1. In insurance the subject matter insured is called the _____.

[1 Marks]
(a) Risk
(b) Profit
(c) Gain
(d) Income
(e) Not Attempted
Correct Answer : Risk
2. Policy is issued for Rs. 1,00,000 each to 100 persons. There are 100 persons from whom
premium would be collected. 2 persons in 100 is expected to die, therefore the premium
collected per person would be Rs. _____.
[3 Marks]
(a) 5000
(b) 2000
(c) 3000
(d) 4000
(e) Not Attempted
Correct Answer : 2000
3. This policy envisages one single payment of premium regardless of when the death would
occur.
[1 Marks]
(a) Single Premium
(b) One-time Premium
(c) Not Attempted
Correct Answer : Single Premium
4. ______ are those which present the possibility of a loss or no loss but not a profit.
[1 Marks]
(a) Pure risks
(b) Physical risks
(c) Moral risks
(d) Objective risks
(e) Not Attempted
Correct Answer : Pure risks
5. Non life insurance can be classified into:
[1 Marks]
(a) All of the above
(b) Personal insurance
(c) Liability insurance
(d) Property insurance
(e) Not Attempted
Correct Answer : All of the above
6. This policy is issued for one year period and if the insured dies during the policy period, the
insurer settles the claim.
[1 Marks]
(a) Yearly Renewable Maturity Insurance
(b) Yearly Renewable Life time Insurance
(c) Yearly Renewable Equity Insurance
(d) Yearly Renewable Term Insurance
(e) Not Attempted
Correct Answer : Yearly Renewable Term Insurance
7. Acceptable risk will always be influenced by financial consideration.
[1 Marks]
(a) FALSE
(b) TRUE
(c) Not Attempted
Correct Answer : TRUE
8. If the second party to whom an offer is made wishes to make a counteroffer, he may do so
and the contract is valid only when the first party agrees to the terms proposed by the
second party. This is called ________.
[1 Marks]
(a) consensus ad idem
(b) consensus ads idem
(c) consensus en idem
(d) consensus at idem
(e) Not Attempted
Correct Answer : consensus ad idem
9. A master policy, in the name of the employer or any association which takes the policy, is
issued under Group Insurance Policy
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct Answer : TRUE
10. Under __________, it is possible to insure practically all stationary and mobile machinery,
mechanical and electrical equipments, machineries and apparatus used in industry.
[3 Marks]
(a) Mechanical Insurance Policy
(b) Machine Insurance Policy
(c) Motionary Insurance Policy
(d) Machinery Insurance Policy
(e) Not Attempted
Correct Answer : Machinery Insurance Policy
11. Mr. A takes an individual mediclaim policy. Let us say the short period rate for a policy of 3
months is 40% and the premium paid is Rs. 45,000. Mr. A cancels the premium after 3
months. The refund amount to Mr. A would be Rs. _____
[2 Marks]
(a) 28000
(b) 27000
(c) 27500
(d) 28500
(e) Not Attempted
Correct Answer : 27000
12. Under Fire insurance, all properties located in an industrial complex will be charged one
rate depending on the product(s) made.
[2 Marks]
(a) TRUE
(b) FALSE
(c) Not Attempted
Correct Answer : TRUE
13. Along with the basic coverage against loss or damage by occasional fire, the standard fire
and special perils policy provides protection from a host of other perils such as:
[1 Marks]
(a) any damage to the insured property caused either due to an aircraft falling on the property
or any object dropped from the aircraft damaging the insured¿¿s property
(b) All of the above
(c) Impact damage due to rail/road or animal; other than insured¿¿s own vehicle
(d) Explosion/implosion
(e) Not Attempted
Correct Answer : All of the above
14. This ratio indicates the proportion of income which is used up towards loan repayments.
[1 Marks]
(a) Debt Service ratio
(b) Debt Recovery ratio
(c) Debt ratio
(d) Debt Amount ratio
(e) Not Attempted
Correct Answer : Debt Service ratio
15. No insurance agent shall:
[2 Marks]
(a) All of the above
(b) become or remain a director of any insurance company
(c) force a policyholder to terminate the existing policy and to effect a new proposal from
him within three years from the date of such termination
(d) demand or receive a share of proceeds from the beneficiary under an insurance contract
(e) Not Attempted
Correct Answer : All of the above
16. Every person holding a licence of an insurance agent, shall adhere to the code of conduct
which include(s) :
[2 Marks]
(a) identify himself (through an identity card issued by the insurance company) and the
insurance company of whom he is an insurance agent
(b) disseminate the requisite information in respect of insurance products offered for sale by
his insurer
(c) All of the above
(d) disclose his licence to the prospect on demand
(e) Not Attempted
Correct Answer : All of the above
17. A _______ is a process, which helps an individual to achieve his or her financial
objectives.
[1 Marks]
(a) financial roadmap
(b) financial strategy
(c) financial documentation
(d) financial plan
(e) Not Attempted
Correct Answer : financial plan
18. These policies are issued for a term or a period of time and if the death of the assured occurs
during the term of the policy, the policy pays the sum assured.
[1 Marks]
(a) Life time Insurance
(b) Equity Insurance
(c) Maturity Insurance
(d) Term Insurance
(e) Not Attempted
Correct Answer : Term Insurance
19. __________ is a feature of an Insurance contract.
[2 Marks]
(a) Rules of insurable interest
(b) Rules of insurance interest
(c) Rules of no liability interest
(d) Rules of agreed interest
(e) Not Attempted
Correct Answer : Rules of insurable interest
20. _______ is one of the principles of Insurance.
[2 Marks]
(a) Distribution
(b) Optionality
(c) Redistribution
(d) Contribution
(e) Not Attempted
Correct Answer : Contribution