Insurance MCQ Daily-02

Q-1- Select the expanded form of ALOP used in insurance

  1. Agreed Loss of Profits insurance
  2. Advance Loss of Profits insurance
  3. Additional Loss of Profits insurance
  4. Associated Loss of Profits insurance
  5. Authorised Loss of Profits insurance

Option-2 Advance loss of profit (ALOP) insurance provides coverage for financial losses due to delays in construction and infrastructure projects.

Q-2-_________are those where a part of the premium is charged for the risk cover and the rest is invested in selected mutual funds as per the choice of the

  1. partial insurance
  2. double insurance
  3. unit-linked insurance
  4. mutual fund insurance

Option-3 Unit-linked insurance

Q-3- Which of the following terms matches closest with ‘Professional indemnity cover’?

  1. Commercial Banks
  2. Practicing Surgeons
  3. Insurance Companies
  4. Hospitals Nursing homes
  5. Fast Moving Consumer Goods

Option-2 The professional indemnity insurance protects you against any legal actions or threats, which a client, to whom you have caused a major loss because of your mistakes or ill advices, might press on you. It also saves you from paying a hefty amount of money as compensation to the clients for their losses.

Q-3- IRDA prescribed__________is an amount in excess of the value of insurers assets over the amount of liabilities.

  1. profit
  2. margin
  3. goodwill
  4. solvency margin.

Option-4 The solvency margin is a minimum excess on an insurer’s assets over its liabilities set by regulators. It can be regarded as similar to capital adequacy requirements for banks.

Q-4- The document which embodies the contract in insurance is called ________

  1. policy
  2. security
  3. certificate
  4. none of these

Option-1 The Policy is a document which embodies the contract in Insurance.

Q-5-__________is the pricing of insurance products driven by market forces

a. tariffing
b. de-tariffing
c. equilibrium pricing
d. fixed pricing

Option-2 De-tariffing, which means free pricing of rates, started on 01 January 2007. Insurance companies are taking some time to rework their premium rates.

Q-6- _________principle in insurance means maximum truth.

  1. subrogation
  2. uberrima fides
  3. causa proxima
  4. insurable interest

Option-2 Uberrima fides (sometimes seen in its genitive form uberrimae fidei) is a Latin phrase meaning “utmost good faith” (literally, “most abundant faith”).This means that all parties to an insurance contract must deal in good faith, making a full declaration of all material facts in the insurance proposal.

Q-7- TAC stands for

  1. Tariff Advisory Committee
  2. Trade Advisory Committee
  3. Tariff Advisory Corporation
  4. Trade Advisory Corporation

Option-1 TAC stands for Tariff Advisory Committee.TAC is the Statutory Body under Insurance Act 1938. Tariff Advisory Committee controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of General Insurance Business relating to Fire, Marine (Hull).

Q-8- Which of the following terms matches closest with ‘Composite Policy’?

  1. Shopkeepers’ insurance
  2. Marine Cargo insurance
  3. Critical Care Health insurance
  4. Electronic Equipment insurance
  5. Janatha Personal Accident insurance

Option-1 Shopkeepers’ Insurance is a form of Composite Insurance Policy.

Q-9- In India __________controls and regulate the rates, terms and conditions that may be offered by insures in respect of general insurance business relating to marine (hull) ,motor ,engineering and workmen compensation.

  1. LIC
  2. GIC
  3. TAC
  4. IRDA

Option-3 Tariff Advisory Committee(TAC) controls and regulate the rates,terms & conditions under general insurance.

Q-10- Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like

  1. Commerce, transport
  2. Surveyors, agents, advocates
  3. Consumer fora, industry, intermediaries
  4. Employees’ association in the insurance sector, agriculture
  5. Research bodies, organisations engaged in safety and loss prevention

Option-2 Interests of different groups like Surveyors, agents & advocates

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