ic38 Mock Tests IC38 Mock Test 1 / 47 1. In health insurance, what is a deductible? Benefit Premium Initial payment by insured Coverage A deductible is the amount the insured pays before the insurer covers the rest. 2 / 47 2. Which principle states that only actual losses are compensated? Insurable interest Contribution Subrogation Indemnity The principle of indemnity states this. 3 / 47 3. What does “insurable interest” mean? Financial stake in insured item Guaranteed benefits Premium discount Interest rate on policy It means the insured must have a financial stake in the insured item or person. 4 / 47 4. What is a “claim settlement ratio”? Percentage of claims settled Premium collected Policyholder satisfaction Number of policies sold It measures the percentage of claims an insurer settles. 5 / 47 5. Who regulates the insurance sector in India? IRDAI RBI SEBI Government of India IRDAI (Insurance Regulatory and Development Authority of India) regulates the sector. 6 / 47 6. What is a “grievance redressal mechanism”? Policy renewal Complaint resolution Policy issuance Claim approval It is a system for resolving customer complaints. 7 / 47 7. What is the tax benefit under Section 80C? Payout reduction Deduction on premiums Bonus benefits Claim settlement It provides deductions on life insurance premiums. 8 / 47 8. Which document provides proof of an insurance contract? Premium receipt Claim form Proposal form Insurance policy The insurance policy is the document that serves as proof. 9 / 47 9. What is an “endowment policy”? Whole life insurance Endowment policy Term insurance Money-back policy It is a life insurance policy that pays on death or maturity. 10 / 47 10. What does “subrogation” mean? Right to recover Loss recovery Claim bonus Premium discount It allows insurers to recover costs from third parties. 11 / 47 11. What does ULIP stand for? Universal Linked Insurance Product Unit Level Investment Plan Universal Life Insurance Policy Unit Linked Insurance Plan ULIP stands for Unit Linked Insurance Plan. 12 / 47 12. What is the term for the person who buys insurance? Nominee Actuary Policyholder Agent This person is called the policyholder. 13 / 47 13. Which type of insurance covers losses caused by fire? Fire insurance Life insurance Marine insurance Health insurance Fire insurance covers losses caused by fire. 14 / 47 14. What is the function of an “insurance agent”? Calculate risks Sell policies Process claims Solve grievances An agent sells insurance policies to customers. 15 / 47 15. Which type of life insurance covers only a fixed period? Term insurance Whole life policy Endowment policy Money-back policy Term insurance covers a fixed period. 16 / 47 16. Which type of insurance covers financial loss due to theft? Theft insurance Fire insurance Life insurance Marine insurance Theft insurance covers such losses. 17 / 47 17. What is “whole life insurance”? Fixed-term coverage Policy bonus Life-long coverage Endowment benefit It provides coverage for the policyholder’s entire life. 18 / 47 18. What does “underwriting” mean? Claim settlement Risk assessment Premium payment Policy renewal Underwriting involves assessing and accepting risks. 19 / 47 19. Which of the following is not a type of general insurance? Life insurance Fire insurance Health insurance Motor insurance Life insurance is not a type of general insurance. 20 / 47 20. What does indemnity in insurance mean? Fixed interest Compensation for loss Bonus for policyholders Avoiding loss Indemnity means compensation for loss or damage. 21 / 47 21. What does “IRDAI” stand for? Insurance Relief Development Agency Insurance Resource Department Authority Indian Regulatory Department Authority Insurance Regulatory and Development Authority of India It stands for Insurance Regulatory and Development Authority of India. 22 / 47 22. What does “proposal form” mean? Application form Bonus form Claim form Renewal form It is an application to apply for insurance. 23 / 47 23. What does ‘policy lapse’ mean? Policy is cancelled Policy is inactive Policy expires Policy is renewed A policy lapse occurs when the premium is not paid by the due date. 24 / 47 24. What is the sum assured? Payout amount Bonus Investment value Policy term Sum assured is the fixed amount paid on the occurrence of an insured event. 25 / 47 25. What is “maturity benefit”? Final payout Death benefit Policy extension Bonus payout The benefit received when a policy term ends. 26 / 47 26. What does “actuary” mean in insurance? Agent Risk assessor Nominee Policyholder An actuary calculates risks and premiums. 27 / 47 27. What is the meaning of “reinsurance”? Insurance for insurers Policy extension Double coverage Additional insurance Reinsurance is insurance for insurance companies. 28 / 47 28. Which type of policy pays benefits to survivors after the insured’s death? Marine insurance Fire insurance Life insurance Health insurance Life insurance provides this benefit. 29 / 47 29. What is the term for the amount paid by the insurer to the insured for a claim? Policy renewal Claim settlement Maturity benefit Premium This amount is called the claim settlement. 30 / 47 30. What is the cooling-off period? Claim period Free-look period Policy renewal Maturity term It is the time during which the policyholder can cancel the policy without penalty. 31 / 47 31. Which insurance is required for exporters? Health insurance Life insurance Fire insurance Marine insurance Marine insurance is required for exporters. 32 / 47 32. What is the term for the amount paid by the insured to the insurer? Sum assured Bonus Premium Claim This amount is known as the premium. 33 / 47 33. What is a “deduction” in taxation of insurance? Tax reduction Taxable income Bonus Premium It is the amount that reduces taxable income. 34 / 47 34. What does “risk pooling” in insurance mean? Minimizing payouts Maximizing profits Sharing risks Sharing premiums It is sharing risks among many policyholders. 35 / 47 35. What is a “money-back policy”? Money-back at intervals Endowment benefit Lump-sum payment Bonus payout It is a policy that returns money periodically. 36 / 47 36. What is a “policy rider”? Insurer agreement Main policy Policy bonus Optional add-on An optional add-on to enhance the main policy coverage. 37 / 47 37. What is a surrender value in life insurance? Bonus on maturity Interest payment Value upon termination Payout after cancellation It is the amount paid to the policyholder upon voluntary termination of the policy. 38 / 47 38. Which document must be submitted to start a claim process? Premium receipt Policy document Nomination form Claim form The claim form is required. 39 / 47 39. Which of the following is a principle of insurance? Maximum return Utmost good faith Complete disclosure Utmost profit Insurance operates on the principle of utmost good faith. 40 / 47 40. What is the main purpose of a claim form? To calculate premium To check policy status To report a loss To apply for a new policy It helps the insured report and request payment for a covered loss. 41 / 47 41. What is the grace period in insurance? Discount period Policy renewal Coverage extension Payment extension It is the extra time allowed for premium payment after the due date. 42 / 47 42. What is a beneficiary? Recipient Policyholder Nominee Insurer A beneficiary is the person who receives the insurance payout. 43 / 47 43. Which principle ensures insurers share risk with reinsurers? Insurable interest Reinsurance Proportionality Contribution The principle of reinsurance ensures shared risk. 44 / 47 44. What is the main function of a “nominee” in life insurance? Process claims Pay premiums Calculate premium Receive benefits Nominees receive benefits after the policyholder’s death. 45 / 47 45. Which type of insurance is mandatory for vehicles in India? Theft protection Third-party insurance Fire insurance Comprehensive insurance Third-party liability insurance is mandatory. 46 / 47 46. How often is a yearly premium paid? Annually Quarterly Half-yearly Monthly A yearly premium is paid once per year. 47 / 47 47. What is the primary goal of insurance? Financial protection Profit making Legal compliance Investment growth The primary goal of insurance is to provide financial protection against unforeseen events. Your score is LinkedIn Facebook Twitter 0% Restart quiz Practice Some More...
