Insurance Awareness Quiz – Set 2

Insurance Awareness Quiz: We have created quiz on Insurance Awareness  which are most important for insurance exams. These questions will guide you in all insurance exams like LIC (AAO/ADO), NIACL, UIIC, IRDA and other exams. So  attempt them now.

1. The Insurance Regulatory and Development Authority (IRDA) was formed on the recommendation of which committee?
   A) Banarji Committee
   B) Kutumbe Committee
   C) Malhotra Committee
   D) Gupte Committee
   
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   Option C
   Explanation: In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. 
2. IRDA Act was passed in which year by the Government of India?
   A) 1992
   B) 2002
   C) 2000
   D) 1999
   
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   Option D
   
3. The IRDA was incorporated as a statutory body on______________?
   A) 30 April 2001
   B) 01 July 2002
   C) 31 December 1999
   D) 19 April 2000
   
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   Option D
   
4. What is the FDI limit in the Insurance sector?
   A) 26%
   B) 49%
   C) 100%
   D) 74%
   
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   Option B
   Explanation: At present the FDI limit in Insurance Sector is 49%- Automatic Route 
5. Which section of Insurance Act, 1938 grants power to IRDA to frame regulations?
   A) Section 114A
   B) Section 111B
   C) Section 110A
   D) Section 112B
   
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   Option A
   Explanation: The IRDA has been granted the power to frame regulations under Section 114A of the Insurance Act, 1938.
6. The headquarter of Insurance Regulatory and Development Authority of India (IRDAI) is in which city?
   A) Mumbai
   B) New Delhi
   C) Hyderabad
   D) Kolkata
   
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   Option C
   
7. The board of IRDAI consists of how many members?
   A) 10
   B) 5
   C) 4
   D) 8
   
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   Option A
   Explanation: IRDAI is a 10 member body consisting of Chairman ; 5 whole time member and 4 part time member
8. Who is the Chairman of the IRDAI?
   A) Sujay Banarji
   B) P. J. Joseph
   C) Praveen Kutumbe
   D) Subhash C. Khuntia
   
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   Option D
   
9. Which of the following is a reinsurance company in India?
   A) The Oriental Insurance Company
   B) General Insurance Corporation of India
   C) Agriculture Insurance Company of India
   D) SBI General Insurance
   
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   Option B
   
10. How many insurance companies were merged to form the Life Insurance Corporation of India?
    A) 200
    B) 176
    C) 245
    D) 125
    
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    Option C
    Explanation: 245 insurance companies operating in the country were merged into one entity, the Life Insurance Corporation of India.