Test: Insurance Industry - 2 - Banking Exams MCQ

• Term insurance is the insurance which is under life insurance.
• Types of insurance as follows:
• Types of Life Insurance 
  • Term Insurance
  • Money-back policy
  • Unit-Linked Insurance Plan
  • Pension Plans
• Types of General Insurance
  • Motor Insurance
  • Home Insurance
  • Health Insurance
  • Fire Insurance

• Group Insurance Cover: Group Insurance cover is bought by an employer for his employees in which employees and their dependents are covers under a single policy The premium in group insurance is lower than an individual health insurance policy.
• Group insurance plans are usually standardized in nature and offer the same benefits to all employees.
• Co-insurance: Co-insurance is the term used when the insurance is placed simultaneously with more than one insurer, it is called co-insurance. This happens in the case of large businesses, this insurance business is divided with a lead insurer ( insurance company ) who negotiates the terms of the policy and then pass on the respective share of the premium to the other insurers.
• Double insurance: It means the policyholder has double insurance on the same risk and the same interest then it is said to be as double insurance.
• Re-Insurance: It is the type of insurance in which insurer transfers its large portion of the risk to the other insurers so that it can bear the risk in a proportion way.
  Note - General Insurance Corporation (GIC-Re) is the only re-insurer in India, its headquarters is in Mumbai.

• Whole Life Policy is issued for the entire lifetime of the insured and the claim is payable only after the death of the insured, to the nominee of the policy.
• The endowment policy is limited for a certain period and the sum is payable to the insured at the expiry of such period.
• Unit Linked Insurance Plan is issued for the purpose of both investment and insurance.
• Personal Accident Insurance is issued in order to cover for any loss due to an accident.

• ‘Broad Form Insurance’ is an Insurance coverage that 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.

Life insurance is the insurance that pays out a sum of money either on the death of the insured person or after a set period. Health insurance is the insurance taken out to cover the cost of medical care. Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims.

General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance. A general insurance policy pays for the losses that are incurred by the insured during the period of the policy.

• Term insurance ​a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years.
• Term insurance is a type of life insurance policy that provides coverage for a specified period or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active, or in force, a death benefit will be paid in future.
• After the time interval due to the catastrophe and natural disaster, a fixed amount is paid by the insurance company to the insured, which is called the catastrophe reinsurance.
• It is a form of reinsurance which condemns the seeding company for the accumulation of losses in excess of the stipulated amount arising from a single catastrophe event or series of events.
• Facultative reinsurance is coverage purchased by a primary insurer to cover a single risk or a block of risks held in the primary insurer's book of business. Facultative reinsurance is one of the two types of reinsurance, with the other type being treaty reinsurance.
• Excess of loss reinsurance is a kind of reinsurance in which the reinsurer indemnifies the ceding company for losses that exceed a specified limit. Excess of loss reinsurance is a form of non-proportional reinsurance for the help of insured person.

• The main products of life insurance
• Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical, and health are the main products of life insurance.
• Overview of Different Types of Life Insurance
  • Term Life Insurance.
  • Whole Life Insurance.
  • Endowment Policy.
  • Money Back Policy.
  • Savings & Investment Plans.
  • Retirement Plans.
  • Unit Linked Insurance Plans – ULIPs.

Major insurers offering commercial insurance in India include:

• New India Assurance 
• HDFC Ergo
• Bajaj Allianz General Insurance Co. Ltd
• Bharti AXA General Insurance Company Limited

Unit Linked Insurance Plan is meant to give the insured an opportunity for insurance and investment.
The first such plan was launched by Unit Trust of India.
The premium collected is divided into mortality charge or providing insurance cover whereas the rest is invested in the equity or debt markets.