TYBCOM SEM 6 || MCQ of Insurance Products
INSURANCE PRODUCTS
(IP)
MCQS - MARCH 2020
Unit 3 & 4
(1) GIBNA was passed in which year
(A) 1978
(B) 1979
(C) 1972
(D) 1980
(2) One of the most important principles that helps to determine the amount of premium that an insurer will charge from the insured is
(A) Principle of cooperation
(B) Principle of probability.
(C) Principle of indemnity
(D) Principle of warranty
(3) How many life insurance companies were operating before nationalization in 1956?
(A) 265
(B) 240
(C) 250
(D) 245
(4) What is the minimum sum assured for getting eligible for rural postal life insurance?
(A) 10,000
(B) 1000
(C) 100,000
(D) None of above
(5) How many general insurance companies were operating before nationalisation in 1972?
(A) 100
(B) 102
(C) 105
(D) 107
(6) An insurance contract is a contract between
(A) the Government and the Members of Parliament.
(B) the insured and insurer.
(C) insurance company and the insurance company distributors.
(D) insured and the subject of insurance.
(7) Which of the following are public sector nonlife insurance companies?
(A) National insurance company Itd
(B) New India assurance company Itd
(C) Both a and b
(D) None of above
(8) A warranty can be classified
(A) Good or Bad.
(B) Express or implied.
(C) impress or express.
(D) unknown or uncertain.
(9) GIC became national reinsurance in which year ?
(A) 2005
(B) 2006
(C) 2000
(D) None of the above
(10) Can you buy a life insurance policy for your best friend?
(A) Yes.
(B) Only if allowed by your parents.
(C) Only if allowed by the parents of your best friend.
(D) No.
(11) Among the following, the Principle of indemnity is not applicable to
(A) Fire insurance.
(B) Marine insurance.
(C) Property insurance.
(D) Life insurance.
(12) In which year did Oriental life insurance company started in Kolkata?
(A) 1918
(B) 1818
(C) 1920
(D) 1850
(13) "Insurance is a voluntary device to share the risks faced by several individuals collectively". Which principle of insurance does this statement represent from the following?
(A) Principle of indemnity
(B) Principle of probability
(C) Principle of proximate cause
(D) Principle of cooperation.
(14) Postal life insurance covers which of the following
(A) Employees of postal dept
(B) Employees of telegraph dept
(C) Employees of central govt
(D) All of above
(15) Nationalization of life inşurance sector was held in
(A) 1956
(B) 1968
(C) 1938
(D) 1970
(16) Postal life insurance was started in which year?
(A) 1884
(B) 1887
(C) 1888
(D) None of above
(17) Who makes the offer to enter into an insurance contract?
(A) IRDAI
(B) RBI
(C) Insurer
(D) Insured
(18) Can an underwriter ask for additional information from the applicant of insurance policy after the applicant submits the proposal form?
(A) Cannot be ascertained.
(B) Yes.
(C) No, the IRDA never allows this in India.
(D) Yes, only if permitted by the relatives of the insured.
(19) Which of the following is the only public sector company in the life insurance segment?
(A) GIC
(B) LIC
(C) National insurance company
(D) SBI life insurance company
(20) Which of the following are various types of general insurance?
(A) Motor insurance
(B) Cattle insurance
(C) Health insurance
(D) All of above
(21) The person who scrutinizes all the material facts provided by the proposer and decides whether to accept or reject the risk is known as
(A) Surveyor
(B) Loss assessor
(C) Underwriter
(D) None of above
(22) Which of following principle states that all the material facts should be disclosed in the insurance contract?
(A) Utmost good faith
(B) Subrogation
(C) Insurable interest
(D) Proximate cause
(23) What is the tenure of general insurance contract?
(A) 1 year or below 1 year
(B) 6 months of below 6 months
(C) 3 month and below 3 months
(D) All of the above
(24) Can Insurance Products cover the risks due to gambling in illegal markets?
(A) Yes.
(B) No.
(C) Yes, once the Government of India gives the approval.
(D) None of the above.
(25)From a social point of view, an important significance of insurance products is that they can provide _______ security for the members of the society.
(A) Emotional.
(B) Economic and financial.
(C) Technical.
(D) Technological.
(26) Indisputability clause is specified in which section of insurance act 1938
(A) 38
(B) 39
(C) 41
(D) 45
(27) IRDAI has power to prepare code of conduct for which of the following
(A) Agents
(B) Surveyors
(C) Loss assessors
(D) All of above
(28) Which is the sole national reinsurance company in india ?
(A) SBI
(B) GIC
(C) LIC
(D) ICIC
(29) IRDA Act was passed in which year?
(A) 1994
(B) 1995
(C) 1991
(D) 1999
(30) How many public sector general insurance companies are working in India?
(A) 1
(B) 2
(C) 3
(D) 4
INSURANCE PRODUCTS
(IP)
MCQS - MARCH 2019
1. Which of the following is not an essential element of a valid insurance contract?
A Competency of Parties
B Free Consent of Parties
C Registration of Agreement
D Lawful Consideration and Object
2. Mr. Jayesh insures a building against fire with three fire insurance companies A, B, C with Rs.40000, Rs.40000, Rs.20000 respectively. Fire took place after the policy period and the total loss is Rs.80000. The claim amount payable by company A would be __________.
A Rs. 32000
B RS. 10000
C Rs.16000
D None
3. Which of the following Principle of Insurance places a duty on part of insured to make every effort and to take all such steps, as man of ordinary prudence will take to minimize the loss in event of mishap to insured property?
A Principle of Mitigation of lose
B Principle of Warranty
C Principle of Contribution
D Principle of Subrogation
4. The insurance contract cannot start unless ____________.
A Policy has been issued
B Payment of bill amount
C First premium has been paid
D All of the above
5. Who give advise to the top authority from his specialized knowledge to determine the underwriting policies?
A Line underwriters
B Staff underwriters
C Agents
D Surveyors
6. According insurance Act, 1938, application of renewal of license of insurance has to be made in the month of ________ by paying requisite fee of Rs.50000 and _________ of total gross premium written
directly by the insurer in India during last financial year.
A March, 1%
B January, 2%
C December, 1%
D None of the above
7. TAC stands for ____________.
A Treaty advisory committee
B Tariff advancing committee
C Tariff advisory committee
D All of above
8. In 1850, ___________ was established in Calcutta in pre-nationalization phase of General insurance business.
A Phoenix Insurance Company
B London Assurance Company
C Triton Insurance Company
D Royal exchange company
9. Which of the following is not a duty of IRDAI?
A It is duty bound to follow the directions issued by central government and report Outcome of directions
B To scrutinize existing and new insurance product rates, terms and condition offered and act in interest of consumer
C Authority has to submit all financial statements to central government within 15 months of from the completion of relevant financial year.
D Regulation, promotion and orderly growth and conduct of insurance
business.
10. The person who scrutinizes all the material facts provided by the proposer and decides whether to accept or reject the risk is known as __________.
A Underwriter
B Surveyor
C Loss assessors
D None of the above
11. The Government of India set up __________ for insurance Sector reforms in the year 1993 and the committee submitted its report in _________.
A Andhyarjuna Committee,1993
B Nayak Committee,1994
C Narsingmham Committee, 1993
D Malhotra Committee, 1994
12. According to Insurance Act,1938, __________ is for prohibition of rebates.
A Section 39
B Section 40
C Section 38
D Section 41
13. Insurance companies issue policies against ___________.
A Either for loss or profit only
B Speculative risk only
C Pure risk only
D Either for loss or profit only
14. Which of the following can be considered as an example of an implied warranty in case of Marine Insurance?
A Sea Worthiness of Ship
B Legality of Voyage
C Ownership of Cargo
D All of the above
15. Whole life Assurance plan of PLI also known as __________.
A SUVIDHA
B SANTOSH
C SURAKSHA
D None
16. __________ is consideration in insurance contract
A Policy terms and conditions
B Volume of risk
C Premium
D All of the above
17. __________ is a condition that may create, increase or decrease, the chance of loss while _________ means cause of loss.
A Exposure, Hazard
B Peril, Hazard
C Hazard, Peril
D Peril, Loss
18.In ________, insurable interest must be present at the time of taking policy.
A Marine insurance
B Life insurance
C fire insurance
D None of the above
19. The policyholder nominates a person to whom the money secured by policy shall be paid in the event of his death is known as ____________.
A Assignor
B Nominee
C Assignee
D None of the above
20. According Insurance Act,1938, a revised application for license of insurance is permissible by the applicant only after _________ with an additional condition of ________.
A Two years, either new set of promoters or for a different class of insurance business
B Three years, neither new set of promoters nor for a different class of insurance business
C One year, either new set of promoters or for a different class of insurance
D None of the above
21. The Chairperson or the whole time member or Part time member of IRDA can relinquish the office by giving a notice of ________.
A 3 months to the Central Government
B 6 months to the State Government
C 6 months to the Central Government
D 3 months to the State Government
22. IRDAI has power to prepare code of conduct for which of the following ________.
A Loss assessors
B Agents
C Surveyors
D All of above
23. The person who transfers the title of the policy is known as ________.
A Nominee
B Agent
C Assignee
D Assignor
24. In _______ PLI extended insurance cover to female employees of Postal & Telegraph department.
A 1889
B 1884
C 1894
D 1888
25. Oriental life insurance company started in Kolkata by a British firm from U.K in ________.
A 1918
B 1818
C 1920
d 1850
26. "Insurance is a substitution for a small known loss (premium) for a large unknown loss."- This definition is given by ________.
A Boon and Kurtz
B William Bevriges
C John Magee
D Ghosh and Agarwal
27. Subrogation is the transfer of right and remedies of the ________ to the ________ once the loss is indemnified.
A insurer, insured
B agent, insurer
C insurer, agent
D insured, insurer
28. If quantum of risk and its probability are more, rate of premium will be ________ and if quantum of risk and its probability are less, rate of premium will be ______.
A Less, More
B More, Less
C More, More
D Less, Less
29. Which of the following can be regarded as first statute to regulate life insurance business in India?
A Indian insurance Co. Act 1928
B Insurance Act, 1938
C Indian Life Assurance Act, 1912
D None of the above
30. Which of the following is not primary function of insurance?
A Provides protection
B Spreading of risk
C Prevention of losses
D None of the above
INSURANCE PRODUCT
(IP)
MCQS - MARCH 2018
1. In 1907, __________ was set up as a company to transact in all classes of general insurance business in India.
A The Triton Insurance Ltd
B The Phoenix Insurance Co.
C The Indian Mercantile Insurance Ltd.
D The London Insurance Ltd
2. Which of the following is/are method/s of indemnity?
A Cash payment
B Replacement
C Repairing
D All of these
3. Insurance is a device for the __________ to an insurer of certain risks of ______ that would otherwise come by the insured.
A collection, financial loss
B protection, statutory loss
C retention, emotional loss
D transfer, economic loss
4. License of insurance business expires on 31st day of ________ and have to be renewed _______.
A March, after five years
B December, each year
C March, each year
D December, after five years
5. According to Insurance Act, 1938, after first rejection of insurance company's license a revised application is permissible by the applicant company only after ________.
A three years
B five years
C not permissible at all
D none of these
6. The element of investment may be present in _________.
A assurance policies
B health insurance ploidies
C marine insurance policies
D fire insurance policies
7. Which of the following is/are true in respect of capacity of the parties to enter into the insurance contract?
A The parties have not been involved in any act against the law
B They should have crossed the age of majority
C The parties must also be of sound mind
D All of the these
8. Unless _________ is paid, risk under the contract cannot be assumed.
A claim
B sum assured
C premium
D none of these
9. According to Insurance Act, 1938, application of renewal of license of insurance business has to be made in the month of ____________.
A April
B January
C March
D none of these
10. In 1993, the Government set up a committee under the chairmanship of ________ to propose recommendations for reforms in the insurance sector.
A N. R. Narsighmam
B N. R. Damodaran
B N.R. Malhotra
D None of these
11. Concealment of material fact or misrepresentation may affect _______.
A the validity of the contract
B the validity of the claim
C both a and b
D none of these
12. Which among the following is not true for the children policy under PLI?
A The main policyholder should not have attained the age of 45 years.
B Maximum two children in a family will be eligible
C Maximum sum assured is 1 lakh or more than the sum assured of the main policyholder
D No premium is required to be paid on the death of main policyholder
13. IRDAI controls the rates, terms and conditions that may be offered by insurers in respect of general insurance business, which are not controlled by the ___________.
A GIC
B LIC
C TAC
D RBI
14. Which of the following/s is/are licensing criteria for insurance business according to Insurance Act, 1938.
A Volume of business and earning prospects
B Promoters 'financial strength and directors' background
C Rural and social sector focus
D All the these
15. Which one of the following is not an example of implied warranty?
A sea-worthiness of ship
B packaging cargo in a professional way
C Legality of voyage
D Legality of subject matter of insurance
16. In __________ insurable interest is applicable at the time of both taking the policy and when claiming against loss.
A fire Insurance policies
B assurance policies
C social security policies
D marine policies
17. According to _________ "The collective bearing of risks is insurance".
A Sir William Bevridges
B Alien Z. Mayerson
C Ghosh and Agarwal
D Boon and Kurtz
18. The primary duty of the IRDAI is to _________ orderly growth and conduct of insurance business and re-insurance business.
C promote
B ensure
A regulate
D all of these
19. ________ can not take PLI Policies.
A Employees of Central University of Gujarat
B Female employees of Indian Railways
C Employees of Reliance Industries Limited
D Employees of Punjab National Bank
20. IRDAl consists of one chairperson, not more than _________ whole time members and not more than ________ part time members.
A 4, 7
B 5, 7
C 5, 4
D 4, 5
21. __________ are those for the protection of which, the subject matter is insured and ________ are those for which the insurer cannot be made liable for any type of loss that happens with the insured.
A Remote cause, proximate cause
B Included perils, excluded perils
C Excluded perils, included perils
D Insured perils, proximate cause
22. According to Insurance Act, 1938 the insurance company has to apply tor renewal of license by paying the requisite fee of ________ along with _________ of total gross premium written directly by insurer during last financial year.
A Rs.20,000, 2 %
B Rs.5,00,000, 1%
C Rs.1,00,000, 2%
D None of these
23. Insurance is the modern method by which men make the ________, certain and the unequal, _________.
A uncertain , equal
B fortune, misfortune
C profit , risk
D more, less
24. General insurance business in India was nationalized by amalgamating ________ insurers.
A 107
B 148
C 245
D 68
25. The right of subrogation does not arise in which of the following ways ?
A Contract
B Tort
C Salvage
D None of these
26. The term of the office of the chairperson of IRDA -
A Five years or till attains the age of sixty-seven years
B Five years or till attains the age of sixty-five years
C Five years or till attains the age of sixty years
D Five years or till attains the age of sixty-two years
27. Among the following which principle is not applicable to assurance policies?
A Principle of Utmost Good faith
B Principle of Insurable interest
C Principle of Cooperation
D Principle of Contribution
28. Which of the following is one of the plans under RPLI?
A SUVIDHA
B YUGAL SURAKSHA
C SUMANGAL
D GRAM PRIYA
29. Underwriting is the process of _________ risks of prospective insured.
A eliminating
B accepting or rejecting
C mitigating
D All of these
30. Field underwriter is also known as __________ in insurance.
A service provider
B insured
C assured
D agent
INSURANCE PRODUCT
(IP)
MCQS - ASSIGNMENT AND
NOMINATION
(1) Life insurance policy is a ________ of the policy holder.
(a) Asset
(b) Liability
(c) debt
(d) none of these
(2) ______ can transfer the rights, title and interest in the life insurance policy to the assignee.
(a) Assignee
(b) assignor
(c) insurance company
(d) heirs of the policy holder
(3) Assignment means _______ of rights, title and interest in the property from the assignor to assignee.
(a) purchase
(b) sale
(c) transfer
(d) none of above
(4) According to Insurance Act, ________ Section _______ transfer or assignment of a life insurance policy can be done by endorsement or an instrument.
(a) 1936; 36 (2)
(b) 1938; 38 (1)
(c) 1940; 40 (1)
(d) 1942; 42 (a)
(5) Transfer or Assignment of life insurance policy can be done by…
(a) Endorsement
(b) an instrument
(c) (a) & (b) both
(d) none of these.
(6) When assignment is done by ___ stamp duty is payable.
(a) Endorsement
(b) an instrument
(c) both (a) & (b)
(d) none of these
(7) When assignment is done by _______ stamp duty is not necessary.
(a) Endorsement
(b) an instrument
(c) both (a) & (b)
(d) none of these
(8) The endorsement or a separate deed must be signed by _______ or ______.
(a) Assignor; assignee
(b) assignee; insurance company
(c) authorized agent of the transferor; assignee
(d) Assignor; authorized agent of the transferor
(9) _______ must attest the signature of the assignor.
(a) Assignor
(b) assignee
(c) a witness
(d) insurance company
(10) The assignment is complete and effective …
(a) when it is executed and sent to the insurer along with notice
(b) when it is executed and sent to assignor along with notice
(c) when it is executed and sent to assignee along with notice
(d) none of these
(11) The assignment is effective when _______ is delivered to insurer.
(a) assignment
(b) notice
(c) (a) & (b) both
(d) none of these
(12) Upon the receipt of notice the insurer shall ______
(a) record the facts of such transfer or assignment together with dates.
(b) send the assignment to the assignee.
(c) send the notice to the assignor
(d) cancel the policy.
(13) Subject to the terms and condition of the transfer or assignment ______ is entitled to benefits under the policy.
(a) transferee or assignee
(b) transfer or assigner
(c) insurer
(d) none of these
(14) Assignments are either _________ or ________.
(a) absolute; conditional
(b) absolute; unconditional
(c) (a) & (b) both
(d) none of these
(15) ________ is a simple way to ensure easy payment.
(a) nomination
(b) assignment
(c) (a) & (b) both
(d) none of these
(16) Nomination can be done …
(a) at the time of proposal
(b) at any time during the currency of the policy
(c) (a) & (b) both
(d) none of these
(17) ________ can nominate the person or persons, to whom the money shall be paid in the event of his death.
(a) insurer
(b) nominee
(c) the policy holder
(d) assignee
(18) A nomination can be done by _______ or _______.
(a) endorsement
(b) separate piece of paper
(c) (a) & (b) both
(d) none of these
(19) Nomination must be communicated to _________ and should be registered by ________.
(a) insurer; insurer
(b) nominee; insurer
(c) insurer; nominee
(d) nominator; insurer
(20) Nomination can be cancelled or changed by the policy holder by…
(a) making another endorsement
(b) making a separate piece of paper
(c) (a) & (b) both
(d) none of these
(21) The insurer should send a ________ of having _______ a nomination or change or cancellation.
(a) written acknowledgement; registered
(b) policy; registered
(c) nomination from; registered
(d) none of these
(22) When a policy is assigned or transferred, the existing nomination is automatically ____.
(a) renewed
(b) canceled
(c) done
(d) none of these
(23) Assignee cannot make a nomination because.......
(a) he is a life assured
(b) he is an assurer
(c) he is not a life assured
(d) none of these
(24) When the policy is _______ to the life assured, he will have to make _______.
(a) assigned; a fresh nomination
(b) reassigned; a fresh nomination
(c) nominated; a fresh assignment
(d) none of these
(25) A nomination gives the nominee ___ in the event of death of life assured.
(a) the right to receive the policy money.
(b) the right to assign/transfer the rights, title and interest in the policy
(c) (a) & (b) both
(d) none of these
(26) In case of a minor the policy holder should appoint _______.
(a) nominee
(b) appointee
(c) assigner
(d) assignee
(27) The appointee must affix his signature to the endorsement either in _______ or on the _______.
(a) assignment; nomination
(b) nomination; assignment
(c) proposal form; text of policy
(d) none of these
(28) _________has a right to revoke the appointment of the appointee and to appoint a fresh appointee.
(a) Appointee
(b) Nominee
(c) Assigner
(d) The assured person
(29) In case of minor the appointee loses his status, when the nominee becomes ________.
(a) insolvent
(b) appointee
(c) major
(d) (a) & (b) both
(30) If the nominee is minor and there is no appointee, the claim amount can be paid to only ________ of the deceased policy holder and not to _____.
(a) guardian; the legal heirs
(b) the legal heirs; guardians
(c) guardian; assignee
(d) assignee; guardian
(31) Nomination can be done ___ or ___the issue of policy but assignment can be done by ___the issue of the policy only.
(a) after; before; after
(b) after; after; before
(c) before; before; after
(d) after; after; afte
(32) Nomination..…, whereas assignment…..
(a) cannot be done by a separate deed; can be done by separate deed
(b) can be done by a separate deed; cannot be done by a separate deed
(c) can be done by a separate deed; can be done by a separate deed
(d) cannot be done by a separate deed; cannot be done by a separate deed
(33) After ________ the policy holder loses control over the policy but after ________ the policy holder retains full control over the policy.
(a) nomination; assignment
(b) assignment; nomination
(c) nomination; surrender
(d) none of these
(34) After _______ the assignee is the owner of the policy.
(a) nomination
(b) surrender
(c) assignment
(d) none of these
(35) __________ need not be supported by a consideration whereas _________ must be supported by a consideration.
(a) assignment; nomination
(b) nomination; assignment
(c) surrender; nomination
(d) nomination; surrender
(36) Nomination _______ witnessed whereas assignment ________ witnessed.
(a) must be; may be
(b) cannot be; can be
(c) may be; must be
(d) can be; may be
(37) _________ has no right to sue under policy but ________ has right to sue under the policy.
(a) assignee; nominee
(b) witness; assignor;
(c) nominee; assignee
(d) assignor; witness
(38) _________ can be altered by the life insured whereas ________ cannot be cancelled by the life insured / assignor.
(a) assignment; nomination
(b) nomination; assignment
(c) a separate instrument; assignment
(d) none of these.
(39) If the nominee is minor appointment of _________ is required in case of nomination whereas appointment of _________ is required in the case of assignment.
(a) guardian; appointee
(b) appointee; guardian
(c) assignee; nominee
(d) none of these
(40) _________ does not get vested interest in the policy whereas _________ acquire interest.
(a) assignee; nominee
(b) nominee; assignor
(c) assignor; nominee
(d) Nominee; assignee
(41) If the nominee dies after the life assured and before settlement of the claim …
(a) the policy money are deposited in government treasury.
(b) the policy money are payable to the heirs of the nominee.
(c) the policy money are payable to the heirs of the life assured.
(d) none of these
(42) If the assignee dies at any time, the policy money…....
(a) are payable to the heirs of nominee
(b) are payable to the heirs of assignee
(c) are payable to the heirs of assignor
(d) are payable to the heirs of nominator
INSURANCE PRODUCT
(IP)
MCQS - ASSIGNMENT AND
NOMINATION
(1) Life insurance policy is a ________ of the policy holder.
(a) Asset
(b) Liability
(c) debt
(d) none of these
(2) ______ can transfer the rights, title and interest in the life insurance policy to the assignee.
(a) Assignee
(b) assignor
(c) insurance company
(d) heirs of the policy holder
(3) Assignment means _______ of rights, title and interest in the property from the assignor to assignee.
(a) purchase
(b) sale
(c) transfer
(d) none of above
(4) According to Insurance Act, ________ Section _______ transfer or assignment of a life insurance policy can be done by endorsement or an instrument.
(a) 1936; 36 (2)
(b) 1938; 38 (1)
(c) 1940; 40 (1)
(d) 1942; 42 (a)
(5) Transfer or Assignment of life insurance policy can be done by…
(a) Endorsement
(b) an instrument
(c) (a) & (b) both
(d) none of these.
(6) When assignment is done by ___ stamp duty is payable.
(a) Endorsement
(b) an instrument
(c) both (a) & (b)
(d) none of these
(7) When assignment is done by _______ stamp duty is not necessary.
(a) Endorsement
(b) an instrument
(c) both (a) & (b)
(d) none of these
(8) The endorsement or a separate deed must be signed by _______ or ______.
(a) Assignor; assignee
(b) assignee; insurance company
(c) authorized agent of the transferor; assignee
(d) Assignor; authorized agent of the transferor
(9) _______ must attest the signature of the assignor.
(a) Assignor
(b) assignee
(c) a witness
(d) insurance company
(10) The assignment is complete and effective …
(a) when it is executed and sent to the insurer along with notice
(b) when it is executed and sent to assignor along with notice
(c) when it is executed and sent to assignee along with notice
(d) none of these
(11) The assignment is effective when _______ is delivered to insurer.
(a) assignment
(b) notice
(c) (a) & (b) both
(d) none of these
(12) Upon the receipt of notice the insurer shall ______
(a) record the facts of such transfer or assignment together with dates.
(b) send the assignment to the assignee.
(c) send the notice to the assignor
(d) cancel the policy.
(13) Subject to the terms and condition of the transfer or assignment ______ is entitled to benefits under the policy.
(a) transferee or assignee
(b) transfer or assigner
(c) insurer
(d) none of these
(14) Assignments are either _________ or ________.
(a) absolute; conditional
(b) absolute; unconditional
(c) (a) & (b) both
(d) none of these
(15) ________ is a simple way to ensure easy payment.
(a) nomination
(b) assignment
(c) (a) & (b) both
(d) none of these
(16) Nomination can be done …
(a) at the time of proposal
(b) at any time during the currency of the policy
(c) (a) & (b) both
(d) none of these
(17) ________ can nominate the person or persons, to whom the money shall be paid in the event of his death.
(a) insurer
(b) nominee
(c) the policy holder
(d) assignee
(18) A nomination can be done by _______ or _______.
(a) endorsement
(b) separate piece of paper
(c) (a) & (b) both
(d) none of these
(19) Nomination must be communicated to _________ and should be registered by ________.
(a) insurer; insurer
(b) nominee; insurer
(c) insurer; nominee
(d) nominator; insurer
(20) Nomination can be cancelled or changed by the policy holder by…
(a) making another endorsement
(b) making a separate piece of paper
(c) (a) & (b) both
(d) none of these
(21) The insurer should send a ________ of having _______ a nomination or change or cancellation.
(a) written acknowledgement; registered
(b) policy; registered
(c) nomination from; registered
(d) none of these
(22) When a policy is assigned or transferred, the existing nomination is automatically ____.
(a) renewed
(b) canceled
(c) done
(d) none of these
(23) Assignee cannot make a nomination because.......
(a) he is a life assured
(b) he is an assurer
(c) he is not a life assured
(d) none of these
(24) When the policy is _______ to the life assured, he will have to make _______.
(a) assigned; a fresh nomination
(b) reassigned; a fresh nomination
(c) nominated; a fresh assignment
(d) none of these
(25) A nomination gives the nominee ___ in the event of death of life assured.
(a) the right to receive the policy money.
(b) the right to assign/transfer the rights, title and interest in the policy
(c) (a) & (b) both
(d) none of these
(26) In case of a minor the policy holder should appoint _______.
(a) nominee
(b) appointee
(c) assigner
(d) assignee
(27) The appointee must affix his signature to the endorsement either in _______ or on the _______.
(a) assignment; nomination
(b) nomination; assignment
(c) proposal form; text of policy
(d) none of these
(28) _________has a right to revoke the appointment of the appointee and to appoint a fresh appointee.
(a) Appointee
(b) Nominee
(c) Assigner
(d) The assured person
(29) In case of minor the appointee loses his status, when the nominee becomes ________.
(a) insolvent
(b) appointee
(c) major
(d) (a) & (b) both
(30) If the nominee is minor and there is no appointee, the claim amount can be paid to only ________ of the deceased policy holder and not to _____.
(a) guardian; the legal heirs
(b) the legal heirs; guardians
(c) guardian; assignee
(d) assignee; guardian
(31) Nomination can be done ___ or ___the issue of policy but assignment can be done by ___the issue of the policy only.
(a) after; before; after
(b) after; after; before
(c) before; before; after
(d) after; after; afte
(32) Nomination..…, whereas assignment…..
(a) cannot be done by a separate deed; can be done by separate deed
(b) can be done by a separate deed; cannot be done by a separate deed
(c) can be done by a separate deed; can be done by a separate deed
(d) cannot be done by a separate deed; cannot be done by a separate deed
(33) After ________ the policy holder loses control over the policy but after ________ the policy holder retains full control over the policy.
(a) nomination; assignment
(b) assignment; nomination
(c) nomination; surrender
(d) none of these
(34) After _______ the assignee is the owner of the policy.
(a) nomination
(b) surrender
(c) assignment
(d) none of these
(35) __________ need not be supported by a consideration whereas _________ must be supported by a consideration.
(a) assignment; nomination
(b) nomination; assignment
(c) surrender; nomination
(d) nomination; surrender
(36) Nomination _______ witnessed whereas assignment ________ witnessed.
(a) must be; may be
(b) cannot be; can be
(c) may be; must be
(d) can be; may be
(37) _________ has no right to sue under policy but ________ has right to sue under the policy.
(a) assignee; nominee
(b) witness; assignor;
(c) nominee; assignee
(d) assignor; witness
(38) _________ can be altered by the life insured whereas ________ cannot be cancelled by the life insured / assignor.
(a) assignment; nomination
(b) nomination; assignment
(c) a separate instrument; assignment
(d) none of these.
(39) If the nominee is minor appointment of _________ is required in case of nomination whereas appointment of _________ is required in the case of assignment.
(a) guardian; appointee
(b) appointee; guardian
(c) assignee; nominee
(d) none of these
(40) _________ does not get vested interest in the policy whereas _________ acquire interest.
(a) assignee; nominee
(b) nominee; assignor
(c) assignor; nominee
(d) Nominee; assignee
(41) If the nominee dies after the life assured and before settlement of the claim …
(a) the policy money are deposited in government treasury.
(b) the policy money are payable to the heirs of the nominee.
(c) the policy money are payable to the heirs of the life assured.
(d) none of these
(42) If the assignee dies at any time, the policy money…....
(a) are payable to the heirs of nominee
(b) are payable to the heirs of assignee
(c) are payable to the heirs of assignor
(d) are payable to the heirs of nominator
Q.1. A nomination can be made only in favour of-
a. Parents
b. Spouse and children
c. Spouse
d. Parents, spouse and children
e. Any individual
Q.2. Select the expanded form of SA as commonly used in life insurance
a. Sum Assured
b. Surrender of Assurance
c. Supplementary Assurance
d. Stamp Act
e. Survivor’s Annuity
Q.3. Which product offered by insurance companies that, unlike a pure insurance policy, gives
investors both insurance and investment under a single integrated plan?
a. Money Back Plan
b. Endowment Plans
c. Term Insurance Plans
d. Unit-linked insurance plan
e. Micro Insurance Plans
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