freeonlinetest
IC38 Mock Test
1 / 47
1. Which document provides proof of an insurance contract?
The insurance policy is the document that serves as proof.
2 / 47
2. What is the main purpose of a claim form?
It helps the insured report and request payment for a covered loss.
3 / 47
3. Which type of insurance is mandatory for vehicles in India?
Third-party liability insurance is mandatory.
4 / 47
4. What is a surrender value in life insurance?
It is the amount paid to the policyholder upon voluntary termination of the policy.
5 / 47
5. What does ‘policy lapse’ mean?
A policy lapse occurs when the premium is not paid by the due date.
6 / 47
6. Which document must be submitted to start a claim process?
The claim form is required.
7 / 47
7. What is a “money-back policy”?
It is a policy that returns money periodically.
8 / 47
8. What is the term for the amount paid by the insured to the insurer?
This amount is known as the premium.
9 / 47
9. What is the term for the amount paid by the insurer to the insured for a claim?
This amount is called the claim settlement.
10 / 47
10. What is a “claim settlement ratio”?
It measures the percentage of claims an insurer settles.
11 / 47
11. What is the term for the person who buys insurance?
This person is called the policyholder.
12 / 47
12. What does “actuary” mean in insurance?
An actuary calculates risks and premiums.
13 / 47
13. Which of the following is not a type of general insurance?
Life insurance is not a type of general insurance.
14 / 47
14. What does “underwriting” mean?
Underwriting involves assessing and accepting risks.
15 / 47
15. Which insurance is required for exporters?
Marine insurance is required for exporters.
16 / 47
16. What is the sum assured?
Sum assured is the fixed amount paid on the occurrence of an insured event.
17 / 47
17. What is the cooling-off period?
It is the time during which the policyholder can cancel the policy without penalty.
18 / 47
18. In health insurance, what is a deductible?
A deductible is the amount the insured pays before the insurer covers the rest.
19 / 47
19. Which type of insurance covers financial loss due to theft?
Theft insurance covers such losses.
20 / 47
20. Which principle ensures insurers share risk with reinsurers?
The principle of reinsurance ensures shared risk.
21 / 47
21. Which type of life insurance covers only a fixed period?
Term insurance covers a fixed period.
22 / 47
22. What is a “grievance redressal mechanism”?
It is a system for resolving customer complaints.
23 / 47
23. What is the main function of a “nominee” in life insurance?
Nominees receive benefits after the policyholder’s death.
24 / 47
24. Which type of insurance covers losses caused by fire?
Fire insurance covers losses caused by fire.
25 / 47
25. Which type of policy pays benefits to survivors after the insured’s death?
Life insurance provides this benefit.
26 / 47
26. What does “risk pooling” in insurance mean?
It is sharing risks among many policyholders.
27 / 47
27. What does “insurable interest” mean?
It means the insured must have a financial stake in the insured item or person.
28 / 47
28. What is “whole life insurance”?
It provides coverage for the policyholder’s entire life.
29 / 47
29. Which principle states that only actual losses are compensated?
The principle of indemnity states this.
30 / 47
30. What does indemnity in insurance mean?
Indemnity means compensation for loss or damage.
31 / 47
31. What is a “policy rider”?
An optional add-on to enhance the main policy coverage.
32 / 47
32. What does “proposal form” mean?
It is an application to apply for insurance.
33 / 47
33. What does “IRDAI” stand for?
It stands for Insurance Regulatory and Development Authority of India.
34 / 47
34. What is the grace period in insurance?
It is the extra time allowed for premium payment after the due date.
35 / 47
35. What is the function of an “insurance agent”?
An agent sells insurance policies to customers.
36 / 47
36. What is the primary goal of insurance?
The primary goal of insurance is to provide financial protection against unforeseen events.
37 / 47
37. Who regulates the insurance sector in India?
IRDAI (Insurance Regulatory and Development Authority of India) regulates the sector.
38 / 47
38. What is the tax benefit under Section 80C?
It provides deductions on life insurance premiums.
39 / 47
39. How often is a yearly premium paid?
A yearly premium is paid once per year.
40 / 47
40. What is a “deduction” in taxation of insurance?
It is the amount that reduces taxable income.
41 / 47
41. What is a beneficiary?
A beneficiary is the person who receives the insurance payout.
42 / 47
42. What does “subrogation” mean?
It allows insurers to recover costs from third parties.
43 / 47
43. Which of the following is a principle of insurance?
Insurance operates on the principle of utmost good faith.
44 / 47
44. What does ULIP stand for?
ULIP stands for Unit Linked Insurance Plan.
45 / 47
45. What is an “endowment policy”?
It is a life insurance policy that pays on death or maturity.
46 / 47
46. What is “maturity benefit”?
The benefit received when a policy term ends.
47 / 47
47. What is the meaning of “reinsurance”?
Reinsurance is insurance for insurance companies.
Your score is
Restart quiz
