Insurance Questions daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.
These 20 Insurance GK MCQs are all about Life and about the general insurance sector.
Questions related to various terms used in Risk Management, Reinsurance etc. on Insurance GK.
InsuranceGK team also wishes to all Insurance aspirants for their daily learning with us. Keep learning with us !!
Don’t hesitate to reach us through our contact us page if you have any concerns about information available on the InsuranceGK portal.
Your valuable comments are our strengths.
Q-1- In Risk theory, the use of properties of statistical distribution to model the
- pure risk
- objective risk
- subjective risk
- speculative risk
Option-4 In Risk theory, the use of properties of statistical distribution to model the Objective risk.
Q-2- In Risk theory, Financial area focuses on _________ & _________
- Funds, Investment
- Probability, Loading
- Retaining, Sharing risk
- Utility theory, Game theory
Option-4 In Risk theory, Financial area focuses on Utility theory & Game theory.
Q-3- In 1961, the Indian Government made it compulsory for every insurer to cede the ______in Fire and Marine Cargo business.
- 5%
- 10%
- 15%
- 20%
Option-4 In 1961, the Indian Government made it compulsory for every insurer to cede the 20% Fire and Marine Cargo business.
Q-4- In 1961, the Indian Government made it compulsory for every insurer to cede the ______in Credit and Solvency business.
- 5%
- 10%
- 15%
- 20%
Option-1 In 1961, the Indian Government made it compulsory for every insurer to cede the 5% in Credit and Solvency business.
Q-5- The percentage distribution of reinsurance business to Indian reinsurers viz, Indian reinsurance Corporation & Indian Guarantee and General Insurance Company are
- 40:60
- 50:50
- 60:40
- 90:10
Option-2 The total ceded reinurance business was agreed to allocated equally i.e 50:50 between both Indian reinsurers.
Q-6- In 1966, Indian Insurance Companies Association initiated the formation of Reinsurance Pools in _______________ to increase the retained premiums in the country.
- Fire
- Marine Hull
- Credit & Solvency
- Both 1 &2 above
- None of above
Option-4 In 1966, Indian Insurance Companies Association initiated the formation of Reinsurance Pools in Fire & Marine Hull business to increase the retained premiums in the country.
Q-7- When was 04 General Insurance PSU’s were constituted from 63 domestic insurers and 44 foreign insurers operating in country in 1971.
- 1971
- 1972
- 1973
- 1974
Option-3 In 1973, the 04 General Insurance PSU’s were constituted from 63 domestic insurers and 44 foreign insurers operating in country in 1971.
Q-8- After Liberalisation, all below was happened EXCEPT
- Insurance Regulatory & development Authority(IRDA) is vested with authority of regulating & conducting of insurance business in India.
- The key goal to retain maximum premium prior to reinsuring overseas. In this the role of GIC Re is significant as a source of treaty reinsurance support.
- The 04 subsidaries viz. national, New India, Oriental & United India handled its reinsurance cessions from its head office.
- Each Insurer i.e life and general can define his inward reinsurance underwriting philosophy with approval from IRDA.
Option-3 After Liberlisation,the 04 subsidaries viz. national, New India, Oriental & United India, have been demerged fom GIC and allowed to do insurance business after obtaining licence from IRDA.
Q-9- Pure risk premium is calculated by
- sum assured + expected mortality rate
- sum assured – expected mortality rate
- sum assured / expected mortality rate
- sum assured X expected mortality rate
Option-4 Pure risk premium i.e expected claim cost is calculated by sum assured X expected mortality rate.
Q-10- Group Insurance business is cost efficient because
- Lower acquisition expenses
- Proportionately lower commission to intermediaries
- Pre-empts need for individual underwriting of policies
- Issuance of Single policy rather than multiple Individual policies
- All Above
Option-5 All above are the benefits of Group Insurance Business.