Insurance Awareness Quiz – Set 31

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 ratio of premium to the total population (per capita premium) is known as_______
   A) Insurance density
   B) Insurance penetration
   C) Insurance mitigation
   D) Insurance assessment
   
   View answer

   Option A
   
2. The process of putting the insurance policy back after a lapse is known as________
   A) Settlement Option
   B) Reinstatement
   C) Reinsurance
   D) Co-Insurance
   
   View answer

   Option B
   
3. As per IRDA, the maximum limit to pay insurance premium via cash mode is___________
   A) Rs 75,000
   B) Rs 1,00,000
   C) Rs 25,000
   D) Rs 50,000
   
   View answer

   Option D
   Explanation: Premium is required to be paid in advance and can be paid via cash up to Rs 50,000, (the limit set by IRDA for cash payments) cheque or DD. Further, most insurance companies have provided for payment of premium online.
4. When an insurance company enters into a reinsurance contract with another insurance company, then the same is called as____________.
   A) Treaty Reinsurance
   B) Facultative Reinsurance
   C) Risk Reinsurance
   D) Traditional Reinsurance
   
   View answer

   Option A
   
5. What is Vesting Bonus in insurance?
   A) The regular flow of income to the insured from the insurer post the maturity of the policy instead of ‘lump-sum’ payout.
   B) The part of the overall premium which is collected by the insurance companies beforehand, but for which protection is not provided.
   C) The bonus given by the insurer to the policy holder at the end of the year after ascertaining its assets and liabilities.
   D) The bonus offered to the policyholders for keeping the policy till its maturity date
   
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   Option C
   
6. Who appoints the Chairperson of IRDAI?
   A) RBI
   B) Central Government
   C) High Level Committee of ministers
   D) Both A & B
   
   View answer

   Option B
   
7. LAE is known as the cost borne by the insurer at the time of settling claims. Expand LAE.
   A) Loss Adjustment Expense
   B) Liability Assessment Expense
   C) Liquidity Adjustment Expense
   D) Low Assured Expense
   
   View answer

   Option A
   
8. What is the term used when insured uses false grounds, and not in accordance with the facts, to enter into contract with insurer?
   A) Settlement Risk
   B) Falsify
   C) Misrepresentation
   D) Intensification
   
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   Option C
   Explanation: Getting into a contract with a person or a company on false grounds by making statements that are not in accordance with the facts is known as misrepresentation. In an insurance policy, misrepresentation on the behalf of the insured gives the insurance company a right to terminate the policy.
9. ______ is a type of vehicle insurance where a device is fitted to your car that measures precise performance of the vehicle and individual driver to determine the premium accordingly.
   A) Auto insurance
   B) Motor insurance
   C) Adverse insurance
   D) Telematics insurance
   
   View answer

   Option D
   
10. Insurance brokers, insurance consultants, corporate agents, third party administrator, surveyors and loss assessors are also known as________
    A) Insurers
    B) Actuaries
    C) Intermediaries
    D) Agents
    
    View answer

    Option C
    

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