C01 Introduction to Insurance MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C01 Introduction to Insurance, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C01 Introduction to Insurance 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 C01 Introduction to Insurance mcq questions that explore various aspects of C01 Introduction to Insurance problems. Each MCQ is crafted to challenge your understanding of C01 Introduction to Insurance principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C01 Introduction to Insurance MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of C01 Introduction to Insurance. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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C01 Introduction to Insurance MCQs | Page 3 of 10

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Q21.
What is the maximum percentage of paid-up equity capital that foreign investors are now allowed to hold in an Indian insurance company?

a.

26%

b.

34%

c.

74%

d.

100%

Discuss
Answer: (c).74% Explanation:An amendment of the Insurance Act in 2021 has allowed foreign investors to hold up to 74% of the paid-up equity capital in an Indian insurance company.
Q22.
What type of insurance can foreign insurers now establish branches for in India?

a.

Life insurance

b.

Health insurance

c.

General insurance

d.

Reinsurance

Discuss
Answer: (d).Reinsurance Explanation:Foreign insurers can now establish branches in India to do reinsurance.
Q23.
How many life insurance companies are currently operating in India?

a.

23

b.

24

c.

34

d.

58

Discuss
Answer: (b).24 Explanation:There are 24 life insurance companies operating in India, with Life Insurance Corporation (LIC) of India being a public sector company (PSU), and the remaining 23 life insurance companies in the private sector.
Q24.
How many general insurance companies are there in India?

a.

4

b.

26

c.

34

d.

58

Discuss
Answer: (c).34 Explanation:There are 34 general insurance companies in India, including 4 PSU companies (National Insurance Co. Ltd, The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd, and United India Insurance Co. Ltd) dealing with all lines of general insurance, 26 private companies dealing with all lines of general insurance, 6 general insurers dealing only in health insurance, and 2 specialized insurers.
Q25.
Which is the reinsurance company in India?

a.

Life Insurance Corporation (LIC) of India

b.

The General Insurance Corporation of India (GIC Re)

c.

National Insurance Co. Ltd

d.

India Post

Discuss
Answer: (b).The General Insurance Corporation of India (GIC Re) Explanation:The reinsurance company in India is The General Insurance Corporation of India (GIC Re).
Q26.
How many foreign reinsurers operate through branch offices in India?

a.

4

b.

6

c.

11

d.

24

Discuss
Answer: (c).11 Explanation:There are 11 foreign reinsurers that operate through branch offices in India.
Q27.
Which government entity transacts life insurance known as Postal Life Insurance?

a.

Life Insurance Corporation (LIC) of India

b.

National Insurance Co. Ltd

c.

India Post (Department of Posts)

d.

The General Insurance Corporation of India (GIC Re)

Discuss
Answer: (c).India Post (Department of Posts) Explanation:The Department of Posts (India Post) of the Government of India transacts life insurance known as Postal Life Insurance.
Q28.
Is India Post exempt from the purview of the Insurance Regulator?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't say

Discuss
Answer: (a).Yes Explanation:India Post is exempt from the purview of the Insurance Regulator.
Q29.
Which among the following is the regulatory body for the insurance industry in India?

a.

Insurance Authority of India

b.

Insurance Regulatory and Development Authority of India

c.

Life Insurance Corporation of India

d.

General Insurance Corporation of India

Discuss
Answer: (b).Insurance Regulatory and Development Authority of India Explanation:The regulatory body for the insurance industry in India is the Insurance Regulatory and Development Authority of India (IRDAI). The Insurance Authority of India, Life Insurance Corporation of India (LIC), and General Insurance Corporation of India (GIC) are not the regulatory bodies but are entities within the insurance industry in India.
Q30.
What is the fundamental principle of insurance?

a.

Ownership of property

b.

Sharing of economic loss

c.

Creation of common funds

d.

Trust in insurers

Discuss
Answer: (b).Sharing of economic loss Explanation:The fundamental principle of insurance is the sharing of economic loss when an asset loses value.
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