This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Polity > Regulatory > Bodies > Development Authority Irda – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Development Authority Irda Quiz 2 (53 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the following is the traditional method that can help determine the Insurance needed by an individual A) Life Term Proposition. B) Human Economic Value. C) Future Life Value. D) Human Life Value. Show Answer Correct Answer: D) Human Life Value. 2. Fire Insurance is a classification under ..... insurance A) Life. B) General. C) Both of the above. D) None of the above. Show Answer Correct Answer: B) General. 3. This principle means flow of resources from many to one. A) Resourcing or pooling. B) Mutuality or co-operation. C) Mutuality or Pooling. D) Pooling or funding. Show Answer Correct Answer: C) Mutuality or Pooling. 4. RESERVES FOR UNEXPIRED RISK FOR BUSINESS IS? A) 25%. B) 50%. C) 100%. D) 75%. Show Answer Correct Answer: B) 50%. 5. In Insurance policies we always find a date which is "Date of Maturity" . What does it mean? A) This is the date on which the policy was sold to the customer/person insured. B) This is the date on which the contract between the person and insurance company will come to an end. C) This is the date on which the policy holder will have to submit his/her claim seeking the amount of the policy. Otherwise the company will not make any payment to him/her. D) None of these. Show Answer Correct Answer: B) This is the date on which the contract between the person and insurance company will come to an end. 6. SCHEDULE NO. 3 CONSISTS OF? A) COMMISSION. B) OPERATING EXPENSES. C) CLAIMS INCURRED. D) PREMIUM. Show Answer Correct Answer: A) COMMISSION. 7. Cost of the risk is product of which of the following 2factors: A) Insurance and Assurance. B) Happenings and result. C) Cause and effect. D) Probability and impact. Show Answer Correct Answer: D) Probability and impact. 8. Considering insuring an oil refinery is example of A) Don't risk more than you can afford to lose. B) Don't risk a lot for a little. C) Both are correct. D) Both are wrong. Show Answer Correct Answer: A) Don't risk more than you can afford to lose. 9. An individual with Aggressive Risk profile is likely to follow wealth ..... investment style A) Spending. B) Accumulation. C) Gifting. D) Consolidation. Show Answer Correct Answer: B) Accumulation. 10. In General Insurance the policy amount is payable: A) Only when insured has attained certain Age. B) After the expiry of the policy period. C) Only when the loss occurs or the liability arises. D) After the death of the Insured. Show Answer Correct Answer: C) Only when the loss occurs or the liability arises. 11. Which of the following TERM does not belong to the stock exchange? A) IPO. B) NSE. C) KPO. D) NAV. Show Answer Correct Answer: C) KPO. 12. An Insurance contract has to fulfill the requirements of A) Insurance Act 1938. B) LIC Act, 1956. C) Indian Contract Act, 1872. D) IRDA Act, 1999. Show Answer Correct Answer: C) Indian Contract Act, 1872. 13. Which is evidence of contract? A) Policy bond. B) Proposal. C) Deposit amount. D) First Premium Receipt. Show Answer Correct Answer: D) First Premium Receipt. 14. Which of the following is untrue? A. Insurance promotes efficient use of existingresourcesB. Insurance contributes to healthy economy andnational productivityC. Insurance policy can be used as a collateralsecurity A) A is true. B) B is true. C) A and B true. D) None. Show Answer Correct Answer: D) None. 15. Which component is not a part of capital market? A) Derivative Market. B) Equity Market. C) Debt Market. D) Insurance Market. Show Answer Correct Answer: D) Insurance Market. 16. The bonus which is to be paid on maturity of policy along with policy amount is known as A) Interim Bonus. B) Reversionary Bonus. C) Eventual Bonus. D) Annual Bonus. Show Answer Correct Answer: B) Reversionary Bonus. 17. The proposal form contains A) Personal details. B) Physical condition. C) Habits and pastimes. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Which of the following entity is exempt from thepurview of the IRDA? A) LIC of India. B) GIC of India. C) Postal Life Insurance. D) None. Show Answer Correct Answer: C) Postal Life Insurance. 19. Fire insurance provides cover for: A) Business employees. B) Tangible assets. C) Intangible assets. D) Fictitious assets. Show Answer Correct Answer: B) Tangible assets. 20. Which of the following can easily be compensatedthro' insurance? A) Primary burden of risk. B) Secondary burden of risk. C) Both. D) None. Show Answer Correct Answer: A) Primary burden of risk. 21. The emergence of which of the following necessitatesinsurance as a form of security? A) Joint family system. B) Nuclear family system. C) Both the above. D) None of the above. Show Answer Correct Answer: B) Nuclear family system. 22. Risk Transfer means- A) Insuring with another individual. B) Insuring with the owner of the company. C) Risk retention. D) Insuring with an insurance company. Show Answer Correct Answer: D) Insuring with an insurance company. 23. Agents balances (Dr) is shown in the balance sheet of LIC are A) Other Assets. B) Current Liabilities. C) Borrowing. D) Fixed Assets. Show Answer Correct Answer: A) Other Assets. 24. Preliminary expenses incurred by life insurance companies is treated as A) Miscelleneous Expenditure. B) A deduction from paid up share capital. C) A Fixed Assets. D) An operating expenses. Show Answer Correct Answer: B) A deduction from paid up share capital. 25. The type of market in which securities with less than one-year maturity is traded, is classified as: A) Transaction Market. B) Global Market. C) Money Market. D) Capital Market. Show Answer Correct Answer: C) Money Market. 26. In LIC Revenue account, Schedule 4 is named as A) Claims. B) Benefits paid. C) Premium. D) Operating Expenses. Show Answer Correct Answer: B) Benefits paid. 27. Risk Financing includes- A) Risk Retention. B) Risk Transfer. C) A & B correct. D) Both A & B wrong. Show Answer Correct Answer: C) A & B correct. 28. Which is not a contract of indemnity? A) Fire. B) Marine. C) Personal Accident. D) Motor. Show Answer Correct Answer: C) Personal Accident. 29. Origins of modern insurance business can be traced to ..... A) Lloyds. B) Malhotra Committee. C) Bottomry. D) Rhodes. Show Answer Correct Answer: A) Lloyds. 30. Which among the following is the regulator for the insurance industry in India? A) Insurance Authority of India. B) Insurance Regulatory and Development Authority of India. C) Life Insurance Corporation of India. D) General Insurance Corporation of India. Show Answer Correct Answer: B) Insurance Regulatory and Development Authority of India. 31. When is the best time to start financial planning? A) As soon as one gets his first salary. B) Post Retirement. C) After Marriage. D) Only after one gets rich. Show Answer Correct Answer: A) As soon as one gets his first salary. 32. ..... consists of collecting premiums from numerousindividuals to compensate the few who may sufferlosses A) IRDA. B) Guarantee. C) Pooling. D) Contract. Show Answer Correct Answer: C) Pooling. 33. The commission received from the re-insurer is called A) Commission on reinsurance accepted. B) Commission on reinsurance ceded. C) Commission on Direct Business. D) None of the above. Show Answer Correct Answer: B) Commission on reinsurance ceded. 34. Which of the below cannot be categorized under risks? A) Dying too young. B) Dying too early. C) Natural wear and Tear. D) Living with disability. Show Answer Correct Answer: C) Natural wear and Tear. 35. The money market where debt and stocks are traded and maturity period is more than a year is classified as: A) Capital Markets. B) Long-term markets. C) Counter markets. D) Shorter term markets. Show Answer Correct Answer: A) Capital Markets. 36. How many companies are included in the SENSEX of India? A) 30. B) 111. C) 50. D) 25. Show Answer Correct Answer: A) 30. 37. If the indemnity period is six months, Previous year sale during indemnity is 20, 000, Annual sales is 50, 000, sales during indemnity period (Current year) is 8, 000, then short sales amount will be: A) 30, 000. B) Insufficient information. C) 42, 000. D) 12, 000. Show Answer Correct Answer: D) 12, 000. 38. Insurance refers to protection against an event that ..... happen whereas Assurance refers to protectionagainst an event that ..... happen. A) Might, will. B) Will, will not. C) Must, need not. D) May, may not. Show Answer Correct Answer: A) Might, will. 39. The policy period in General Insurance is ..... A) 1 year. B) 1-5 years. C) 10-15 years. D) 5-10 years. Show Answer Correct Answer: A) 1 year. 40. The average clause in a loss of profit policy protects the ..... A) Insuree. B) Insurance agent. C) Insurance company. D) Insurer. Show Answer Correct Answer: D) Insurer. 41. Which are the methods to manage risks? A) Risk Avoidance. B) Risk Retention. C) Risk Reduction. D) All the above. Show Answer Correct Answer: D) All the above. 42. How life insurance is possible? A) Timing of death is certain. B) Timing of death is uncertain. C) Death is certain but its timing is uncertain. D) None of the above. Show Answer Correct Answer: C) Death is certain but its timing is uncertain. 43. Human Life Value concept measures the value of ahuman life on the basis of his- A) Net earnings. B) Total earnings. C) Gross earnings. D) Expenses. Show Answer Correct Answer: A) Net earnings. 44. ..... and ..... refer to measures to reduce chance ofoccurrence and measures to reduce degree of losses. A) Loss Prevention, Loss damage. B) Loss advantage, Loss prevention. C) Loss Control, Loss management. D) Loss Prevention, Loss Reduction. Show Answer Correct Answer: D) Loss Prevention, Loss Reduction. 45. If any condition is put by the Insurer then it is- A) Conditional acceptance. B) Counter offer. C) Offer. D) Acceptance. Show Answer Correct Answer: B) Counter offer. 46. RESERVES FOR UNEXPIRED RISK FOR MARINE BUSINESS IS? A) 50%. B) 25%. C) 100%. D) 75%. Show Answer Correct Answer: C) 100%. 47. Which was the first Act to regulate life insuranceindustry in India? A) Life Insurance Companies Act, 1912. B) Insurance Act, 1938. C) IRDA Act, 1999. D) LIC Act, 1956. Show Answer Correct Answer: A) Life Insurance Companies Act, 1912. 48. Which among the following scenarios warrants insurance? A) The sole bread winner of a family might die untimely. B) A person may lose his wallet. C) Stock prices may fall drastically. D) A house may lose value due to natural wear and tear. Show Answer Correct Answer: A) The sole bread winner of a family might die untimely. 49. Which of the following is correct? Life insurance is a long term contractGeneral insurance is a short term contract A) A is correct. B) B is correct. C) Both A and B correct. D) None. Show Answer Correct Answer: C) Both A and B correct. 50. The person who makes the offer is called the ..... and the person who accepts the offer in an insurancecontract is called the ..... A) Insurer, Insured. B) Proposer, Insured. C) Offerer, Acceptor. D) Proposer, Insurer. Show Answer Correct Answer: D) Proposer, Insurer. 51. In which type of contract, the happening of event iscertain but its timing is not known A) Life Insurance. B) General Insurance. C) Both. D) None. Show Answer Correct Answer: A) Life Insurance. 52. Risk reduction and control involves steps like- A) Education and training. B) Making environmental changes. C) Spreading out items to various locations. D) All the above. Show Answer Correct Answer: D) All the above. 53. Which of the following is not a valid consideration for a contract A) Jewelry. B) Money. C) Bribe. D) Property. Show Answer Correct Answer: C) Bribe. ← PreviousRelated QuizzesRegulatory QuizzesIndian Polity QuizzesDevelopment Authority Irda Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books