INSURANCE NOTES
Q.1 The central office of the Life Insurance Corporation of India (LIC) is located at
(A) Kolkata
(B) New Delhi
(C) Chennai
(D) Pune
(E) Mumbai
Q.2 Which of the following is not the name of an Insurance Scheme launched by the
Government of India
(A) Janashree Bima Yojana
(B) Krishi Shramik Sarnajik Suraksha Yojana
(C) Shiksha Sahyog Yojana
(D) Varsha Bima Yojana
(E) National Saving Scheme Programme
Q.3 The Life Insurance Corporation Of India has how many Zonal offices in India ?
(A) Five
(B) Eight
(C) Ten
(D) Fifteen
(E) None of these
Q.4 As per the news published in various newspapers, Life Insurance policies may
become paperless in the near future. This means
1) LIC will not insure any person here after as it has already reached its peak
2) LIC will not ask for any documents from a person who wishes to purchase an Insurance
policy
3) All policy related documents and policy certificates will henceforth be available in
electronic form and not in their present physical
4) LIC henceforth will not entertain any claim or complaint in written form or on paper.
Things should be in electronic condition.
5) None of these
Q.5 The punch line of the advertisement of which of the following organization is
“Jindagi ke sath bhi Jindagi ke bad bhi” ?
(A) New India Assurance
(B) General Insurance Corporation
(C) ICICI Prudential
(D) Life Insurance Corporation Of India
(E) None of these
Q.6 Which of the following insurance companies writes its punch line in the
advertisements “Insurance is the subject matter of solicitation” ?
(A) CIC
(B) LIC
(C) ING Vysya Life Insurance Co.
(D) Tata AIG Life Insurance Co.
(E) None of these
Q.7 If an organization wishes to venture into Insurance Business it has to obtain a
licence first from which of the following ?
(A) Indian Banks Association (IBA)
(B) Security and Exchange Board of India (SEBI)
(C) Tariff Advisory Committee (TAC)
(D) Insurance Regulatory and Development Authority of India (IRDAI)
(E) None of these
Q.8 Which of the following was the parent company of New India Assurance ?
(A) LIC
(B) GIC
(C) Oriental Insurance Co. Ltd.
(D) United India Insurance
(E) None of these
Q.9 The New India Assurance Company was established in 1919 by
(A) Dorab Tata
(B) G. D. Birla
(C) Jamunalal BajaJ
(D) Kamlapat Singhania
(E) None of these
Q.10 Which of the following is largest Non Life Insurance Company in India ?
(A) ICICI Lombard General Insurance Company Ltd.
(B) United India Insurance Company Ltd.
(C) General Insurance Company Ltd.
(D). New India Assurance Company Ltd.
(E) None of these
Q.11 Which of the following Insurance Companies was launched with NABARD as one
of its promoter’s with 30% stake in it ?
(A) General Insurance Corporation Ltd.
(B) National Insurance Cornpany Ltd.
(C) Agriculture Insurance Company Ltd,
(D) SBI Life Insurance Company Ltd.
(E) None of these
Q.12 Which of the following words/ terms is closely associated with the insurance
business
(A) Archives
(B) Donation
(C) Actuary
(D) Quest
(E) All are associated with insurance
Q.13 Which of the following is the best description of what insurance is?
1) Insurance = Collective bearing of risk
2) Insurance = Paying for other’s mistake
3) Insurance = Taking from ‘A’ to pay ‘B’
4) Insurance = Paying for something which will never happen
5) All of these
Q.14 Which of the following correctly describes what the ‘Bancassurance’ is
1. It is an arrangement whereby the branches of a bank sell / distribute insurance products
of an insurance company.
2. It is a new product developed/ launched by the banks in which the risks of the high value
customers are covered for any losses to their property and/or lives through an insurance
cover.
3. It is a new product launched by some banks by which they are providing insurance cover
to exporters/ importers for the losses, if any due to high fluctuations in the exchange rates
of dollars and other major currencies.
(A) Only 1
(B) Only2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Q.15 In Insurance policies we always find a date which is “Date of Maturity”. What
does it mean?
1) This is the date on which the policy was sold to the customer/person insured.
2) This is the date on which the policy holder will have to submit his/her claim
seeking the amount of the policy. Otherwise the company will not make any
payment to him/her.
3) This is the date on which the contract between the person and insurance company
will come to an end.
4) The date on which the insurance company makes the final payment to the
insured person which is normally fifteen days after the “payment due date”.
5) None of these
Q.16 Insurance works on the principle of:
A). Sharing of losses
b). Probabilities
c). Large numbers
d). Randomness
e). All of the above
Q.16 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
e. All of the above
Q.17 The main purpose of having Life insurance is:
a. As an avenue for long-term investment
b. As a medium for getting income tax benefits from savings
c. As a governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Q.18 Which of the following intermediaries do not require IRDA’s licence/ approval
to operate in India?
a. Insurance Brokers
b. Insurance Agents
c. Third Party Administrators
d. Surveyors
e. All the above intermediaries require IRDA’s licence/ approval
Q.19 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
e. All the above statements are incorrect
Q20. 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
e. Income and number of dependents
Q21. As per the Insurance Act, every insurer has to prepare at the end of financial
year …
a. Balance Sheet
b. Profit and Loss Account
c. Revenue Account for each class of Insurance business
d. Accounts of receipts and payments in respect of share-holders’ funds
e. All of the above
Q.22. According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI
in Insurance Sector is :
a. 74%
b. 26%
c. 49%
d. 51%
e. None of these
Q.23 England-based Willis Group Holdings, the third largest insurance brokerage in
the world recently picked up 49 per cent stake in which Indian Insurance Brokerage
Company ?
a. India First Life Insurance
b. Almondz Insurance Brokers
c. Heritage Insurance Brokers
d. Bharat Re- Insurance Brokers
e. Aditya Birla Insurance Broker
Q24. Which of the following types of companies/organisations issue ULIP?
a.Insurance companies
b.Stock brokers
c.Banks
d.NABARD
e. RBI
Ans : a (ULIP – Unit Linked Insurance Plan)
Q.25 Which of the following is the only public sector company in the field of life
insurance?
a. General insurance company
b. New India assurance company
c. Oriental insurance company
d. SBI Life Insurance Company
e. Life Insurance Corporation of India
Q.26.“A contract that pledges payment of an agreed upon amount to the person (or
his/her nominee) on the happening of an event covered against” is technically
known as
a. Death coverage
b. Insurance Premium
c. Life insurance
d. Savings for future
e. Provident fund
Q27. With which of the following did the State Bank of India enter into a joint venture
agreement for undertaking general insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.
Q.28 With which of the following did the State Bank of India enter into a joint venture
agreement for undertaking Life insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.
Q.29 Which of the following is the regulator of insurance sector in India?
a. RBI
b. AMFI
c. IRDA
d. SEBI
e. IRDAI
Q.29 Which of the following insurance companies gives the slogan Prithvi, Agni, Jal,
Akash – Sab ki Surakhsa Hamare Paas?
a. Life Insurance Corporation
b. Oriental Insurance Company
c. New India Assurance
d. General Insurance Company
e. SBI Life Insurance
Q.30 Which of the following is/are the various types of insurance?
1. Life insurance
2. Health insurance
3. Liability insurance
a. Only (1)
b. Only (1) and (2)
c. Only (2) and (3)
d. Only (1) and (3)
e. All the three
Q.31 Which of the following public sector companies/organizations provides
insurance cover to exporters?
a. RBI
b. ECGC
c. NABARD
d. SIDBI
e. IRDA
Q.32 What is the minimum paid up capital required for a General Insurance Company to
commence its operations in India?
a. 200 Crore
b. 500 Crore
c. 250 Crore
d. 100 Crore
e. 300 Crore
Q.33 Which bank recently became the first bank in India to fully own an insurance
business?
a. HDFC Bank
b. Kotak Mahindra Bank
c. ICICI Bank
d. IDBI Bank
e. Canara Bank
Q.34 Which is the sole reinsurance company in the Indian insurance market ?
a. United India Insurance Company Limited
b. General Insurance Corporation of India
c. New India Assurance Company Limited
d. The Oriental Insurance Company
e. Life Insurance Corporation of India
Q.35 Study the table below and find out which one of them is wrong:
Insurance Company
Head Office
a. Oriental Insurance Company Ltd
New Delhi
b. United India Insurance Company Limited
Chennai
c. National Insurance Company Limited
Kolkata
d. The New India Assurance Co. Ltd.
Mumbai
e. General Insurance Corporation
Hyderabad
(General Insurance Corporation has its headquarters at Mumbai.)
Q.36 Study the table below and find out which one o them is wrongly matched [ As on
5 March 2015 ]
Insurance Company
Chairman
a. Life Insurance Corporation of India
Shri S. K. Roy
b. National Insurance Company Limited
Shri A.V. Girija Kumar
c. Oriental Insurance Company Ltd
Dr. A.K.Saxena
d. General Insurance Corporation
A K Roy
e. The New India Assurance Co. Ltd.
Milind Kharat
Ans : e
[ The New India Assurance Co. Ltd. , Chairman – G.Srinivasan
United India Insurance Company Limited , Chairman – Milind Kharat]
Q.37 The punch line of the advertisement of which of the following organization is
“Jindagi ke sath bhi Jindagi ke bad bhi” ?
(A) New India Assurance
(B) General Insurance Corporation
(C) ICICI Prudential
(D) Life Insurance Corporation Of India
(E) None of these
Q.38 The central office of the Life Insurance Corporation of India (LIC) is located at
(A)Kolkata
(B)NewDelhi
(C)Chennai
(D)Pune
(E) Mumbai
Q.39. The Life Insurance Corporation Of India has how many Zonal offices in India ?
(A) Five (B) Eight (C) Ten (D) Fifteen (E) None of these
Q.40 If an organization wishes to venture into Insurance Business it has to obtain a
license first from which of the following?
(A) Indian Banks Association (IBA)
(B) Security and Exchange Board of India (SEBI)
(C) Tariff Advisory Committee (TAC)
(D) Insurance Regulatory and Development Authority of India (IRDAI)
(E) None of these
Q.41 Which of the following is not the name of an Insurance Scheme launched by the
Government of India
(A) Janashree Bima Yojana
(B) Krishi Shramik Sarnajik Suraksha Yojana
(C) Shiksha Sahyog Yojana
(D) Varsha Bima Yojana
(E) National Saving Scheme Programme
Q.42 Which of the following insurance companies writes its punch line in the
advertisements “Insurance is the subject matter of solicitation” ?
(A) CIC
(B) LIC
(C) ING Vysya Life Insurance Co.
(D) Tata AIG Life Insurance Co
(E) None of these
Q.43 Which of the following was the parent company of New India Assurance ?
(A) LIC
(B) GIC
(C) Oriental Insurance Co. Ltd.
(D) United India Insurance
(E) None of these
Q.44 Which of the following words/ terms is closely associated with the insurance
business
(A) Archives
(B) Donation
(C) Actuary
(D) Quest
(E) All are associated with insurance
Q.45 Which of the following is largest Non Life Insurance Company in India?
(A) ICICI Lombard General Insurance Company Ltd.
(B) United India Insurance Company Ltd.
(C) General Insurance Company Ltd.
(D). New India Assurance Company Ltd.
(E) None of these
Q.46 Which of the following Insurance Companies was launched with NABARD as one
of its promoter’s with 30% stake in it ?
(A) General Insurance Corporation Ltd.
(B) National Insurance Cornpany Ltd.
(C) Agriculture Insurance Company Ltd,
(D) SBI Life Insurance Company Ltd.
(E) None of these
Q48. As per the news published in various newspapers, Life Insurance policies may
become paperless in the near future. This means
1) LIC will not insure any person here after as it has already reached its peak
2) LIC will not ask for any documents from a person who wishes to purchase an Insurance
policy
3) All policy related documents and policy certificates will henceforth be available in
electronic form and not in their present physical
4) LIC henceforth will not entertain any claim or complaint in written form or on paper.
Things should be in electronic condition.
5) None of these
Q.49 In Insurance policies we always find a date which is “Date of Maturity”. What
does it mean?
1) This is the date on which the policy was sold to the customer/person insured.
2) This is the date on which the policy holder will have to submit his/her claim
seeking the amount of the policy. Otherwise the company will not make any
payment to him/her.
3) This is the date on which the contract between the person and insurance company
will come to an end.
4) The date on which the insurance company makes the final payment to the
insured person which is normally fifteen days after the “payment due date”.
5) None of these
Q.50. Which of the following insurance plan is not launched by LIC?
1) Jeevan Abhaya 2) Life Mahalife Gold Plan
3) Child Career Plan 4) Child Future Plan 5) Jeevan Saral