Insurance - meaning and features, life insurance, general insurance, IRDAI - purpose, duties, powers, functions - One Line Questions

1. Marine insurance covers risks associated with: — The journey of goods by sea, air, or land.
2. Which type of insurance policy is designed to provide income to beneficiaries after the insured's death, often for a specific period? — Income Benefit Rider
3. The IRDAI is responsible for setting standards for: — Insurance solvency, conduct, and business practices.
4. IRDAI's function includes granting and renewing licenses to: — Insurance companies and insurance intermediaries
5. The IRDAI has the power to: — Cancel the registration of an insurance company.
6. What is the main risk covered by 'Fire Insurance'? — Loss or damage to property due to fire.
7. Life insurance primarily deals with the risk associated with: — Death or survival of the insured.
8. Motor insurance typically covers: — Damage to the vehicle and third-party liability.
9. The IRDAI's function of 'consumer protection' includes: — Establishing grievance redressal mechanisms for policyholders.
10. The IRDAI's duty to 'promote efficiency' in the insurance sector implies: — Fostering innovation, technology adoption, and streamlined processes.
11. The IRDAI plays a crucial role in ensuring the solvency of insurance companies by: — Setting capital adequacy requirements and monitoring their financial health.
12. Which type of life insurance policy provides coverage for a specified period, and the sum assured is paid only if the insured dies within that term? — Term Assurance Policy
13. Which of the following is a key feature of an insurance contract? — Utmost good faith (uberrimae fidei).
14. Which feature of insurance involves the insured paying a smaller, regular amount (premium) to protect against a potentially larger, uncertain loss? — Risk Pooling
15. The IRDAI stands for: — Insurance Regulatory and Development Authority of India.
16. A 'rider' or 'endorsement' in an insurance policy: — Modifies or adds to the terms and conditions of the original policy.
17. What is the purpose of the 'omission' of a material fact by the proposer in an insurance application? — It is a violation of the principle of utmost good faith and can void the policy.
18. General insurance policies are typically for a period of: — Up to one year, renewable annually
19. Which of the following is NOT a type of General Insurance? — Life Insurance
20. One of the key functions of IRDAI is to promote: — Fair treatment of policyholders.
21. IRDAI's power to 'make regulations' allows it to: — Establish detailed rules and guidelines for the conduct of insurance business.
22. An Endowment Policy in life insurance is characterized by: — Payment of sum assured on death or survival at maturity.
23. Which type of insurance policy offers a death benefit and also accumulates cash value over time? — Whole Life Insurance
24. Which regulatory body oversees the insurance sector in India? — Insurance Regulatory and Development Authority of India (IRDAI)
25. A 'fixed benefit' insurance policy pays: — A predetermined sum of money upon the occurrence of a specific event, regardless of actual loss.
26. In life insurance, a 'maturity benefit' is: — The sum assured and accumulated bonuses paid if the insured survives until the policy term ends.
27. The 'premium' in an insurance policy is: — The amount paid by the insured to the insurer for coverage.
28. In the context of insurance, 'peril' refers to: — The cause of loss, such as fire, flood, or theft.
29. The concept of 'moral hazard' in insurance relates to: — The increased likelihood of loss due to the insured's carelessness or intentional acts because they are insured.
30. The principle of 'contribution' in insurance applies when: — The insured has taken multiple policies covering the same risk.
31. Which of the following is a feature of 'utmost good faith' in an insurance contract? — The insured must disclose all material facts relevant to the risk.
32. The principle of 'insurable interest' in insurance means that: — The insured must have a financial stake in the subject matter of insurance.
33. The principle of 'proximate cause' in insurance states that: — The loss must be the direct result of a covered peril.
34. The 'sum assured' in a life insurance policy refers to: — The fixed amount payable upon the occurrence of a covered event (death or maturity).
35. A 'claim' in insurance is: — A formal request made by the insured to the insurer for compensation for a loss.
36. What does the term 'subrogation' mean in insurance? — The right of the insurer to step into the shoes of the insured to recover damages from a third party.
37. Which of the following is a duty of the IRDAI? — To approve insurance policy wordings and premium rates.
38. What is the purpose of 'risk pooling' in insurance? — To spread the risk of loss over a large number of individuals or entities.
39. Which of the following is a duty of the IRDAI towards the insurance industry? — To promote fair competition and orderly growth of the insurance market.
40. Which of the following is a power of IRDAI concerning insurance companies? — To impose penalties for non-compliance with regulations.
41. What is the role of IRDAI in relation to insurance intermediaries like agents and brokers? — To regulate their conduct, training, and licensing.
42. What is the fundamental purpose of insurance? — To provide a mechanism for risk transfer and financial protection.
43. What is the purpose of 'policy conditions' in an insurance contract? — To define the rights and responsibilities of both the insurer and the insured.
44. What is a primary objective of the IRDAI? — To protect the interests of policyholders and regulate the insurance sector.
45. What is the primary role of an insurance agent? — To act as an intermediary between the insurer and the insured, facilitating policy sales.
46. What is the primary characteristic of 'indemnity' in general insurance? — To restore the insured to the same financial position as before the loss.
47. What is the main purpose of a 'Whole Life Policy'? — To accumulate cash value and pay out the sum assured upon the death of the insured, whenever it occurs.
48. What is the primary function of a 'loss adjuster' in the insurance process? — To investigate the cause and extent of a loss and determine the amount payable under the policy.
49. What does 'co-insurance' in property insurance typically involve? — Two or more insurers sharing the risk of a single policy.
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