54. What is the maximum cover that can be provided in microinsurance?
5000
10000
50000
100000
Q.55 What is the maximum sum assured under a micro insurance
10000
25000
50000
100000
