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Insurance Awareness Questions – Set 26

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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. __________________ is /are the monopoly of General Insurance Company 
    1.Life Insurance
    2.Crop Insurance
    3.Health Insurance
    4.All of these
    5.None of these
    Answer – : 2.Crop Insurance
    Explanation :
    In India Crop insurance is the monopoly of General Insurance Company

  2. Which of the following is true ?
    1.Insurance is the business carried on by an organisation
    2.Insurance is the sum of money that is borrowed
    3.Insurance is the business that can provide some services
    4.Insurance is a collective bearing of risk
    5.None of these
    Answer – 4.Insurance is a collective bearing of risk
    Explanation :
    Collective Bearing of Risk:Insurance is a device to share the financial loss of few among many others.

  3. Which type of insurance policy provides additional coverage to easily movable property ?
    1.General Insurance
    2.Floater Insurance
    3.Life Insurance
    4.General Liability Insurance
    5.None of these
    Answer – 2.Floater Insurance
    Explanation :
    Floater Insurance is a type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. This can cover anything from jewelery to expensive stereo equipment.

  4. ________________ is some amount of money will paid before insurance will pay 100% for an individual’s health-care expenses.
    1.Out-of-Pocket Limit
    3.Point-of-Service Plan
    4.Personal Injury Protection
    5.None of these
    Answer – 1.Out-of-Pocket Limit 
    Explanation :
    An out-of-pocket maximum is the most you’ll have to pay during a policy period (usually a year) for health care services. Once you’ve reached your out-of-pocket maximum, your plan begins to pay 100 percent of the allowed amount for covered services.

  5. Which of the following require IRDA licence to start its functioning in India ?
    1.Insurance Brokers
    3.Insurance Agents
    4.Third party administrators
    5.All of these
    Answer – 5.All of these
    Explanation :
    All insurance intermediaries require IRDA licence .

  6. Which insurance company has formed a specialist subsidiary Agricultural Insurance Corporation (AIC) ?
    1.New India Assurance
    2.Oriental Insurance Company
    3.Life Insurance Corporation
    4.General Insurance Corporation
    5.None of these
    Answer – 4.General Insurance Corporation
    Explanation :
    The General Insurance Corporation (GIC) of India has formed a specialist subsidiary, Agricultural Insurance Corporation (AIC) in order to provide a company/institutional focus for this class of business.

  7. Which  is the provision of insurance  products by a bank. ?
    5.None of these
    Answer – 3.Bancassurance
    Explanation :
    Bancassurance is a term referring to the selling of insurance through a bank’s established distribution channels.   In other words, we can say Bancassurance is the provision of insurance  (assurance) products by a bank.

  8. Which of the following is the biggest non-life insurer in the entire Afro-Asia region ?
    1.Life Insurance Corporation of India
    2.General Insurance Company
    3.United India Insurance Company
    4.New India Assurance
    5.None of these
    Answer – 4.New India Assurance
    Explanation :
    New India Assurance is the biggest non-life insurer in the entire Afro-Asia region except Japan. New India Assurance is the first ever Indian general insurance company to reach Rs. 18371 Cr. gross premium.

  9. The headquarters of General Insurers Public Sector Association of India (GIPSA)  is situated in
    1.New Delhi
    5.None of these
    Answer – 1.New Delhi
    Explanation :
    After opening up of the insurance sector and de-linking from GIC in 2000, the four General Insurance Companies, namely, National Insurance Company, New India Assurance Company, Oriental Insurance Company, and United India Insurance Company, are functioning independently. They have formed an association known as General Insurers Public Sector Association of India (GIPSA) with headquarters in Delhi.

  10. IFRS stands for
    1.Initial Financial Reporting Standards
    2.International Financial Reporting Standards
    3.International Finance Reporting System
    4.Indian Financial Regulation Section
    5.None of these
    Answer – 2.International Financial Reporting Standards
    Explanation :
    International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB).