MCQ on Insurance and Risk Management with Answers
51. Protecting customers’ interest includes keeping prices affordable, having some mandatory products, and standardization of services. (True/False).
Answer: True
52. The ___ decides the head office of the authority.
Answer: Central government
53. ___ is needed for the smooth functioning of the insurance business.
Answer: Insurance regulation
54. Which of the following is not a concern of the insurance regulatory framework?
a) It has to safeguard the interests of the customers
b) It has to safeguard the interests of the stakeholders
c) It has to ensure the financial soundness of the insurance industry
d) It has to help in the healthy growth of the insurance market
Answer: (b)
55. ___ is prepared only under the Direct Method.
a) Accounting for Investments
b) Segment Reporting
c) Cash Flow Statement
d) Revenue Recognition
Answer: (c)
56. According to the IRDA Regulation, the ___ has to be identified as the income over the contract period or the period of risk, whichever is suitable.
Answer: Premium
57. According to the IT Act the ___ is deducted and deposited to the government account within the given time limit.
Answer: Tax Deductions at Source (TDS)
58. ___ are assets that the insurer gets from the income that is earned through dividends, rent interest, etc.
Answer: Investments
59. The IRDA‟s regulation for the preparation of financial statements has set some ___ for determining the value of investments.
Answer: Procedures
60. According to the ___ the foreign branch accounts which are prepared in local currencies are converted into Indian currency and merged with Indian accounts.
a) Accounting Statement 11
b) Accounting Statement 3
c) Accounting Statement 17
d) Accounting Statement 13
Answer: (a)
61. All the related party transactions, as needed by the ___, have to be compulsorily disclosed by the insurers.
Answer: Accounting standard
62. All the securities have to be transferred to the ___ Account at either cost price or market price, according to which is lower.
a) Stakeholders
b) Policyholders
c) Insurer
d) Reinsurer
Answer: (b)
63. All insurers have to maintain separate investment accounts for the ___ and the ___ as these are two separate business segments.
Answer: Shareholders and Policyholders
64. Life insurance not only protects a person from___but also is a good means of ___ for the people.
Answer: Future risks and savings
65. The purpose of life insurance is to provide ___ against the losses.
Answer: Financial protection
66. Life insurance in family life does not provide needy survivors with financial help in their grief. (True/False).
Answer: False
67. Both large and small companies insure the life of ___.
a) Managers
b) Technical Staff
c) Important employees
d) Team leaders
Answer: (c)
68. ___ is the amount of insurance payable by the policyholder.
Answer: Premium
69. The person who makes the assignment is called Assignee and the person to whom the policy is assigned is called Assigner. (True/False).
Answer: False
70. Which of these is not an element of life insurance?
a) Grace period
b) Nomination and assignment
c) Policyholder
d) Paid-up value
Answer: (c)
71. Term life insurance policy premiums are ___ than those for whole life insurance.
Answer: Less costly
72. Permanent life-insurance helps to keep the premiums the same every year and provides a guarantee of the premiums when the policy is first purchased (true or false).
Answer: True
73. Money-back policies are issued for a period of 15, 20, 25 years only. (True/False).
Answer: True
74. ___ is a whole-life policy that insures two lives with the proceeds payable on the second (later) death.
a) Survivorship life insurance policy
b) Group life insurance
c) Joint life insurance
d) Prepaid insurance
Answer: (a)
75. ___ allows people to buy higher levels of coverage at a younger age when the need for ___ is obviously more.
Term life insurance and protection
Answer: (a)
Thanks for visiting our website. If you like the post, please share it on social media.
Read More:
