Banking Awareness Study Material – Insurance

Banking Awareness Study Material – Insurance

Banking Awareness Study MaterialComputer AwarenessMarketing Aptitude

Insurance is a means of protection from any financial loss. Under an insurance contract; a insurer indemnifies the other insured party against specific amount of loss, occurring from specified eventualities within a specific period, provided a fee called premium is paid.

Since the inception of the insurance sector, the number of participants in the insurance industry has gone up from 7 insurers in 2000 to 60 insurers as on 30th Sep, 2015.

Insurance Sector in India
Insurance industry includes two sectors, i.e. life insurance and general insurance. Life insurance relates to the life of the policy holder. General insurance deals with everything else. This type of insurance typically covers’Losses caused by theft or damage.

Health and property insurance come under general insurance. Life insurance in India was introduced by Britishers. A British firm in 1818, established the Oriental Life Insurance Company at Calcutta (now Kolkata).

General Insurance Corporation
In 1972, the government nationalised the 107 private sector companies in the general insurance segment and a government company called the General Insurance Corporation of India (GIC). It was formed in 1972.

Main Holding Companies

Company	Place
National Insurance Company Limited	Kolkata, Headquarters
New India Assurance	Mumbai
Company Limited	Headquarters
Oriental Insurance	New Delhi
Company Limited	Headquarters
United India Insurance	Chennai
Company Limited	Headquarters

A number of economic reforms were introduced in Nov, 2000 and the GIC was notified as the Indian Reinsurer on 1 April, 2003. In March, 2002, the GIC was withdrawn from the holding company status of the 4 Public Sector General Insurance companies.

Life Insurance Corporation of India (LIC)
LIC was established on 1st Sep, 1956, which set the pace of nationalisation of the insurance sector under the Stewardship of CD Deshmukh. It has head office at Mumbai and eight zonal offices, the newest being at Patna. LIC is also operating internationally through branch offices in Fiji,Mauritius and UK and through joint venture companies in Bahrain, Nepal, Sri Lanka, Kenya and Saudi Arabia. In 2008, its wholly owned subsidiary was opened in Singapore. It also extends assistance for development of infrastructure facilities like housing, rural electrification, water supply, sewerage, etc.

In addition, it extends resource support to other financial institutions through subscription to their shares and bonds, etc.

Nationalised Insurance Companies

• Life Insurance Corporation of India
• General Insurance Corporation of India
• National Insurance Co. Ltd.
• Oriental Insurance Co. Ltd.
• New India Assurance Co. Ltd.
• United India Insurance Co. Ltd.

Entry of Private Company in Insurance
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor RN Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra Committee was setup with the objective of complementing the reforms initiated in the financial sector.

The Government of India liberalised the insurance sector in March, 2000 with the message of the Insurance Regulatory and Development Authority (IRDAI) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The IRDAI attempted to raise the foreign direct investment (FDI) limit in the insurance sector to 49% from its current 26%. The FDI limit in the sector was raised to 100% in June, 2016.

As per the Government of India Notification dated 3rd Aug, 2000 specifying ‘Insurance’ as a permissible form of business that could be undertaken by banks under Section 6(1) of the Banking Regulation Act, 1949.

Insurance Regulatory and Development Authority of India (IRDAI)

The IRDA has changed its name to IRDAI. The change of name was effected in the insurance laws (Amendment) Ordinance, 2014 and was promulgated by the President of India on 26th Dec, 2014. IRDAI was established in the year 1999, by the Indian Government, for two reason s-to safeguard the interest of the policy holders and for the upgradation of the entire insurance sector. Right from the approach adopted by the existing insurance companies towards their shareholders to the eradication of the shortcomings of the industry. The organisation was setup under the guidelines of the Insurance Regulatory and Development Authority Act, 1999.

Functions of IRDAI
The IRDAI ensures and safeguards the interests of policy holders through various ways as follows

• Nomination by policy holders
• Settlement of insurance claim
• Practical training for insurance agents and other intermediaries
• Insurable interest
• Surrender value of policy holders
• Code of conduct of insurance intermediaries
• Assistance in gaining correct information about policies
• Creation of management information system
• Promotion of self-regulation within the insurance sector

Insurance Law (Amendment) Bill, 2015
The Insurance Laws (Amendment) Bill, 2015 was passed by the Lok Sabha and the Rajya Sabha. The passage of the bill thus paved the way for major reform related amendments in the

• Insurance Act, 1938, General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA)Act, 1999.
• The Insurance Laws (Amendment) Act, 2015 to be so enacted, will seamlessly replace the Insurance Laws (Amendment) Ordinance, 2014 which came into force on 26th Dec, 2014.
• The Amendment Act will remove archaic and needless provisions in the legislations and incorporates certain provisions to provide Insurance Regulatory and Development Authority of India (IRDAI) with the flexibility to discharge its functions more effectively and efficiently.

Main Points of the Bill

• The total foreign investment bill limit in the insurance sector has been raised from 26% to 49%.
• Provision for the establishment of Life Insurance Council and the General Insurance Council. These councils will act as self-regulating bodies for the insurance sector.
• Provision of 10 yr imprisonment for the sale of insurance policy without registration with regulatory.
• Insurance company restricted after the three years of sale insurance policy.

Bancassurance
Bancassurance is a French term referring to the selling of insurance through a bank’s established distribution channels. Bancassurance is the selling of insurance and banking products through the same channel, most commonly through bank branches. Selling insurance means distribution of insurance and other financial products through Banks.

Advantages of Bancassurance
The following factors have mainly led to success of bancassurance.

• Pressure on bank’s profit margins. Bancassurance offers another area of profitability to banks with little or no capital outlay. A small capital outlay in turn means a high return on equity.
• A desire to provide one-stop customer service. Today, convenience is a major issue in managing a persons day-to-day activities. A bank, which is able to market insurance products, has a competitive edge over its competitor. It can provide complete financial planning services to its customers under one roof.
• Bank aims to increase percentage of non-interest fee income.
• Cost effective use of premises.
• In India a number of insurers have already tied up with banks and some banks have already flagged off bancassurance through select products. Bancassurance has become significant. Banks are now a major distribution channel for insurers, and insurance sales a significant source of profits for banks.

Status of Bancassurance in India
Reserve Bank of India (RBI) has recognised ‘bancassurance’ wherein banks are allowed to provide physical infrastructure within their select branch premises to insurance companies for selling their insurance products to the banks’ customers with adequate disclosure and transparency, and in turn earn referral fees on the basis of premia collected. This would utilise the resources in the banking sector in a more profitable manner.

RBI Guidelines
The new guidelines allow banks to act as brokers permitting them to sell insurance policies of different insurance companies.

Seeking to increase insurance penetration in the country, the Reserve Bank allowed banks to act as brokers for insurers, set up their own subsidiaries and also undertake referral services for multiple companies. They can also act as corporate agents without seeking prior approval from the RBI.

However, they will have to comply with IRDAI guidelines. Under existing bancassurance guidelines, a bank can act as a corporate agent and sell policy of only one life insurer and one non-life insurance company. At present, 104 commercial bank are working in India with more than 1.2 lakh branches.

IRDAI Guidelines
Insurance sector regulator IRDAI is evaluating fresh norms for banks to act as intermediaries for insurers, following recent changes in law brought through an ordinance by the government.

Under existing bancassurance guidelines, a bank can act as a corporate agent and sell policy of only one life insurer and one non-life insurance company.

But, the new guidelines will allow banks to act as brokers permitting them to sell insurance policies of different insurance companies. As per the changes made through the Insurance Ordinance, the categorization of Banks (Corporate Agents), brokers and agents has been altered and all of them have been now termed as Insurance Intermediaries.

General Insurance Companies
General Insurance or non-life insurance provides insurance of property against fire, burglary, etc., personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. Errors and Omissions insurance for professionals, credit insurance, etc., are also covered in the policy.

• Public Sector Insurance Companies
  • National Insurance Company
  • New India Assurance
  • The Oriental Insurance Company
  • United India Insurance Company
  • Indian Agriculture Insurance Company
• Private Sector Insurance Companies
  •  Bajaj Allianz General Insurance
  • HDFC ERGO General Insurance Company
  • ICICI Lombard General Insurance Co. Ltd.
  • Max Bupa Health Insurance Company Ltd.
  • Religare Health Insurance Company Ltd.
  • Shriram General Insurance Company Ltd.
• Specialise
  • General Insurance Corporation of India.Expert Credit Guarantee Corporation.
  • Expert Credit Guarantee Corporation.
• Export credit guarantee insurance company (Public sector)
  • Export Credit Guarantee Corporation of India
• Public Sector Insurance Companies
  • Life Insurance Corporation of India
• Private Sector Insurance Companies
  • Bajaj Allianz Life Insurance
  • ICICI Prudential Life Insurance
  • SBI Life Insurance Company
• Health Insurance Companies
  • Star Health and Allied Insurance
  • Religare Health Insurance
• Reinsurance Companies (Public Sector)
  • GIC Reinsurance

Unit Linked Insurance Plan: A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan.

A portion of premium goes towards mortality charges, i.e. providing life cover. The remaining portion gets invested in funds of policyholder’s choice. Invested funds continue to earn market linked returns.

ULIP policy holders can make use of features such as top-up facilities, switching between various funds during the tenure of the policy, reduce or increase the level of protection, options to surrender, additional riders to enhance coverage and returns as well as tax benefits.

Mutual Fund

 It is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, government securities, bonds, debentures, etc. Mutual funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors.

Mutual funds issue units to the investors. The appreciation of the portfolio or securities in which the mutual fund has invested the money leads to an appreciation in the value of the units held by investors.

The investment objectives outlined by a mutual fund in its prospectus are binding on the Mutual Fund Scheme. The investment objectives specify the class of securities. A mutual fund can invest in various asset classes like equity, bonds, debentures, basics of financial markets.

Types of Mutual Fund
According to the time of closure, schemes are classified as follows

• Open-ended Schemes These are allowed to issue and redeem units any time during the life of the scheme. But close-ended funds cannot issue new units except in case of bonus or rights issue. Therefore, unit capital of open-ended funds can fluctuate on daily basis (as new investors may purchase fresh units).
• Close-ended Schemes New investors can join the scheme by directly applying to the mutual fund at applicable net asset value related prices in case of open-ended schemes, but not in case of close-ended schemes. In case of close-ended scheme, new investors can buy the units only from secondary markets.

Comparison Between Unit Linked Insurance Plans And Mutual Funds

ULIP Description	Mutul Fund
Unit Linked Insurance Plans are offered by insurance companies. These plans allow investors to direct part of their premiums into different types of funds (equity, debt, money market, hybrid, etc.).	A mutual fund pools the money from investors and uses it to invest in various securities according to a prespecified investment objective.

 

Benefit Snapshot
Dual benefit of investment and insurance.	Investment tool suitable for short to medium term.
Suitable for the long term.	Easy exit possible.
Option to switch between the funds is permitted.	Tax benefit available only on tax saving funds.
Offers tax benefits.

Mutual Funds in India
The first Indian mutual fund was setup in 1963, when the Government of India created the Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market and sold a range of mutual funds through a network of financial intermediaries.

At the end of 1988, UTI had ? 6700 crore of assets under management, in 1993, with the creation of SEBI and better regulation, transparency and liberalisation of capital markets (which included the creation of the NSE and the NSDL), the private sector was allowed to enter the mutual fund industry.

• Mutual Fund Regulations: The erstwhile Unit Trust of India (UTI) was setup by the Reserve Bank of India in 1963 and it functioned under its regulatory and administrative control till 1978, the Industrial Development Bank of India (IDBI) took over regulatory and administrative control of the UTI thereafter.The Government of India enacted the Securities and Exchange Board of India Act, 1992 on 4th April, 1992 which created the Securities and Exchange Board of India (SEBI). SEBI issued a comprehensive set of regulations in 1993 and revised them again in 1996.
• Net Asset Value (NAV): It is the value of an entity’s assets less the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the US Securities and Exchange Commission are redeemed at their net asset value. Net asset value may represent the value of the total equity or it may be divided by the number of shares outstanding held by investors and thereby, represent the net asset value per share.

Depository System
‘A depository is a file or a set of files in which data is stored for the purpose of safe keeping or identity authentication’, defined by Germany Depository.

In India, the Depositories Act, 1996 defines a depository to mean ‘A company formed and registered under the Companies Act, 1956 and which has been granted a certificate of registration under Sub-Section (1A) of Section 12 of the Securities and Exchanges Board of India Act, 1992’.

Depository System in India
In order to put a check on seams after the 1992 stock market seam, the depository system was adopted n the recommendation of a technical committee.

The main objective of the recommendation of the depository system were.

• Maintenance of accounts
• To keep transfer (of funds) in electronic accounts.
• To enable trade possible without the certificate so that there is no risk in the trade.

Under the depository act 1996, SEBI registered two companies namely

• National Security Depository Ltd. (NSDL) and
• Central Depository services India Ltd. (CSDL).

The necessity of the certificates was abolished by registering the shares through depository into electronic accounts. This process is known as D-materialisation of shares.

NSDL and CSDL

NSDL was registered by the SEBI on 7th June, 1996 as India’s first depository to facilitate trading and settlement of securities in the demat form. It is promoted by IDBI,UTI, NSE.

CSDL commenced its operations during February, 1999 and was promoted by Stock Exchange Mumbai in association with Bank of Baroda, Bank of India, SBI and HDFC Bank.

Types of Depository System
The two types are as follows

1. Securities Immobilisation System of Depository: Under this system, certificates of securities are securely deposited in the depository and its complete detail is taken into a computer. Once some certificate is taken into a computer, then the total business related to them can be done only through electronic accounting system unless the securities are taken out from the depository.
2. Securities Dematerialisation System of Depository: Dematerialisation is the process by which a client can get physical certificates converted into electronic balances: An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL electronically, the DP sends the securities to the concerned Issuer/ R&T agent.

QUESTION BANK

1. The central office of the Life Insurance Corporation of India (LIC) is located at

1. Kolkata
2. New Delhi
3. Chennai
4. Pune
5. Mumbai

2. The Life Insurance Corporation of India has how many Zonal offices in India?

1. Five
2. Eight
3. Ten
4. Fifteen
5. None of these

3. The punch line of the advertisement of which of the following organisation is “Jindagi ke sath bhi Jindagi ke bad bhi”?

1. New India Assurance
2. General Insurance Corporation
3. ICICI Prudential
4. Life Insurance Corporation of India
5. None of the above

4. What is the full form of ‘ULIP’, the term which was in the news recently?

1. Universal Life and Investment Plan
2. Unit Loan and Insurance Plan
3. Universal Loan and Investment Plan
4. Uniformly Loaded Investment Plan
5. Unit Linked Insurance Plan

5. ‘Equity schemes managed strong NAV gains which boost their assets’ was a news in some financial newspapers. What is the full form of NAV used as in above headlines?

1. Nill Accounting Variation
2. Net Accounting Venture
3. Net Asset Value
4. New Asset Venture
5. None of the above

6. 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

7. Which of the following terms is not used in the world of finance, banking and insurance?

1. Devaluation
2. Amnesty
3. Hard currency
4. Preference share
5. Sinking fund

8. Which of the following types of companies/organisations issue ULIP?

1. Insurance companies
2. Stock brokers
3. Banks
4. NABARD
5. RBI

9. Which of the following is the only public sector company in the field of life insurance?

1. General insurance company
2. New India assurance company
3. Oriental insurance company
4. SBI Life Insurance Company
5. Life Insurance Corporation of India

10. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?

1. New India Assurance Ltd.
2. Insurance Australia Group
3. Lehman Brothers Holdings Inc.
4. Allianz
5. BNP Paribas Cardif.

11. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash Sabki Suraksha Hamare Paas?

1. Life Insurance Corporation
2. Oriental Insurance Company
3. New India Assurance
4. General Insurance Company
5. SBI Life Insurance

12. Choose the correct statement regarding ULIP.

1. Offers tax benefits
2. Easy exit possible
3. Tax benefit available only on tax saving funds
4. Investment tool suitable for short to medium term
5. 2 and 3

13. What is the minimum paid up capital required for a General Insurance Company to commence its operations in India?

1. 100 crore
2. 200 crore
3. 250 crore
4. 300 crore
5. 500 crore

14. Which is the sole reinsurance company in the Indian insurance market?

1. United India Insurance Company Limited
2. General Insurance Corporation of India
3. New India Assurance Company Limited
4. The Oriental Insurance Company
5. Life Insurance Corporation of India

15. Insurance service provided by various banks is commonly known as

1. Investment Banking
2. Portfolio Management
3. Merchant Banking
4. Bancassurance
5. Banking insurance

16. ECGC is related to

1. Export promotion
2. Export financing and insurance
3. Export quality certification
4. Export statistics publication
5. Export company

17. Which of the following is not in the State list under the Constitution of India?

1. Insurance
2. Fisheries
3. Agriculture
4. Gambling
5. None of these

18. Government has issued an ordinance announcing ULIP as ‘Insurance Product’. Who is now the regulator of ULIPs?

1. SEBI
2. IRDAI
3. RBI
4. Both 1 and 2
5. Government of India

19. Under whose chairmanship was the committee on Insurance Sector reforms set up?

1. Narasimham
2. C Rangarajan
3. R N Malhotra
4. None of these
5. All of these

20. Which first bank in India to fully own an insurance business?

1. HDFC Bank
2. Kotak Mahindra Bank
3. ICICI Bank
4. IDBI Bank
5. SBI

21. What are the main functions performed by the IRDAI?

1. Protect the rights of policy holders
2. Adjudication on insurance related matters
3. Promoting insurance business
4. Regulating investment of funds by insurance companies
5. All of the above

22. Which one of the following is the example of Insurance depositories?

1. Central Insurance Repository Limited (CIR1L)
2. NSDL Database Management Limited
3. SHCIL Projects Limited
4. Karvy Insurance repository Limited
5. All of the above

23. Which Insurance policy gives holder the benefits of both Insurance and Investment?

1. Term Insurance Policies
2. Money back Policies
3. Unit Linked Investment Policies
4. Pension Policies
5. All of the above

24. Up to what extent, FDI in insurance sector is allowed by the Government of India (Gol)?

1. 26%
2. 49%
3. 51%
4. 79%
5. 100%

25. Insurance works on the principle of

1. Sharing of losses
2. Probabilities
3. Large numbers
4. Randomness
5. All of these

26. Insurance helps to

1. Prevent adverse situations from occurring
2. Reduce the financial consequences of adverse situations
3. Negate all consequences of adverse situations
4. Make assets continuously productive
5. All of the above

27. The main purpose of having Life insurance is

1. As an avenue for long term investment
2. As a medium for getting income tax benefits from savings
3. As a governmental programme for reducing poverty
4. As an avenue for short term investment
5. None of the above

28. Which of the following intermediaries do not require IRDM’s licence/approval to operate in India?

1. Insurance Brokers
2. Insurance Agents
3. Third Party Administrators
4. Surveyors
5. All of the above intermediaries require IRDAI’s licence/approval

29. According to the recently passed Insurance Laws (Amendment) Bill 2015, FDI in Insurance Sector was

1. 74%
2. 26%
3. 49%
4. 51%
5. None of these

30. Which of the following is largest Non-Life Insurance Company in India?

1. ICICI Lombard General Insurance Company Ltd.
2. United India Insurance Company Ltd.
3. General Insurance Company Ltd.
4. New India Assurance Company Ltd.
5. None of the above

31. Which of the following Insurance Companies was launched with NABARD as one of its promoter’s with 30% stake in it?

1. General Insurance Corporation Ltd.
2. National Insurance Company Ltd.
3. Agriculture Insurance Company Ltd.
4. SBI Life Insurance Company Ltd.
5. None of the above

32. If an organisation wishes to venture into Insurance Business it has to obtain a licence first from which of the following ?

1. Indian Banks Association (IBA)
2. Security and Exchange Board of India (SEBI)
3. Tariff Advisory Committee (TAC)
4. Insurance Regulatory and Development Authority of India (IRDAI)
5. None of the above

33. Which of the following was the parent company of New India Assurance?

1. LIC
2. GIC
3. Oriental Insurance Co. Ltd.
   United India Insurance
4. None of these

34. The New India Assurance Company was established in 1919 by

1. Dorab Tata
2. G D Birla
3. Jamunalal Bajaj
4. Kamlapat Singhania
5. None of the above

35. CSDL commenced its operations during February, 1999. What is CSDL?

1. Central Depository Services Limited
2. Central Depository Securities Limited
3. Central Dual Securities Limited
4. Close-ended Depository Securities Limited
5. Capital Depository Securities Limited

36. NSDL is promoted by

1. IDBI
2. UTI
3. NSE
4. All of these
5. None of these

37. Dematerialisation is the process by which a client can get physical certificates converted into

1. balances
2. electronic balances
3. cash balances
4. audit balances
5. draft

38. NSDL was registered by the

1. SEBI
2. RBI
3. IRDAI
4. SBI
5. Gol

39. India’s first depository to facilitate trading and settlement of securities in the demat form

1. CSDL
2. NSDL
3. RSDL
4. SSDL
5. USDL

40. Which of the following invest on behalf of the investors?

1. Mutual Fund
2. Depository system
3. IRDAI
4. Bancassurance
5. SEBI

41. The Malhotra Committee was setup with the objective of complementing the reforms initiated in the

1.  Banking Sector
2.  Financial Sector
3.  Private Sector
4.  Public Sector
5.  Primary Sector

42. As per the Government of India Notification doted 3rd Aug, 2000 specifying ‘Insurance’ as a permissible form of business that could be undertaken by

1. Financial Institute
2. IO
   Bank
3. Stock market
4. bond market

43.  ……..offers another area of profitability to banks with little or no capital outlay.

1. Bancassurance
2. Bankonce
3. ULIP insurance
4. Insurance
5. None of these

44 ……. is the sole national reinsurer.

1. GIC
2. LIC
3. mC
4. NIC
5. RIC

45. Which of the following is one of the General Insurance Companies?

1. Indian Agriculture Insurance Company
2. Aviva India
3. Exide life Insurance
4. ICICI Prudential Life Insurance
5. SBI Life Insurance Company

46. Specialised General Insurance companies

1. Cigma TITK
2. IFFCO Tokio
3. Max Bupa
4. General Insurance Corporation of India
5. TATA AIG General

47. Mutual funds can be considered as

1. financial insurance
2. financial intermediaries
3. cheque
4. draft
   All of the above

48. Headquarters of United India Insurance Company

1. Kolkata
2. Mumbai
3. New Delhi
4. Chennai
5. Patna

49. Which one is nationalised insurance company?

1. SBI General Insurance Company Ltd.
2. Religare Health Insurance Company
3. New India Assurance Co. Ltd.
4. Reliance General Insurance Co. Ltd.
5. IFFCO-Tokio insurance Co. Ltd.

50. Unit capital of open ended funds can fluctuate on

1. monthly basis
2. yearly basis
3. daily basis
4. quarterly basis
5. half yearly basis

51. In case of close-ended scheme, new investors can buy the units only from

1. Primary market
2. Secondary market
3. bond market
4. Shares market
5. Financial market

52. Presently, there are…….. depositories working in India.

1. 2
2. 4
3. 6
4. 8
5. 10

53. The first Indian mutual fund was setup in

1. 1950
2. 1953
3. 1963
4. 1983
5. 1993

54. ULIP policy holders can make use of features such as
I. reduce or increase the level of protection
II. options to surrender
III. additional riders to enhance coverage and returns as well as tax benefits Which is/are correct?

1. Only II
2. I and II
3. I, II and III
4. IIand III
5. I and III

55. Main point of Insurance Law (Amendment) Bill, 2015
I. FDI in the insurance sector has been reused from 26% to 49%
II. Insurance company restricted after the three years of sale insurance policy in.
III. Provision of 10 yr imprisonment for the sale of insurance policy without registration with regulatory

Which is/are correct?

1. Only I
2. I and II
3. II and III
4. I, II and III
5. None of these

56. Choose the correct statements regarding IRDAI.
I. The IRDA has changed its name to IRDAI on 26th Dec, 2014.
II. IRDAI was established in the year 2004.
III. The organisation was setup under the guidelines of IRDA Act, 2004.

Codes

1. Only I
2. I and II
3. I and ffl
4. II and III
5. I, II and III

57. Choose the correct statement regarding LIC,
I. LIC was established on 1st Sep, 1990.
II. It has head office at New Delhi.
III. In 2008, its wholly owned subsidiary was opened in Singapore.

Codes

1. Only I
2. I and II
3. II and III
4. I and III
5. I, II and IIl

58. LIC is operating internationally through branch offices in
I. Fiji
II. Mauritius
III. UK
IV. Japan

Which is/are correct?

1. I and II
2. IIl and I
3. I, II and IIl
4. I, II, IIl and IV
5. I, IIl and IV

59. CSDL was promoted by stock exchange Mumbai in association with
I. BankofBaroda
II. Bank of India
III. SBI
IV. HDFC Bank

Codes

1. I, II and IIl
2. II, III and IV
3. I, II, III and IV
4. I and IV
5. I, II and IV

60. Which of the following is/are the various types of insurance?
I. Life insurance
II. Health insurance
III. Liability insurance

Codes

1. Only I
2. I and II
3. II and ffl
4. I and III
5. All the three

61. All of the following is true regarding ULIPs except
I. Unit Holders can choose between different kind of funds.
II. Life insurers provide Guarantee for all unit values.
III. Units may be purchased by payment of single premium or via regular premium payments.
IV. ULIP policy structure is transparent with regards to insurance expenses components.

Insurance business in India is regulated by which of the following authorities?

1. NFCG
2. IRDAI
3. CII
4. FICCI
5. All of the above

62. According to the Securities and Insurance Laws (Amendment) Bill 2010, who amongst the following will be the Vice Chairman of the Joint Commission to resolve differences amongst the financial regulators? [Allahabad Bank 2011]

1. Finance Minister, Gol
2. Deputy Chairman, Planning Commission
3. Chairman, SEBI
4. Chairman, Central Vigilance Commission
5. Governor, RBI

63. The process by which a life insurance policyholder can transfer all rights, title and interest under a policy contract to a third person is known as [SBI PO 2013]

1. Assignment of the policy
2. Hypothecation of the policy
3. Reinvestment of the policy
4. Negotiation of the policy
5. Nomination of the policy

64. Which of the following is a mode for creating charge on Life Insurance Policies? [SBI PO 2014]

1. Pledge
2. Lien
3. Assignment
4. Hypothecation
5. Equitable Mortgage

65. A1 cover note’ is the first legal document that is issued in lieu of [RBI Grade B 2015]

1. an insurance policy
2. a corporate share certificate
3. home loan sanction
4. a bank fixed deposit
5. a mutual fund investment

66. Bancassurance is a relationship between bank and [SBI Clerk 2016]

1. Education
2. Insurance Company
3. Employee
4. Customer
5. NABARD

67. Which of the following company is the sale reinsurance company in India? [UBI PO 2016]

1. Life Insurance Corporation of India
2. ICICI Prudential Life Insurance Company
3. National Insurance Company
4. New India Assurance Company
5. General Insurance Corporation

68. Largest share in oriental insurance is of [SBI Clerk 2016]

1. SEBI
2. SBI
3. RBI
4. Union Government
5. IRDAI

ANSWERS