Insurance GK Questions Answers

1. Which of the following is the only public sector company in the field of life insurance?
a. General insurance company
b. New India assurance company
c. Oriental insurance company
d. SBI Life Insurance Company
e. Life Insurance Corporation of India
Ans : e Life Insurance Corporation of India

2. “A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against” is technically known as
a. Death coverage
b. Insurance Premium
c. Life insurance
d. Savings for future
e. Provident fund
Ans : Life Insurance

3. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.
Ans : b. SBI General Insurance Company Limited is a joint venture between the State Bank of India and Insurance Australia Group (IAG). SBI owns 74% of the total capital and IAG the remaining 26%.

4. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking Life insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.
Ans : e . SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. 

5. Which of the following is the regulator of insurance sector in India?
a. RBI
b. AMFI
c. IRDA
d. SEBI
e. IRDAI
Ans : e. Recently IRDA was named IRDAI. 

6. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash – Sab ki Surakhsa Hamare Paas?
a. Life Insurance Corporation
b. Oriental Insurance Company
c. New India Assurance
d. General Insurance Company
e. SBI Life Insurance
Ans : b. 
7. Which of the following is/are the various types of insurance?

1. Life insurance
2. Health insurance
3. Liability insurance
a. Only (1)
b. Only (1) and (2)
c. Only (2) and (3)
d. Onnly (1) and (3)
e. All the three
Ans : e

8. Which of the following public sector companies/organizations provides insurance cover to exporters?
a. RBI
b. ECGC
c. NABARD
d. SIDBI
e. IRDA
Ans : b

9. What is the minimum paid up capital required for a General Insurance Company to commence its operations in India ?
a. 200 Crore
b. 500 Crore
c. 250 Crore
d. 100 Crore
e. 300 Crore
Ans : d 100 Crore
10. Which bank recently became the first bank in India to fully own an insurance business ?
a. HDFC Bank
b. Kotak Mahindra Bank
c. ICICI Bank
d. IDBI Bank
e. Canara Bank
Ans : b. Kotak Mahindra Bank on 25 November 2014 became first bank in India to fully own an insurance business after Reserve Bank of India (RBI) gave permission to set up a wholly-owned non-life insurance company called Kotak General Insurance.

 

 

11. Insurance works on the principle of:
a. Sharing of losses
b. Probabilities
c. Large numbers
d. Randomness
e. All of the above
Ans: e. All of the above

12. Insurance helps to:
a. Prevent adverse situations from occurring
b. Reduce the financial consequences of adverse situations
c. Negate all consequences of adverse situations
d. Make assets continuously productive
e. All of the above
Ans: b. Reduce the financial consequences of adverse situations.

13. The main purpose of having Life insurance is:
a. As an avenue for long-term investment
b. As a medium for getting income tax benefits from savings
c. As a governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Ans: e. None of the above

14. Which of the following intermediaries do not require IRDA’s licence/ approval to operate in India?
a. Insurance Brokers
b. Insurance Agents
c. Third Party Administrators
d. Surveyors
e. All the above intermediaries require IRDA’s licence/ approval
Ans: e. All the above intermediaries require IRDA’s licence/ approval

15. An actuary is expected to:
a. Make an exact forecast of the future liabilities of policies
b. Make a reasonable forecast of the future liabilities of policies
c. Calculate the premium required to cover a risk on a long-term basis
d. Find the probability of an insured event to happen in non-life policies
e. All the above statements are incorrect
Ans: b. Make a reasonable forecast of the future liabilities of policies

16. As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of:
a. Age and sex
b. Age and number of dependents
c. Income and size of family
d. Age and income
e. Income and number of dependents
Ans: d. Age and income. 

17. As per the Insurance Act, every insurer has to prepare at the end of financial year
a. Balance Sheet
b. Profit and Loss Account
c. Revenue Account for each class of Insurance business
d. Accounts of receipts and payments in respect of share-holders’ funds
e. All of the above
Ans: e. All of the above

18. According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI in Insurance Sector is :
a. 74%
b. 26%
c. 49%
d. 51%
e. None of these
Ans : c. 49 %

19. England-based Willis Group Holdings, the third largest insurance brokerage in the world recently picked up 49 per cent stake in which Indian Insurance Brokerage Company ?
a. IndiaFirst Life Insurace
b. Almondz Insurance Brokers
c. Heritage Insurance Brokers
d. Bharat Re- Insurance Brokers
e. Aditya Birla Insurance Broker
Ans : b Almondz Insurance Brokers

20. Which of the following types of companies/organisations issue ULIP?
a. Insurance companies
b. Stock brokers
c. Banks
d. NABARD
e. RBI
Ans : a ULIP – Unit Linked Insurance Plan

21. Which is the sole reinsurance company in the Indian insurance market ?
a. United India Insurance Company Limited
b. General Insurance Corporation of India
c. New India Assurance Company Limited
d. The Oriental Insurance Company
e. Life Insurance Corporation of India
Ans : b Reinsurance is insurance that is purchased by an insurance company.

22. Study the table below and find out which one of them is wrong :
Insurance Company Head Office
a. Oriental Insurance Company Ltd New Delhi
b. United India Insurance Company Limited Chennai
c. National Insurance Company Limited Kolkata
d. The New India Assurance Co. Ltd. Mumbai
e. General Insurance Corporation Hyderabad
Ans : e. General Insurance Corporation has its headquarters at Mumbai. 

23. Study the table below and find out which one o them is wrongly matched [ As on 5 March 2015 ]
Insurance Company Chairman
a. Life Insurance Corporation of India Shri S. K. Roy
b. National Insurance Company Limited Shri A.V. Girija Kumar
c. Oriental Insurance Company Ltd Dr. A.K.Saxena
d. General Insurance Corporation A K Roy
e. The New India Assurance Co. Ltd. Milind Kharat
Ans : e

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