UNIVERSITY OF CALICUT

SCHOOL OF DISTANCE EDUCATION

B Com (Specialization-Banking and Insurance)

(2014 Admission Onwards)

V. Semester Core Course: Insurance Management

QUESTION BANK
1. Insurance is a cooperative form of distributing a certain__________over a group of persons
who are exposed to it.

a. Uncertainty b. Risk c. Peril d. Hazards

2. In legal sense, Insurance is a

a. Contract b. Activity c. Gambling d. Publicity

3. The principle of indemnity is not applicable to

a. Fire Insurance b. Marine Insurance c. Life Insurance d. Property Insurance

4. LIC was nationalised in

a.1956 b. 1955 c. 1957 d. 1948

5. The policy for which the premium is payable throughout the life of the assured is known as

a. Annuity Policy b. Whole Life Policy c. Term Policy d. Endowment

6. When the same risk and subject matter is insured with more than one insurer is known as

a. Reinsurance b. Double Insurance c. Under Insurance d. Over Insurance

7. The chance of loss from the unforeseen circumstances in future refers to ______.
a. Perils b. Damage c. Risk d. Hazards.

8. Master policy is issued for ___________.

a. Group Insurance b. Term Insurance c. Marine Insurance d. Individual Policy

9. The organisation structure of LIC refers to ___________.

a. Three Tier b. Four Tier c. Five Tier d. Six Tier

10. ________ can be done by mere endorsement on the policy or by a separate duly stamped deed.
a. Assignment b. Nomination c. Renewal d. Revival

11. The document which contains the terms and conditions of the life insurance contract is termed
as the
a. Agreement b. Life Insurance Policy c. Cover Note d. Proposal Form

12. What is a proposal?

a. A request for an insurance cover c. Both a and b

b. An offer to enter into a contract d. None of the above

13. Which of these persons will not be given a license to work as an insurance agent?
a. A person with criminal record b. A corporate insurance executive.
c. An employee of an insurance company d. All the three mentioned here.

14. A memorandum added to a policy embodying some alterations to the terms of policy is known as

a. Surrender b. Endorsement c. Nomination d. Breach of Contract

15. Which of the following is an evidence of insurance contract?

a. Policy Document b. payment of premium.

c. cover note d. acceptance of proposal

16. The person responsible for evaluation and acceptance / rejection of risks and computation of
premium in insurance is called

a. Insured b. Assurer c. Agent d. Underwriter

17. Insurance prices are called

a. Commissions b. Allowances c. Premiums d. Discounts

18. A person employed to do any act for another or to represent another in dealing with a third person
refers to

a. Agent b. Principal c. Development Officer d. Surveyor

19. The IRDA was set up in

a. 1919 b. 1991 c. 2001 d. 2000

20. ______________ in the insurance are just like the retailers of any consumer product who help in
selling and distributing the product.

a. Underwriters b. Surveyors c. Agents d. Banker

21. The agents who are selling policies of several life and non life insurance companies at a time are
known as

a. Brokers b. Surveyors c. Underwriters d. banks

22. _____________ are independent professionals appointed by an insurance company to assess the
loss or damage on a claim under a policy.

a. Surveyors b. Loss Assessors c. Both a and b d. Agents

23. Insurance contract is sort of contract which is approved by

a. The Indian Contract Act c. Indian Companies Act

b. Indian Factory Act d. The Indian Finance Act

24. General Insurance Corporation was established during the year

a. 1971 b. 1986 c. 1956 d. 1972

25. The term Assurance refers to ________.

a. Marine Insurance Business c. Fire Insurance Business

b. Life Insurance Business d. Motor Vehicle Business
26. Committee of reforms in insurance sectors during 1993 headed by ________.

a. R.N. Malhotra b. S. Narashiman c. Manmohan Singh d. P.Chidambaram

27. Insurance business is based on __________.

a. Newtons Law c. The Theory of Probability and Law of large numbers

b. Boyles Law d. Parkinsons Law

28. Gross Premium means Net Premium plus___________

a. Margin b. Profit c. Expense Loading d. Loss

29. _____________ is pricing of insurance products driven by market forces

a. De-tariffing b. Fixed Pricing c. Tariffing d. Penetration Pricing____

30. ____________ is the total premium that a policy holder pays to insurance company

a. Net Premium b. Gross Premium c. Partial Premium c. Level Premium

___________________________________________________________________________

Answers: 1-b, 2-a, 3-c, 4-a, 5-b, 6-b, 7-c, 8-a, 9-b, 10-a, 11-b, 12-c,

13-a, 14-b, 15-a, 16-d, 17-c, 18-a, 19-d, 20-c, 21-a, 22-c,

23-a, 24-d, 25-b, 26-a, 27-c, 28-c, 29-a, 30-b

Prepared By : SHAJAHAN. A
Assistant Professor
P.G. Department of Commerce
Govt. College Madappally