Insurance Awareness Quiz: We have created quiz questions on Insurance Awareness which are most important for insurance exams. These questions and answers will guide you in all insurance exams like LIC (AAO/ADO), NIACL assistant and AO, UIIC, IRDA and other Bank PO exams and all competitive exams. So attempt these multiple choice questions now based on the exam pattern syllabus.
- LIC’s Executive Board consists of how many Managing Directors?
A) One
B) Two
C) Three
D) Four
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Option D
Explanation: The LIC’s executive board comprises of one Chairman, currently M.R. Kumar, and four Managing Directors, V. Venugopal, Hemant Bhargava, Vipin Anand and TC Suseel Kumar
- CAGR is a measure to determine the rate of increase or decrease of investment over multiple time period in a business. What does it stands for?
A) Compound Annual Growth Rate
B) Cost Accounting Growth Ratio
C) Credit Analysis Gross Return
D) Calculative Annual Gross Rate
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Option A
Explanation: CAGR stands for Compound Annual Growth Rate and is a financial investment calculation that measures the percentage an investment increases or decreases year over year
- The IRDAI (Re-insurance) Regulations, 2018 (“Regulations”), which came into force on January 1, 2019, repeal which of the following regulations?
A) IRDAI (General Insurance – Reinsurance) Regulations, 2016
B) IRDAI (Life Insurance – Reinsurance) Regulations, 2013
C) Both A & B
D) None of the above
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Option C
Explanation: The IRDAI has notified the IRDAI (Re-insurance) Regulations, 2018 (“Regulations”), which came into force on January 1, 2019 and repeal the previous regulations applicable to reinsurance (i.e. the IRDAI (General Insurance – Reinsurance) Regulations, 2016 (“GIR Regulations”) and the IRDAI (Life Insurance – Reinsurance) Regulations, 2013).
- Which among the following is the First Private Sector Reinsurance Company in India to be wholly promoted by Indian Entrepreneurs?
A) Munich Re
B) ITI Re
C) Gen Re
D) SCOR SE
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Option B
Explanation: ITI Reinsurance Limited (ITI Re) is ‘First Private Sector Reinsurance Company in India’, and the first one to be wholly promoted by Indian Entrepreneurs. ITI Re is aiming to service the Direct Insurance Markets in India and Overseas Territories.
- Which of the given insurance covers are compulsory by law in India?
A) Motor Vehicle Insurance
B) DICGC Insurance
C) Employees’ State Insurance
D) All of the above
- The banks can withdraw from DICGC coverage after a period of__________
A) One year
B) Two years
C) Five years
D) Cannot Withdraw
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Option D
Explanation: The deposit insurance scheme is compulsory and no bank can withdraw from it.
- The Insurance Act 1938 restricts the insurers to reject a claim in life insurance policy on any ground, including frauds or misrepresentation, after a period of ____________
A) Five years
B) Three years
C) Two years
D) Six years
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Option B
Explanation: The initial three years in a life insurance contract between the life insurance company and the policyholder is an important milestone. While the rules allow insurers to repudiate (or reject) death claims within the initial three years of a life insurance policy on the ground of misrepresentation or suppression of a material fact, their hands are tied for repudiation of claims, if a death happens after this period.
- Which Section of the Insurance Act 1938, allows the life insurers to call a policy into question, within the initial 3 years, on the ground of misrepresentation or fraud?
A) Section 27
B) Section 32
C) Section 45
D) Section 12
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Option C
Explanation: The regulation as per Section 45 of the Insurance Act allows insurers for calling a policy in question on the ground of misrepresentation or suppression of a material fact not amounting to fraud only within the initial three years of the policy.
- What is the duration of time provided by RBI to LIC to reduce its stake in IDBI Bank by 10 percent?
A) 12 years
B) 10 years
C) 5 years
D) 8 years
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Option A
Explanation: RBI, which classified IDBI as a private sector bank, has given LIC 12 years to cut its stake in the bank by 10 per cent.
- Under the Prime Minister’s Crop Insurance Scheme, farmers will have to pay a uniform premium of _______ percent for Kharif crops?
A) 1.5%
B) 1%
C) 5%
D) 2%
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Option D
Explanation: The Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) was launched by Prime Minister of India Narendra Modi on 13 February 2016. It envisages a uniform premium of only 2 per cent to be paid by farmers for Kharif crops, and 1.5 per cent for Rabi crops. The premium for annual commercial and horticultural crops will be 5 per cent.
