Insuarance exam MCQs 1

Insuarance exam MCQs

1. What is the primary purpose of insurance regulations?
To generate fee income
Protect the interests of policyholders
To settle customer disputes
To control the market share of private insurers
CORRECT ANSWER : B
2. Which among the following activities is prohibited as per the provisions of
Insurance Act, 1938?
Keeping aside reserves to meet solvency requirements
Using rebates as a tool to sell insurance policies
Prospecting customers
Limiting management expenses
CORRECT ANSWER : B
3. Insurance agents who hold licence to act as an agent for both a life insurer
and a general insurer are called _______________.
Common insurance agents
Composite insurance agents
Multiple insurance agents
General insurance agents
CORRECT ANSWER : B
4. Which of the below intermediary is not involved in procurement of
business?
Insurance brokers
Individual agents
Surveyors
Corporate agents
CORRECT ANSWER : C
5. What does the term “Caveat Emptor” mean?
Buyer beware
Seller beware
Insurance buyer beware of miselling
Insurance agent beware of customer requirement
CORRECT ANSWER : A
6. Moral hazard means:
Dishonesty or character defects in an individual
Honesty and values in an individual
Risk of religious beliefs
Hazard of the property to be insured
CORRECT ANSWER : A
7. Insurance agent represents the ______________.
Insurance company
Sub-agent
Co-agent
Broker
CORRECT ANSWER : A
8. Licence to work as an insurance agent is issued by __________.
General Insurance Corporation (GIC)
Insurance Regulatory & Development Authority (IRDA)
By the respective life insurance company
Finance Ministry
CORRECT ANSWER : B
9. Agent`s license is to be renewed __________.
Every year
After 5 years
After 3 years
After 15 years
CORRECT ANSWER : C
10. Identify the statement which is not correct. Insurance agent should
__________.
Indicate the scale of commission if asked by the customer
Share the commission by way of rebate
Disclose his licence on demand
Indicate the premium to be charged
CORRECT ANSWER : B
11. Rs.______________ is the fees payable to the Authority for issue /

renewal of license to Act as an Insurance Agent or Composite Insurance
Agent.
250
150
520
100
CORRECT ANSWER : A
12. The Authority may issue duplicate licence in case it is ____________.
Lost
Revoked
Suspended
Withdrawn
CORRECT ANSWER : A
13. If an agent is found guilty of criminal misappropriation, the designated
person will _______________.
Cancel the licence
Issue a duplicate licence
Renew the existing licence
Take some fees from the agent
CORRECT ANSWER : A
14. Minimum qualification required for an insurance agent is _______ pass.
Graduate
10th
Post-Graduate
7th
CORRECT ANSWER : B

15. ________________ may deal with more than one Life Insurance
Company or general insurance company or both.
Agent
Broker
Corporate agent
Retail agent
CORRECT ANSWER : B