Insurance Awareness Quiz – Set 39

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.

1. The Insurance Regulatory and Development Authority (IRDA) was renamed as Insurance Regulatory and Development Authority of India (IRDAI) in which year?
   A) 2010
   B) 2002
   C) 2000
   D) 2014
   
   View answer

   Option D
   Explanation: The change of name was effected in the Insurance Laws (Amendment) Ordinance, 2014 was promulgated by the President of India on December 26, 2014
2. A type of life insurance policy where several members are included under one ‘master policy’ owned by the employer /nodal agency is known as________
   A) Group insurance
   B) Variable insurance
   C) Term plan
   D) Endowment plans
   
   View answer

   Option A
   
3. How many Insurance Ombudsman centres are active in India?
   A) 10
   B) 17
   C) 21
   D) 15
   
   View answer

   Option B
   
4. MRI is a type of life insurance policy which is taken when applying for a housing loan from a bank. What does MRI stands for?
   A) Mortality Redemption Insurance
   B) Management Redemption Insurance
   C) Mortgage Redemption Insurance
   D) Manifest Redemption Insurance
   
   View answer

   Option C
   
5. Which among the given mode of premium payments earns the highest amount of rebate in insurance policy?
   A) Monthly
   B) Quarterly
   C) Half-yearly
   D) Yearly
   
   View answer

   Option D
   
6. A life insurance policy that provides for the payment of an additional amount equal to the sum assured in case of the death of a policyholder owing to an accident is known as__________
   A) Double Accident Benefit
   B) Bonus Loading
   C) Net Premium Benefit
   D) Permanent Disability Benefit
   
   View answer

   Option A
   
7. Which of the following is one of the important component for determining the insurance premium?
   A) Interest
   B) Bonus loading
   C) Expenses of management
   D) All the above
   
   View answer

   Option C
   Explanation: The main components of premium are: Mortality, Interest, Expenses of management, Reserves, Bonus loading
8. What do you understand by policy lapse?
   A) Discontinuation of premium payment for a policy
   B) Completion of premium payment for a policy
   C) Policy attains maturity
   D) Policy is withdrawn from the market
   
   View answer

   Option A
   
9. Who bears the investment risk in case of ULIPs?
   A) Insurer
   B) Insured
   C) IRDAI
   D) All the above
   
   View answer

   Option B
   
10. The term premium denote ___________in relation to an insurance policy?
    A) Margins earned by an insurer on a policy
    B) Profit earned by the insurer
    C) Expenses incurred by an insurer
    D) Price paid by an insured for the policy
    
    View answer

    Option D
    

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