Insurance GK Questions :

1. Insurance works on the principle of:

a. Sharing of losses
b. Probabilities
c. Large numbers
d. Randomness
e. All of the above
Ans: e. All of the above
2. Insurance helps to:
a. Prevent adverse situations from occurring
b. Reduce the financial consequences of adverse situations
c. Negate all consequences of adverse situations
d. Make assets continuously productive
e. All of the above
Ans: b. Reduce the financial consequences of adverse situations.
3. The main purpose of having Life insurance is:
a. As an avenue for long-term investment
b. As a medium for getting income tax benefits from savings
c. As a governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Ans: e. None of the above
4. Which of the following intermediaries do not require IRDA s licence/ approval t
o operate in India?
a. Insurance Brokers
b. Insurance Agents
c. Third Party Administrators
d. Surveyors
e. All the above intermediaries require IRDA s licence/ approval
Ans: e. All the above intermediaries require IRDA s licence/ approval
5. An actuary is expected to:

a. Make an exact forecast of the future liabilities of policies

b. Make a reasonable forecast of the future liabilities of policies
c. Calculate the premium required to cover a risk on a long-term basis
d. Find the probability of an insured event to happen in non-life policies
e. All the above statements are incorrect
Ans: b. Make a reasonable forecast of the future liabilities of policies
6. As per structured formula under the Motor Vehicle Act, victims of fatal inju
ries are paid compensation on the basis of:
a. Age and sex
b. Age and number of dependents
c. Income and size of family
d. Age and income
e. Income and number of dependents
Ans: d. Age and income.
7. As per the Insurance Act, every insurer has to prepare at the end of financia
l year
a. Balance Sheet
b. Profit and Loss Account
c. Revenue Account for each class of Insurance business
d. Accounts of receipts and payments in respect of share-holders

funds

e. All of the above

Ans: e. All of the above
8. According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI i
n Insurance Sector is :
a. 74%
b. 26%
c. 49%
d. 51%
e. None of these
Ans : c. 49 %
9. England-based Willis Group Holdings, the third largest insurance brokerage in
the world recently picked up 49 per cent stake in which Indian Insurance Broker

age Company ?
a. IndiaFirst Life Insurace
b. Almondz Insurance Brokers
c. Heritage Insurance Brokers
d. Bharat Re- Insurance Brokers
e. Aditya Birla Insurance Broker
Ans : b Almondz Insurance Brokers
10. Which of the following types of companies/organisations issue ULIP?
a.
b.
c.
d.
e.

Insurance companies
Stock brokers
Banks
NABARD
RBI

Ans : a ULIP

Unit Linked Insurance Plan

11. Which of the following is the only public sector company in the field of lif
e insurance?
a.
b.
c.
d.
e.

General insurance company

New India assurance company
Oriental insurance company
SBI Life Insurance Company
Life Insurance Corporation of India

Ans : e Life Insurance Corporation of India

12. A contract that pledges payment of an agreed upon amount to the person (or hi
s/her nominee) on the happening of an event covered against is technically known
as
a.
b.
c.
d.
e.

Death coverage
Insurance Premium
Life insurance
Savings for future
Provident fund

Ans : Life Insurance

13. With which of the following did the State Bank of India enter into a joint v
enture agreement for undertaking general insurance business?
a.
b.
c.
d.
e.

New India Assurance Ltd.

Insurance Australia Group
Lehman Brothers Holdings Inc.
Allianz
BNP Paribas Cardif.

Ans : b. SBI General Insurance Company Limited is a joint venture between the St
ate Bank of India and Insurance Australia Group (IAG). SBI owns 74% of the total
capital and IAG the remaining 26%.

14. With which of the following did the State Bank of India enter into a joint v
enture agreement for undertaking Life insurance business?
a.
b.
c.
d.
e.

New India Assurance Ltd.

Insurance Australia Group
Lehman Brothers Holdings Inc.
Allianz
BNP Paribas Cardif.

Ans : e . SBI Life Insurance is a joint venture between State Bank of India and
BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the
remaining 26%.
15. Which of the following is the regulator of insurance sector in India?
a.
b.
c.
d.
e.

RBI
AMFI
IRDA
SEBI
IRDAI

Ans : e. Recently IRDA was named IRDAI.

16. Which of the following insurance companies gives the slogan Prithvi, Agni, J
al, Akash
Sab ki Surakhsa Hamare Paas?
a.
b.
c.
d.
e.

Life Insurance Corporation

Oriental Insurance Company
New India Assurance
General Insurance Company
SBI Life Insurance

Ans : b.
17. Which of the following is/are the various types of insurance?
1.
2.
3.
a.
b.
c.
d.
e.

Life insurance
Health insurance
Liability insurance
Only (1)
Only (1) and (2)
Only (2) and (3)
Onnly (1) and (3)
All the three

Ans : e
18. Which of the following public sector companies/organizations provides insura
nce cover to exporters?
a.
b.
c.
d.
e.

RBI
ECGC
NABARD
SIDBI
IRDA

Ans : b
19. What is the minimum paid up capital required for a General Insurance Company
to commence its operations in India ?

a.
b.
c.
d.
e.

200
500
250
100
300

Crore
Crore
Crore
Crore
Crore

Ans : d 100 Crore

20. Which bank recently became the first bank in India to fully own an insurance
business ?
a.
b.
c.
d.
e.

HDFC Bank
Kotak Mahindra Bank
ICICI Bank
IDBI Bank
Canara Bank

Ans : b. Kotak Mahindra Bank on 25 November 2014 became first bank in India to f
ully own an insurance business after Reserve Bank of India (RBI) gave permission
to set up a wholly-owned non-life insurance company called Kotak General Insura
nce.
21. Which is the sole reinsurance company in the Indian insurance market ?
a.
b.
c.
d.
e.

United India Insurance Company Limited

General Insurance Corporation of India
New India Assurance Company Limited
The Oriental Insurance Company
Life Insurance Corporation of India

Ans : b Reinsurance is insurance that is purchased by an insurance company