Insurance Awareness Quiz – Set 40

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. What is the required charges that need to be paid for lodging the complaint with the insurance Ombudsman?
    A) Rs 20,000
    B) 20% of the relief sought
    C) 10% of the relief sought
    D) Nill
    View answer
    Option D
  2. Which of the given is not an example of insurable interest
    A) Father getting insurance policy on his son
    B) Friends getting insurance on one another
    C) Spouses getting insurance on one another
    D) Employer getting insurance on employees
    View answer
    Option B
  3. The premium paid for whole life insurance is _____________ to/than the premium for term assurance.
    A) Equal
    B) Lower
    C) Higher
    D) Cannot be determined
    View answer
    Option C
    When the premium charged under a policy remains the same throughout the duration of the contract, it is called level premium 
  4. The Universal Life Policy was introduced by which country?
    A) United States
    B) United Kingdom
    C) Germany
    D) Philippines
    View answer
    Option A
    Universal life insurance is a type of cash value life insurance, sold primarily in the United States. 
  5. If the policyholder, who has bought a policy, does not want it then he can return it and get a refund during the period called____________
    A) Lock – in- period
    B) Free – look – period
    C) Trail period
    D) Evaluation period
    View answer
    Option B
  6. The policyholder needs to appoint an appointee in which of these cases?
    A) If the insured is a minor
    B) If policyholder is mentally disabled
    C) If the nominee is a minor
    D) All the above
    View answer
    Option C
    Where the nominee is a minor, the policyholder needs to appoint an appointee
  7. Which among the following insurance policies do not have surrender value?
    A) money-back policies
    B) endowment policies
    C) unit-linked insurance policies
    D) Term insurance
    View answer
    Option D
  8. Which Section of the Insurance Act 1938, provides for nomination of a nominee?
    A) Section 12
    B) Section 40
    C) Section 27
    D) Section 39
    View answer
    Option D
    Section 39 of the Indian Insurance Act, 1938, provides for nomination of a person (called nominee) who gets the benefits of the policy on death of the person whose life has been insured
  9. What is the maximum length of the grace period granted in insurance policy?
    A) 3 months
    B) 1 month
    C) 12 months
    D) 6 months
    View answer
    Option B
    Depending on the insurance policy, the grace period can be as little as 24 hours or as long as one month or 31 days.
  10. The insurance companies are required to process the claim as soon as they receive and any additional queries or documents needed should be asked for within a period of_______ from the date of receipt of claim
    A) 15 days
    B) 1 week
    C) one month
    D) 2 days
    View answer
    Option A
    A life insurance company, upon receiving a claim, shall process the claim without delay. Any queries or requirement of additional documents, to the extent possible, shall be raised all at once and not in a piece-meal manner, within a period of 15 days of the receipt of the claim.

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