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Insurance and Finance - General Knowledge Questions
A)
General investment account
B)
Special investment account
C)
Both (a) and (b)
D)
None of the above

Correct Answer : Option (A) - General investment account

In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer's general account.

A)
General investment account
B)
Special investment account
C)
Both (a) and (b)
D)
None of the above

Correct Answer : Option (B) - Special investment account

A)
Risk Retention
B)
Risk Avoidance
C)
Risk Reduction
D)
All of the above

Correct Answer : Option (D) - All of the above

Risk Avoidance, Risk Retention and Risk Reduction are the methods to manage risks. There are four main ways to manage risk: risk avoidance, risk transfer, risk reduction and risk retention. Each is applicable under different

A)
Might, will
B)
Will, will not
C)
May, may not
D)
Must, need not

Correct Answer : Option (A) - Might, will

Insurance refers to protection against an event that might happen whereas Assurance refers to protection against an event that will happen.

A)
Stagflation
B)
Deflation
C)
Inflation
D)
Reflation

Correct Answer : Option (C) - Inflation

Inflation is responsible for a rise in general price levels of goods and services in a nation’s economy. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods.

A)
In endowment cover only death benefit is there
B)
An endowment policy only survival benefit is available
C)
Endowment plan and Term insurance are similar in benefits
D)
In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy

Correct Answer : Option (D) - In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy

A)
France is the home of universal Life policies
B)
USA is known for introducing such policies
C)
Universal Life plan was first introduced in the UK
D)
Universal Life Insurance is associated with Germany

Correct Answer : Option (B) - USA is known for introducing such policies

Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.

A)
Destroyed
B)
Mutilated
C)
Lost
D)
All of the above

Correct Answer : Option (D) - All of the above

A)
10th
B)
Graduate
C)
Post-graduate
D)
Inter (or) +2

Correct Answer : Option (A) - 10th

A)
Telemarketing
B)
Bancassurance
C)
Insurance agents
D)
All of the above

Correct Answer : Option (D) - All of the above