Insurance Product MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Insurance Product, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Insurance Product MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Insurance Product mcq questions that explore various aspects of Insurance Product problems. Each MCQ is crafted to challenge your understanding of Insurance Product principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 92 Actuarial Aspects of Product Development tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Insurance Product MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Insurance Product. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Insurance Product knowledge to the test? Let's get started with our carefully curated MCQs!

Insurance Product MCQs | Page 2 of 8

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Q11.
What was a major goal of the Life Insurance Corporation Act passed in 1956?

a.

To privatize the insurance industry

b.

To regulate premium rates

c.

To spread life insurance widely, especially in rural areas

d.

To create a monopoly of foreign insurance companies

Discuss
Answer: (c).To spread life insurance widely, especially in rural areas Explanation:The Life Insurance Corporation of India was created with the objective of spreading life insurance more broadly, particularly to the rural areas, aiming to reach all insurable persons in the country with adequate financial cover at a reasonable cost.
Q12.
What significant event took place in the Indian insurance sector on 1st September 1956?

a.

The introduction of the first insurance policy

b.

The establishment of the first Indian insurance company

c.

The nationalization of the life insurance industry

d.

The passing of the Insurance Act 1938

Discuss
Answer: (c).The nationalization of the life insurance industry Explanation:On 1st September 1956, the life insurance industry in India was nationalized, marking a pivotal moment in the sector's history. This move led to the creation of the Life Insurance Corporation of India, aiming to expand life insurance coverage across the country.
Q13.
How did the Insurance Act of 1938 impact the Indian insurance sector?

a.

It encouraged the establishment of more insurance companies.

b.

It provided strict state control over both life and non-life insurance.

c.

It nationalized the insurance industry.

d.

It introduced insurance for the rural population.

Discuss
Answer: (b).It provided strict state control over both life and non-life insurance. Explanation:The Insurance Act of 1938 was a crucial piece of legislation that governed not only life insurance but also non-life insurance, introducing strict state control over the insurance business to ensure its sound operation and protect policyholders.
Q14.
Which was the first life insurance company to start functioning on Indian soil?

a.

Bharat Insurance Company

b.

Bombay Mutual Life Assurance Society

c.

Oriental Life Insurance Company

d.

Life Insurance Corporation of India

Discuss
Answer: (c).Oriental Life Insurance Company Explanation:Oriental Life Insurance Company, established in 1818, holds the distinction of being the first life insurance company to begin operations on Indian soil, marking the commencement of structured life insurance services in India.
Q15.
What was the significant contribution of Bombay Mutual Life Assurance Society in 1870?

a.

It was the first to offer life insurance to Indians at normal rates.

b.

It introduced the concept of mutual insurance in India.

c.

It was the first foreign insurance company in India.

d.

It nationalized the life insurance sector.

Discuss
Answer: (a).It was the first to offer life insurance to Indians at normal rates. Explanation:Bombay Mutual Life Assurance Society, founded in 1870, was significant for being the first Indian life insurance company, offering life insurance to Indians at normal rates, thereby democratizing access to life insurance across different sections of the society.
Q16.
What was the purpose of the Indian Life Assurance Companies Act enacted in 1912?

a.

To privatize the insurance sector

b.

To regulate the life insurance business

c.

To establish the Life Insurance Corporation of India

d.

To allow foreign participation in insurance

Discuss
Answer: (b).To regulate the life insurance business Explanation:The Indian Life Assurance Companies Act, enacted in 1912, served as the first statute to regulate the life insurance business in India, marking an early effort to bring structure and oversight to the burgeoning insurance sector.
Q17.
The Indian Insurance Companies Act was enacted in what year?

a.

1912

b.

1928

c.

1938

d.

1956

Discuss
Answer: (b).1928 Explanation:Enacted in 1928, the Indian Insurance Companies Act was aimed at enabling the government to collect statistical information about both life and non-life insurance businesses, contributing to the development of a more organized and informed insurance sector.
Q18.
What was the primary objective of the Insurance Act of 1938?

a.

To consolidate and amend earlier legislation for the life insurance sector

b.

To protect the interests of the insuring public

c.

To nationalize the insurance industry

d.

To introduce private players into the insurance market

Discuss
Answer: (b).To protect the interests of the insuring public Explanation:The Insurance Act of 1938 consolidated and amended earlier legislation with the primary objective of protecting the interests of the insuring public, reflecting the government's commitment to ensuring fair practices and safeguarding policyholders' rights.
Q19.
In what year was the life insurance industry in India nationalized, leading to the formation of LIC?

a.

1938

b.

1947

c.

1956

d.

2000

Discuss
Answer: (c).1956 Explanation:The nationalization of the life insurance industry occurred in 1956, a landmark event that led to the establishment of the Life Insurance Corporation of India (LIC) by an Act of Parliament. This move significantly reshaped the Indian insurance landscape, centralizing the life insurance business under a state-owned enterprise.
Q20.
When was the Indian insurance industry privatised, allowing foreign and private players to enter?

a.

1938

b.

1956

c.

1972

d.

2000

Discuss
Answer: (d).2000 Explanation:The year 2000 marked the privatization of the Indian insurance industry, a significant shift that opened the sector to foreign and private players, including banks. This move diversified the insurance market in India, introducing competition and innovation with the entry of companies such as ICICI Prudential, HDFC Standard Life, and Birla Sun Life, among others.
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