CSC RAP AND INS INSURANCE LIVE EXAMINATION 25 QUESTION AND ANSWER

Que 1: Origins of modern insurance business can be traced to ________.

 Bottomy

 Lloyds

 Rhodes

 Malhotra Committee.

Ans- lioyds

Que 2: LIC of India Act was passed in June 1956 but it came into force on ________.

 July. 27, 1956

 Aug. 27, 1956

 Sept. 1, 1956

 Nov. 11, 1956.

Ans- Sept. 1, 1956

Que 3: Every Insurer carrying on business in India shall invest and at all time keep invested an amount not exceeding ________ of their funds in other capital market Investments.

 15%

 20%

 25%

 35%

Ans- 35%

Ans 4 - 43

Que 5: Which among the following is a method of Risk Transfer?

 Bank FD

 Insurance

 Equity shares

 Real Estate

Que 6: Which of the following statements is true?

Insurance is a method of sharing the losses of a ?few? by ?many?

 Insurance is a method of transferring the risk of an individual to another individual

 Insurance is a method of sharing the losses of a ?many? by a ?few?

 Insurance is a method of transferring the gains of a few to the many

Ans- Insurance is a method of sharing the losses of a ?few? by ?many?

Que 7: Insurance is a mechanism that helps reduce adverse consequences through ___________.

 Pooling,

 Spreading

 Sharing of risk.

 Pooling, spreading and sharing of risk.

Ans-Pooling, spreading and sharing of risk.

Que 8: Employees State Insurance Act 1948 provides for:

 Medical aid to workers and their families working in Industries located in certain notified areas

 State Insurance for employees and their families with no premium paid.

 Both the above

 None of the two.

Ans- Medical aid to workers and their families working in Industries located in certain notified areas

Ans 9- 18 -50

Que 10: General Insurance means___________.

 Insurance of property against fire, burglary etc.

 Personal insurance such as accident and health insurance,

 Liability insurance that covers legal liabilities etc.

All the above

 Ans- All the above

Que 11: An insurer is bound to furnish details regarding:

 Standard features of the policy.

 Premium / deduction as standard policy condition

 Inclusion and exclusions of the policy.

 All the above three.

Ans- All the above three.

Que 12: How breach of Utmost Good faith occurs in a contract of insurance?

 Through Misrepresentation.

 Through Non-Disclosure

 Through both of the above

 Through none of the above

Ans- Through both of the above

Que 13: In property insurance Insurable interest must exist at the time of ________.

 Inception

 Loss

 Inception and Loss both

 None of the two

Ans- Inception and Loss both

Que 14: Generally a person seeking insurance writes a form to the insurer and applies for insurance. This form is known as _____.

 Application Form

 Proposal form

 Policy Form

 Endorsement form.

Ans- proposal form

Que 15: In any contract if there is an offer and acceptance, what is the third condition that must be fulfilled to make it a complete contract?

 Consideration

 Lien

 Counter offer

 Deferment.

Ans- Consideration

Que 16: A fact that influences a prudent underwriter?s decision to accept the risk or not is known as ______.

 Main Fact

 Common Fact

 Material Fact

 None of the three.

Ans-Material Fact

Que 17: Gautama gets his tractor insured for a sum saying that the tractor is two years old. But in an accident, when the tractor becomes a total loss, the insurer comes to know that the said tractor was 10 years old. The insurer can reject the claim stating_____

 Misrepresentation

 Non-Disclosure of material fact

 Indemnity

 None of the three.

Ans- Non-Disclosure of material fact

Que 18: Indemnity means a guarantee or an assurance to put the insured in the same position in which he was immediately prior to the happening of the contingency insured. That means the insurer undertakes to ______.

 Pay the insured amount.

 Make good the loss.

 To pay 50% of the loss immediately.

 None of the three.

Ans- make good the loss

Que 19: Ram fell from a horse while riding and got his leg fractured. He kept lying on a wet land for a long time before he was taken to the hospital where he was diagnosed of pneumonia and he died of the pneumonia. The proximate cause was_______.

 Accidental fall from the horse.

 The Pneumonia

 The cold

 None of the above.

Ans- Accidental fall from the horse.

Que 20: Conventionally Insurance has been classified in to ________.

 Life Insurance and Motor Insurance

 Life Insurance and General Insurance.

 Life Insurance and Reinsurance

 Life Insurance and Fire insurance.

Ans- Life Insurance and General Insurance.

Que 21: Miscellaneous Insurance business means affecting insurance contracts on all kinds of risks other than _______.

 Life Insurance,

 Fire Insurance,

 Marine Insurance

 All the three above.

Ans- All the three above.

Que 22: Some insurance cannot be categorized as a standard group and are a part of ?Others? insurance like_____.

 Crop Insurance

 Cattle Insurance

 Travel Insurance

 All the above.

Ans- All the three above.

Que 23: All the Insurers in India are governed by the rules and regulations framed by IRDAI except_____.

 LIC of India

 Agriculture insurance Co. of India

 Postal Life Insurance

 None of the above.

Ans- Postal Life Insurance

Que 24: A Household insurance means _____.

 To take out a policy covering the Fixed assets of the house hold.

 To take out a policy covering the moveable assets of the house hold.

 Both of the above

 None of the above.

Ans- Both of the above

Que 25: Life Insurance provides the products like_______.

 Term Insurance and Endowment Insurance,

 Whole Life Insurance and Annuities

 Both of the above

 None of the above.

Ans- Both of the above