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This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 1

Q1 | Insurance is a cooperative form of distributing a certain__________over a group of personswho are exposed to it.
  • Uncertainty
  • Risk
  • Peril
  • Hazards
Q2 | In legal sense, Insurance is a
  • Contract
  • Activity
  • Gambling
  • Publicity
Q3 | The principle of indemnity is not applicable to
  • Fire Insurance
  • Marine Insurance
  • Life Insurance
  • Property Insurance
Q4 | LIC was nationalised in
  • 1956
  • 1955
  • 1957
  • 1948
Q5 | The policy for which the premium is payable throughout the life of the assured is known as
  • Annuity Policy
  • Whole Life Policy
  • Term Policy
  • Endowment
Q6 | When the same risk and subject matter is insured with more than one insurer is known as
  • Reinsurance
  • Double Insurance
  • Under Insurance
  • Over Insurance
Q7 | The chance of loss from the unforeseen circumstances in future refers to ______.
  • Perils
  • Damage
  • Risk
  • Hazards.
Q8 | Master policy is issued for ___________.
  • Group Insurance
  • Term Insurance
  • Marine Insurance
  • Individual Policy
Q9 | The organisation structure of LIC refers to ___________.
  • Three Tier
  • Four Tier
  • Five Tier
  • Six Tier
Q10 | ________ can be done by mere endorsement on the policy or by a separate duly stamped deed.
  • Assignment
  • Nomination
  • Renewal
  • Revival
Q11 | The document which contains the terms and conditions of the life insurance contract is termed as the
  • Agreement
  • Life Insurance Policy
  • Cover Note
  • Proposal Form
Q12 | What is a proposal?
  • A request for an insurance cover
  • An offer to enter into a contract
  • Both a and b
  • None of the above
Q13 | Which of these persons will not be given a license to work as an insurance agent?
  • A person with criminal record
  • A corporate insurance executive.
  • An employee of an insurance company
  • All the three mentioned here.
Q14 | A memorandum added to a policy embodying some alterations to the terms of policy is known as
  • Surrender
  • Endorsement
  • Nomination
  • Breach of Contract
Q15 | Which of the following is an evidence of insurance contract?
  • Policy Document
  • payment of premium.
  • cover note
  • acceptance of proposal
Q16 | The person responsible for evaluation and acceptance / rejection of risks and computation ofpremium in insurance is called
  • Insured
  • Assurer
  • Agent
  • Underwriter
Q17 | Insurance prices are called
  • Commissions
  • Allowances
  • Premiums
  • Discounts
Q18 | A person employed to do any act for another or to represent another in dealing with a third person refers to
  • Agent
  • Principal
  • Development Officer
  • Surveyor
Q19 | The IRDA was set up in
  • 1919
  • 1991
  • 2001
  • 2000
Q20 | ______________ in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.
  • Underwriters
  • Surveyors
  • Agents
  • Banker
Q21 | The agents who are selling policies of several life and non life insurance companies at a time are known as
  • Brokers
  • Surveyors
  • Underwriters
  • banks
Q22 | _____________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy.
  • Surveyors
  • Loss Assessors
  • Both a and b
  • Agents
Q23 | Insurance contract is sort of contract which is approved by
  • The Indian Contract Act
  • Indian Factory Act
  • Indian Companies Act
  • The Indian Finance Act
Q24 | General Insurance Corporation was established during the year
  • 1971
  • 1986
  • 1956
  • 1972
Q25 | The term Assurance refers to ________.
  • Marine Insurance Business
  • Life Insurance Business
  • Fire Insurance Business
  • Motor Vehicle Business