Insurance Questions for OICL AO Mains and AIC AO 2017

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Insurance Awareness for OICL AO Exam 2017

Just a few days are left for OICL AO Mains It is time to pace up your preparation of Insurance Awareness for OICL AO Mains and AIC AO. These questions related to Insurance Awareness will also help you in preparing for other upcoming banking and Insurance recruitment examination.

Q1. _____________ a/an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
(a) Insurance
(b) Banking
(c) Market Risk
(d) Premium
(e) Prompt Corrective Action (PCA)

S1. Ans.(a)
Sol. Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

Q2. In which among the following year the Life Insurance sector and Life Insurance Corporation came into existence?
(a) 1949
(b) 1935
(c) 1951
(d) 1962
(e) 1956

S2. Ans.(e)
Sol. An Ordinance was issued on 19th January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year.

Q3. IRDA was constituted as a/an _________ to regulate and develop the insurance industry in 1999. 
(a) Regulatory body
(b) Amendment body
(c) autonomous body  
(d) All of the above
(e) None of the given options is true

S3. Ans.(c)
Sol. Insurance Regulatory and Development Authority (IRDA) set up as the autonomous body under the IRDA Act in 1999.

Q4. An insurance ________ is the amount of money that an individual or business must pay for an insurance policy.
(a) premium
(b) agent
(c) health insurance
(d) broker
(e) clause

S4. Ans.(a)
Sol. An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is considered income by the insurance company once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy.

Q5. In 1993, the Government set up a committee under the chairmanship of _________ former Governor of RBI, to propose recommendations for reforms in the insurance sector.
(a) Gorwala Committee 
(b) RN Malhotra
(c) B Sivaraman Committee
(d) Rangarajan Committee
(e) None of the given options is true

S5. Ans.(b)
Sol. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector.

Q6. Sun Life Financial Inc plans to increase its stake from 26 percent to 49 percent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14 million). Sun Life Financial Inc based in-
(a) USA
(b) Germany
(c) Japan
(d) Canada
(e) France

S6. Ans.(d)
Sol. Canada-based Sun Life Financial Inc plans to increase its stake from 26 percent to 49 percent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14 million).

Q7. The term _______________ relates to a type of insurance that essentially covers your medical expenses. 
(a) Health Insurance
(b) Life Insurance
(c) Travel Insurance
(d) Group Insurance
(e) Motor Insurance

S7. Ans.(a)
Sol. The term ‘Health Insurance’ relates to a type of insurance that essentially covers your medical expenses. A health insurance policy like other policies is a contract between an insurer and an individual/group in which the insurer agrees to provide specified health insurance cover at a particular “premium” subject to terms and conditions specified in the policy.

Q8. The General insurance industry was nationalized in _________ and 107 insurers were grouped and amalgamated into four Companies. 
(a) 1949
(b) 1956
(c) 1972
(d) 1982
(e) 1988

S8. Ans.(c)
Sol. The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.

Q9. Where is the head office of United India Insurance Company Limited?
(a) Pune
(b) Kolkata
(c) Mumbai
(d) New Delhi
(e) Chennai

S9. Ans.(e)
Sol. Chennai, Tamil Nadu is the head office of United India Insurance Company Limited.

Q10. Who is the present Chairman cum Managing Director of Oriental Insurance Company Ltd? 
(a) VK Sharma
(b) A V Girija Kumar
(c) G Srinivasan
(d) Alamelu T Lakshmanachari
(e) None of the given options is true

S10. Ans.(b)
Sol. A V Girija Kumar is the present Chairman cum Managing Director of New Delhi based Oriental Insurance Company Ltd.

Q11. ____________, who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. 
(a) Cashier
(b) Broker
(c) Agent
(d) Customer
(e) Banker

S11. Ans.(b)
Sol. Broker, who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. The broker may also be an agent of the insurer for purposes of policy collection and delivery of the policy.

Q12. In which among the following year National Insurance Company Limited (NICL) was incorporated?
(a) 1956
(b) 1949
(c) 1934
(d) 1919
(e) 1906

S12. Ans.(e)
Sol. National Insurance Company Limited (NICL) was incorporated in the year 1906. After nationalization it was merged, along with 21 foreign and 11 Indian companies, to form National Insurance Company Ltd.

Q13. Agriculture Insurance Company Of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under- 
(a) Companies Act, 1956
(b) IRDA Act, 1999
(c) Reserve Bank of India Act, 1934
(d) SEBI Act, 1992
(e) None of the given options is true

S13. Ans.(a)
Sol. Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.

Q14. The written insurance contract that may include all clauses, riders and endorsements. It is called?
(a) Liabilities
(b) Premium
(c) Installment
(d) Policy
(e) Assets

S14. Ans.(d)
Sol. The policy is the written insurance contract that may include all clauses, riders and endorsements.

Q15. UHIS has launched by the Government of India is already in existence for persons and families below the poverty line with the element of subsidy from the Government. UHIS stands for-
(a) Universal Health Insurance System
(b) Universal Health Insurance Service
(c) Universal Health Insurance Scheme
(d) Universal Health Insurance Solutions
(e) Universal Health Insurance Scenario

S15. Ans.(c)
Sol. The Universal Health Insurance Scheme (UHIS) has launched by the Government of India is already in existence for persons and families below the poverty line with element of subsidy from the Government. In addition, the Rashtriya Swasthya Bima Yojana (RSBY) was also rolled out from by the Government to provide the health insurance coverage for Below Poverty Line (BPL) families.