Insurance MCQ Questions with Answers

Insurance MCQ Questions with Answers

Insurance MCQ

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

Insurance MCQ on Insurance And Economic Development

1. Investments are made out of :

            (i) savings

            (ii) Expenses                                    

            (iii) Future earnings           

            (iv) None of the above

ANS.   (i) savings                

2. Insurance channelizes the savings into:

            (i) Productive Investments

            (ii) Unproductive Investments                                        

            (iii) Both (i) and (ii)

            (iv ) None of the above

ANS.   (i) Productive Investments                                 

3. Total population in developing country still live below the poverty line is :

            (i) 20%

            (ii) 40%

            (iii) 60%

            (iv) 80%

ANS. (ii) 40%

4. Internal savings flow from:

            (i) Household sector

(ii) Private corporate sector                                            

            (iii) Public sector

            (iv) All of the above

ANS.   (iv) All of the above                      

5. Household savings styudying :

            (i) Physical assets only

            (ii) Financial assets only                            

            (iii) Both of the above

            (iv) None of the above

ANS. (iii) Both of the above

6. Life insurance fund occupies the household savings in the year 2014-15:

            (i) 2.9%

            (ii) 3.0%

            (iii) 3.1%

            (iv) 2.8%

ANS. (ii) 3.0%

7. In Indian industry, the share of LIC is:

            (i) 50%          

            (ii) 10%                     

            (iii) 100%      

            (iv) 17%

ANS. (i) 50%

8. Every insurance company keep invested their fund in government securities is?

            (i) 35%

            (ii) 25%

            (iii) 10%

            (iv) 20%

ANS. (ii) 25%

9. Every life insurance company shall invest his controlled fund into infrastructure and social sector :

            (i) not less than 50%

            (ii) not exceeding 35%

            (iii) not less than 15%

            (iv) not exceeding 25%

ANS. (iii) not less than 15%

10. Every general Insurance company shall invest in central government securities being not less than:

            (i) 20%

            (ii) 30%

            (iii) 5%

            (iv) 25%

ANS. (i) 20%

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

Insurance MCQ on Fundamental Principles Of Insurance Contract

1. Methods of indemnity are :

            (i) Cash payment

            (ii) Repairs                                       

            (iii) Replacement    

            (iv) All of the above

ANS.   (iv) All of the above          

2. Principle of indemnity is not applicableto:

            (i) Fire Insurance

            (ii) Marine Insurance                                 

            (iii) Life Insurance

            (iv ) Motor Insurance

ANS.  (iii) Life Insurance                          

3. Which is not the general principle of insurance :

            (i) Offer and Acceptance

            (ii) Lawful consideration

            (iii) Principle of Subrogation

            (iv) Free Concent

ANS. (iii) Principle of Subrogation

4. The principle of insurable interest is:

            (i) General Principle

(ii) Fundamental Principle                                    

            (iii) Miscellaneous principle

            (iv) Ordinary Principle

ANS.   (ii) Fundamental Principle                                  

5. Which is not the fundamental principle of insurance?

            (i) Utmost Good Faith

            (ii) Indemnity                                  

            (iii) Capacity of parties

            (iv) Proximate Cause

ANS. (iii) Capacity of parties

6. Parties competent to make contract of insurance includes:

            (i) Who is of the age of majority

            (ii) Who is of sound mind

            (iii) Who is not disqualified

            (iv) All of theabove

ANS. (iv) All of the above

7. U/s 14 of Indian Contract Act, the consent for insurance contract is free when it is not caused by: :

            (i) Coercion  

            (ii)Undue Influence            

            (iii) Fraud     

            (iv) All of the above

ANS. (iv) All of the above

8. The object of Insurance contract is not lawful when:

            (i) It is not forbidden by law

            (ii) It is Immoral

            (iii) It is not opposed to public policy

            (iv) It is not against the provisions of any law

ANS. (ii) It is Immoral

9. Which is not the essential of insurable interest:

            (i) Specific subject matter

            (ii) Non-monetary benefit

            (iii) Legal relationship with subject matter

            (iv) Insured must have legal right in subject matter

ANS. (iv) Insured must have legal right in subject matter

10. A contract between two or more insurance companies by which a part of risk of loss is shifted to another insurer is :

            (i) Insurance

            (ii) Reinsurance

            (iii) Co-insurance

            (iv) None of the above

ANS.(ii) Reinsurance

11. The splitting or spreading of risk among multiple parties is:

(i) Insurance

            (ii) Double-insurance

            (iii) Re-insurance

            (iv) Co-insurance

ANS. (iv) Co-insurance

12. Which is the oldest method of re-insurance:

(i)Facultative Method

            (ii) Treaty Method

            (iii) Polling Method

            (iv) None of the above

ANS. (i)Facultative Method

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 method of Re-insurance covers larger risks?

(i)Facultative Method

            (ii) Treaty Method

            (iii) Polling Method

            (iv) None of the above

ANS. (iii) Polling Method

15. Insurance Act,1938 applies to:

(i) Life Insurance

            (ii) Fire Insurance

            (iii) Marine Insurance

            (iv) All of the above

ANS.   (iv) All of the above

16. Section 2(13)A of the Insurance Act,1938 deals with:

(i) Motor Insurance

            (ii) Marine Insurance

            (iii) Health Insurance

            (iv) All of the above

ANS. (ii) Marine Insurance

17. Section 2(6)A of the Insurance Act,1938 deals with:

(i) Motor Insurance

            (ii) Marine Insurance

            (iii) Health Insurance

            (iv) Fire Insurance

ANS. (iv) Fire Insurance

18. Organisation carrying on business of Insurance in India is:

(i) Public Companies

            (ii) Registered Co-operative Societies

            (iii) Company registered under any foreign act

            (iv) All of the above

ANS. (iv) All of the above

19. Section 42 of the Insurance Act,1938 deals with:

(i) Motor Insurance

            (ii) Marine Insurance

            (iii) Licensing of Insurance Agents

            (iv) Fire Insurance

ANS. (iii) Licensing of Insurance Agents

20. Section 2(II) of the Insurance Act,1938 deals with:

(i) Life Insurance

            (ii) Marine Insurance

            (iii) Motor Insurance

            (iv) Fire insurance

ANS.   (i) Life Insurance