Insurance Management Set 4

Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance)

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This set of Insurance Management Multiple Choice Questions & Answers (MCQs) focuses on Insurance Management Set 4

Q1 | ………..principle in insurance mention the cause of loss must be direct andan insured one in order to claim for compensation.
  • subrogation
  • causa proxima
  • indemnity
  • uberrima fides
Answer: causa proxima
Q2 | ………… principle in insurance mention the assured must have insurableinterest in the life or property insured.
  • subrogation
  • causa proxima
  • indemnity
  • insurable interest.
Answer: insurable interest.
Q3 | The first insurance contract was entered into by European maritime nationsin 1347 to accept ……..insurance as a practice.
  • life
  • vehicle
  • marine
  • fire
Answer: marine
Q4 | Dr.Nicholas Barbon set up in 1967 the first fire insurance company knownas the ………..
  • Nicolas company
  • fire company
  • fire insurance company
  • fire office
Answer: fire office
Q5 | The oldest life insurance company in existence today is the society for theequitable assurance of lives and survivorship, known as ………
  • Eqitable insurance
  • Old equitable
  • socity for insurance
  • none of these.
Answer: Old equitable
Q6 | The ……………discovered by Jakob Bernoulls around 1700 forms the basisof modern insurance.
  • law of insurance
  • law of large numbers
  • law of modern insurance.
  • none of these
Answer: law of large numbers
Q7 | The Sanskrit term …………..,the name of LIC of India corporateheadquarters,is found in Rig Veda.
  • Yogaraksha
  • Yogakarma
  • Yogakshema
  • all of these.
Answer: Yogakshema
Q8 | The …………..company was the first insurance company to be set up inIndia to help the widows of the Europian community.
  • Life insurance corporation of India.
  • Oriental Life Insurance Company
  • National insurance company
  • Bajaj insurance
Answer: Oriental Life Insurance Company
Q9 | ………..is the first comprehensive legislation governed both life and non-lifebranches of insurance was enacted to provide strict state control over the insurance business in India.
  • Insurance Act-1938
  • Insurance Act-1939
  • Insurance Act-1940
  • Insurance Act-1941
Answer: Insurance Act-1938
Q10 | The LIC of India was set up in ……..to take over 245 life companies.
  • 1955
  • 1956
  • 1957
  • 1958
Answer: 1956
Q11 | ………….committee suggested the re-opening up of the insurance sector toprivate players.
  • K.N.Malhotra
  • R.N.Malhothra
  • Nrasimham
  • Goyal
Answer: R.N.Malhothra
Q12 | The IRDA was set up in…………..
  • 1999
  • 1991
  • 2000
  • 2001
Answer: 2000
Q13 | The IRDA stands for
  • Insurance Regulatory and Development Activity.
  • Insurance Reconstruction and Development Activity.
  • Insurance Regulatory and Development Authority.
  • Insurance Regulatory and Department Activity.
Answer: Insurance Regulatory and Development Authority.
Q14 | The insurance industry till august 2000 had only two nationalised players ,LIC and ….
  • NI
  • GIC
  • IRDA
  • none of these
Answer: GIC
Q15 | The ………….,has allowed cooperative societies to carry on insurancebusiness.
  • Insurance (amendment)Act,2000
  • Insurance (amendment)Act,2001
  • Insurance (amendment)Act,2002
  • Insurance (amendment)Act,2003
Answer: Insurance (amendment)Act,2002
Q16 | ……….. was constituted as an autonomous body to regulate and develop thebusiness of insurance and reinsurance in India.
  • LIC
  • GIC
  • IRDA
  • NBFC
Answer: IRDA
Q17 | Objective of IRDA includes
  • policy holder protection
  • healthy growth of the insurance market
  • both a and b
  • only a
Answer: both a and b
Q18 | IAIS stands for……
  • Internal Association of Insurance Supervisors
  • International Association of Insurance Supervisors
  • International Academy of Insurance Supervisors
  • International Association of Insurance Surveyors
Answer: International Association of Insurance Supervisors
Q19 | To provide the insured a speedy and inexpensive grievance redressal system,the Govt.of India promulgated…………
  • Redressel of public grievance Rule 1987
  • Redressel of public grievance Rule 1988
  • Redressel of public grievance Rule 1989
  • Redressel of public grievance Rule 1990
Answer: Redressel of public grievance Rule 1988
Q20 | RPG rule 1988 set up an institution for building the confidence of the policyholders in insurance.
  • management
  • ombudsman
  • council
  • committee
Answer: ombudsman
Q21 | An ombudsman is entrusted with………..functions
  • managing & concilling
  • conciliation and award making
  • agency and principal
  • none of the above
Answer: conciliation and award making
Q22 | The ……….associated with the insurance business are agents, surveyors,loss assessors, brokers, third party administrators and banks.
  • management
  • organisation
  • intermediaries
  • regulators
Answer: intermediaries
Q23 | …………..in the insurance are just like the retailers of any consumer productwho help in selling and distributing the product.
  • surveyors
  • loss assessors
  • agents
  • banks
Answer: agents
Q24 | …………are independent professionals appointed by an insurance companyto assess the loss or damage when a claim is notifed under a policy issued by them.
  • surveyors
  • loss assessors
  • agents
  • both a and b
Answer: both a and b
Q25 | …………are agents but they can sell policies of several life and non-lifeinsurance companies at a time.
  • surveyors
  • loss assessors
  • brokers
  • banks
Answer: brokers
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