1) President of World Bank?

- Jim Yong Kim

2) Headquarters of BRICS Bank? - Shanghai, China
3) Accidental Insurance cover under Pradhan Mantri Jan Dhan Yojana? Rs.1. lac
4) 'Addis Ababa' is the capital of? - Ethiopia
5) Currency of Denmark? - Danish krone
6) What is India's rank in the Global Resilience Index 2015 released by
FM Global recently? - 119th among 130 countries
7) PM Modi recently unveiled Mahatma Gandhi's statue in which
country? - Brisbane, Australia
8) Who won the fbb Femina Miss India 2015 title recently? - Aditi Arya
9) World Bank Headquarters? - Washington
10) What does G stands for in GST? - Goods (GST- Goods and Service
Tax)
11) Which country won the ICC Cricket World Cup 2015? - Australia
12) Great Himalaya National Park is situated at? - Kullu, Himachal
Pradesh
13) Andhra Pradesh recently approved which city as the new capital of
the state? - Amaravathi
14) NEFT stands for? - National Electronic Funds Transfer
15) Mascot of 2016 Olympics? - Vinicius
16) FAO headquarter? - Rome, Italy
17) Indira Gandhi Peace Award 2014 was given to which institution? ISRO
18) Reserve Bank of India (RBI) recently approved amalgamation of
ING Vysya Bank Ltd. with which bank? - Kotak Mahindra Bank
19) UN World Yoga day is going to be celebrated on? - June 21
20) Bhuvneshwar Kumar is related with which sport? - Cricket

21) Who resigned from the post of President of International Cricket

Council (ICC) after World Cup 2015? - Mustafa Kamal
22) NAV full form? - Net Asset Value
23) Capital of Cambodia? - Phnom Penh
24) Who was recently conferred with Major Dhyan Chand Lifetime
Achievement Award? - Balbir Singh Senior
25) Name the Union Information and Broadcasting Minister? - Arun
Jaitley

1. Insurance works on the principle of:

a. Sharing of losses
b. Probabilities
c. Large numbers
d. Randomness
e. All of the above
Ans: e. All of the above
2. Insurance helps to:
a. Prevent adverse situations from occurring
b. Reduce the financial consequences of adverse situations
c. Negate all consequences of adverse situations
d. Make assets continuously productive
e. All of the above
Ans: b. Reduce the financial consequences of adverse situations.
3. The main purpose of having Life insurance is:

a. As an avenue for long-term investment

b. As a medium for getting income tax benefits from savings
c. As a governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Ans: e. None of the above
4. Which of the following intermediaries do not require IRDAs licence/ approval to operate in
India?
a. Insurance Brokers
b. Insurance Agents
c. Third Party Administrators
d. Surveyors
e. All the above intermediaries require IRDAs licence/ approval
Ans: e. All the above intermediaries require IRDAs licence/ approval
5. An actuary is expected to:
a. Make an exact forecast of the future liabilities of policies
b. Make a reasonable forecast of the future liabilities of policies
c. Calculate the premium required to cover a risk on a long-term basis
d. Find the probability of an insured event to happen in non-life policies
e. All the above statements are incorrect
Ans: b. Make a reasonable forecast of the future liabilities of policies
6. As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid
compensation on the basis of:
a. Age and sex

b. Age and number of dependents

c. Income and size of family
d. Age and income
e. Income and number of dependents
Ans: d. Age and income.
7. As per the Insurance Act, every insurer has to prepare at the end of financial year
a. Balance Sheet
b. Profit and Loss Account
c. Revenue Account for each class of Insurance business
d. Accounts of receipts and payments in respect of share-holders funds
e. All of the above
Ans: e. All of the above
8. According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI in Insurance
Sector is :
a. 74%
b. 26%
c. 49%
d. 51%
e. None of these
Ans : c. 49 %
9. England-based Willis Group Holdings, the third largest insurance brokerage in the world
recently picked up 49 per cent stake in which Indian Insurance Brokerage Company ?
a. IndiaFirst Life Insurace
b. Almondz Insurance Brokers

c. Heritage Insurance Brokers

d. Bharat Re- Insurance Brokers
e. Aditya Birla Insurance Broker
Ans : b Almondz Insurance Brokers
10. Which of the following types of companies/organisations issue ULIP?
a. Insurance companies
b. Stock brokers
c. Banks
d. NABARD
e. RBI
Ans : a ULIP Unit Linked Insurance Plan
11. Which of the following is the only public sector company in the field of life insurance?
a. General insurance company
b. New India assurance company
c. Oriental insurance company
d. SBI Life Insurance Company
e. Life Insurance Corporation of India
Ans : e Life Insurance Corporation of India
12. A contract that pledges payment of an agreed upon amount to the person (or his/her
nominee) on the happening of an event covered against is technically known as
a. Death coverage
b. Insurance Premium
c. Life insurance
d. Savings for future
e. Provident fund
Ans : Life Insurance
13. With which of the following did the State Bank of India enter into a joint venture agreement
for undertaking general insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.

d. Allianz
e. BNP Paribas Cardif.
Ans : b. SBI General Insurance Company Limited is a joint venture between the State
Bank of India and Insurance Australia Group (IAG). SBI owns 74% of the total capital and
IAG the remaining 26%.
14. With which of the following did the State Bank of India enter into a joint venture agreement
for undertaking Life insurance business?
a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.
Ans : e . SBI Life Insurance is a joint venture between State Bank of India and BNP
Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining
26%.
15. Which of the following is the regulator of insurance sector in India?
a. RBI
b. AMFI
c. IRDA
d. SEBI
e. IRDAI
Ans : e. Recently IRDA was named IRDAI.
16. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash Sab
ki Surakhsa Hamare Paas?
a. Life Insurance Corporation
b. Oriental Insurance Company
c. New India Assurance
d. General Insurance Company
e. SBI Life Insurance
Ans : b.
17. Which of the following is/are the various types of insurance?
1. Life insurance
2. Health insurance
3. Liability insurance

a. Only (1)
b. Only (1) and (2)
c. Only (2) and (3)
d. Onnly (1) and (3)
e. All the three
Ans : e
18. Which of the following public sector companies/organizations provides insurance cover to
exporters?
a. RBI
b. ECGC
c. NABARD
d. SIDBI
e. IRDA
Ans : b
19. What is the minimum paid up capital required for a General Insurance Company to
commence its operations in India ?
a. 200 Crore
b. 500 Crore
c. 250 Crore
d. 100 Crore
e. 300 Crore
Ans : d 100 Crore
20. Which bank recently became the first bank in India to fully own an insurance business ?
a. HDFC Bank
b. Kotak Mahindra Bank
c. ICICI Bank
d. IDBI Bank
e. Canara Bank
Ans : b. Kotak Mahindra Bank on 25 November 2014 became first bank in India to fully
own an insurance business after Reserve Bank of India (RBI) gave permission to set up a
wholly-owned non-life insurance company called Kotak General Insurance.
21. Which is the sole reinsurance company in the Indian insurance market ?
a. United India Insurance Company Limited
b. General Insurance Corporation of India

c. New India Assurance Company Limited

d. The Oriental Insurance Company
e. Life Insurance Corporation of India
Ans : b Reinsurance is insurance that is purchased by an insurance company.
22. Study the table below and find out which one of them is wrong :
Insurance Company
a. Oriental Insurance Company Ltd
b. United India Insurance Company Limited
c. National Insurance Company Limited
d. The New India Assurance Co. Ltd.
e. General Insurance Corporation

Head Office
New Delhi
Chennai
Kolkata
Mumbai
Hyderabad

Ans : e. General Insurance Corporation has its headquarters at Mumbai.

23. Study the table below and find out which one o them is wrongly matched [ As on 5 March
2015 ]
Insurance Company
a. Life Insurance Corporation of India
b. National Insurance Company Limited
c. Oriental Insurance Company Ltd
d. General Insurance Corporation
e. The New India Assurance Co. Ltd.

Chairman
Shri S. K. Roy
Shri A.V. Girija Kumar
Dr. A.K.Saxena
A K Roy
Milind Kharat

Ans : e
The New India Assurance Co. Ltd. , Chairman G.Srinivasan
United India Insurance Company Limited , Chairman Milind Kharat

1. The punch line of the advertisement of which of the following organization is Jindagi ke sath
bhi Jindagi ke bad bhi ?
(A) New India Assurance
(B) General Insurance Corporation
(C) ICICI Prudential
(D) Life Insurance Corporation Of India
(E) None of these
ANS- D

2. The central office of the Life Insurance Corporation of India (LIC) is located at
(A) Kolkata
(B) New Delhi
(C) Chennai
(D) Pune
(E) Mumbai
ANS- E
3. The Life Insurance Corporation Of India has how many Zonal offices in India ?
(A) Five (B) Eight (C) Ten (D) Fifteen (E) None of these
ANS- B
4. If an organization wishes to venture into Insurance Business it has to obtain a licence first
from which of the following ?
(A) Indian Banks Association (IBA)
(B) Security and Exchange Board of India (SEBI)
(C) Tariff Advisory Committee (TAC)
(D) Insurance Regulatory and Development Authority of India (IRDAI)
(E) None of these
ANS- D
5. Which of the following is not the name of an Insurance Scheme launched by the Government
of India
(A) Janashree Bima Yojana
(B) Krishi Shramik Sarnajik Suraksha Yojana
(C) Shiksha Sahyog Yojana
(D) Varsha Bima Yojana
(E) National Saving Scheme Programme
Answer.- D
6. Which of the following insurance companies writes its punch line in the advertisements
Insurance is the subject matter of solicitation ?

(A) CIC
(B) LIC
(C) ING Vysya Life InsuranceCo.
(D) Tata AIG Life Insurance Co
(E) None of these
Answer B
7. Which of the following was the parent company of New India Assurance ?
(A) LIC
(B) GIC
(C) Oriental Insurance Co. Ltd.
(D) United India Insurance
(E) None of these
Answer B
8. Which of the following words/ terms is closely associated with the insurance business
(A) Archives
(B) Donation
(C) Actuary
(D) Quest
(E) All are associated with insurance
Answer C
9. The New India Assurance Company was established in 1919 by
(A) Dorab Tata
(B) G. D. Birla
(C) Jamunalal BajaJ
(D) Kamlapat Singhania
(E) None of these
Answer A
10. Which of the following is largest Non Life Insurance Company in India ?
(A) ICICI Lombard General Insurance Company Ltd.
(B) United India Insurance Company Ltd.

(C) General Insurance Company Ltd.

(D). New India Assurance Company Ltd.
(E) None of these
Answer D
11. Which of the following Insurance Companies was launched with NABARD as one of its
promoters with 30% stake in it ?
(A) General Insurance Corporation Ltd.
(B) National Insurance Cornpany Ltd.
(C) Agriculture Insurance Company Ltd,
(D) SBI Life Insurance Company Ltd.
(E) None of these
Answer A
12. Which of the following correctly describes what the Bancassurance is
1. It is an arrangement whereby the branches of a bank sell / distribute insurance products of an
insurance company.
2. It is a new product developed/ launched by the banks in which the risks of the high value
customers are covered for any losses to their property and/or lives through an insurance cover.
3. It is a new product launched by some banks by which they are providing insurance cover to
exporters/ importers for the losses, if any due to high fluctuations in the exchange rates of dollars
and other major currencies.
(A) Only 1
(B) Only2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Answer A
13. As per the news published in various newspapers, Life Insurance policies may become
paperless in the near future. This means
1) LIC will not insure any person here after as it has already reached its peak
2) LIC will not ask for any documents from a person who wishes to purchase an Insurance policy
3) All policy related documents and policy certificates will henceforth be available in electronic
form and not in their present physical

4) LIC henceforth will not entertain any claim or complaint in written form or on paper. Things
should be in electronic condition.
5) None of these
Answer 3
14. In Insurance policies we always find a date which is Date of Maturity. What does it mean?
1) This is the date on which the policy was sold to the customer/person insured.
2) This is the date on which the policy holder will have to submit his/her claim
seeking the amount of the policy. Otherwise the company will not make any
payment to him/her.
3) This is the date on which the contract between the person and insurance company will come to
an end.
4) The date on which the insurance company makes the final payment to the
insured person which is normally fifteen days after the payment due date.
5) None of these
Answer 3
15. Which of the following insurance plan is not launched by LIC?
1) Jeevan Abhaya 2) Life Mahalife Gold Plan
3) Child Career Plan 4) Child Future Plan 5) Jeevan Saral
Answer 2
16. Which of the following is the best description of what insurance is?
1) Insurance = Collective bearing of risk
2) Insurance = Paying for others mistake
3) Insurance = Taking from A to pay B
4) Insurance = Paying for something which will never happen
5) All of these
Answer 1
Taglines of Insurance Companies
Life Insurance Corporation of India (LIC) Yogakshemam Vahamyaham Your welfare is our
responsibility

 Tata AIA Life Insurance Company Limited You click, we cover

ICICI Prudential Life Insurance Company Limited Zimmedari ka humsafar
HDFC Standard life Insurance Company Limited Sar utha Ke Jiyo
Oriental Insurance Company Limited Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Paas
United India Insurance Company Limited Rest Assured with Us
Max Bupa Health Insurance Your Health First
SBI Life Insurance Company Limited With Us, Youre Sure
Birla Sun Life Insurance Company Limited Muskurate Raho
Bajaj Allianz Life Insurance Company Limited Jiyo Befiqar
Kotak Mahindra Old Mutual Life Insurance Limited Faidey ka Insurance
Max New York Life Insurance Company Limited Karo Zyada ka Iraada
Apollo Munich Health Insurance We know Healthcare. We know Insurance
Future Generali Life Insurance Ek Shagun Zindagi Ke Naam
Aviva India Life Insurance Kal par Control
ING Vysya Life Insurance India Company Adding Life to Insurance
MetLife India Insurance Company Limited Have you met life today?
Advantages of Increase in FDI in Insurance :
From 26 to 49% Advantages :

Capital Inflow

Better Technology

Increase in Competitiveness

Innovative Insurance Products and Policies for Public

Increase Penetration

Employment Generation

stringent competition leading to competitive quotes,

improved services and better claim settlement ratio.

Types of Frauds in Insurance Sector

There
are
many
but
following
are
Main.
Premium
Diversion

Premium
diversion
is
the
embezzlement
of
insurance
premiums.

It
is
the
most
common
type
of
insurance
fraud.
Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the
money
for
personal
use.
Another common premium diversion scheme involves selling insurance without a license,
collecting premiums and then not paying claims.
Fee
Churning
In fee churning, a series of intermediaries take commissions through reinsurance agreements.
The initial premium is reduced by repeated commissions until there is no longer money to pay
claims.
The company left to pay the claims is often a business the conspirators have set up to fail.
When viewed alone, each transaction appears to be legitimateonly after the cumulative effect
is considered does fraud emerge.
Asset
Diversion

Asset
diversion
is
the
theft
of
insurance
company
assets.
It occurs almost exclusively in the context of an acquisition or merger of an existing insurance
company.
Asset diversion often involves acquiring control of an insurance company with borrowed funds.
After making the purchase, the subject uses the assets of the acquired company to pay off the
debt. The remaining assets can then be diverted to the subject.

Abbreviations:
IRDAI Insurance Regulatory and Development Authority of India
GIC General Insurance Corporation of India
NIACL New India Assurance Company Limited
NICL National Insurance Company Limited

LIC Life Insurance Corporation of India

UIICL United India Insurance Company Limited
OICL Oriental Insurance Company Limited
AICL Agriculture Insurance Company Limited

Indian Insurance Facts :

TAC (Tariff Advisory Committee) is the sole data repository for the non-life industry.

GIC is the ONLY Reinsurer in India.

LIC is the only Public sector company in the field of life Insurance.

IRDAI is the regulator of Insurance Sector in India.

Malhotra Committee was appointed by the Government of India for conducting a study
on insurance.

National Insurance Academy is situated at Pune.

What is the Importance of Insurance Sector ?

Encourages saving habit

Provides safety net to Rural & Urban Enterprises and Productive Individuals

Generates Long term Investment Funds for Infrastructural Development for a Country.

Promotes economic growth:

Problems faced by Indian Insurance Sector Today

Lack of awareness for insurance needs

Lack of penetration due to inadequate marketing/delivery system

Total computerization still in the process of implementation

What is Life Insurance ?

Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to
reimburse the occurrence of the insured individuals death or other event such as terminal illness
or critical illness. The insured agrees to pay the cost in terms of insurance premium for the
service.

What is IRDAI ?
IRDAI Is an autonomous apex body which regulates and develops the insurance industry in
India. It was constituted by a Parliament of India act called Insurance Regulatory and
Development Authority Act, 1999 and duly passed by the Government of India. All Members are
appointed by the Government of India.
The agency operates from its headquarters at Hyderabad, Telangana where it shifted from Delhi
in 2001. Chairman: T. S Vijayan

What is DICGC ?
Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank
of India. It was established on July 15, 1978 under Deposit Insurance and Credit Guarantee
Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of
credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, recurring
deposits for up to the limit of Rs. 100,000 of each deposits in a bank.