Insurance Awareness Quiz – Set 43

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. An insurance company owned entirely by its policyholders is known as________
   A) Stock Insurance Company
   B) Policyholder Insurance Company
   C) Mutual Insurance Company
   D) Shared Insurance Company
   
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   Option C
   Explanation: A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums
2. Authority that is not specifically expressed or defined in writing, but which an employee or agent assumes to possess in order to conduct business on behalf of an agency is known as________
   A) Express authority
   B) Specific authority
   C) Actual authority
   D) Implied authority
   
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   Option D
   
3. Which among  the following is not a valid consideration in an insurance policy?
   A) Application form given to insured
   B) Promise to pay for loss
   C) Premium paid at the time of purchasing policy
   D) Exchange of something valuable between the two parties
   
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   Option A
   
4. An insurance company incorporated in a country other than the country where it is providing insurance coverage is termed as:
   A) Foreign insurer
   B) Alien insurer
   C) International insurer
   D) Domestic insurer
   
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   Option B
   Explanation: An alien insurer is an insurance provider offering coverage in a country other than the company’s home country. Tthe relationship between the country of incorporated and the location where it sells a given policy defines if an insurer is alien.
5. Which among the following insurance contract is based on ‘either accept or leave’ strategy?
   A) Contract of conditions
   B) Contract of mutual understanding
   C) Contract of adhesion
   D) Contract of binding
   
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   Option C
   
6. Which among the given civilizations were the first to have life insurance?
   A) Chinese
   B) Greek
   C) Egyptians
   D) Romans
   
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   Option D
   Explanation: Ancient Romans are the first people on record who had a life insurance system
7. The maximum length of the period offered by most term insurance policy is ________
   A) 30 years
   B) 10 years
   C) 15 years
   D) 20 years
   
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   Option A
   Explanation: Minimum length is 10 years
8. In life insurance, the amount that the policy’s beneficiaries receive upon the death of the insured is known as_______
   A) Total value
   B) Face value
   C) Pay out
   D) Cash value
   
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   Option B
   Explanation: For any life insurance policy, the face value is the death benefit. This is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. In most cases, the face value is transferred to the beneficiaries tax-free
9. Life Insurance Corporation of India (LIC) is not allowed to hold more than ___________ percent of stake in any company without special permission
   A) 20%
   B) 8%
   C) 22%
   D) 15%
   
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   Option D
   Explanation: Regulations prohibit insurers from holding more than 15% stake in any company
10. The Hindusthan Insurance Society, which later became Life Insurance Corporation, was founded by?
    A) Prafulla Chaki
    B) Anita Bhavsar
    C) Surendranath Tagore
    D) Surya Sen
    
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    Option C

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