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These 20 Insurance GK MCQs are all about Life and about the general insurance sector.
Questions related to Group life products, Income tax sections related to Insurance and many other various terms used in insurance, Reinsurance etc. with Insurance GK.
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Q-1- In ratemaking, the use of risk theory allows __________ of appropriate risk loading.
- ruin probability
- solvency consideration
- premium determination
- mathematical distribution
Option-4 In ratemaking, the use of risk theory allows mathematical distribution of appropriate risk loading.
Q-2- In 1961, the Indian Government made it compulsory for every insurer to cede the general insurance business to which Indian reinsurers?
- India Reinsurance Corporation
- Indian Guarantee and General Insurance Company
- Both above
- None of above
Option-3 In 1961, the Indian Government made it compulsory by statute on the part of every insurer to ced the business to indian reinsurers India Reinsurance Corporation and Indian Guarantee and General Insurance Company.
Q-3- In Group life cover, An employee’s spouse and children can covered?
- Yes, subjected to employee should cover in group
- No, only employee can add without any of his/her dependent
- Yes, generally premium of spouse and children is higher than employee.
- either 2 or 3
Option-1 An employee’s spouse and children can covered subjected to employee should cover in group. Generally the premium is also on lower side than for employee.
Q-4- Risk Management alternative is
- Risk Financing
- Risk Controlling
- Risk Retention
- Only 1 & 2 above
Option-4 Risk Financing and Risk Controlling are main two types of Ris management alternatives.
Q-5- Below are the Risk Financing alternatives EXCEPT
- Insurance
- Risk retention
- Loss prevention
- Contractual transfer to non-insurer
Option-1 Loss prevention is not an alternative of Risk Financing.
Q-6- All below are the advantages of reinsurance EXCEPT
- the insurer has more capacity to accept risk
- the net premium and losses are stablised over a shorter period of time
- An insurer cannot accept new and untested risk exposures with reinsurance
- The problem of accumulation within each line of business and between different line is controlled
Option-3 An insurer can accept new and untested risk exposures with reinsurance support.
Q-7- What is the obligation of a reinsurer when the ceding insurer is in financial difficulties or insolvent?
- Reinsurer shares commercial fate, hence reinsurer will have to pay his full share of the same loss
- Reinsurer shares insurance fate, hence reinsurer will have to pay his full share of the same loss
- Reinsurer shares insurance fate, hence reinsurer will not have to pay his full share of the same loss
- Reinsurer shares insurance fate, hence reinsurer will not have to pay his full share of the same loss
Option-2 the ceding insurer is in financial difficulties or insolvent, the reinsurer shares insurance fate, hence reinsurer will have to pay his full share of the same loss.
Q-8- The first reinsurance contract in Fire insurance business was concluded in________.
- 1821
- 1853
- 1863
- 1880
Option-1 The first reinsurance contract in Fire insurance business was concluded in 1821.
Q-9- What is the Carried Loss Reserve?
- amount of unpaid claim reserve
- amount of unpaid claim liabilities
- amount of to be paid claim reserve
- amount of to be paid claim liabilities
Option-2 Carried loss reserve means amount of unpaid claim liabilities shown on external or internal finacial statements..
Q-10- Prospective rating refers to determination of future premium rate by reflecting a group’s ___________
- past experiences
- present experiences
- both past and present experiences
- neither past nor present experiences, it uses competitor’s present experiences
Option-1 Prospective rating refers to determination of future premium rate by reflecting a group’s past experiences.