IRDA Mock Test 1

The proposal form contains

• Personal details

• physical condition

• habits and pastimes

• all of the above

Which among the following is the regulator for the insurance industry in India?

• Insurance Authority of India

• Insurance Regulatory and Development Authority of India

• Life Insurance Corporation of India

• General Insurance Corporation of India

Which among the following is a secondary burden of risk?

• Business interruption cost

• Goods damaged cost

• Setting aside reserves as a provision for meeting potential losses in the future

• Hospitalization costs as a result of heart attack

Which among the following is a method of risk transfer?

• Bank FD

• Insurance

• Equity shares

• Real estate

Which among the following scenarios warrants insurance?

• The sole bread winner of a family might die untimely

• A person may lose his wallet

• Stock prices may fall drastically

• A house may lose value due to natural wear and tear

Origins of modern insurance business can be traced to __________.

• Bottomry

• Lloyds

• Rhodes

• Malhotra Committee

In insurance context “risk retention‟ indicates a situation where _____.

• Possibility of loss or damage is not there

• Loss producing event has no value

• Property is covered by insurance

• One decides to bear the risk and its effects

Which of the following statement is true?

• Insurance protects the asset

• Insurance prevents its loss

• Insurance reduces possibilities of loss

• Insurance pays when there is loss of asset

Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt every year resulting in a combined loss of Rs. 80,000. What should be the annual contribution of each house owner to make good this loss?

• Rs.100/-

• Rs.200/-

• Rs.80/-

• Rs.400/-

Which of the following statements is true?

• Insurance is a method of sharing the losses of a “few‟ by “many‟

• Insurance is a method of transferring the risk of an individual to another individual

• Insurance is a method of sharing the losses of a „many‟ by a few

• Insurance is a method of transferring the gains of a few to the many