Insurance Awareness Quiz | 6th December 2018

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

Question 1: Premium rates for a term ins. Policy takes account?

(A)VAT

(B)Income tax                                   

(C) Interest rate

(D) Sales tax

(E) None of these

Question 2: New business strain can be defined as?

(A) Excess of inception date cash inflows over cash outflows

(B) Excess of inception date cash outflows over cash inflows

(C) Potential loss on a policy

(D)  B and c

(E) None

Question 3: Insurer charges premium as per experience when group is?

(A) Diversified          

(B) Large                   

(C) Small                    

(D) Homogeneous

 (E) None

Question 4: The main purpose of the guaranteed insurance  rider benefit?

(A) cancel health based exclusion                                      

(B) increase cover when a key life event occur

(C) maintain cover despite a fall in investment values    

(D) include his parents under the value

(E) None

Question 5: Which is true?

(A) RBC calculation considers many more risks than RSM calculation

(B) RBC calculation will always need more capital than RSM calculation

(C) RBC calculation will estimate technical reserve than RSM calculation

(D) A & B

(E) All of the above

Question 6: Which type of insurance policy provides additional coverage to easily movable property?
(A).General Insurance
(B).Floater Insurance
(C).Life Insurance
(D).General Liability Insurance
(E).None of these

Question 7: Which of the following require IRDA licence to start its functioning in India?
(A)  Insurance Brokers
(B)Surveyors
(C)Insurance Agents
(D)Third party administrators
(E) All of these

Question 8: Which  is the provision of insurance  products by a bank?
(A)Credit
(B)Loan
(C) Bancassurance
(D)Mortgages
(E)None of these

Question 9: IFRS stands for?
(A) Initial Financial Reporting Standards
(B)International Financial Reporting Standards
(C)International Finance Reporting System
(D)Indian Financial Regulation Section
(E)None of these

Question 10: Health insurance is part of which line of insurance?

(A) Life insurance    

(B) General insurance

(C) Standalone life of business                                                                                 

(D) All of the above

(E) None

SOLUTION

  1. C
  2. B

Whenever a new policy is launched due to hiher commission and high advt expenses on publicity the insurance co is always be in loss.cash outfllow in begining years will be much more than inflow.It means the co. will always be in loss. This loss is called new business strain. Higher commission in starting years(40 or 35%).

  1. B
  2. B
  3. E
  4. B

Floater Insurance is a type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. This can cover anything from jewelery to expensive stereo equipment.

  1. E
  2. C

Bancassurance is a term referring to the selling of insurance through a bank’s established distribution channels.   In other words, we can say Bancassurance is the provision of insurance  (assurance) products by a bank.

  1. B

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB).

  1. C

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