You can also read: Accounting MCQ questions with answers [Class 12th]
Insurance MCQ on Introduction
1. The person whose risk is covered is :
(i) Insurer
(ii) Insured
(iii) Compensator
(iv) None of the above
ANS. (ii) Insured
2. The company who covers the risk is:
(i) Insured
(ii) Insurer
(iii) Compensator
(iv ) None of the above
ANS. (ii) Insurer
3. The amount paid by the insured to the insurer for insurance is :
(i) Cost
(ii) Price
(iii) Premium
(iv) Value
ANS. (iii) Premium
4. The amount paid by insurer to the insured on happening of any contingency is:
(i) Cost
(ii) Compensation
(iii) Premium
(iv) Value
ANS. (ii) Compensation
5. A contract of insurance defining terms and conditions is :
(i) Agreement
(ii) Insurance Policy
(iii) Insurance Contract
(iv) None of the above
ANS. (ii) Insurance Policy
6. The uncertainty about loss is :
(i) Loss
(ii) Fear
(iii) Risk
(iv) Contingency
ANS. (iii) Risk
7. ‘Uberramae fidle’ refers to :
(i) Good Behaviour
(ii) Good Attitude
(iii) Good manners
(iv) Good Faith
ANS. (iv) Good Faith
8. Which of the following is Assurance?
(i) Marine insurance
(ii) Life Insurance
(iii) General Insurance
(iv) All of the above
ANS. (ii) Life Insurance
9. Insurance is not a :
(i) Coverage
(ii) Assurance
(iii) Charity
(iv) None of the above
ANS. (iii) Charity
10. Insurance provides protection against:
(i) Loss
(ii) Income
(iii) Charity
(iv) Risks
ANS. (iv) Risks
11. What is an insurance that provides an insured to purchase different policies for the same subject matter:
(i) Insurance
(ii) Double-insurance
(iii) Re-insurance
(iv) None of the above
ANS. (ii) Double-insurance
12. what is an insurance that provides an insurer to get insurance with another insurer:
(i) Insurance
(ii) Double-insurance
(iii) Re-insurance
(iv) None of the above
ANS. (iii) Re-insurance
13. which of the following is a primary function of Insurance?
(i) Risk Sharing
(ii) Improves Efficiency
(iii) Provides Capital
(iv) None of the above
ANS. (i) Risk Sharing
14. which of the following is not a primary function of Insurance?
(i) Risk Sharing
(ii) Provides Security
(iii) Economic Progress
(iv) None of the above
ANS. (iii) Economic Progress
15. Oldest form of insurance is :
(i) Life Insurance
(ii) Fire Insurance
(iii) Marine Insurance
(iv) Motor Insurance
ANS. (iii) Marine Insurance
16. Which among the following is a type of General insurance plans?
(i) Motor Insurance
(ii) Marine Insurance
(iii) Health Insurance
(iv) All of the above
ANS. (iv) All of the above
17. IDV in Insurance stands for :
(i) Insured Demand Value
(ii) Insured Declared value
(iii) Insured Depreciated Value
(iv) None of the above
ANS. (ii) Insured Declared value
18. Who determines the third-party insurance premium of the two-wheelers?
(i) IRDAI
(ii) Insurance Company
(iii) Policy holder
(iv) Vehicle company
ANS. (i) IRDAI
19. IRDAI stands for:
(i)Insurance Regulatory and Development Authority of India
(ii) Insurance Research and Development Authority of India
(iii) Insurance Reforms and Development Authority of India
(iv) None of the above
ANS. (i)Insurance Regulatory and Development Authority of India
20. Oldest form of Insurance is :
(i) Life Insurance
(ii) Marine Insurance
(iii) Motor Insurance
(iv) Fire insurance
ANS. (ii) Marine Insurance
