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Insurance Awareness Questions – Set 23

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Dear Aspirants,

Welcome to Insurance Awareness Questions in 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. Which type of risks are not insurable ?
    1.Static risk
    2.Liability Pure Risk
    3.Dynamic risk
    4.Diversifiable risk
    5.None of these
    Answer – 3.Dynamic risk
    Explanation :
    Exposure to loss from changes in the environment, such as fashions, people’s tastes, and regulatory requirements. Dynamic risks are not insurable.

  2. GIVE stands for _______________
    1.Gross Insurance Value Element
    2.General Individual Value Execution
    3.Gross Incident Validity Element
    4.General Insurance Value Evaluation
    5.None of these
    Answer – 1.Gross Insurance Value Element
    Explanation :
    GIVE  (Gross Insurance Value Element ) is the amount payable on death of a policy holder

  3. Gratuity is paid when an employee
    4.Illness or disable due to accident
    5.All of these
    Answer -5.All of these
    Explanation :
    Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a compulsory benefit to be provided to employees as per the Gratuity Act, 1972.

  4. When a contract ceases to be enforceable at law, then it is called as
    1.Legal Contract
    2.Void contract
    3.Life contract
    4.Voidable contract
    5.None of these
    Answer – 2.Void contract.
    Explanation :
    The law relating to contracts in India is governed by The Indian Contract Act , 1872. A void contract is a contract which ceases to be enforceable by law.

  5. A professional dealing with the assessment and management of risk for insurance policies is known as
    5.None of these
    Answer – 3.Actuary
    Explanation :
    An actuary is a professional dealing with the assessment and management of risk for financial investments, insurance policies, and any other ventures involving a measure of uncertainty.

  6. In which year, the General Insurance Business Nationalization Act was passed in India ?
    5.None of these
    Answer – 1.1972
    Explanation :
    The General Insurance Business Nationalization Act was passed in 1972 to set up the general insurance business. It was the nationalization of 107 insurance companies into Four company National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company.

  7. An Insurance company has been in business for how many years to launch IPO ?
    5.None of these
    Answer – 4.10
    Explanation :
    If an Insurance company has been in business for 10 years, it can launch IPO( initial public offering)

  8. In 2016 , First IPO  launched by which insurance company  ?
    1.Oriental Insurance Company Ltd
    2.ICICI Prudential Life Insurance
    4.GIC Re
    5.None of these
    Answer – 2.ICICI Prudential Life Insurance
    Explanation :
    ICICI Prudential Life Insurance’s Rs 6,000-crore initial public offer (IPO), the first by an insurance company in India in 2016

  9. Which of the following is the only Reinsurer Company in India ?
    2.GIC Re
    5.None of these
    Answer – 2.GIC Re
    Explanation :
    GIC of India (GIC Re) was the sole reinsurance company in the Indian insurance market with over four decades of experience until the insurance market was open to foreign reinsurance players by late 2016 including companies from Germany, Switzerland and France.

  10. Government holds ____________% stake in LIC.
    5.None of these
    Answer – 3.100%
    Explanation :
    LIC is wholly owned by Government of India and was established under LIC Act 1956.