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