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Insurance Awareness Questions – Set 22

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Dear Aspirants,

Welcome to Insurance Awareness Questions in AffairsCloud.com. Here we are covering some important Insurance Awareness Questions & Answers with Explanations. It will help you to know the important terms, condition, definitions and abbreviation related with Insurance

  1. In 1818, India’s first insurance company Oriental Life Insurance Company has established in which city ?
    1.New Delhi
    2.Mumbai
    3.Kolkata
    4.Pune
    5.None of these
    Answer – 3.Kolkata
    Explanation :
    In 1818, Oriental Life Insurance Company started by Europeans in Calcutta

  2. In which year, the Indian Life Assurance Companies Act came into force ?
    1.1910
    2.1932
    3.1920
    4.1912
    5.None of these
    Answer – 4.1912
    Explanation :
    In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business

  3. Which insurance company is the first general insurance company in India  ?
    1.The Oriental Insurance Company
    2.GIC Re
    3.New India Assurance
    4.Triton Insurance Company Ltd
    5.None of these
    Answer – 4.Triton Insurance Company Ltd
    Explanation :
    Triton Insurance Company Ltd is the first general insurance company established in the year 1850 in Calcutta by the British.

  4. What is ULIP ?
    1.Unity-liked insurance plans
    2.Unit-linked insurance policy
    3.Unit-linked insurance plans
    4.Universal-linked insurance plans
    5.None of these
    Answer – 3.Unit-linked insurance plans
    Explanation :
    A ULIP or unit linked insurance plan is a market-linked product that aggregates the very best of investment and insurance. It is a plan which is linked to the capital market and offers flexibility to invest in equity or debt funds as per risk appetite.

  5. ______________ is an extension of endowment plans
    1.Health insurance policy
    2.Money back policy
    3.Term insurance policy
    4.General insurance policy
    5.None of these
    Answer – 2.Money back policy
    Explanation :
    Money back policies are basically an extension of endowment plans wherein the policy holder receives a fixed amount at specific intervals throughout the duration of the policy.

  6. A demand made by the insured, or the insured’s beneficiary, for payment of the benefits is known as
    1.Claim
    2.Reward
    3.Premium
    4.Coverage
    5.None of these
    Answer -1.Claim
    Explanation :
    An insurance claim is a formal request to an insurance company asking for a payment based on the terms of the insurance policy. The insurance company reviews the claim for its validity and then pays out to the insured or requesting party (on behalf of the insured) once approved.

  7. A risk or damage covered by an insurance policy is called as ______________
    1.Coverage
    2.Annuity
    3.Lapse
    4.Peril
    5.None of these
    Answer – 4.Peril
    Explanation :
    Peril is a specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft.

  8. The maturity age of a whole life policy is ____________
    1.100
    2.65
    3.70
    4.80
    5.None of these
    Answer – 1.100
    Explanation :
    A whole life policy is said to “mature” at death or the maturity age of 100, whichever comes first

  9. Which committee is associated  with insurance sector ?
    1.Malhotra Committee
    2.Adhyarjuna Committee
    3.A C Shah Committee
    4.A Ghosh Committee
    5.None of these
    Answer – 1.Malhotra Committee
    Explanation :
    In 1993, the first step towards insurance sector reforms was initiated with the formation of Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector.

  10. The first ULIP was launched  by which of the following ?
    1.United India Insurance Company
    2.Unit Trust of India
    3.Aviva India
    4.National Insurance Company
    5.None of these
    Answer – 2.Unit Trust of India
    Explanation :
    The first ULIP was launched by Unit Trust of India (UTI), with the Government of India opening up the insurance sector to foreign investors in 2001