Insurance - Study Mode

[#256] In pursuance of which one of the following was the General Insurance Corporation of India was formed?
Correct Answer

(A) General Insurance Business (Nationalization) Act, 1972

Explanation

Solution: The entire general insurance business in India was nationalized by the Government of India through the General Insurance Business (Nationalisation) Act of 197B.

[#257] Which was the first Act to regulate life insurance industry in India?
Correct Answer

(B) Life Insurance Companies Act, 1912

Explanation

Solution: Life Insurance Companies Act, 1912 was the first Act to regulate life insurance industry in India. In order to regulate these insurance companies, Life Insurance Companies Act and Provident Fund Act were passed in 1912. Evolution of insurance industry has undergone three phases, Pre-Nationalisation, Nationalisation and Privatisation.

[#258] Which of the following is an example of Broad Form Insurance?
Correct Answer

(B) Automobile insurance

Explanation

Solution: An automobile insurance is an example of Broad Form Insurance. A customer may require glass insurance as the driver is frequently on the highway and obtains a lot of chips in the front window.

[#259] Which type of insurance usually requires higher premium?
Correct Answer

(A) Broad Form insurance

Explanation

Solution: Broad Form insurance type of insurance usually requires higher premium. Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid.

[#260] What is PAC?
Correct Answer

(B) Pre-Authorized Chequing

Explanation

Solution: Pre-Authorized Chequing is an authorization by the insured to allow the Insurance Company to automatically withdrawal their insurance payments from their chequing account.