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. The topic of this quiz is Insurance Ombudsman.

1. The type of agent that represents only one company and sells only its policies is known as__________
   A) Sole agent
   B) Captive agent
   C) Single agent
   D) None of these
   
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   Option B
   Explanation: also known as exclusive agent
2. The Principles of Insurance are categorized into ________ types
   A) 7
   B) 10
   C) 6
   D) 5
   
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   Option A
   Explanation: 1. Principle of Utmost good faith
   2. Principle of Insurable interest
   3. Principle of Indemnity
   4. Principle of Subrogation
   5. Principle of Contribution
   6. Principle of Proximate cause
   7. Principle of Loss of Minimization
3. How many types of Insurance Agents are recognised under the Regulations?
   A) 8
   B) 5
   C) 1
   D) 3
   
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   Option D
   Explanation: (a) Individual Agent
   (b) Corporate Agent
   (c) Micro Insurance Agent 
4. An individual agent in insurance sector is issued a licence for a period of _______ years at a time.
   A) 5 years
   B) 2 years
   C) 3 years
   D) 6 years
   
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   Option C
   Explanation: At the end of the third year, the licence is required to be renewed. 
5. An insurance agents who support financial inclusion by distribution of financial services at an affordable cost to the masses is known as___________
   A) Micro insurance Agents
   B) Insurance Correspondent
   C) Corporate agent
   D) Individual agent
   
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   Option A
   
6. What should be the minimum paid up capital of the entity to become Third Party Administrator (‘TPA’) to insurance company?
   A) Rs 20 crore
   B) Rs 1 crore
   C) Rs 5 crore
   D) Rd 10  croree
   
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   Option B
   Explanation: A person can act as a TPA only with a valid licence issued by IRDA to perform the functions of a TPA. It is a person appointed by an insurance company to render services in connection with health insurance business or health cover
7. The powers and functions of IRDA are defined in which section of the IRDA Act?
   A) Section 102
   B) Section 29
   C) Section 14
   D) Section 45
   
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   Option C
   
8. Every life insurance company are mandated to maintain a sum equivalent to _______% of the total gross premium in any financial year with RBI in the form of cash or approved securities
   A) 2%
   B) 4%
   C) 3%
   D) 1%
   
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   Option D
   Explanation: Section 7 mandates that every life insurance company shall maintain a sum equivalent to 1% of the total gross premium written in India in any financial year commending after 31 day of March 2000, but not exceeding `10 Crores with the Reserve Bank of India in the form of Cash or approved securities. 
9.  __________  is the practice of sharing all risks among a group of insurance companies.
   A) Risk pooling
   B) Insurable interest
   C) Representative insurance
   D) Open Policy
   
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   Option A
   
10. The insurance policy especially designed for covering ship damage expenses is referred to as _______
    A) Marine insurance
    B) Hull insurance
    C) Cargo insurance
    D) Voyage insurance
    
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    Option B
    

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