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Insurance Awareness Questions – Set 24

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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. What is the FDI limit of Insurance Sector  ?
    1.100%
    2.26%
    3.35%
    4.49%
    5.None of these
    Answer – 4.49%
    Explanation :
    The FDI limit of insurance sector was raised to 49 percent in June 2016.

  2. _____________ is the only public sector company in the field of life insurance in India
    1.NIACL
    2.NICL
    3.LIC
    4.GIC Re
    5.None of these
    Answer – 3.LIC
    Explanation :
    There are currently, a total of 24 life insurance companies in India. Of these, Life Insurance Corporation of India (LIC) is the only public sector insurance company in the field of life insurance

  3. ULIP is a product offered by
    1.Government
    2.Public Sector Banks
    3.Financial Institutions
    4.Insurance companies
    5.None of these
    Answer – 4.Insurance companies
    Explanation :
    A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan.

  4. Which of the following organization provides export credit insurance support to Indian exporters ?
    1.ECGC
    2.IRDA
    3.LIC
    4.GIC Re
    5.None of these
    Answer – 1.ECGC
    Explanation :
    The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

  5. The minimum paid up capital for any insurance business- Life or General is
    1.Rs.50 Cr
    2.Rs.100 Cr
    3.Rs.150 Cr
    4.Rs.200 Cr
    5.None of these
    Answer – 2.Rs.100 Cr
    Explanation :
    The Bill will allow companies, exclusively into the business of health insurance, to operate with a minimum paid up capital of Rs 50 crore against the current minimum paid up capital of Rs 100 crore for any insurance business- Life or General. For re-insurance business the minimum paid-up capital will be Rs 200 crore.

  6. The Insurance Regulatory and Development Authority (IRDA) was constituted in
    1.2000
    2.2001
    3.2004
    4.1999
    5.None of these
    Answer – 1.2000
    Explanation :
    Following the recommendations of the Malhotra Committee, in 1999 the Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop the insurance industry and was incorporated in April 2000.

  7. _____________ is the sum paid on the policy’s maturity date
    1.Final Cost
    2.Face Value
    3.Final Payment
    4.Face Amount
    5.None of these
    Answer – 4.Face Amount
    Explanation :
    In life insurance, face amount is the sum paid on the policy’s maturity date, on the death of the insured, or (if the policy terms permit) on his or her total disability.

  8. The free-look period is of how many days ?
    1.10
    2.15
    3.20
    4.30
    5.None of these
    Answer – 2.15
    Explanation :
    Free look period  is a window of opportunity for you to return your insurance policy if you find that it’s not what you actually wanted. The free-look period is of 15 days which starts from the day you receive the policy documents.Typical free look period are from 10-60 days depend on the product sold

  9. The temporary assignment of the monetary value of a life insurance policy is known as
    1.Cash Value
    2.Decedent
    3.Cash Surrender value
    4.Collateral
    5.None of these
    Answer – 4.Collateral
    Explanation :
    Collateral is temporary assignment of the monetary value of a life insurance policy as security for a loan

  10. Which bank become the first bank to set up a wholly-owned non-life insurance company ?
    1.Kotak Mahindra Bank
    2.ICICI
    3.HDFC
    4.SBI
    5.None of these
    Answer – 1.Kotak Mahindra Bank
    Explanation :
    Kotak Mahindra Bank became the first bank to set up a wholly-owned non-life insurance company. The bank is already the promoter of a life insurance company in partnership with Old Mutual of South Africa.