Insurance Sector in India: Quiz-2

1. What do we call the money charged for the insurance coverage?
[A]Policy Lapse
[B]Morbidity Risk
[C]Premium
[D]Package Policy
Answer: Premium
Notes:
Premium is the money charged for the insurance coverage reflecting expectation of loss.
2. When two or more distinct insurance policies combined into a single contract, it is known as
[A]CMO
[B]Package Policy
[C]Mortgage Insurance
[D]Micro Insurance
Answer: Package Policy
Notes:
When two or more distinct policies combined into a single contract, it is known as Package Policy.
3. Which type of life insurance coverage payable to a third party lender upon the death of the insured for loss of loan payments?
[A]Micro Insurance
[B]Mutual Insurance
[C]Mortgage Insurance
[D]Health Insurance
Answer: Mortgage Insurance
Notes:
Mortgage Insurance is a form of life insurance coverage payable to a third party lender/mortgagee upon the death of the insured/mortgagor for loss of loan payments.
4. If a person experience illness, injury, or other physical or psychological impairment, whether temporary or permanent, then it is which type of risk?
[A]Morbidity Risk
[B]Preferred Risk
[C]Morbidity Risk
[D]Standard Risk
Answer: Morbidity Risk
Notes:
Morbidity Risk is the potential for a person to experience illness, injury, or other physical or psychological impairment, whether temporary or permanent. Morbidity risk excludes the potential for an individual’s death, but includes the potential for an illness or injury that results in death.
5. If a general or life insurance policy with a sum assured of Rs. 50000 or less, then it denotes which type of insurance category?
[A]Mortgage Insurance
[B]Micro Insurance
[C]Multi-Peril Insurance
[D]Nonadmitted Insurance
Answer: Micro Insurance
Notes:
A micro-insurance policy is a general or life insurance policy with a sum assured of Rs. 50000 or less.
6. Which term refers to termination of a policy due to failure to pay the required renewal premium.
[A]Actuary
[B]Annuity
[C]Policy Lapse
[D]CMO
Answer: Policy Lapse
Notes:
Policy Lapse refers to termination of a policy due to failure to pay the required renewal premium.
7. What does ‘CMO’ stands for?
[A]Collateralized Mortgage Obligation
[B]Collateral Mortgage Obligation
[C]Collective Mortgage Obligation
[D]Concentrated Mortgage Obligation
Answer: Collateralized Mortgage Obligation
Notes:
Collateralized Mortgage Obligations (CMOs) are a type of Mortgage-Backed Security(MBS) with separate pools of pass-through security mortgages that contain varying classes of holders and maturities (tranches) with the advantage of predictable cash flow patterns.
8. On which date, Life Insurance Corporation of India (LIC) was established?
[A]January 19,1956
[B]September 1,1956
[C]August 19,1956
[D]December 1,1956
Answer: September 1,1956
Notes:
As per the Life Insurance Corporation Act, 1956, Life Insurance Corporation of India (LIC) was founded by Government of India on September 1,1956.
9. Under which section of Income Tax Act, the insured person can claim for tax deduction for the amount invested in insurance?
[A]section 80D
[B]section 81D
[C]section 83D
[D]section 79D
Answer: Section 80D
Notes:
Under section 80D of the income tax act, the insured person who takes out the policy can claim for tax deduction for the amount invested.
10. Which project is to provide health and social security services to members of ESIC through a national digital network?
[A]Project Dhanvantri
[B]Project Milap
[C]Project Pragati
[D]Project Panchdeep
Answer: Panchdeep
Notes:
Project Panchdeep is a project to provide health and social security services to members of ESIC through a national digital network.