Insurance Awareness Quiz – Set 50

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. Under the Motor Vehicle Act, the victims of fatal injuries are paid compensation on the basis of:
    A) Income  and Size of Family
    B) Age and Gender
    C) Income and Number of Dependents
    D) Age and Income
    View answer
    Option B
  2. The Insurance Act mandates every insurer to prepare which of the following at the end of financial year?
    A) Balance Sheet
    B) Profit and Loss Account
    C) Revenue Account for each class of Insurance business
    D) All the above
    View answer
    Option D
  3. What is the role of the Third Party Administrator?
    A) Process insurance claims
    B) Canvassing business for the insurer
    C) Issue documents on behalf of the insurer
    D) Arranging for reinsurance
    View answer
    Option A
  4. FPA is an insurance contract clause that eliminates an insurer’s liability for partial losses. Expand FPA.
    A) Freight Payable Assured
    B) Free of Particular Average
    C) Fire Perils Added
    D) Fixed Peripherals Added
    View answer
    Option B
  5. The Board of Trustees of the Unit Trust of India (UTI) consists of how many members?
    A) 15
    B) 5
    C) 11
    D) 8
    View answer
    Option C
    The management of the affairs and business of the trust are vested in the Board of trustees, which consists of 11 trustees including a full-time chairman appointed by the Government of India, in consultation with The Industrial Development Bank of India
  6. The Corporate Office of the UTI is situated in Mumbai. The headquarter of its Eastern Zone is in which city?
    A) Kolkata
    B) Patna
    C) Asansol
    D) Bhubaneshwar
    View answer
    Option A
    West Zone – Mumbai, East Zone – Kolkata, North Zone – New Delhi and South Zone – Chennai
  7. Which among the following types of insurance policies are much cheaper as compared to others?
    A) Term insurance with guaranteed renewal
    B) Decreasing term insurance
    C) Term insurance with riders
    D) E-term insurance
    View answer
    Option D
    Policies sold online are cheaper because agent commissions get cut out. 
  8. IRDA Regulations allow Brokers and Corporate Agents licensed by IRDA to become ‘AP’ of Insurance Repositories for better service their customers. What does AP stands for?
    A) Agents Permitted
    B) Assured Professional
    C) Approved Persons
    D) Authorized Party
    View answer
    Option C
    In order to discharge its services and obligations, an Insurance Repository may appoint Approved Persons (APs) to represent it before policy holders, subject to prior permission of IRDA. 
  9. A Company having paid up capital of above Rs ________ lakh are eligible to be appointed as an Approved Person of an insurance repository
    A) Rs 3 lakh
    B) Rs 5 lakh
    C) Rs 2 lakh
    D) Rs 4 lakh
    View answer
    Option B
    Only a company registered under the Companies Act, 1956 and having a paid up capital of more than Rs. 5 lakhs is eligible to be appointed as an Approved Person of an insurance repository. A Corporate Agent or an Insurance Broker licensed by the Authority can become an AP provided his license is valid.
  10. The ‘NEW CHILDREN’S MONEY BACK PLAN’ has been launched by which among the following insurance companies?
    A) LIC
    B) New India Assurance
    C) National Insurance Company
    D) United India Insurance
    View answer
    Option A

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