Insurance MCQ Daily-20

Insurance MCQ daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.   

These 20 Insurance MCQ’s covers General and Life Insurance insurance questions in detail.

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Q-1- Possibility of loss is the basis of

  1. Insurance
  2. Uncertainity
  3. Possibility of loss
  4. None of above

Option 3 Possibility of loss is the basis of any risk.

Q-2- The part of assets not insured through an insurance company is called

  1. Retention
  2. Subrogation
  3. Reinsurance
  4. Uninsurable risk

Option-1 Non insured portion of assets is called ‘Retention’.

Q-3- Coinsurance is mentioned as

  1. Fixed amount
  2. Ration or Poportion
  3. Percentage amount
  4. All of above

Option-2 Coinsurance is applicable after deduction of policy excess part, and it is specified as a percentage.

Q-4- What is charges applied by the Insurer on

  1. yearly basis
  2. per day basis
  3. monthly basis
  4. in every 6 months

Option-3 When you buy a life insurance policy, the insurer levies a charge for the insurance protection upon death and to cover certain other expenses. This is known as Mortality charge. It is the actual cost of insurance by the life insurance company.

Q-5- What is term TPA refer to?

  1. The Power of Attorney
  2. Third Party Accelerators
  3. Third Party Administrators
  4. Third Power Administrators

Option-3 The term TPA refers to Third Party Administrators in Health insurance sector.

Q-6- The ability to pay claims by Insurance company is called as

  1. Rating capacity
  2. Solvency capacity
  3. Sustainable capacity
  4. Underwriting capacity

Option-1 Solvency is the ability of Insurannce company to pay claims.

Q-7- An Insurance policy combination of insurance needs,saving, investment and tax saving objectives are called as

  1. Variable insurance
  2. Loss of profit policy
  3. Consequential loss policy
  4. Business Interruption Insurance

Option-1 A variable life insurance policy is a contract between insured and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to insured’s family or others (your beneficiaries) upon insured death.

Q-8- National Insurance Academy is located at

  1. Pune
  2. Delhi
  3. Mumbai
  4. Hyderabad

Option-1 One of the premier educational institut for Insurance education, National Insurance Academy is located at Pune.

Q-9- An Insurance which covers claims for loss or damge due to Professional negligent services provided is known as

  1. Loss of profit insurance
  2. Consequential loss insurance
  3. Business interruption insurance
  4. Professional indemnity insurance

Option-4 Professional Indemnity insurance protects against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.

Q-10- The reinsurance arrangement where reinsurance bought by reinsurers to protect its finacial stability is called as ?

  1. Treaty
  2. Retention
  3. Facultative
  4. Retrocession

Option-4 Retrocession is when one reinsurance company has another insurance company assume some of its risks.

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