Question 1

________ can be done by mere endorsement on the policy or by a separate duly stamped deed.

Accepted Answer

A) Assignment 
B) Nomination 
C) Renewal 
D) Revival A

Question 2

Insurance contract is sort of contract which is approved by

Accepted Answer

A) The Indian Contract Act 
B) Indian Factory Act 
C) Indian Companies Act 
D) The Indian Finance Act A

Question 3

The person responsible for evaluation and acceptance / rejection of risks and computation of premium in insurance is called

Accepted Answer

A) Insured 
B) Assurer 
C) Agent 
D) Underwriter D

Question 4

Which of these persons will not be given a license to work as an insurance agent?

Accepted Answer

A) A person with criminal record 
B) A corporate insurance executive. 
C) An employee of an insurance company 
D) All the three mentioned here.

Question 5

In legal sense, Insurance is a

Accepted Answer

A) Contract 
B) Activity 
C) Gambling 
D) Publicity

Question 6

The document which contains the terms and conditions of the life insurance contract is termed as the

Accepted Answer

A) Agreement 
B) Life Insurance Policy 
C) Cover Note 
D) Proposal Form

Question 7

_____________ are independent professionals appointed by an insurance company to assess the loss or damage on a claim under a policy.

Accepted Answer

A) Surveyors 
B) Loss Assessors 
C) Both a and b 
D) Agents

Question 8

The agents who are selling policies of several life and non life insurance companies at a time are known as

Accepted Answer

A) Brokers 
B) Surveyors 
C) Underwriters 
D) banks

Question 9

Insurance is a cooperative form of distributing a certain__________over a group of persons who are exposed to it.

Accepted Answer

A) Uncertainty 
B) Risk 
C) Peril 
D) Hazards

Question 10

What is a proposal?

Accepted Answer

A) A request for an insurance cover 
B) An offer to enter into a contract 
C) Both a and b 
D) None of the above

Question 11

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

Accepted Answer

A) Underwriters 
B) Surveyors 
C) Agents 
D) Banker

Question 12

Which of the following is an evidence of insurance contract?

Accepted Answer

A) Policy Document 
B) payment of premium. 
C) cover note 
D) acceptance of proposal

Question 13

Master policy is issued for ___________.

Accepted Answer

A) Group Insurance 
B) Term Insurance 
C) Marine Insurance 
D) Individual Policy

Question 14

Insurance prices are called

Accepted Answer

A) Commissions 
B) Allowances 
C) Premiums 
D) Discounts

Question 15

A memorandum added to a policy embodying some alterations to the terms of policy is known as

Accepted Answer

A) Surrender 
B) Endorsement 
C) Nomination 
D) Breach of Contract

Exam 1: Insurance: Principles, Policies, and Practices

________ can be done by mere endorsement on the policy or by a separate duly stamped deed.