Insurance: life and non-life, risk management, reinsurance, IRDA regulation - One Line Questions

1. An annuity is a financial product that provides: — Regular income payments over a period of time
2. Marine insurance typically covers risks associated with: — The transportation of goods by sea
3. An insurable interest must exist at which point in time for a life insurance policy? — At the inception of the policy
4. In facultative reinsurance, the reinsurer: — Selectively accepts or rejects each risk offered
5. Subrogation allows the insurer, after paying a claim, to: — Recover damages from a third party responsible for the loss
6. Motor insurance is a mandatory type of non-life insurance in India covering: — Third-party liability
7. Which of the following is a key function of reinsurance? — Spreading large risks among multiple insurers
8. A life insurance policy that pays out a sum assured upon the death of the insured during the policy term is called: — Term Insurance Policy
9. The 'insurable event' is the: — Event that causes the loss, which is covered by the policy
10. Which type of reinsurance involves the reinsurer paying a proportion of the losses incurred by the cedent (ceding company)? — Quota Share Reinsurance
11. Which type of reinsurance involves the reinsurer automatically accepting a share of the insurer's business? — Treaty Reinsurance
12. Which of the following is an example of a peril in insurance? — A fire breaking out in a building
13. Which type of insurance covers the financial loss arising from the death of the insured? — Life Insurance
14. Which of the following is NOT a type of non-life insurance? — Life Insurance
15. Reinsurance is essentially insurance for: — Insurance companies
16. IRDAI is now known as: — Insurance Regulatory and Development Authority of India
17. The IRDAI's primary objective includes protecting the interests of: — Policyholders
18. Actuarial science is primarily used in insurance to: — Calculate premiums and reserves based on statistical probability
19. The principle of indemnity is most strictly applied in: — General Insurance
20. The 'grace period' in a life insurance policy allows the policyholder to: — Pay overdue premiums without penalty
21. Underwriting aims to balance the risk accepted by the insurer with the: — Premium charged
22. A 'deductible' in an insurance policy is the: — Amount the policyholder must pay before the insurer starts paying
23. The 'insurable interest' in property insurance must exist: — At the time of policy inception and at the time of loss
24. The possibility of loss or damage is known as: — Risk
25. A condition that increases the likelihood of a peril occurring is called a: — Hazard
26. Excess of Loss Reinsurance covers losses that exceed a predetermined: — Monetary threshold
27. IRDAI's role in product approval ensures that: — Products are not misleading and meet regulatory standards
28. The Insurance Regulatory and Development Authority of India (IRDA) was established to: — Regulate and develop the insurance sector in India
29. An endowment policy combines: — Insurance cover with a savings component
30. Which type of insurance policy typically offers a maturity benefit if the insured survives the policy term? — Endowment Policy
31. The 'cedant' in a reinsurance contract is the: — Insurance company ceding part of its risk
32. Which regulatory body oversees the insurance sector in India and ensures policyholder protection? — Insurance Regulatory and Development Authority of India (IRDAI)
33. Which of the following is a key function of IRDAI? — Issuing licenses to insurance agents and intermediaries
34. Non-life insurance is also commonly referred to as: — General Insurance
35. Which type of life insurance policy offers coverage for the entire life of the insured? — Whole Life Policy
36. Which of the following is a common type of hazard in fire insurance? — The presence of flammable materials
37. The 'retention' level in risk management refers to: — The amount of risk retained by the insured
38. Moral hazard in insurance refers to: — The tendency of an insured party to take more risks because they are insured
39. A 'policy lapse' in life insurance occurs when: — The policyholder fails to pay premiums within the grace period
40. A 'claim' in insurance refers to: — The request made by the policyholder for compensation after a loss
41. The 'claims settlement ratio' is a metric used to assess: — The speed and efficiency of an insurer in settling claims
42. The 'Sum Assured' in a life insurance policy represents: — The maximum amount the insurer will pay upon the occurrence of the insured event
43. Fire insurance covers financial losses arising from: — Accidental fire
44. Which of the following is a responsibility of the policyholder? — To disclose all relevant information truthfully
45. What is the primary purpose of insurance? — To transfer risk from an individual or entity to an insurer
46. What is the primary reason for an insurance company to seek reinsurance? — To increase its underwriting capacity and stabilize its results
47. What is the purpose of underwriting in insurance? — To assess and accept or reject risks
48. The principle of 'Utmost Good Faith' in insurance is also known as: — Uberrimae Fidei
49. In risk management, the process of identifying, assessing, and controlling threats is known as: — Risk Management
50. Which insurance principle states that the insured should be compensated only to the extent of their actual loss? — Indemnity
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