T.Y B.COM
SEMESTER - 6
INSURANCE PRODUCTS
(IP)
MCQS - MARCH 2019
1. Which of the following is not an essential element of a valid insurance contract?
A Competency of Parties
B Free Consent of Parties
C Registration of Agreement
D Lawful Consideration and Object
2. Mr. Jayesh insures a building against fire with three fire insurance companies A, B, C with Rs.40000, Rs.40000, Rs.20000 respectively. Fire took place after the policy period and the total loss is Rs.80000. The claim amount payable by company A would be __________.
A Rs. 32000
B RS. 10000
C Rs.16000
D None
3. Which of the following Principle of Insurance places a duty on part of insured to make every effort and to take all such steps, as man of ordinary prudence will take to minimize the loss in event of mishap to insured property?
A Principle of Mitigation of lose
B Principle of Warranty
C Principle of Contribution
D Principle of Subrogation
4. The insurance contract cannot start unless ____________.
A Policy has been issued
B Payment of bill amount
C First premium has been paid
D All of the above
5. Who give advise to the top authority from his specialized knowledge to determine the underwriting policies?
A Line underwriters
B Staff underwriters
C Agents
D Surveyors
6. According insurance Act, 1938, application of renewal of license of insurance has to be made in the month of ________ by paying requisite fee of Rs.50000 and _________ of total gross premium written
directly by the insurer in India during last financial year.
A March, 1%
B January, 2%
C December, 1%
D None of the above
7. TAC stands for ____________.
A Treaty advisory committee
B Tariff advancing committee
C Tariff advisory committee
D All of above
8. In 1850, ___________ was established in Calcutta in pre-nationalization phase of General insurance business.
A Phoenix Insurance Company
B London Assurance Company
C Triton Insurance Company
D Royal exchange company
9. Which of the following is not a duty of IRDAI?
A It is duty bound to follow the directions issued by central government and report Outcome of directions
B To scrutinize existing and new insurance product rates, terms and condition offered and act in interest of consumer
C Authority has to submit all financial statements to central government within 15 months of from the completion of relevant financial year.
D Regulation, promotion and orderly growth and conduct of insurance
business.
10. The person who scrutinizes all the material facts provided by the proposer and decides whether to accept or reject the risk is known as __________.
A Underwriter
B Surveyor
C Loss assessors
D None of the above
11. The Government of India set up __________ for insurance Sector reforms in the year 1993 and the committee submitted its report in _________.
A Andhyarjuna Committee,1993
B Nayak Committee,1994
C Narsingmham Committee, 1993
D Malhotra Committee, 1994
12. According to Insurance Act,1938, __________ is for prohibition of rebates.
A Section 39
B Section 40
C Section 38
D Section 41
13. Insurance companies issue policies against ___________.
A Either for loss or profit only
B Speculative risk only
C Pure risk only
D Either for loss or profit only
14. Which of the following can be considered as an example of an implied warranty in case of Marine Insurance?
A Sea Worthiness of Ship
B Legality of Voyage
C Ownership of Cargo
D All of the above
15. Whole life Assurance plan of PLI also known as __________.
A SUVIDHA
B SANTOSH
C SURAKSHA
D None
16. __________ is consideration in insurance contract
A Policy terms and conditions
B Volume of risk
C Premium
D All of the above
17. __________ is a condition that may create, increase or decrease, the chance of loss while _________ means cause of loss.
A Exposure, Hazard
B Peril, Hazard
C Hazard, Peril
D Peril, Loss
18.In ________, insurable interest must be present at the time of taking policy.
A Marine insurance
B Life insurance
C fire insurance
D None of the above
19. The policyholder nominates a person to whom the money secured by policy shall be paid in the event of his death is known as ____________.
A Assignor
B Nominee
C Assignee
D None of the above
20. According Insurance Act,1938, a revised application for license of insurance is permissible by the applicant only after _________ with an additional condition of ________.
A Two years, either new set of promoters or for a different class of insurance business
B Three years, neither new set of promoters nor for a different class of insurance business
C One year, either new set of promoters or for a different class of insurance
D None of the above
21. The Chairperson or the whole time member or Part time member of IRDA can relinquish the office by giving a notice of ________.
A 3 months to the Central Government
B 6 months to the State Government
C 6 months to the Central Government
D 3 months to the State Government
22. IRDAI has power to prepare code of conduct for which of the following ________.
A Loss assessors
B Agents
C Surveyors
D All of above
23. The person who transfers the title of the policy is known as ________.
A Nominee
B Agent
C Assignee
D Assignor
24. In _______ PLI extended insurance cover to female employees of Postal & Telegraph department.
A 1889
B 1884
C 1894
D 1888
25. Oriental life insurance company started in Kolkata by a British firm from U.K in ________.
A 1918
B 1818
C 1920
d 1850
26. "Insurance is a substitution for a small known loss (premium) for a large unknown loss."- This definition is given by ________.
A Boon and Kurtz
B William Bevriges
C John Magee
D Ghosh and Agarwal
27. Subrogation is the transfer of right and remedies of the ________ to the ________ once the loss is indemnified.
A insurer, insured
B agent, insurer
C insurer, agent
D insured, insurer
28. If quantum of risk and its probability are more, rate of premium will be ________ and if quantum of risk and its probability are less, rate of premium will be ______.
A Less, More
B More, Less
C More, More
D Less, Less
29. Which of the following can be regarded as first statute to regulate life insurance business in India?
A Indian insurance Co. Act 1928
B Insurance Act, 1938
C Indian Life Assurance Act, 1912
D None of the above
30. Which of the following is not primary function of insurance?
A Provides protection
B Spreading of risk
C Prevention of losses
D None of the above
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