Insurance Awareness Quiz | 1st December 2018

Dear Aspirants, Welcome to Insurance Awareness Questions in ambitiousbaba.com. Here we are covering some important questions for insurance exams.

Question 1: Recurrent single prom approach is in

(A)  Large scheme   

(B)  All scheme         

(C)  Small scheme    

(D)  Only employer employee

(E)  None of these

Question 2: Interest rate changes effects

(A)  Annuity              

(B)  Endowment       

(C)  Single payment 

(D)  A and b

(E)  All the above

Question 3: Which policy has less medical underwriting

(A) Endowment        

(B) Traditional         

(C) ULIP                    

(D) Annuity

(E)  None of these

Question 4: A technique that consists of staggering the maturity dates and the mix of different types of bonds is termed as _______
(A)  Laddering
(B)  Fire Insurance
(C)  Escrow Account
(D)  Earned Premium

(E)  None of these

Question 5: What is the maximum claim amount for an Insurance Ombudsman complaint?
(A)  10 lakh
(B)  15 lakh
(C)  5 lakh
(D)  20 lakh

(E)  12 lakh

Question 6: A professional liability coverage for physicians, lawyers, and other specialists against suits alleging negligence or errors and omissions that have harmed clients is termed as _______
(A)  Malpractice Insurance
(B)  Inflation Guard Clause
(C)  Inland Marine Insurance
(D)  Gap Insurance

(E)  None of these

Question 7: A company owned by its policyholders that returns part of its profits to the policyholders as dividends is known as ______
(A)  Service Provider
(B)  Composite Insurer
(C)  Mutual Insurance Company
(D)  None of the Above

(E)  All of the above

Question 8: Concept of insurance involves a transfer of

(A) Liability               

(B) Needs                  

(C) Ownership          

(D) Risk

(E)  None of the Above

Question 9: A group insurance contract is a contract

(A)  Short term contract      

(B)  Long term contract      

(C)  Annual contract            

(D) none of above

(E) both A and B

Question 10: Which section of the Indian Insurance Act 1938 provides for nomination of a person?
(A)  Section 39
(B)  Section 38
(C)  Section 37
(D)  Section 36

(E)  None of these

SOLUTION

1. D

2. E

3. D

4. A

Explanation:
Laddering means you buy multiple smaller policies that custom tailor your needs rather than one large policy.

5. D

Explanation:
Ombudsman’s powers are restricted to insurance contracts of value not exceeding Rs. 20 lakhs.

6. A

Explanation:
A type of professional liability insurance purchased by health care professionals and sometimes by other types of professionals like lawyers.

7. C

Explanation:
A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are rebated to policyholders in the form of dividend distributions or reduced future premiums.

8. D

9. D

10. A

Explanation:
Section 39 of the Indian Insurance Act, 1938, provides for nomination of a person (called nominee) who gets the benefits of the policy on death of the person whose life has been insure(d)

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