Insurance Awareness Quiz – Set 41

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 premium can be related to which element of a valid contract?
   A) Free Consent
   B) Offer & Acceptance
   C) Consideration
   D) Capacities of the Parties
   
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   Option C
   Explanation: Consideration means that the contract must contain some mutual benefit for the parties. The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.
2. ___________ is a type of permanent life insurance, more similar to mutual funds, with a cash value account.
   A) Variable Life Insurance
   B) Universal Life Insurance
   C) Unit Linked Insurance
   D) All the above
   
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   Option A
   
3. The process of appointment of a person to receive the death claim is termed as______
   A) Assignment
   B) Registration
   C) Election
   D) Nomination
   
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   Option D
   
4. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for ________years.
   A) 2 years
   B) 5 years
   C) 3 years
   D) 10 years
   
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   Option C
   
5. In case of delay in payment of claim due to any reason other than that mentioned in the regulation, the insurance company will be liable to pay an interest on claim @ ______ percent higher than bank rate applicable at the start of financial year in which claim was reviewed
   A) 2%
   B) 1%
   C) 3%
   D) 4%
   
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   Option A
   Explanation: Where there is a delay on the part of the insurer in processing a claim for a reason other than the one covered by sub-regulation (iv), the life insurance company shall pay interest on the claim amount at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.
6. Insurance Information Bureau of India (IIBI) was promoted by IRDA in which year?
   A) 2004
   B) 2009
   C) 2011
   D) 2000
   
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   Option B
   Explanation: Insurance Information Bureau of India was promoted in year 2009 by IRDA and is a registered society with a governing council of 20 members mostly from the insurance sector.
7. Which among the following are the legal entities that help insurance market in redressal of consumer grievances?
   A) Insurance Ombudsman
   B) Consumer Court
   C) Civil Court
   D) All the above
   
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   Option D
   Explanation: Legal entities such as the Insurance Ombudsman, Consumer courts as well as civil courts also play a role in the health insurance market when it comes to redressal of consumer grievances.
8. As per IRDAI (Protection of Policyholders Interests) Regulations, 2002, a claim under a life policy shall be paid or be disputed, within __________ from the date of receipt of all relevant papers and clarifications required.
   A) 30 days
   B) 7 days
   C) 15 days
   D) 45 days
   
   View answer

   Option A
   
9. When the premium charged under a policy remains the same throughout the duration of the contract, it is called as__________
   A) Constant Premium
   B) Level Premium
   C) Average Premium
   D) Static Premium
   
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   Option B
   
10. The insurable interest in case of life insurance is required at the time of________?
    A) Insurance Claim
    B) Third-party insurance
    C) Insurance Policy Purchase
    D) Insurable interest is not needed
    
    View answer

    Option C
    

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