Top 30+ Important Insurance Questions | Insurance Interview Questions

Top 30+ Important Insurance Questions | Insurance Interview Questions

Important Insurance Questions: If you are preparing for any competitive exam then you should check out these important questions on Insurance Industry.

In this article we have covered most frequent asked questions on Travel Insurance, Health Insurance, Car Health and Life insurance. Read this article carefully before going for an Exam. All the best!

1. What is the largest single class of general insurance sold in Canada?
A. Property insurance
B. Liability insurance
C. Automobile insurance
D. Crime insurance
Answer: Automobile insurance

2. In life insurance, profit is determined by____________.
A. the accountant who prepares the balance sheet.
B. the actuary who makes a valuation.
C. the auditor who certifies the annual accounts.
D. the third party.
Answer: the actuary who makes a valuation.

3. Which of the following types of companies/organizations issue ULIP?
A. Insurance companies
B. Banks
C. NABARD
D. RBI
Answer: Insurance companies

4. Insurance is necessary because
A. assets usually depreciate over a period of time
B. assets require regular maintenance
C. assets may be damaged in the course of their use
D. All of the above
Answer: assets may be damaged in the course of their use

5. Insurance concept is based on
A. the charity concept
B. mutual help concept
C. Both ‘a’ and ‘b’
D. None of these
Answer: Both ‘a’ and ‘b’

6. Moral hazard by health insurance companies can result in _________.
A. Community rating
B. Abuse of health insurance
C. Adverse selection
D. Risk pooling
Answer: Adverse selection

7. The word ‘Assurance’ is used for
A. Life Insurance
B. Fire Insurance
C. Marine Insurance
D. Medical Insurance
Answer: Life Insurance

8. When did Life Insurance Corporation come into existence ?
A. 1st September 1956
B. 1st January 1964
C. 1st January 1973
D. 5th September 1960
Answer: 1st September 1956

9. The first company transacted insurance business was
A. LIC
B. GIC
C. Indian Mercantile Insurance Company
D. Oriental insurance Company.
Answer: Indian Mercantile Insurance Company

10. Those risks which are more than normal risk are called
A. Super standard risk
B. Substandard risk.
C. Both of the above
D. Neither of them
Answer: Both A And B

11. Credit Insurance Covers
A. Coverage against bad debts
B. Coverage against fire loss
C. Coverage against Marine loss
D. Coverage against burglary
Answer: Coverage against bad debts

12. Poultry Insurance covers
A. Species of Birds
B. Reared of Eggs
C. Meats of Feathers
D. All the above
Answer: All the above

13. The first Canadian insurer grew from which organization?
A) Nicholas Barbon Insurance
B) Nova Scotia Fire Insurance Association
C) Western Assurance Company
D) Halifax Fire Protection Company
Answer: Nicholas Barbon Insurance

14. Which amongst the following is not an insurance company functioning in India?
1. ICICI prudential
2. ING Vysya
3. National Securities Depository Limited
4. New India Assurance company
Answer: National Securities Depository Limited

15. Which of the following is the regulator of insurance sector in India?
1. RBI
2. AMFI
3. IRDA
4. SEBI
Answer IRDA(IRDA: Insurance Regulatory and Development Authority)

16. The principle behind insurance is
A. probabilities
B. large numbers
C. sharing the risk
D. All of these
Answer: All of these

17. When was life insurance sector nationalized?
A. 1907
B. 1834
C. 1956
D. 1938
Answer: 1956

18. When the same risk and subject matter is insured with more than one insurer is called as_______.
A. Double insurance
B. Over insurance
C. Reinsurance
D. External insurance
Answer: Double insurance

19. The proportion of the risk which the direct insurer holds on his own account refers to ___________.
A. Line.
B. Retention
C. Retrocession
D. Ceding insurer
Answer: Retention

20. Cargo Ship Caught by fire is an example of __________.
A. Particular average loss
B. General average loss
C. constructive total loss
D. Actual total loss
Answer: General average loss

21. The first Indian Insurance Act was passed in __________.
A. 1938.
B. 1985.
C. 1912.
D. 1956.
Answer: 1912

22. Which Insurance Company is the first general Insurance Company in India?
A. The Oriental Insurance Company
B. GIC Re
C. New India Assurance
D. Triton Insurance Company limited
Answer: Triton Insurance Company limited

23. The Guaranteed Income Pro is launched by which of the following insurance company?
A. Bharti AXA Life Insurance
B. Aviva Life Insurance Co. Ltd.
C. Bajaj Allianz Life Insurance Co. Ltd.
D. Birla Sun Life Insurance Co. Ltd.
Answer: Bharti AXA Life Insurance

24 ECGC is concerned with
A. Credit
B. Insurance
C. Transport
D. All the above
Answer: Insurance

25. What does ‘R’ stand for in ‘IRDA’?
A. Regulation
B. Regulatory
C. Research
D. Rate
Answer: Regulatory

26. As per IRDA regulations issued, what is the grace period allowed beyond the expiry date of a policy for renewal?
A. 10 days
B. 30 days
C. 45 days
D. 60 days
Answer: 30 days

27. How can a complaint be launched with an Insurance Ombudsman?
A. The complaint is to be made in writing
B. The complaint is to be made orally over the phone
C. The complaint is to be made orally in case of a face to face manner
D. The complaint is to be made through newspaper advertisement
Answer: The complaint is to be made in writing

28. An insurance contract terminates after _________ is paid.
A. Loan
B. Human Life Value
C. Economic value
D. Claim
Answer: Claim

29. Which of the following forms is not required for settlement of a death claim?
A. Declaration of good health
B. Certificate of cremation/burial
C. Physician certificate
D. Death certificate
Answer: Declaration of good health

30. If assets are overvalued, the result would be
A. More surplus
B. Less surplus
C. More or less surplus
D. New business strain
Answer: More surplus

31. The company doing insurance business is called…..
A. Mutual funds
B. Non-banking firm
C. An insurance company
D. Banking company
Answer: An insurance company

32. The premium is lowest for ____________.
A. money back policy.
B. term insurance.
C. whole life policy.
D. endowment policy.
Answer: whole life policy.

33. Which of the following is a children policy of LIC?.
A. Jeevan Sneha.
B. Jeevan Vishwas.
C. Jeevan Dhara.
D. Jeevan Sukanya.
Answer: Jeevan Sukanya

34. Term assurance provides the following benefits _________.
A. death benefits if the person dies within term.
B. death and survival benefits.
C. periodic payments at predictable intervals.
D. death benefits with bonus.
Answer: death benefits if the person dies within term

35. Which of the following is an evidence of insurance contract?
A. Insurance Policy
B. payment of premium.
C. cover note.
D. acceptance of proposal.
Answer: Insurance Policy

36. Which one of the following comes under miscellaneous insurance?.
A. Marine insurance.
B. Motor insurance.
C. Fire insurance.
D. Group insurance.
Answer: Motor insurance

37. Insurer is a person who has ______.
A. insured his life or goods.
B. helped a person to get an insurance policy.
C. undertaken to make good the loss of the subject matter of insurance.
D. file a suit in a court of law to recover an insurance claim.
Answer: undertaken to make good the loss of the subject matter of insurance.

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