KRISHNA UNIVERSITY

DEPARTMENT OF BUSINESS ADMINISTRATION MBA 406 F - Life and General Insurance Question bank for online IV mid semester examinations
1. Persons appointed to assess the cause and extent of loss are --------------. ( b (a) Third party (b) Surveyors (c) Average clause (d) General average 2. CGHS stands for ------------. (a) Critical General House Scheme (b) Central Government Health Scheme (c) Central Government Heart Scheme (d) Critical Government Health scheme 3. Insurance is an --------------. (a) Co-operative device (b) Responsibility (c) Agreement (d) All the above 4. Which one of the following is not the principle of Insurance? (a) Lifting corporate wheel (b) Principle of indemnity (c) Principle of contribution (d) Utmost good faith 5. General Insurance was started in the year----------. (a) 1987 (b) 1967 (c) 1957 (d) 1976 6. Effectiveness means-------------. (a) Goal achievement (b) Efficiency (c) Input (d) Output ( c ( a ) ( d ( b ) )

( a

7. IRDA was established in the year -----------. (a) 1938 (b) 1972 (c) 1999 (d) 1986

( c

a) An insurance agent will be issued a license under Sec -------- of the act by the IRDA. ( b ) (a) 58 (b) 42 (c) 56 (d) 120 9. Life Insurance Corporation has ---------- tier structure. four (b) three (c) No structure (d) five ( a )

10. New India Assurance Company Head quarter will be located at --------------. ( c a) Chennai b) Hyderabad c) Mumbai d) Calcutta 9. Employee State Insurance Act was introduced in the year -----------. ( a) b) c) d) 1948 1949 1950 1951

a )

10. In which year Insurance Act was amended for the extension of social control? ( a ) a) 1968 b) 1971 c) 1973 d) 1984

11. In which year GIC was incorporated as holiday company by amalgamating 107 insurers including branch of foreign companies? ( b ) a) 1962 b) 1972 c) 1954 d) 1960 12. The number of subsidiaries of GIC is -------------. a) 4 b) 5 c) 6 d) 2 ( a )

(a)

13. In which year the management of non-life insurance was taken over by Central government--------. ( a ) 1971 (b) 1972 (c) 1973 (d) 1974 14. The principle where the insurer steps into the shoes of the insured is called -----. ( d ) a. principle of utmost good faith b. principle of contribution c. principle of indemnity d. principle of subrogation 15. The assured can recover the loss only if it is proximately caused by any of the perils insured against. This is known as ------------. ( c ) a. mitigation of loss b. subrogation c. causa proxima d. contribution 16. Life insurance provides a sum of money called ------- upon the death of the insured person in return for small periodic payments. ( a ) Death benefit Premium (c) underwriting (d) interest

(a) (b)

(a) (b)

17. In insurance, the ------ is calculated according to the mortality rates in population. ( b ) Value Premium (c) capital (d) return 18. Yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is derived from ------. ( a ) Rig Veda (b) Ajur Veda (c) Sama Veda (d) Adarvna Veda 19. ------- an autonomous insurance regulator was set up in 2000. (a) Insurance Development Authority (b) Insurance Regulation Development Act (c) Insurance Regulatory and Development Authority (d) Industrial Regulatory Corporation ( c )

(a)

20. ------- is the capitalized value of an individuals earning that supports family members, dependent loved ones, and business partners. ( a ) (a) Human life value (b) Human asset value (c) Capital asset value (d) None of the above 21. The risk selection and classification process of applicants in life insurance called -----. ( b ) (a) Moral hazard (b) Underwriting (c) Insurable interest (d) Premium 22. Unlike tangible asset that have intrinsic value, insurance is an ----- asset that represents value. ( d ) high risk average risk (c) very high risk (d) intangible

(a) (b)

23. A contract is defined as ------------ enforceable by law. (a) (b) (c) (d) an agreement offer acceptance consideration

( a )

24. Valid contracts require that the party making the offer and the one accepting the offer be --------- to make the agreement. ( b ) (a) legal purpose (b) legally competent (c) legally sound (d) all the above 25. Insurance is a ------------. The insurer is obliged to pay claims only if the insured person has compiled with policy conditions. ( a ) (a) conditional contract (b) un-conditional contract (c) unilateral contract (d) substandard contract 26. ------- is the simplest form of insurance that life insurance companies offer. (a) Permanent insurance ( b ) (b) term insurance (c) whole life (d) money back 27. -------- is a type of a whole life insurance for which premium are limited by contract to a specified number of years. ( c ) (a) term insurance (b) single life insurance limited payment life insurance (d) group life insurance 28. In developed countries, per capita insurance premium is much -------- than in India. ( b ) (a) lower (b) higher (c) both (a) & (b) (d) None of the above

(c)

29. Prior to liberalization of the Indian Insurance Industry, ------------- minimum qualification was laid down for people who wanted to become insurance agents. ( d (a) 10th
)

(b) Inter (c) Degree (d) No 30. ---------- is one of the primary insurance distribution channels in India. ( d ) (a) Agency channel (b) Broker (c) Corporate agent (d) All of the above 31. The agent is a -------- of the principal. (a) a representative (b) broker (c) factor (d) underwriter 32. ------- can be defined as a class of agents who are professional technical experts, who can be procured by those who want to get insured, to give advice and professional assistance and act for them in arranging insurance at the best terms possible. ( b ) (a) agency channel (b) insurance brokers (c) corporate agent (d) factor 34. Bancassurance symbolizes the convergence of ---------------. (a) Banks (b) banking and insurance (b) insurance companies (d) none of the above ( b ) ( a )

(a) (b) (c)

33. The ability to ------- in a firm is an important rule that every business must have to guarantee a certain success. (d ) risk avoidance risk reduction risk retention (d) all the above

34. --------- is the cornerstone of underwriting. (a) Risk management (b) (c) (d) Risk marketing Credit risk Liquidity risk

(a )

35. A sound decision to accept the application can be taken only when sufficient information is available about ---------- that impact the lifespan of the applicant. (a) financial factors ( b ) (b) risk factors (c) causal factors (d) liability factors 36. The core underwriting parameters of insurance companies comprise of -----guidelines. ( c ) (a) medical financial both (a) & (b) none of the above 37. --------- is usually the only person connected with the company who sees the client face-to-face and is best placed to make a fair visual assessment of his death. ( a ) The agent The manager Employee insurer 38. -------- is a part of life insurance process particularly if the age and the sum to be assured are higher than a specified limit. ( c ) (a) collecting less premium charges of insurance (c) medical examination tax payment 39. -------- life insurance policies are underwritten without medical examination. ( b ) (a) medical (b) Non medical (c) financial (d) None of the above

(b) (c) (d)

(a) (b) (c) (d)

(b) (d)

(b) (c) (d) (a)

40. In non medical policies, diseases which can occur without overt symptoms such as ---------- may remain undisclosed as either the applicant may not know that they suffer from these diseases, or they intentionally hide the fact. ( b ) (a) diabetes hypertension both (a) & (b) None of the above 41. The life insurance policy sold to children is for -----------. Children & women (b) Children & men (c) Children & adults (d) Children ( d )

42. Regular------- payment by the due date is essential to keep a life insurance policy in force. ( a ) (a) premium (b) interest (c) rent (d) insurable amount 43. Partnership insurance provide fund to purchase the business interest held by the heir and assure control of the company remain with the ---------. ( b ) (a) Diseased partner (b) Surviving partner (c) Both (a) & (b) (d) None of the above 44. --------- is a device by which one insurance company transfer all or apportion of it risk under an insurance policy to another company. ( b ) (a) Double Insurance (b) Reinsurance (c) Liability insurance (d) Insurance policy 45. In -------- the claim under the reinsured policy is shared by the primary company and the reinsured in a proportion determined in advance. ( c ) stop-loss reinsurance facultative reinsurance (c) Proportional reinsurance. Non-proportional reinsurance

(a) (b) (d)

46. Coinsurance is a type of reinsurance where the -------- accumulates and holds the policy reserve for the amount of insurance ceded. ( d ) (a) agent (b) broker (c) client (d) reinsurer 48. The claims process for death claims involves ---------. (a) intimation (b) registration (c) investigation (d) all the above ( d )

(a) (c) (d)

47. ---------- arrangement indemnify the primary company mortality loss exceeding the percentage regarded as the normal or expected mortality. ( c ) facultative reinsurance (b) Proportional reinsurance. stop-loss reinsurance Non-proportional reinsurance 48. Under the -------- primary insurer may offer risk to the re-insurer on an individual case basis. ( a ) (a) facultative agreement automatic agreement both (a) & (b) None of the above 49. Claim can arise on individual policies due to death or -------. ( b (a) disability (b) maturity permanent incapacity ill health )

(b) (c) (d)

(c) (d)

(d)

50. Group life insurance premiums are ----------- than those of individual life insurance. ( c ) (a) higher (b) equal (c) lower all of the above

(a)

51. The -------- scheme provides life insurance for all employees covered under the Employee Provident Fund Act. ( a ) Employee Deposit Linked Insurance (b) Employee State Insurance (c) Employee Provident Fund Insurance (d) Employee Deposit State Insurance 52. Employer-employee and payroll deduction plans are individual life insurance plans sold at the ---------. ( a ) work place At office Both (a) & (b) None of the above 53. Under the payment of gratuity act, on completion of five years service employees are entitled to payment of gratuity at ----------- wages for every completed year of service. ( c ) (a) 25 days (b) 20 days (c) 15 days (d) 10 days 54. Government or state based health schemes in India include ------------------. ( c ) Central Government Health Schemes (CGHS) Employees State Insurance Schemes (ESIS) Both (a) & (b) None of the above 55. ------- was launched by public sector non-life insurance companies in 1986. ( b ) Life insurance Mediclaim insurance General insurance Micro-insurance 56. Currently health insurance products are sold by ------------ insurance companies. (a) life insurance ( d ) (b) non-life insurance (c) stand-alone health. (d) All the above

(a) (b) (c) (d)

(a) (b) (c) (d)

(a) (b) (c) (d)

(a) (b)

57. ---------- problems are increasing exponentially in India causing a strain on personal and national resources. ( c ) Chronic life-style health (c) both (a) & (b) (d) None of the above 58. Stand-alone health insurance companies in India have a-------- insurance license. ( b ) (a) life (b) non-life (c) health (d) life & health 59. --------------- collect all bill, reimburse them and send all necessary documents for the consideration of claims to the insurer. (a) Agents ( d ) brokers (c) employees (d) Third party administrators 60. Function of insurer is ----Capital formation Risk taking Indemnity (d) All the above 61. Whole life policy is up to ------ years. ( c 65 (b) 75 (c) 85 (d) 95 ( d )

(b)

(a) (b) (c)

(a)

(a)

62. Insurance Act was introduced in the year -------. 1938 (b) 1956 (c) 1972 (d) 1989

( a

64. The health insurance does not cover the following disease -------. ( (a) Asthma (b) Diabetes (c) Bronchitis (d) Accident

d )

65. To become insurance agent the minimum age required is ----------. ( c ) (a) 24 years (b) 21 years (c) 18 years (d) 16 years 66. The license of insurance agent is valid for ------ years. (a) 7 years (b) 6 years (c) 3 years (d) 2 years ( c )

67. Motor insurance does not cover the following. ( d ) (a).Burglary (b) Theft (c) Riot (d) Damage suffering due to driving the vehicle under the influence of intoxicated liquor 68. Which of the following is natural calamity ---------. (a) strike (b) hurricane (c) terrorist activity (d) damage in transit ( b )

69. Which of the following disease is not covered under health insurance.( a (a) epilepsy (b) cancer (c) stroke (d) heart attack 70. Raja Rajeswari policy & Bhagya Sri policy were covered under------.( b (a) Liability Insurance (b) Accident Insurance (c) health insurance (d) property insurance

71. The minimum qualification required to become insurance agent is ----.( b (a) 10th (b) 12th (c) Degree (d) Post Graduation 72. For composite insurance agent ------- hours of practical training is required. ( a ) (a) 150 (b) 200 (c) 250 (d) 300

73. In Life Insurance Corporation --------- members are appointed by Central Government. ( b ) (a) 14 (b) 16 (c) 18 (d) 20 74. GIC is divided in to -------- subsidiaries. (a) 2 (b) 3 (c) 4 (d) 5 75. General Insurance includes-----. (a) Commercial line Insurance (b) Personal line of Insurance (c) Both (a) & (b) (d) None of the above 76. Videsh Yatra Mitra policy comes under -------- insurance. (a) Property insurance (b) Accident insurance (c) Liability insurance (d) Health insurance 77. Pedal Cycle Insurance comes under--------. (a) Property insurance (b) Health insurance (c) Accident insurance (d) Liability insurance ( c )

( c

( d

( a

78. Commercial line of insurance covers-------. (a) Cottage industry (b) Traders policy (c) Rural industries (d) All the above

( d

79. Which type of insurance does not include in non-life insurance. ( d (a) Property insurance (b) Health insurance (c) Liability insurance (d) Money back insurance 80. Motor vehicle Act was introduced in the year -----. (a) 1988 (b) 1989 (c) 1990 (d) 1991 ( a

81.The first insurance company was established as the Oriental Life Insurance at -----------. ( d ) (a) Hyderabad (b) Chennai (c) Bombay (d) Calcutta 82. Total 107 general insurers amalgamated and grouped in to ----- companies. ( b ) (a) 3 (b) 4 (c) 5 (d) 6 83. The management of non-life insurance was taken over by the Central Government. ( a ) th (a) 13 May 1971 (b) 15th May 1970 (c) 15th May 1969 (d) 13th May 1968

84. What Insurance mainly related to protection of the economic value of the Asset. (a) (a) General Insurance (b) Life Insurance (c) Health Insurance (d) Accident insurance 85. Consumer Protection Act was introduced in ------ year. (a) 1985 (b) 1986 (c) 1987 (d) 1988 86. General Insurance Business Act was introduced in the year. (a) 1972 (b) 1973 (c) 1974 (d) 1975 87. Motor insurance includes insurance against-----. (a) Private cars (b) Commercial vehicles excluding vehicles running on rails (c) Motorized two wheelers (d) All the above 88. Motor vehicle Act was introduced in the year -------. (a) 1988 (b) 1999 (c) 2000 (d) 2001 89. Crop insurance is protecting the -----------. (a) farmers (b) cattle (c) employees (d) workers ( b)

(a )

(d )

( a )

( a

90. The right of insurer is --------. ( d (a) Enter and take possession of premises (b) Take possession of any insured property in the building (c) Arrange for salvage (d) all the above

91. Which of the loss not is included under Fire Insurance. (a) Fire (b) Explosion (c) Self ignition (d) Depreciation 92. Which of the loss is included in Marine Insurance. (a) Loss of cargo due to sinking of ship (b) Loss due to deliberate act of assured (c) Ordinary leakage (d) Loss due to inadequate packing 93. Cattle insurance does not include -----------. (a) Cows (b) Buffaloes (c) Bulls (d) Layers 94. Horticulture and Plantation Insurance includes -------------. (a) Sugarcane (b) Tea (c) Floriculture (d) All the above 95. The ability and willingness to do the work is called -----------. (a) Motivation (b) Morale (c) Communication (d) Personal Development 96. Poultry insurance does not cover--------. (a) Accidents of layers (b) Diseases to broilers (c) Intentional slaughter (d) Parent stock 97. Which of the following is excluded under health insurance (a) Eye surgery (b) Dental surgery (c) Chemotherapy (d) Cost of spectacles

( d

( a

( d

( d

( a

( c

( d

98. ---------- indemnifies the employers against financial loss suffered by them due to dishonest act of employees. ( c ) (a) Baggage insurance (b) Burglary insurance (c) Fidelity guarantee insurance (d) Money insurance 99. ------- is the policy where only one employee to be guaranteed. (a) Collective policy (b) Individual policy (c) Positions policy (d) Blanket policy 100. Family discount covers --------. (a) Spouse (b) Parents (c) Dependent children (d) All the above ( b )

( d

84.