Irda Mock Test exam

Are you preparing for the IRDA exam and looking to boost your chances of success? Our Irda Mock Test exam is designed to help you practice and excel in topics related to life insurance, general insurance, and health insurance. With a comprehensive set of multiple-choice questions (MCQs) and answers, you can assess your knowledge, identify weak areas, and get exam-ready in no time.

Irda Mock Test exam

Welcome to your Irda Mock Test exam

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Which of the following is the primary objective of insurance?

a) Profit-making b) Risk Transfer c) Risk Avoidance d) None of the above

What is the principle of 'Utmost Good Faith' in insurance?

a) The insurer must reveal all risks to the insured.

b) Both parties must act with complete honesty.

c) The insured must pay the premium on time.

d) The insured must never file false claims.

None

Which of the following is an example of a life insurance policy?

a) Health Insurance

b) Term Life Insurance

c) Motor Insurance

d) Home Insurance

None

In an insurance contract, the 'premium' refers to:

a) The amount the insurer pays for a claim.

b) The amount the policyholder pays for coverage.

c) The amount the policyholder receives after a claim.

d) None of the above.

None

Which of the following is a type of non-life insurance?

a) Endowment Policy

b) Health Insurance

c) Life Annuity

d) Term Life Insurance

None

What is the primary purpose of a life insurance policy?

a) To protect the family financially in the event of the policyholder’s death.

b) To cover health expenses of the policyholder.

c) To accumulate savings for retirement.

d) To cover motor vehicle damages.

None

Which type of life insurance policy provides coverage for a specific period (e.g., 20 years)?

a) Whole Life Insurance

b) Term Life Insurance

c) Endowment Insurance

d) Unit Linked Insurance Plan (ULIP)

None

In a life insurance policy, the 'beneficiary' refers to:

a) The policyholder

b) The person who will receive the death benefit

c) The insurer

d) The underwriter

None

Which of the following is a feature of a "whole life" insurance policy?

a) Coverage is for a specified term

b) It only covers accidental deaths

c) It provides lifelong coverage

d) It accumulates no cash value

None

A policyholder takes a life insurance policy for 10 years. This is an example of a:

a) Whole life policy

b) Term life policy

c) Limited pay policy

d) Single premium policy

None

Which of the following is NOT covered under motor vehicle insurance?

a) Accident damage

b) Theft of the vehicle

c) Health insurance

d) Third-party liability

None

In health insurance, pre-existing conditions are typically:

a) Automatically covered after a waiting period

b) Fully covered with no exclusions

c) Not covered under any circumstances

d) Covered without any waiting period

None

Which of the following is a key feature of 'fire insurance'?

a) Covers damage to property caused by fire

b) Covers medical expenses of the policyholder

c) Covers theft of goods

d) Covers only vehicle-related accidents

None

Which of the following is an example of a claim under 'property insurance'?

a) Damage to a house due to fire

b) Medical expenses for a car accident

c) Death of the policyholder

d) Health expenses for a chronic disease

None

Which of the following is an important factor for an insurer when underwriting a health insurance policy?

a) The policyholder’s age and health history

b) The color of the policyholder’s car

c) The occupation of the policyholder

d) The policyholder’s social media activity

None

The primary objective of the IRDA is to:

a) Regulate insurance companies and protect policyholders’ interests

b) Provide life insurance to all citizens

c) Offer tax-free insurance products

d) Promote only health insurance policies

None

Which of the following is true about the Insurance Regulatory and Development Authority (IRDA)?

a) It is a non-governmental body.

b) It regulates both life and non-life insurance companies.

c) It sets premiums for insurance policies.

d) It handles only life insurance claims.

None

According to IRDA guidelines, how many members are there in the IRDA?

a) 5

b) 7

c) 9

d) 10

None

The 'Insurance Act, 1938' regulates:

a) The formation of insurance companies

b) The settlement of insurance claims

c) Both a and b

d) Only life insurance policies

None

What is the maximum period for which an insurance policy can be surrendered, according to IRDA regulations?

a) 1 year

b) 2 years

c) 3 years

d) 5 years

None

Which of the following is an example of risk transfer in insurance?

a) A policyholder buys insurance to cover the risk of financial loss.

b) A company diversifies its investments to reduce risk.

c) A policyholder avoids driving to reduce accident risk.

d) A company uses hedging strategies to manage risk.

None

Which of the following best describes "moral hazard" in insurance?

a) The risk of a natural disaster affecting the insured

b) The risk of fraud or dishonest behavior by the insured

c) The chance of an accident occurring while driving

d) The probability of property damage due to a fire

None

The process of identifying and evaluating risks in an insurance policy is called:

a) Underwriting

b) Risk Assessment

c) Claims Management

d) Loss Prevention

None

Which of the following is an example of a mitigation strategy for risk?

a) Purchasing insurance

b) Ignoring the potential for loss

c) Accepting all risks without precaution

d) Avoiding insurance coverage

None

What is the purpose of risk pooling in insurance?

a) To reduce the number of claims

b) To spread the financial impact of risk among a large group of policyholders

c) To limit the payout for each individual claim

d) To increase the premiums for high-risk individuals

None

The 'Code of Conduct' in the insurance industry is primarily intended to:

a) Set guidelines for ethical behavior and compliance

b) Define the terms of insurance contracts

c) Increase the premiums charged to policyholders

d) Regulate the financial markets

None

Which of the following is considered an unethical practice in the insurance industry?

a) Providing false information on a policy application

b) Offering discounts to loyal customers

c) Offering discounts for no claims

d) Providing clear policy terms to the customer

None

Which of the following is a key aspect of corporate governance in the insurance industry?

a) Ensuring transparency and accountability in decision-making

b) Maximizing profits for shareholders

c) Offering insurance at lower premiums to gain market share

d) Limiting customer access to policy information

None

Which of the following practices is required by the IRDA to be disclosed in the insurance policy document?

a) Premium payment schedule

b) Policyholder’s net worth

c) Insurer’s marketing strategy

d) Policyholder’s financial goals

None

The Insurance Ombudsman is responsible for:

a) Providing financial advice to policyholders

b) Handling disputes between policyholders and insurers

c) Regulating premium rates

d) Setting claim payout limits

None

What does 'underwriting' in insurance refer to?

a) The process of assessing risk and determining premium rates

b) The final step in settling a claim

c) The process of selling an insurance policy

d) The legal procedure of filing an insurance claim

None

What is a "no-claim bonus" in motor insurance?

a) A discount given for not making any claims during the policy period

b) An additional amount paid for claims

c) A fixed amount paid to the insurer every yeard) A bonus paid to the policyholder after a claim is made

d) A bonus paid to the policyholder after a claim is made

None

Which of the following is true about an insurance policy’s 'exclusions'?

a) They outline the circumstances under which the insurer will pay a claim.

b) They list the situations where coverage is not provided.

c) They explain the premium payment schedule.

d) They are optional and can be removed from the policy.

None

The term 'benefit period' in a health insurance policy refers to:

a) The maximum time for which a policyholder can file a claim

b) The length of time that the insured will receive benefits from the insurer

c) The total amount that can be claimed during the policy period

d) The duration for which premiums are paid

None

What is a "waiting period" in health insurance?

a) The time before a claim can be filed after purchasing the policy

b) The time during which claims are paid after the policy is purchased

c) The time it takes to process an insurance claim

d) The grace period for premium payments

None

What happens if a policyholder commits suicide within one year of policy issuance, as per IRDA guidelines?

A) No claim is payable

B) Only premiums paid are refunded, excluding interest

C) Full sum assured is paid

D) Nominee receives 50% of the sum assured

None

In a participating life insurance policy, what is the meaning of 'reversionary bonus'?

A) Bonus added to the policy on claim settlement

B) Bonus declared annually and added to the sum assured

C) Lump sum bonus paid at maturity

D) Discount on premium

None

What is the maximum revival period allowed for a lapsed life insurance policy?

A) 1 year

B) 2 years

C) 5 years

D) 10 years

None

What is the significance of a 'conditional assignment' in life insurance?

A) Assignment based on certain conditions met by the assignee

B) Assignment that transfers full ownership

C) Assignment valid only for claims of a specific nature

D) Assignment for minor beneficiaries only

None

What is the term used when a policyholder is compensated for losses, but the compensation does not exceed the actual loss?

A) Subrogation

B) Contribution

C) Indemnity

D) Salvage

None

In marine insurance, what is 'particular average loss'?

A) Loss caused by deliberate action to save the ship

B) Partial loss incurred by one party that is not shared by others

C) Total loss of the ship and cargo

D) Loss due to piracy

None

What does 'ex-gratia payment' mean in insurance?

A) Payment made beyond the policy terms at the insurer’s discretion

B) Payment made for fraudulent claims

C) Payment made after the policy lapses

D) Payment made under government schemes

None

What is the principle of 'abandonment' in marine insurance?

A) The insured gives up all rights to the damaged property

B) The insurer cancels the policy

C) The insured can transfer the policy to another person

D) The insured refuses to file a claim

None

What is the difference between a ‘cashless claim’ and a ‘reimbursement claim’?

A) Cashless claims are settled directly with the hospital, while reimbursement claims require the insured to pay first and claim later.

B) Cashless claims are only for emergency treatments, while reimbursement claims are for planned treatments.

C) Cashless claims require higher premiums, while reimbursement claims do not.

D) Reimbursement claims are quicker to process than cashless claims.

None

What is 'deductible' in health insurance?

A) The portion of the claim amount the insurer pays

B) The amount the insured must pay before the insurer covers any expenses

C) The premium paid annually

D) A penalty for late claim submission

None

Which type of health insurance policy provides coverage for multiple unrelated illnesses under one sum insured?

A) Critical Illness Plan

B) Individual Health Plan

C) Family Floater Plan

D) Top-Up Plan

None

In a top-up health insurance plan, what is the meaning of 'threshold limit'?

A) The minimum premium required to activate the policy

B) The limit after which the policy coverage starts

C) The maximum sum insured under the policy

D) The amount covered for pre-existing conditions

None

What is the maximum sum assured allowed for a micro-insurance product as per IRDA regulations?

A) ₹25,000

B) ₹50,000

C) ₹1,00,000

D) ₹2,00,000

None

What is the IRDA guideline for the free-look period in life insurance policies?

A) 7 days from the policy issuance

B) 15 days from the policy receipt date

C) 30 days from the policy start date

D) No free-look period is allowed

None

What is the 'policyholder protection committee' mandated by IRDA?

A) A committee for ensuring timely claim processing

B) A committee to address grievances of policyholders

C) A committee to approve all new policies

D) A committee to decide premium rates

None

What is the maximum commission an agent can earn on a regular premium life insurance policy as per IRDA guidelines?

A) 15%

B) 35%

C) 40%

D) 50%

None

Time’s up