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!

So, are you ready to put your C01 Introduction to Insurance knowledge to the test? Let's get started with our carefully curated MCQs!

C01 Introduction to Insurance MCQs | Page 9 of 10

Discover more Topics under IC38 Life Insurance Agent Exam

Q81.
According to IRDAI regulations, what must be done if the proposal and related documents are not filled by the customer?

a.

The proposal form must be submitted without customer involvement

b.

A certificate must be incorporated at the end of the proposal form

c.

The insurer must decline the proposal

d.

The intermediary must provide the information themselves

Discuss
Answer: (b).A certificate must be incorporated at the end of the proposal form Explanation:If the proposal and related documents are not filled by the customer, a certificate must be incorporated at the end of the proposal form.
Q82.
What is the obligation of the insurer when the customer pays the premium?

a.

Issue a certificate of coverage

b.

Provide additional insurance coverage

c.

Issue a receipt

d.

Notify the Insurance Regulator

Discuss
Answer: (c).Issue a receipt Explanation:The insurer is obligated to issue a receipt when the customer pays the premium.
Q83.
What is the foundation principle of insurance?

a.

Speculation

b.

Mutuality

c.

Investment

d.

Risk avoidance

Discuss
Answer: (b).Mutuality Explanation:Insurance is founded on the principle of Mutuality.
Q84.
How do insurance companies collect and use premiums?

a.

They invest premiums in speculative ventures

b.

Premiums are not collected by insurance companies

c.

Premiums are pooled together as funds for the benefit of policyholders and the community

d.

Premiums are used to cover administrative expenses only

Discuss
Answer: (c).Premiums are pooled together as funds for the benefit of policyholders and the community Explanation:Insurance companies collect small amounts of premium and pool them together as funds for the benefit of policyholders and the community.
Q85.
What role does insurance play in terms of investment and entrepreneurship?

a.

It discourages investment and entrepreneurship

b.

It increases the fear and anxiety associated with entrepreneurship

c.

It removes the fear, worry, and anxiety associated with entrepreneurship

d.

It leads to unduly high investments in speculative ventures

Discuss
Answer: (c).It removes the fear, worry, and anxiety associated with entrepreneurship Explanation:Insurance helps in removing the fear, worry, and anxiety associated with entrepreneurship.
Q86.
Why do many banks and financial institutions insist on property insurance?

a.

To generate additional income

b.

To discourage customers from seeking loans

c.

To increase insurance premiums

d.

To protect their collateral security

Discuss
Answer: (d).To protect their collateral security Explanation:Many banks and financial institutions insist on property insurance to protect their collateral security.
Q87.
What do general insurers do before accepting large complicated risks?

a.

They invest in speculative ventures

b.

They increase premium rates

c.

They assign policies as collateral security

d.

They arrange for property inspection and risk assessment

Discuss
Answer: (d).They arrange for property inspection and risk assessment Explanation:Before accepting large complicated risks, general insurers arrange for inspection of the property by qualified engineers/other experts, assess the risk, and suggest risk management measures to reduce the risk.
Q88.
How does insurance contribute to a country's economy?

a.

It increases the level of speculation in the economy

b.

It discourages foreign investment

c.

It earns foreign exchange for the country

d.

It limits the development of new fields

Discuss
Answer: (c).It earns foreign exchange for the country Explanation:Insurance earns foreign exchange for the country.
Q89.
What is the role of social security schemes in relation to insurance?

a.

They replace the need for insurance

b.

Social security schemes do not involve insurance

c.

They use insurance as a tool for social security

d.

They compete with insurance companies

Discuss
Answer: (c).They use insurance as a tool for social security Explanation:Social security schemes involve the use of compulsory or voluntary insurance as a tool for social security.
Q90.
Which act provides for the payment of expenses related to sickness, disablement, maternity, and death for industrial employees and their families in India?

a.

The Employees Provident Fund Act, 1952

b.

The Life Insurance Corporation Act, 1956

c.

The Employees State Insurance Act, 1948

d.

The Insurance Regulatory and Development Authority Act, 1999

Discuss
Answer: (c).The Employees State Insurance Act, 1948 Explanation:The Employees State Insurance Act, 1948 provides for the payment of expenses related to sickness, disablement, maternity, and death for industrial employees and their families.
Page 9 of 10