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 7 of 8

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Q61.
Who among the below is not allowed to buy an insurance product?

a.

A senior citizen

b.

A person above 18 years of age

c.

A person below 18 years of age

d.

An unmarried woman

Discuss
Answer: (c).A person below 18 years of age Explanation:A minor cannot enter into a contract of insurance. He can only be the beneficiary.
Q62.
Which of the below statement is false?

a.

A person can buy insurance for himself

b.

A husband can buy insurance for his wife

c.

A wife can buy insurance for her husband

d.

A person can buy insurance for his friend

Discuss
Answer: (d).A person can buy insurance for his friend Explanation:A person has no direct insurable interest in his friend and hence cannot buy insurance for his friend.
Q63.
Insurance is purchased to ________________________ .

a.

Obtain financial security

b.

Invest money

c.

Place a bet

d.

Lower tax liability

Discuss
Answer: (a).Obtain financial security Explanation:Insurance is primarily purchased to obtain financial security or to secure the financial capital of the assured.
Q64.
A contract of insurance concludes when _______________________ .

a.

The proposal form is signed by the proposer

b.

The duly filled proposal form is received by the insurer

c.

Premium is received by the insurer

d.

Proposer decides to buy insurance

Discuss
Answer: (c).Premium is received by the insurer Explanation:A contract of insurance concludes when the premium is realised in the books of the insurer.
Q65.
Look at the two statements below and choose the correct option:

1. Employer can buy insurance for his employees.
2. A husband can buy insurance for his wife.

a.

Statement 1 is true and statement 2 is false

b.

Statement 2 is true and statement 1 is false

c.

Both statements are true

d.

Both statements are false

Discuss
Answer: (c).Both statements are true Explanation:An employer has insurable interest in his employees and a husband has insurable interest in his wife. Hence, both the statements are true.
Q66.
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.
Q67.
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.
Q68.
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.
Q69.
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.
Q70.
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.
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