GIC Clerk MCQs - Page 2
GIC Clerk MCQs section helps aspirants prepare for the General Insurance Corporation (GIC) Clerk exam. Here you will find a varied set of multiple choice questions that cover most of the topics covered in the GIC Clerk exam syllabus. These MCQs are designed to assess the candidate's skill set in General Awareness, Reasoning, Quantitative Aptitude and English Language.
Q21. What is the purpose of "reinsurance" in the insurance industry?
A. To spread risks and limit losses for insurance companies
B. To increase premium income
C. To increase the number of claims filed
D. To reduce claims processing time
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Q22. Which of the following is a "term life" insurance policy?
A. A policy that provides life coverage for a specified period of time
B. A policy that provides life coverage for an unlimited time
C. A policy that pays dividends
D. A policy that covers critical illness
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Q23. Which of the following is NOT a common clause in health insurance policies?
A. Cashless hospitalization
B. Pre-existing disease coverage
C. Waiting period for specific treatments
D. Tax exemption on premium
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Q24. What is the full form of "LIC" in the insurance sector?
A. Life Insurance Corporation
B. Life Insurance Company
C. Loan Insurance Corporation
D. Life India Corporation
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Q25. Which of the following insurance policies covers accidental death?
A. Accident Benefit Rider
B. Term Insurance
C. Health Insurance
D. Critical Illness Insurance
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Q26. What does "underwriting" mean in the insurance industry?
A. The process of reviewing, accepting, and pricing insurance policies
B. The process of selling insurance policies
C. The process of claiming benefits
D. The process of canceling a policy
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Q27. What is the main purpose of "health insurance"?
A. To provide medical coverage for the policyholder
B. To provide life coverage for the policyholder
C. To provide tax benefits
D. To provide accident coverage
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Q28. Which of the following is an example of "non-life insurance"?
A. Health Insurance
B. Life Insurance
C. Motor Insurance
D. Pension Insurance
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Q29. Which of the following is an example of "investment-linked" insurance?
A. Unit Linked Insurance Plans (ULIPs)
B. Term Life Insurance
C. Endowment Policy
D. Health Insurance
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Q30. What is the "surrender value" of a life insurance policy?
A. The value of the insurance when canceled before maturity
B. The value of the insurance on the maturity date
C. The claim amount after death
D. The premium paid on the policy
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Q31. Which government scheme provides life insurance cover to the poor at low premiums?
A. Pradhan Mantri Jeevan Jyoti Bima Yojana
B. Ayushman Bharat
C. Pradhan Mantri Fasal Bima Yojana
D. Pradhan Mantri Kisan Samman Nidhi
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Q32. Which of the following is true about "term insurance"?
A. It offers coverage for a fixed term, with no maturity benefits
B. It provides benefits only on death
C. It accumulates a cash value over time
D. It covers health and life risks
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Q33. Which of the following is a risk-sharing arrangement in the insurance industry?
A. Reinsurance
B. Underwriting
C. Claim processing
D. Policy renewal
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Q34. What is the primary purpose of "public liability insurance"?
A. To cover liabilities arising from third-party injuries or property damage
B. To provide life coverage for workers
C. To cover fire-related damages
D. To cover accidental death
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Q35. Which of the following is the maximum limit for the coverage provided by the Pradhan Mantri Suraksha Bima Yojana?
A. Rs. 1 lakh
B. Rs. 2 lakh
C. Rs. 5 lakh
D. Rs. 10 lakh
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Q36. What is the key feature of a "health insurance rider"?
A. It increases the sum insured and provides additional coverage
B. It reduces the premium amount
C. It covers life insurance
D. It provides income replacement benefits
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Q37. Which of the following is NOT a factor considered by insurance companies when calculating premiums?
A. Age of the insured
B. Health status of the insured
C. Driving record of the insured
D. Color of the insured’s vehicle
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Q38. What does "no-claim bonus" mean in motor insurance?
A. A discount on premium for not filing claims
B. A refund of premium paid
C. An additional coverage benefit
D. A penalty for filing claims
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Q39. What is the purpose of "reinsurance" in the insurance industry?
A. To reduce the risk of financial losses for the insurer
B. To increase premiums for policyholders
C. To settle claims more efficiently
D. To market policies to customers
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Q40. Which of the following is a feature of "Unit Linked Insurance Plans (ULIPs)"?
A. Investment in equity and debt markets
B. Pure life coverage
C. No premium payments
D. Fixed premium amount
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