Deck 4: Insurance Principles and Regulations

Question 1

………..principle in insurance mention the cause of loss must be direct and an insured one in order to claim for compensation.

A)subrogation
B)causa proxima
C)indemnity
D)uberrima fides

Answer 1

causa proxima

Question 2

………… principle in insurance mention the assured must have insurable interest in the life or property insured.

A)subrogation
B)causa proxima
C)indemnity
D)insurable interest.

Answer 2

insurable interest.

Question 3

The first insurance contract was entered into by European maritime nations in 1347 to accept ……..insurance as a practice.

A)life
B)vehicle
C)marine
D)fire

Answer 3

marine

Question 4

Dr.Nicholas Barbon set up in 1967 the first fire insurance company known as the ………..

A)Nicolas company
B)fire company
C)fire insurance company
D)fire office

Question 5

The oldest life insurance company in existence today is the society for the equitable assurance of lives and survivorship, known as ………

A)Eqitable insurance
B)Old equitable
C)socity for insurance
D)none of these.

Question 6

The ……………discovered by Jakob Bernoulls around 1700 forms the basis of modern insurance.

A)law of insurance
B)law of large numbers
C)law of modern insurance.
D)none of these

Question 7

The Sanskrit term …………..,the name of LIC of India corporate headquarters,is found in Rig Veda.

A)Yogaraksha
B)Yogakarma
C)Yogakshema
D)all of these.

Question 8

The …………..company was the first insurance company to be set up in India to help the widows of the Europian community.

A)Life insurance corporation of India.
B)Oriental Life Insurance Company
C)National insurance company
D)Bajaj insurance

Question 9

………..is the first comprehensive legislation governed both life and non-life branches of insurance was enacted to provide strict state control over the insurance business in India.

A)Insurance Act-1938
B)Insurance Act-1939
C)Insurance Act-1940
D)Insurance Act-1941

Question 10

The LIC of India was set up in ……..to take over 245 life companies.

A)1955
B)1956
C)1957
D)1958

Question 11

………….committee suggested the re-opening up of the insurance sector to private players.

A)K.N.Malhotra
B)R.N.Malhothra
C)Nrasimham
D)Goyal

Question 12

The insurance industry till august 2000 had only two nationalised players ,LIC and ….

A)NI
B)GIC
C)IRDA
D)none of these

Question 13

The ………….,has allowed cooperative societies to carry on insurance business.

A)Insurance (amendment)Act,2000
B)Insurance (amendment)Act,2001
C)Insurance (amendment)Act,2002
D)Insurance (amendment)Act,2003

Question 14

……….. was constituted as an autonomous body to regulate and develop the business of insurance and reinsurance in India.

A)LIC
B)GIC
C)IRDA
D)NBFC

Question 15

Objective of IRDA includes

A)policy holder protection
B)healthy growth of the insurance market
C)both a and b
D)only a

Question 16

IAIS stands for……

A)Internal Association of Insurance Supervisors
B)International Association of Insurance Supervisors
C)International Academy of Insurance Supervisors
D)International Association of Insurance Surveyors

Question 17

To provide the insured a speedy and inexpensive grievance redressal system ,the Govt.of India promulgated…………

A)Redressel of public grievance Rule 1987
B)Redressel of public grievance Rule 1988
C)Redressel of public grievance Rule 1989
D)Redressel of public grievance Rule 1990

Question 18

RPG rule 1988 set up an institution for building the confidence of the policy holders in insurance.

A)management
B)ombudsman
C)council
D)committee

Question 19

An ombudsman is entrusted with………..functions

A)managing & concilling
B)conciliation and award making
C)agency and principal
D)none of the above

Question 20

The ……….associated with the insurance business are agents, surveyors, loss assessors, brokers, third party administrators and banks.

A)management
B)organisation
C)intermediaries
D)regulators

Question 21

…………..in the insurance are just like the retailers of any consumer product who help in selling and distributing the product.

A)surveyors
B)loss assessors
C)agents
D)banks

Question 22

…………are independent professionals appointed by an insurance company to assess the loss or damage when a claim is notifed under a policy issued by them.

A)surveyors
B)loss assessors
C)agents
D)both a and b

Question 23

…………are agents but they can sell policies of several life and non-life insurance companies at a time.

A)surveyors
B)loss assessors
C)brokers
D)banks