Insurance Questions and Answers updated daily – General Knowledge

Insurance Questions: Solved 237 Insurance Questions and answers section with explanation for various online exam preparation, various interviews, General Knowledge Category online test. Category Questions section with detailed description, explanation will help you to master the topic.

Insurance Questions

41. A Banker's Acceptance (BA) is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. The date of maturity typically ranges between __________ and _____________ days from the date of issue. 




SHOW ANSWER
Correct Ans:30 days and 180 days
Explanation:
A banker's acceptance (BA) is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. Banker's acceptances are issued as part of a commercial transaction. These instruments are similar to T-bills, are frequently used in money market funds and are traded at a discount from face value on the secondary market, which can be an advantage because the banker's acceptance does not need to be held until it matures. Banker's acceptances vary in amount according to the size of the commercial transaction.

The date of maturity typically ranges between 30 and 180 days from the date of issue, which generally classifies the banker's acceptance as a short-term negotiable instrument. To create a banker’s acceptance, the drawer must meet the eligibility requirements as set forth by the banking institution that serves as the backer in the transaction.
Workspace



42. A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. It is called? 




SHOW ANSWER
Correct Ans:Peril
Explanation:
Peril: A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the policy in contrast to an all-risk policy, which covers all causes of loss except those specifically excluded. Flood insurance and earthquake insurance are two other common examples of named peril policies.
Workspace



43. IGMS is an online consumer complaints registration system created by IRDA. What is the full form of IGMS? 




SHOW ANSWER
Correct Ans:Integrated Grievance Management System
Explanation:
The Integrated Grievance Management System (IGMS) is an online consumer complaints registration system created by IRDA (Insurance Regulatory and Development Authority).

All insurance companies have integrated their online complaint logging systems to the IGMS maintained by IRDA. Policyholders can register their complaints online with their insurance company and track the progress of complaint resolution. IRDA monitors the complaints and their progress in real-time through IGMS.
Workspace



44. Which of the following is not a shareholder of Agriculture Insurance Company of India? 




SHOW ANSWER
Correct Ans:Life Insurance Corporation of India
Explanation:
Shareholders of Agriculture Insurance Company of India:

General Insurance Corporation of India – 35%

National Bank for Agriculture and Rural Development (NABARD) – 30%

National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited are having 8.75% of shares each.
Workspace



45. __________ is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. 




SHOW ANSWER
Correct Ans:Employees' State Insurance Scheme of India (ESIC)
Explanation:
Employees’ State Insurance Scheme of India, is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme.
Workspace



46. What is risk in insurance sector? 




SHOW ANSWER
Correct Ans:The uncertainty concerning the occurrence of a financial loss
Explanation:
Risk- The uncertainty concerning the occurrence of a financial loss.
Workspace



47. A market for debt securities that pay off in the short term usually less than one Year is known as?




SHOW ANSWER
Correct Ans:Money Market
Explanation:
Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90-days treasury bills. This market encompasses the trading and issuance of short term non-equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc.
Workspace



48. Name the insurance that is refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. 




SHOW ANSWER
Correct Ans:Umbrella Insurance
Explanation:
Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
Workspace



49. Insurance service provided by various banks is commonly known as ______.




SHOW ANSWER
Correct Ans:Bancassurance
Explanation:
Bancassurance is insurance products sold on bank counter. Banks are also allowed to sell insurance products of various insurance companies.
Workspace



50. Which of the following is not a state-owned non-life insurance companies in India?




SHOW ANSWER
Correct Ans:IndiaFirst Life Insurance Company Limited
Explanation:
There are 5 state-owned non-life insurance companies in India: Oriental Insurance Company, National Insurance Company, New India Assurance, United India Insurance and national reinsurer General Insurance Corporation of India, or GIC.
Workspace



51. An individual who sells and services insurance policies is called?




SHOW ANSWER
Correct Ans:Agent
Explanation:
Agent is the technical term for a person who sells insurance policy.
Workspace



52. Which of the following can be identified as a demat account?




SHOW ANSWER
Correct Ans:Accounts in which shares of companies are traded in electronic form
Explanation:
A Demat Account is an account that allows investors to hold their shares in an electronic form. Stocks in Demat account remain in dematerialized form. Dematerialization is the process of converting physical shares into electronic format.
Workspace



53. Money Market Instruments are simply the instruments or tools which can help one operate in the money market. Which of the following is not the money market instrument? 




SHOW ANSWER
Correct Ans:Share
Explanation:
Money Market Instruments are simply the instruments or tools which can help one operate in the money market. These instruments serve a dual purpose of not only allowing borrowers meet their short-term requirements but also provide easy liquidity to lenders. Some of the common money market instruments include Banker’s Acceptance, Treasury Bills, Repurchase Agreements, Certificate of Deposits and Commercial Papers.
Workspace



54. Name the insurance that is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc.




SHOW ANSWER
Correct Ans:Life Insurance
Explanation:
Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.
Workspace



55. Name the insurance that is insurance of buildings, machinery, stocks etc against Fire and Allied Perils, Burglary Risks and so on.




SHOW ANSWER
Correct Ans:Property Insurance
Explanation:
Insurance of property means insurance of buildings, machinery, stocks etc against Fire and Allied Perils, Burglary Risks and so on.
Workspace



56. A __________ bond is a bond issued by a national government, generally with a promise to pay periodic interest payments called coupon payments and to repay the face value on the maturity date.




SHOW ANSWER
Correct Ans:Sovereign Bond
Explanation:
A sovereign bond is a debt security issued by a national government. Sovereign bonds can be denominated in a foreign currency or the government's own domestic currency; the ability to issue bonds denominated in domestic currency tends to be a luxury that most governments do not enjoy.
Workspace



57. Insurance cover for bank deposits in our country is provided by:




SHOW ANSWER
Correct Ans:DICGC
Explanation:
Workspace



58. An amount of premium for which payment has been made by the policyholder but coverage has not yet been provided is known as ______




SHOW ANSWER
Correct Ans:Unearned Premium
Explanation:
Workspace



59. Which include claims that have been incurred but not reported?




SHOW ANSWER
Correct Ans:Unpaid losses
Explanation:
Workspace



60. An adjustable life insurance under which premiums and coverage are adjustable, company's expenses are not specifically disclosed to the insured but a financial report is provided to policyholders annually is called _____




SHOW ANSWER
Correct Ans:Universal Life Insurance
Explanation:
Workspace



Are you seeking for good platform for practicing Insurance questions in online. This is the right place. The time you spent in Fresherslive will be the most beneficial one for you.

Online Test on Insurance @ Fresherslive

This page provides important questions on Insurance along with correct answers and clear explanation, which will be very useful for various Interviews, Competitive examinations and Entrance tests. Here, Most of the Insurance questions are framed with Latest concepts, so that you may get updated through these Insurance Online tests. Insurance Online Test questions are granted from basic level to complex level.

Why To Practice Insurance Test questions Online @ Fresherslive?

Insurance questions are delivered with accurate answer. For solving each and every question, very lucid explanations are provided with diagrams wherever necessary.
Practice in advance of similar questions on Insurance may improve your performance in the real Exams and Interview.
Time Management for answering the Insurance questions quickly is foremost important for success in Competitive Exams and Placement Interviews.
Through Fresherslive Insurance questions and answers, you can acquire all the essential idea to solve any difficult questions on Insurance in short time and also in short cut method.
Winners are those who can use the simplest method for solving a question. So that they have enough time for solving all the questions in examination, correctly without any tense. Fresherslive provides most simplest methods to answer any tough questions. Practise through Fresherslive test series to ensure success in all competitive exams, entrance exams and placement tests.

Why Fresherslive For Insurance Online Test Preparation?

Most of the job seekers finding it hard to clear Insurance test or get stuck on any particular question, our Insurance test sections will help you to success in Exams as well as Interviews. To acquire clear understanding of Insurance, exercise these advanced Insurance questions with answers.
You're Welcome to use the Fresherslive Online Test at any time you want. Start your beginning, of anything you want by using our sample Insurance Online Test and create yourself a successful one. Fresherslive provides you a new opportunity to improve yourself. Take it and make use of it to the fullest. GOODLUCK for Your Bright Future.


Online Test for Data Interpretation
Online Test for C Language
FreshersLive - No.1 Job site in India. Here you can find latest 2023 government as well as private job recruitment notifications for different posts vacancies in India. Get top company jobs for both fresher and experienced. Job Seekers can get useful interview tips, resume services & interview Question and answer. Practice online test free which is helpful for interview preparation. Register with us to get latest employment news/rojgar samachar notifications. Also get latest free govt and other sarkari naukri job alerts daily through E-mail...
DMCA.com Protection Status