This quiz works best with JavaScript enabled. Home > Indian Polity > Regulatory > Bodies > Development Authority Irda – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Development Authority Irda Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... life insurance pays off a policy holders mortgage in the event of the persons death A) Term. B) Mortgage. C) Whole. D) Endowment. Show Answer Correct Answer: B) Mortgage. 2. ..... means that insurer would assess and compensateonly the exact amount of loss. A) Certainty. B) Uncertainty. C) Probability. D) Indemnity. Show Answer Correct Answer: D) Indemnity. 3. Risk Retention means- A) Insuring with an insurance company. B) Insuring with another individual. C) Insuring with the owner of the company. D) Self-insurance. Show Answer Correct Answer: D) Self-insurance. 4. Which is not an element of a valid contract? A) Offer and Acceptance. B) Capacity to pay premiums. C) Consideration. D) Capacity of the parties. Show Answer Correct Answer: B) Capacity to pay premiums. 5. Secondary burden of risk consists of ..... and ..... one has to bear if exposed to loss situation A) Trials, tribulations. B) Costs, Strains. C) Situations, Safeguards. D) Circumstances, Conflicts. Show Answer Correct Answer: B) Costs, Strains. 6. With increase in premium with age, healthy peopletended to withdraw leaving unhealthy people. Thislead to development of- A) Gross premiums. B) Single premiums. C) Advance premiums. D) Level premiums. Show Answer Correct Answer: D) Level premiums. 7. In decreasing term insurance, the premiums paid ..... over time A) Increase. B) Decrease. C) Remain Constant. D) Are Returned. Show Answer Correct Answer: B) Decrease. 8. What is the relation between Investment horizon and returns A) Both are not related at all. B) Greater the Investment horizon, larger the returns. C) Greater the Investment horizon, smaller the returns. D) Greater the Investment horizon, more tax on the returns. Show Answer Correct Answer: B) Greater the Investment horizon, larger the returns. 9. The difference between standard turnover and actual turnover during the indemnity period is: A) None of the below. B) Short Sales. C) Actual Sales. D) Total Sales. Show Answer Correct Answer: B) Short Sales. 10. Which is the 'consideration' from the insured in aninsurance contract? A) Premium. B) Proposal. C) Understanding. D) Acceptance. Show Answer Correct Answer: A) Premium. 11. What is not prohibited in the latest Insurance Amendments A) Rebates. B) Multi Level Marketing. C) Sharing of Commission. D) Commission. Show Answer Correct Answer: D) Commission. 12. ..... refers to the amount payable by the insurer to the insured when the policy become due for payment. A) Premium. B) Claim. C) Commission. D) Expenses. Show Answer Correct Answer: B) Claim. 13. Which of the following is incorrect? Mutuality means funds from variousindividuals are combinedB. Diversification means spreading out funds tovarious destinations. A) A is correct. B) B is correct. C) Both. D) None. Show Answer Correct Answer: C) Both. 14. Appropriations like interim dividend, proposed final dividend in GIC business are shown in A) P & L Appropriation A/c. B) Revenue A/C. C) Profit & Loss A/c. D) Trading A/c. Show Answer Correct Answer: C) Profit & Loss A/c. 15. Consent is not said to be free when it is caused by A) Coercion. B) Fraud. C) Misrepresentation. D) All the above. Show Answer Correct Answer: D) All the above. 16. Which is not an example of social security schemesof the Government? A) Rajeev Gandhi Equity Scheme. B) Janata Personal Accident. C) Jan Arogya Scheme. D) Employees State Insurance Corporation. Show Answer Correct Answer: A) Rajeev Gandhi Equity Scheme. 17. ..... is an annual guaranteed and paid by the Insurance company as long as the insured is alive . A) Annuity. B) Premium. C) Bonus. D) Commission. Show Answer Correct Answer: A) Annuity. 18. Which element of a valid contract deals with premium A) Offer and Acceptance. B) Consideration. C) Free Consent. D) Capacity of parties to Contract. Show Answer Correct Answer: B) Consideration. 19. Which among the following is a method of risk transfer? A) Bank FD. B) Insurance. C) Equity shares. D) Real estate. Show Answer Correct Answer: B) Insurance. 20. Which among the following is a secondary burden of risk? A) Business interruption cost. B) Goods damaged cost. C) Setting aside reserves as a provision for meeting potential losses in the future. D) Hospitalization costs as a result of heart attack. Show Answer Correct Answer: C) Setting aside reserves as a provision for meeting potential losses in the future. ← PreviousNext →Related QuizzesRegulatory QuizzesIndian Polity QuizzesDevelopment Authority Irda Quiz 1Development Authority Irda Quiz 2Development Authority Irda Quiz 4Development Authority Irda Quiz 5Development Authority Irda Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books