Multiple Choice Questions on Insurance: 

• Insurance is a type of relationship to protect the property interests of individuals and legal entities in the event of the occurrence of certain events (insured events) at the expense of monetary funds formed from the insurance premiums (insurance premiums) paid by them. 
• There are four main types of insurance: personal insurance, property insurance, liability and financial risks.
• We encounter personal insurance when we take out insurance for traveling abroad. The same type includes accident insurance and accumulative life insurance – a product that combines life and health insurance with a cash accumulation program.
• Property insurance includes various types of home and car insurance – for example, apartment mortgage insurance or comprehensive insurance for your car. 
• As a rule, this type of insurance covers the risks of fire, flood, natural disasters, damage caused by third parties, etc.
• Liability insurance is traditionally most relevant for legal entities, but also includes a number of products for individuals. 
• The main part of products related to financial risk insurance is also intended for legal entities.

Insurance MCQ Questions with Answers Pdf: 

1. Insurance is defined as a_______

a) Contract

b) Social device

c) Co-operative device

d) All

Answer: D

2. The Concept of Insurance is___________

a) to share losses by many

b) to make money out of death

c) to earn interest

d) to earn a status

Answer: A

3. Insurance helps to________

a) Prevent adverse situations from occurring

b) Reduce the financial consequences of adverse situations

c) Negate all consequences of adverse situations

d) Make assets continuously productive

Answer: B

4. Insurance business is based on __________.

a) Newtons Law

b) Boyles Law

c) The Theory of Probability and Law of large numbers

d) Parkinsons Law

Answer: C

5. The insurance premium is… 

a) payment for insurance, which the policyholder is obliged to pay to the insurer in accordance with the contract or the Law .

b) the amount of money paid by the insurer to the insured upon the occurrence of an insured event 

c) the amount of money specified in the insurance contract or established by law in the amount of insurance liability assumed by the insurer

d) None of these 

Answer: A

6. The amount of insurance compensation for damage depends on___________

a) the term of the contract 

b) insurance coverage systems 

c) gross rates 

d) sum insured

Answer: B

7. An agreement between an insurer and an insured that governs their mutual obligations_________

a) an insurance contract 

b) insurance memorandum 

c) reinsurance contract 

d) insurance rules

Answer: A

8. Price per unit of insurance services________

a) an insurance premium 

b) insurance rate 

c) insurance premium 

d) sum insured

Answer: B

9. The payment for insurance (insurance service), which the insured is obliged to pay to the insurer in accordance with the contract or the Law, is called___________

a) insurance compensation 

b) an insurance premium 

c) insurance coverage 

d) insurance rate

Answer: B

10. Primary insurance is________

a) providing insurance coverage to customers 

b) transfer of risk from the insurer to another insurance company 

c) protecting one’s capital or labor from unforeseen events d) Both A and C

Answer: D

11. Insurance is……..

a) a system of economic relations, including the formation of a special fund of funds at the expense of enterprises, organizations and the population and its use to compensate for damage to property from natural disasters and other phenomena 

b) payment “for fear” 

c) the relationship between insurers and policyholders to protect the property interests of individuals and legal entities upon the occurrence of certain events (insurance events at the expense of funds formed by insurers from insurance premiums paid by policyholders

d) None of these 

Answer: C

12. The main purpose of insurance is to provide__________

a) social assistance to the population 

b) replenishment of the state budget at the expense of tax revenues from insurance companies 

c) an efficient economy by increasing the investment of insurance companies 

d) insurance protection of the material interests of individuals and legal entities

Answer: D

13. Property Insurance may not include___________

a) Burglary

b) Fidelity

c) Insolvency

d) Sickness

Answer: D

14. The policy for which the premium is payable throughout the life of the assured is known as

a) Annuity Policy

b) Whole Life Policy

c) Term Policy

d) Endowment

Answer: B

15. What is a proposal?

a) A request for an insurance cover

b) An offer to enter into a contract

c) Both a and b

d) None of the above

Answer: C

16. Which of the following is an evidence of insurance contract?

a) Policy Document

b) payment of premium.

c) cover note

d) acceptance of proposal

Answer: A

17. The main document regulating the relationship between the insurer and the policyholder__________

a) insurance rules 

b) the law of the Russian Federation “On the organization of insurance business in the Russian Federation” 

c) an insurance contract 

d) the tax code of the Russian Federation

Answer: C

18. Insurance compensation is_________

a) payment for insurance, which the policyholder is obliged to pay to the insurer in accordance with the contract or the Law b) the amount of money paid by the insurer to the insured upon the occurrence of an insured event 

c) the amount of money specified in the insurance contract or established by law in the amount of insurance liability assumed by the insurer

d) None of these 

Answer: B

19. Examples of Liability Insurance_____

a) professional liability insurance 

b) motor vehicle owner’s liability insurance 

c) Both A and B 

d) health insurance

Answer: C

20. The main characteristics of risk insurance include________

a) the impossibility of assessing the distribution of damage 

b) chance and probability 

c) lack of statistical data 

d) dependence on the will of the insured

Answer: B

21. Insurance funds allow__________

a) to cover the damage caused to society by natural disasters and various kinds of accidents 

b) provide environmental protection measures, financing them from specially defined sources 

c) influence the production process by financing domestic enterprises 

d) provide special services to the population through the payment of benefits, pensions, subsidies

Answer: A

22. The principle of return is_______

a) investing 

b) the principle of good will 

c) the principle of equivalence 

d) the principle of compensation

Answer: C