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 3 of 8

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Q21.
What does political utility refer to in the context of product utilities?

a.

The financial power granted by a product

b.

The sensory appeal of a product

c.

The social power granted by a product

d.

The social benefit granted by a product

Discuss
Answer: (c).The social power granted by a product Explanation:Political utility of a product refers to the social power it grants, such as improving the social acceptance of the owner, as exemplified by a costly car enhancing the owner's status.
Q22.
Which type of utility refers to the financial power granted by a product?

a.

Political utility

b.

Economic utility

c.

Social utility

d.

Philosophical utility

Discuss
Answer: (b).Economic utility Explanation:Economic utility pertains to the financial power granted by a product, such as increasing the financial stability of an individual, as demonstrated by gold ornaments and diamonds.
Q23.
What defines the philosophical utility of a product?

a.

The sensory appeal of the product

b.

The social morality surrounding the product

c.

The social power granted by the product

d.

The financial power granted by the product

Discuss
Answer: (b).The social morality surrounding the product Explanation:Philosophical utility of a product is determined by social morality, as illustrated by the example of a bottle of wine having less philosophical utility compared to a religious book.
Q24.
Why were Indian natives not initially insured by the early insurance companies in India?

a.

Due to high costs of policies

b.

Because of legal restrictions

c.

Insurance companies were focused on the European community

d.

Lack of interest from the Indian natives

Discuss
Answer: (c).Insurance companies were focused on the European community Explanation:Initially, insurance companies established in India were aimed at serving the European community, and Indian natives were not being insured, indicating a gap in the market that was later addressed by efforts from local leaders.
Q25.
What marked the birth of the first Indian life insurance company?

a.

The establishment of Bharat Insurance Company in 1896

b.

The introduction of the Insurance Act in 1938

c.

The founding of Bombay Mutual Life Assurance Society in 1870

d.

The nationalization of life insurance in 1956

Discuss
Answer: (c).The founding of Bombay Mutual Life Assurance Society in 1870 Explanation:Bombay Mutual Life Assurance Society was the pioneer as the first Indian life insurance company, established in 1870, offering insurance to Indian lives at normal rates, thereby marking a significant shift towards inclusive insurance practices in India.
Q26.
Which movement contributed to the rise of insurance companies in India?

a.

The Independence movement

b.

The Swadeshi movement

c.

The Quit India movement

d.

The Non-Cooperation movement

Discuss
Answer: (b).The Swadeshi movement Explanation:The Swadeshi movement of 1905-1907 significantly contributed to the establishment of more insurance companies in India, driven by nationalist sentiments and the desire to offer insurance and social security to various sectors of society.
Q27.
When was the first legislation to regulate insurance business introduced in India?

a.

In 1912

b.

In 1938

c.

In 1956

d.

In 1870

Discuss
Answer: (a).In 1912 Explanation:The year 1912 saw the introduction of the Life Insurance Companies Act and the Provident Fund Act, representing the first steps towards regulating the insurance business in India.
Q28.
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.
Q29.
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.
Q30.
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.
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