Insurance - Study Mode

[#136] When did insurance begin in Babylon?
Correct Answer

(A) 1750 BC

Explanation

Solution: Insurance begin in Babylon in 1750 BC. Babylonians also practiced insurance in the form of a system, called the Code of Hammurabi, c. 1750 BC. It was practiced by the early Mediterranean sailing merchants. When a merchant takes a loan to fund his shipment, he would also pay an extra sum to the lender to would guarantee him to cancel the loan when the shipment is stolen or lost at sea.

[#137] Which one of the following does not belong to the main products of life insurance?
Correct Answer

(D) Personal accident insurance

Explanation

Solution: Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical and health are the main products of life insurance. Motor insurance, Fire/House owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance are the main products of general insurance.

[#138] Which one of the following does not belong to the major general insurance private sector companies in India?
Correct Answer

(B) The Oriental Insurance Company

Explanation

Solution: New India Assurance Company Limited, National Insurance Company Limited, The Oriental Insurance Company, United India Insurance, Agricultural Insurance Company of India are the major general insurance companies in India. Bajaj Allianz General Insurance, ICICI Lombard General Insurance, IFFCO-Tokio General Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, TATA AIG General Insurance, Cholamandalam General Insurance, HDFC Ergo are the major general insurance private sector companies in India.

[#139] What does the letter 'S' denote in the term IFSC?
Correct Answer

(C) System

Explanation

Solution: The Indian Financial System Code (IFSC CodE. is an alphanumeric code that uniquely identifies a bank-branch participating in the Real-Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems.

[#140] A method of valuing insured property or the value computed by that method is known as
Correct Answer

(B) Actual cash value

Explanation

Solution: Actual Cash Value (ACV) is a method of valuing insured property or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.