Q-11- All below are Riders under a Life policy EXCEPT
- Critical Illness cover
- Terminal Illness benefit
- Accidental death cover
- Waiver of waiting period
Option-4 Waiver of standard waiting period is not a rider under a Life policy.
Q-12- In above question, the Critical Illness rider premium cannot exceed _____ of basic premium.
- 40%
- 50%
- 70%
- 100%
Option-4 The Critical Illness rider premium cannot exceed 100% of basic premium.
Q-13- Free Cover Limit(FCL) is also known as
- No Evidence Limit
- Free Premium Limit
- Complimentary Limit
- No Health check up limit
Option-1 Free Cover Limit(FCL) is also known as ‘No Evidence limit’.
Q-14- Under group Insurance, which is the most preferred plans from insurers point of view between compulsory and voluntary Plans?
- Compulsory plans, as easy to monitor and administer
- Voluntary plans, as easy from employee point of view
- Insurer preferred both plans as easy to enrollment process, monitor & administer
- None of above
Option-1 Insurer prefers Compulsory plans, as easy to monitor and administer as employer pays full premium in one go, even in addition charging auto premium is easy.
Q-15- The Risk Management Process is
- Identification→Measurement→Selection→Implementation→Monitoring
- Identification→Selection→Measurement→Implementation→Monitoring
- Identification→Selection→Measurement→Monitoring→Implementation
- Identification→Measurement→Selection→Implementation→Controlling
Option-1The Risk Management process is Identification→Measurement→Selection→Implementation→Monitoring.
Q-16- Below are Risk Controlling alternatives EXCEPT
- Risk retention
- Loss reduction
- Loss prevention
- Exposure avoidance
Option-1 Risk retention is not an alternative of Risk Controlling.
Q-17- After liberlisation, GIC Re recives ______obligatory cessions from all General insurers on all classes of business underwritten by them.
- 3%
- 5%
- 7%
- 9%
Option-2 After liberlisation, GIC Re recives 5% obligatory cessions from all General insurers on all classes of business underwritten by them.
Q-18- Below are the Key objective of an insurer in arranging reinsurance, EXCEPT
- increase customer base
- ability to write untested and new risk exposures
- enhancing ability to accept larger lines than his capital
- increasing capacity to handle larger risks throgh support of reinsurer
Option-1 Increase customer base is not one of the KEY objective of any insurer.
Q-19- Reinsurance helps to absorb new risk exposures, which arises from
- Social Changes
- Economic changes
- Changes in Insurance methods
- All of above
Option-4 Reinsurance helps to absorb new risk exposures arises due to all above cahnges.
Q-20- What is the purpose of Segregation of Exposure units?
- easy to administer
- increase profitability
- reduce Loss exposure
- get more discount on insurance premium
Option-3 Segregation of exposure units reduce size of any one loss by dividing up an entity’s exposure into smaller pieces.
These Insurance GK questions are based on Reinsurance, Risk management and Insurance development in form of Insurance quiz and answers.