AC Insurance Booster Capsule 2015 by AffairsCloud

AC Insurance Booster
Capsule 2015
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Insurance Booster Capsule For IRDAI,OICL and

UIICL Assistant Exam
History of Insurance in India :
Insurance since Ancient times
In India, Insurance has well established history of more than thousand years. In Rigveda, there is
a concept called Yogakshema, which means prosperity, well being and security of people. Also
Insurance was mentioned in Manusmrithi, Dharmashastra and Arthashastra. In those times
insurance refers to pooling of resources that could be re-distributed in times of natural calamities
such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day
insurance.
Modern Day Insurance

The modern form of Life Insurance came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil.
The insurance companies established during that period were brought up with the purpose of
looking after the needs of European community and Indian natives were not being insured by
these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the
foreign life insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates. Bharat Insurance Company
(1896) was also one of such companies inspired by nationalism. The Swadeshi movement of
1905-1907 gave rise to more insurance companies such as The United India in Madras, National
Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore.
Life Insurance Companies Act, 1912
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In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage.
Insurance Act 1938

From 44 companies with total business-in-force as Rs.22.44 Crores, it rose to 176 companies with
total business-in-force as Rs.298 Crores in 1938. With a view to protect the interests of the Indian
Insurance companies, the earlier legislation was amended with the enactment of the Insurance
Act 1938, which consists comprehensive provisions for effective control over the activities of
insurers or insurance organizations.
The Insurance Act 1938 was the first legislation governing the life insurance and non-life
insurance and to provide strict state control over insurance business.
Birth of Life Insurance Corporation of India
On 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian
insurance companies, 16 non-Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two stages; initially the management
of the companies was taken over by means of an Ordinance, and later, the ownership too by
means of a comprehensive bill.
The Parliament of India passed the Life Insurance Corporation Act on June 1956, and the Life
Insurance Corporation of India was created on September 1956, with the objective of spreading
life insurance much more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial cover at a reasonable cost.
The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private
sector.
History of General (non-life) Insurance

The history of general insurance dates back to the Industrial Revolution in the west during the
17th century. General Insurance in India has its roots in the establishment of Triton Insurance
Company Ltd. at Kolkata in the year 1850 by the Britishers. In 1907, the Indian Mercantile
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Insurance Ltd. was established and was the first company to transact all classes of general
insurance business.
In 1957, General Insurance Council (GIC), a wing of the Insurance Associaton of India was
established The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices across Non-Life or General insurance sector.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also established in the same year.
With the passing of the General Insurance Business (Nationalization) Act in 1972, general
insurance business was nationalized. A total of 107 insurers were amalgamated and grouped into
four companies namely National Insurance Company Ltd. at Kolkata, the New India Assurance
Company Ltd. at Mumbai, the Oriental Insurance Company Ltd at New Delhi and the United India
Insurance Company Ltd at Chennai.
Malhotra Committee
The Government set up a committee in 1993 under the chairmanship of R.N. Malhotra, former
Governor of RBI (Reserve Bank of India), to propose recommendations for initiation and
implementation of reforms in the Indian insurance sector. The objective of setting up this
committee was to complement the pace of reforms initiated in the financial sector.
The aforesaid committee submitted its report in 1994 wherein it was recommended that the
private sector be permitted to enter the Indian insurance sector. It also recommended the
participation of foreign companies by allowing them to enter into an MOU (Memorandum of
Understanding) by floating Indian companies, preferably a joint venture with Indian partners.
Birth of IRDA
Following the recommendations of the Malhotra Committee report, the Insurance Regulatory and
Development Authority (IRDA) Act, in 1999 was passed by the Indian Parliament.
The IRDA opened up the Indian insurance market in August 2000 by inviting application for
registration proposals. Foreign companies were allowed entry into Indian insurance sector with an
upper ceiling on ownership of up to 26% participation. The IRDA has been granted the powers to
frame regulations under Section 114A of the Insurance Act, 1938.
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From 2000 onwards, IRDA has framed various regulations for carrying on insurance business to
protection of Indian policyholders interests including the registration of Life & Non-Life (General)
Insurance companies.
Insurance a thriving sector

At present there are 28 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 24 life insurance companies operating in the country.
The insurance sector is a massive one and is thriving at a speedy rate of 15-20%. Together with
banking services, insurance services add about 7% to the countrys GDP. A well-developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk taking ability of the country.
MEANING OF INSURANCE
Simply speaking, insurance is the means by which risks of loss or damage can be shifted to
another party called the insurer on the payment of a charge known as premium. The party whose
risk is shifted to the insurer is known as the insured.
Obviously insurer is generally an organization (Insurance Company),which is willing to share the

loss or damage and it is also qualified to do so. Insurance is a contract between the insurer and
insured whereby the insurer undertakes to pay the insured a fixed amount, in exchange for a
fixed sum known as premium, on the happening of a certain event (like at a certain age or on
death), or compensate the actual loss when it takes place, due to the causes mentioned in the
contract.
If you think about the basis of insurance, you will realize that it is a form of cooperation through
which all the insured, who are subject to a risk, pay premium and only one or few among them
who actually suffer the loss or damage is/are compensated.
Actually, the number of parties exposed to a risk is very large and only a few of them might
actually suffer loss during a certain period. The insurer (company) acts as an agency to spread
the actual loss suffered by a few insured parties among a large number of parties.
IMPORTANCE OF INSURANCE :
To appreciate the importance of insurance we have to discuss the benefits that we derive from it.
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As explained in the previous section, insurance serves as a very useful means of spreading the
effects of personal as well as business risks by way of loss or damage among many.
Thus, the insured have a sense of security. Individuals who pay premium periodically out of
current income can look forward to an assurance of receiving a fixed amount on retirement or his
family being secured in the event of his death. Businessmen also pay premium for insurance of
risk of loss without constant worry about the possibility of loss or damage.
Insurance plays a significant role particularly in view of the large-scale production and distribution
of goods in national and international market. It is an aid to both trading and industrial
enterprises, which involve huge investments in properties and plants as well as inventories of raw
materials, components and finished goods.
The members of business community feel secured by means of insurance as they get assurance
that by contributing a token amount they will be compensated against a loss that may take place
in future.
From the national economic point of view, insurance enables savings of individuals to accumulate
with the insurance companies by way of premium received. These funds are invested in securities
issued by big companies as well as by Government.Individuals who insure their lives to cover the
risks of old age and death are induced to save a part of their current income, which is by itself of
great importance.
Insurance is also a source of employment for the people. The people get employed directly in its
offices of the insurance company spread over the country and it also provides opportunities to the
people to earn their livelihood by working as agent of the insurance companies.
TYPES OF INSURANCE :
Insurance, which is based on a contract, may be broadly classified into the following types.
(i) Life Insurance
(ii) Fire Insurance
(iii) Marine Insurance and
(iv) Other types of insurance such as burglary insurance, motor vehicle insurance etc.
Until recently Life Insurance Corporation of India (LIC) and General Insurance Corporation
with its subsidiaries happened to be the only organizations engaged in life and general
insurance business in India. Now a number of other private companies have entered this
service sector.
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Let us consider the salient feature of each of these types.
(i) Life Insurance :

A contract of life insurance (also known as life assurance) is a contract whereby the insurer
undertakes to pay a certain sum either on the death of the insured or on the expiry of a
certain number of years. In return, the insured agrees to pay an amount as premium either
in a lump sum or in periodical installments, annually, half-yearly, quarterly or monthly. The
risk insured against in this case is certain to happen.
Hence, life insurance is also referred to as life assurance. The written form of contract is
known as life insurance policy. It provides for the payment of a fixed sum to the insured or
his legal heirs as the case may be either on a fixed date or on the happening of an event,
which is certain.
Businessmen can provide for life insurance of all their employees by way of group
insurance. It also develops loyalty among employees and can be used as a security for
raising loans.
There are two basic types of life assurance policies :
(a) Whole-life policy, and (b) Endowment Policy.
A whole life policy runs for the whole life of the insured and premium is payable all along.
The sum assured becomes due for payment to the heirs of the insured only after his death.
An endowment policy on the other hand, runs for a limited period or upto a certain age of
the insured. The sum assured becomes due for payment at the end of the specified period
or on the death of the insured, if it occurs earlier.
(ii) Fire Insurance :

A contract of fire insurance is a contract whereby the insurer, on payment of premium by
the insured, undertakes to compensate the insured for the loss or damage suffered by
reason of certain defined subject matter being damaged or destroyed by fire. It is a contract
of indemnity, that is, the insured cannot claim anything more than the value of property
lost or damaged by fire or the amount of policy, whichever is lower.
The claim for loss by fire is payable subject to two conditions, viz
(a) There Must Have Been Actual Fire; And
(b) Fire Must have been accidental, not intentional; the cause of fire being immaterial.
The basic principle applied with regard to claim is the principle of indemnity. The insured is
entitled to be compensated for the amount of actual loss suffered subject to a maximum
amount for which he had taken the policy. He cannot make a profit through insurance. For
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example, if a person takes a fire insurance policy of Rs. 20,000/- on certain goods. Out of
these, goods worth Rs. 15,000/- are destroyed by fire. The insured can only claim an
amount to the extent of loss i.e., Rs. 15,000/- (and not Rs. 20, 000/-) for the damage from
the insurance company.
(iii) Marine Insurance :

Marine insurance is an agreement (contract) by which the insurance company (also known as
underwriter) agrees to indemnify the owner of a ship or cargo against risks, which are incidental
to marine adventures. It also includes insurance of the risk of loss of freight due on the cargo.
Marine insurance that covers the risk of loss of cargo by storm is known as cargo insurance.
The owner of the ship may insure it against loss on account of perils of the sea. When the ship is
the subject matter of insurance, it is known as hull insurance. Further, where freight is payable
by the owner of cargo on safe delivery at the port of destination, the shipping company may
insure the risk of loss of freight if the cargo is damaged or lost. Such a marine insurance is known
as freight insurance. All marine insurance contracts are contracts of indemnity.
The followings are the different types of marine insurance policies :---
(a) Time Policy This policy insures the subject matter for specified period of time, usually for
one year. It is generally used for hull insurance or for cargo when small quantities are insured.
(b) Voyage Policy - This is intended for a particular voyage, without any consideration for time.
It is used mostly for cargo insurance.
(c) Mixed Policy Under this policy the subject matter (hull, for example) is insured on a
particular voyage for a specified period of time. Thus, a ship may be insured for a voyage between
Mumbai and Colombo for a period of 6 months under a mixed policy.
(d) Floating Policy - Under this policy, a cargo policy may be taken for a round sum and
whenever some cargo is shipped the insurance company declares its value and the total value of
the policy is reduced by that amount. Such shipments may continue until the total value of the
policy is exhausted.
(iv) Other types of Insurance :

Apart from life, fire and marine insurance, general insurance companies can insure a variety of
other risks through different policies. Some of these risks and the different policies are outlined
below.
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(a) Motor vehicles Insurance - Insurance of all types of motor vehicles passenger cars, vans,
commercial vehicles, motor cycles, scooters, etc.,covers the risks of damage of the vehicle by
accident or loss by theft, as also risks of liability arising out of injury or death of third party
involved in an accident. Third party risk insurance is compulsory under the Motor Vehicles Act.
(b) Burglary Insurance - Under this insurance the insurance company undertakes to indemnify
the insured against losses from burglary i.e., loss of moveable goods by robbery and theft by
breaking the house.
(c) Fidelity Insurance - As a protection against the risks of loss on account of embezzlement or
defalcation of cash or misappropriation of goods by employees, businessmen may get policies
issued covering the risks of loss on account of fraud and dishonesty on the part of employees
handling cash or in charge of stores. This is called fidelity insurance policy. The employees may
also be required to sign a fidelity guarantee Bond.
(d) Personal accident and sickness Insurance - These are policies which can be taken out
against death or disability in special circumstances, for example by traveling through flights, etc.
(e) Liability Insurance - This type of policy covers the risk of liability for the injury or death of
someone else.These are two main forms as
(i) Employers liability- covers the employers legal liability for the safety of each employee.
(ii) Public liability- covers the liability of individuals and business for members of public visiting
their premises.
(f) Property Insurance - Covers a wide variety of items from goods in transit or in store to
building or contents. Applies to both the business persons and the private householders.
Principles of Insurance :
1. Utmost Good Faith
2. Insurable Interest
3. Principle of Indemnity
4. Principle of Contribution
5. Principle of Subrogation
6. Principle of loss Minimization
7. Principle of CAUSA PROXIMA.
1. Utmost Good Faith :

Both the parties i.e. insured and the insurer should a good faith towards each other.
The insurer must provide the insured complete, correct and clear information of
subject matter.
The insurer must provide the insured complete, correct and clear information
regarding terms and conditions of the contract.
9|Page

This principle is applicable to all contracts of insurance i.e. life, fire and marine
insurance.
2. Insurable Interest :
The insured must have insurable interest in the subject matter of insurance. In life
insurance it refers to the life insured.
In marine insurance it is enough if the insurable interest exits only at the time of
occurrence of the loss.
In fire and general insurance it must be present at the time of taking policy and also
at the time of the occurrence of loss.
The owner of the party is said to have insurable interest as long as he is the owner of
it.
It is applicable to all contracts of insurance.
3. Principle of Indemnity :
Indemnityh means a guarantee or assurance to put the insured in the same position
in which he was immediately prior to the happening of the uncertain event. The
insurer undertakes to make good loss.
It is applicable to fire, marine and other general insurance.
Under this the insurer agrees to compensate the insured for the actual loss suffered.
4. Principle of Contribution :
The principle is a corollary of the principle of indemnity.
It is applicable to all contracts of indemnity.
Under this principle the insured can claim the compensation only to the extent of
actual loss either from any one insurer or all the insurers.
5. Principle of Subrogation :
As per this principle after the insured is compensated for the loss due to damage to
property insured, then the right of ownership of such property passes on to the
insurer.
This principle is corollary of the principle of indemnity and is applicable to all
contracts of indemnity.
6. Principle of loss Minimization :
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Under this principle it is the duty of the insured to take all possible steps to minimize
the loss to the insured property on the happening of uncertain event.
7. Principle of CAUSA PROXIMA :

The loss of insurerd property can be caused by more than one cause in succession to
another.
The property may be insured against some causes and not against all causes.
In such an instance, the proximate cause or nearest cause of loss is to be found out.
If the proximate cause is the one which is insured against the insurance company is
bound to pay the compensation and vice versa.
INSURANCE PLANS - AN OVERVIEW :

ENDOWMENT INSURANCE PLAN
Endowment insurance plan is a combination of both pure term plan and pure endowment plan.
Pure term plan has only Death benefit with no maturity, whereas Pure Endowment Plan has only
maturity benefit with no death benefit. EAP has death benefit if the life assured dies within the
policy term as well as maturity benefit if he survives till the policy mature.
Benefit is paid either on death or maturity whichever occurs first. Hence it is complete win-win
solution to the policy holder. There are many types of endowments plan such as marriage
endowment plan, Educational Endowment plan etc.
WHOLE LIFE INSURANCE

Whole Life Insurance is a life insurance contract with level premiums that has both insurance and
an investment component. The insurance component pays a stated amount upon death of an
insured. Part of the insurance contract stipulates that the policyholder is entitled to a cash value
reserve that is part of the policy and guaranteed by the company.
This cash value can accessed anytime through policy loan that is received income tax free and
paid back according to mutually agreed upon schedules. These policy loans are available until
insureds death. If any loan amount is not yet paid back upon the insureds death, the insurer
subtracts those amounts from the policy face value/death benefit and pays the remaining to the
policys beneficiary.
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GROUP LIFE INSURANCE

A type of insurance coverage offered to a group of people, usually, employees of a company,
members of a union or association etc. There are types of group insurances such as group term
life insurances and group health insurance plan. This costs each individual member much less
than if they had to purchase an individual policy. For this reason, group insurance is key factor in
employee benefit package. This is because the risk is spread over the entire group, rather than
one person.
MICRO INSURANCE PLAN

Insurance that offer coverage to low income households are micro insurance. This is similar to
that of regular insurance except to the fact that it targets low income people. The target
population mainly consists of people ignored by mainstream commercial and social insurance
scheme. Micro insurance is found in developing countries, where current insurance markets are
inefficient. The insured people pay considerably smaller premiums.
JOINT LIFE INSURANCE PLAN

Joint Life insurance policies are designed to cover couples or partnership in the event of either
partners death. It means the chosen amount of cover is paid out if the first person dies, during
the length of the policy, after which the policy would end. A joint life policy pays only once and
would leave the surviving person without any life insurances.
SINGLE LIFE INSURANCE PLAN

Single life insurance policy covers one person only and pays out the chosen amount of cover if
that person dies, during the length of the policy, after which the policy would end.
TERM INSURANCE PLAN

Term life insurance is a policy that provides the insured person coverage for a certain period of
time whereas whole or universal policy is considered permanent, providing coverage for the
entire life of the insured.
CONVERTIBLE INSURANCE PLAN

It allows insured to convert a term policy to a permanent policy at a later date. This plan is
designed to meet the needs of those who are initially unable to play larger premium required for
whole life insurance plan.
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PURE ENDOWMENT PLAN

It is an endowment policy that is paid when the person in the endowment is still alive. A pure
endowment policy runs for a certain number of years that matures and is paid out to person
nominated.
Insurance Concepts :
What is Banccasurance?
Banccasurance
means
selling
of
insurance
products
through
banks. The
insurance companies and the banks come up in a partnership wherein the bank
sells the tied insurance companys insurance products to its clients.
Bank Insurance Model is also termed as Banccassurance.
Who is an Actuary?
A person with expertise in the fields of economics, statistics and mathematics,

who helps in risk assessment and estimation of premiums etc for an insurance
business, is called an actuary.
A professional statistician working in an insurance company is an Actuary.
What is an Actuarial Science?
Actuarial science is the discipline that applies mathematical and statistical

methods to assess risk in insurance, finance and other industries and
professions.
Actuarial
science
includes
number
of
interrelated
subjects,
including
probability, mathematics, statistics, finance, economics, financial economics, and

computer programming.
Who are Third Party Administrators?
Third Party Administrators or TPAs are a vital link between health insurance
companies, policyholders and health care providers.
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The TPAs maintain databases of policy holders and issue them identity cards
with unique identification numbers and handle all the post policy issues including
claim settlements.
What is Mortality Charge?
Mortality Charge is the amount charged every year by the insurer to provide the
life cover to the policyholder on the life of the Life Insured. It is also called as
Cost of Insurance.
What is Maturity Date?
The date on which the principal amount of a note, draft, acceptance bond or
other debt instrument becomes due and is repaid to the investor and interest
payments stop.
The maturity date tells you when you will get your principal back and for how
long you will receive interest payments.
Who is an Agent?
An Agent is a person who is licensed by state to sell Insurance. The Agents serve
as an intermediary between the insurance company and the insured.
Agents are only responsible for the timely and accurate processing of forms,
premiums, and paperwork.
o
Captive Agent Agent sell Insurance of a specific Company.
Independent Agent Agent who works independently and sells

Insurance of many companies.
Who is a Broker?
An insurance
broker is
specialist in insurance and risk
management.
Brokers act on behalf of their clients and provide advice in the interests of their
clients.
Insurance brokers can be best described as a kind of super-independent agent.
What is Annuity?
A long-term contract sold by an insurance company designed to provide

payments to the holder at specified intervals, usually after retirement.
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What are Insurable and Uninsurable Risks?
A risk that conforms to the norms and specifications of the insurance policy in
such a way that the criterion for insurance is fulfilled is called insurable risk.
In case of a scenario where the loss is too huge that no insurer would want to
pay for it, the risk is said to be uninsurable.
What is AD&D in Insurance?
AD&D
in
Insurance
refers
to Accidental
Death
and
Dismemberment
Insurance.
It is a policy that pays benefits to the beneficiary if the cause of death is an

accident. This is a limited form of life insurance which is generally less
expensive.
What is Lapse in Insurance?
The policy for which all benefits to the policy holder cease and is terminated due
to non payment of premium amount on the due date or even after the grace
period is called a lapsed policy.
What is Surrender Value?
Surrender Value is the amount the policy holder will get from the insurance
company if he decides to exit the policy before maturity. Surrender value is
payable only after three full years premiums.
What is Maturity claim?
Maturity claim is a type of claim, wherein the insured fills a maturity claim form.
It is sent along with the original policy document to the insurance company
before the maturity date to get timely settlement from the insurance company
as post dated cheque or ECS (Electronic Clearance Service) payment on the
maturity date.
What is Death claim?
Death claim is a type of claim made by the nominee of the insured to the
insurance company due to death of the insured, abiding to the policy terms and
conditions.
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What is Valid claim & Fradulent claim?
An insurance company validates the authenticity and amount claimed by the

insured in-order to prevent the insurer from exaggerating the claim amount &
the claim fraudulently.
If it is a valid reason it is classified as valid claim or else it is classified as

fraudulent claim, thereby if insurance suspects of fraudulence in the claim.
What do you mean by Policy not in force?
If the policy is lapsed i.e., the insured has not paid the policy amount before the
grace period expires, then it is termed as policy not in force. The insured is not
covered by the policy when it is termed as policy not in force.
What is Gratuity?
Gratuity is a part of salary that is received by an employee from his/her

employer in gratitude for the services offered by the employee in the company.
According to Payments of Gratuity Act, 1972 with minimum of 5 years service

during exit is eligible to minimum of 15 days from the last drawn salary for each
completed service year.
What is Void & Voidable contract?
Void contract cannot be enforced by law. It is also considered as void agreement

and is not a contract et al. Any agreement which is illegal is considered as void
contract.
An agreement between two parties that can be unenforceable for a number of

legal reasons like failure or mistake by a party to disclose a fact leading to
breach of contract. Then the other party terms it as voidable contract. He may
also continue the contract making it a valid contract, as it is decided by both
parties.
What is Paid up value?
The right to change the normal policy into paid up value is given to the insured
by the insurance company, if the insured have paid premiums for minimum of
three years.
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The paid policy means, after the period if the insured cannot pay premium then
the policy is not cancelled but the sum assured is reduced in proportion to the
number of premiums paid by the insured.
What is Terminal bonus?
Terminal bonus is the loyalty bonus paid by the insurance company to the
insured for maintaining the policy till the maturity date.
It is the bonus paid during the time of maturity and the value is not guaranteed
by disclosed during the time of policy maturity only.
Actual Cash Value

It is the cost of replacing damaged or destroyed property with comparable new property, minus
depreciation and obsolescence. For example, a 10-year-old fan will not be replaced at current full
value because of a decade of depreciation.
BCAR Bests Capital Adequacy Relativity (BCAR)

It is a percentage, which measures a companys relative capital strength and it is compared to its
industry peer composite. BCAR is an important component in determining the appropriateness of
a companys rating. BCAR is calculated by dividing a companys capital adequacy ratio by the
capital adequacy ratio of the median of its industry peer composite using Bests proprietary capital
mode.
Encumbrance
A claim on property, such as a mortgage, a lien for work and materials, or a right of dower. The
interest of the property owner is reduced by the amount of the encumbrance.
Liquidity
Liquidity is the ability of an individual or business to quickly convert assets into cash without
incurring a considerable loss. There are two kinds of liquidity
Quick liquidity
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It refers to funds, cash, short-term investments, and government bonds and possessions which
can immediately be converted into cash in the case of an emergency.
Current liquidity
It refers to current liquidity plus possessions such as real estate which cannot be immediately
liquidated, but eventually can be sold and converted into cash.
Reinsurance
It is an insurance that an insurance company buys for its own protection. The risk of loss is spread
so a disproportionately large loss under a single policy doesnt fall on one company. Reinsurance
enables an insurance company to expand its capacity; stabilize its underwriting results; finance its
expanding volume; secure catastrophe protection against shock losses; withdraw from a line of
business or a geographical area within a specified time period.
Lapse Ratio
The ratio of the number of life insurance policies that lapsed within a given period to the number
in force at the beginning of that period.
Impaired Insurer
An insurer which is in financial difficulty to the point where its ability to meet financial obligations
or regulatory requirements is in question.
Dividend
The return of part of the policys premium for a policy issued on a participating basis by either a
mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.
Coinsurance
In property insurance, requires the policyholder to carry insurance equal to a specified percentage
of the value of property to receive full pay-ment on a loss. For health insurance, it is a percentage
of each claim above the deductible paid by the policy-holder. For a 20 percent health insurance
coinsurance clause, the policyholder pays for the deductible plus 20 percent of his covered losses.
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After paying 80 per-cent of losses up to a specified ceiling, the insurer starts paying 100 percent
of losses.
Casualty Insurance
Casualty Insurance is primarily concerned with losses caused by injuries to persons and legal
liability imposed upon the insured for such injury or for damage to property of others. It also
includes such diverse forms as plate glass, insurance against crime, such as robbery, burglary and
forgery, boiler and machinery insurance and Aviation insurance.
Retention
The amount of risk retained by an insurance company that is not re-insured.
Insurable Risk
Risks for which it is relatively easy to get insurance and that meet certain criteria. These include
being definable, accidental in nature, and part of a group of similar risks large enough to make
losses predictable. The insurance company also must be able to come up with a reasonable price
for the insurance.
Types of Frauds in Insurance Sector :

There are many but following are Main :--
Premium Diversion
Premium diversion is the embezzlement of insurance premiums.
It is the most common type of insurance fraud.
Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the
money for personal use.
Another common premium diversion scheme involves selling insurance without a license,
collecting premiums and then not paying claims.
Fee Churning
In fee churning, a series of intermediaries take commissions through reinsurance agreements.
19 | P a g e

The initial premium is reduced by repeated commissions until there is no longer money to pay
claims.
The company left to pay the claims is often a business the conspirators have set up to fail.
When viewed alone, each transaction appears to be legitimateonly after the cumulative effect
is considered does fraud emerge.
Asset Diversion
Asset diversion is the theft of insurance company assets.

It occurs almost exclusively in the context of an acquisition or merger of an existing insurance
company.
Asset diversion often involves acquiring control of an insurance company with borrowed funds.
After making the purchase, the subject uses the assets of the acquired company to pay off the
debt. The remaining assets can then be diverted to the subject.
Advantages of Increase in FDI in Insurance :

From 26 to 49% Advantages :- Capital Inflow
Better Technology
Increase in Competitiveness
Innovative Insurance Products and Policies for Public
Increase Penetration
Employment Generation
stringent competition leading to competitive quotes,
improved services and better claim settlement ratio.
Insurance Companies Taglines with their Heads :

1. Life Insurance Corporation of India (LIC)
Tagline - Yogakshemam Vahamyaham
CEO - S.K.Roy
2. New India Assurance Company Limited (NIACL)
Tagline - India's premier general insurance company
CEO- G. Srinivasan
3. United India Insurance Company Limited (UIICL)
Tagline - Rest Assured with Us
CEO - Milind A Kharat
4. Oriental Insurance Company Limited (OICL)
Tagline - Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Paas
Chairman - AK Saxena
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5. National Insurance Corporation Limited (NICL)
Tagline - A Bright and Better Tomorrow
GM - A.V. Girija Kumar and CMD - P.J. Joseph
6. Max Life Insurance Company Limited
Tagline - Aapke Sachhe Advisor
CEO - Rajesh Sud
7. SBI Life Insurance Company Limited
Tagline - With Us, You're Sure
CEO- Arijit Basu
8. Kotak Mahindra Old Mutual Life Insurance Limited
Tagline - Faidey ka Insurance
Chairman- Gaurang Shah
9. Apollo Munich Health Insurance
Tagline - We know Healthcare.
CEO- Anthony Jacob and Chairman- Prathap C Reddy
10. Future General Life Insurance
Tagline - Ek Shagun Zindagi Ke Naam
Chairman- G N Bajpai and CEO- Munish Sharda
11. Aviva India Life Insurance
Tagline - Kal par Control
CEO- T R Ramachandaran
12. Tata AIA Life Insurance Company Limited
Tagline - You click, we cover
Chairman- Ishaat Hussain
13. ICICI Prudential Life Insurance Company Limited
Tagline - Zimmedari ka humsafar
CEO- Sandeep Bakshi
14. HDFC Standard life Insurance Company Limited
Tagline - Sar utha Ke Jiyo
CEO - Amitabh Chaudhary, Vibha Padalkar
15. Bajaj Allianz Life Insurance Company Limited
Tagline - Jiyo Befiqar
CEO- Anuj Agarwal
16. Birla Sun Life Insurance Company Limited
Tagline - Muskurate Raho
CEO- Pankaj Razdan
17. Max Bupa Health Insurance
Tagline - Your Health First
Chairman- Anuroop Singh
18. Exide Life Insurance India Company
(Earlier Known as ING Vysya Life Insurance India Company)
Tagline - Adding Life to Insurance
Chairman- Rajan Raheja and CEO- Kshitij Jain
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19. PNB Met Life India Insurance Company Limited
Tagline - Have you met life today?
CEO- Tarun Chugh.
INSURANCE ABBREVIATIONS (A-Z) :

AAA
American Academy Of Actuaries.
AACI
American Association Of Crops Insurers.
AADC
American Association Of Dental Consultants.
AAI
Accredited Adviser In Insurance.
AAIM
American Academy Of Insurance Medicine.
AAIMC
American Association Of Insurance Management Consultants.
AAIS
American Association Of Insurance Services.
AALTCI
American Association For Long Term Care Insurance.
AALU
Association For Advanced Life Underwriting.
AAM
Associate In Automation Management.
AAMGA
American Association Of Managing General Agents.
AAPL
American Association Of Petroleum Landmen.
AAPMR
American Academy Of Physical Medicine And Rehabilitation.
AASCIF
American Association Of State Compensation Insurance Funds.
ABA
American Bar Association, American Bankers Association.
ABIH
American Board Of Industrial Hygienists.
22 | P a g e
ABIME
American Board Of Independent Medical Examiners.
ABS
American Bureau Of Shipping.
ACA
Association Of Corporate Counsel.
ACAS
Associate Of The Casualty Actuarial Society.
ACC
Anti-Concurrent Cause.
ACCA
American Corporate Counsel Association.
ACCI
American Corporate Counsel Institute.
ACEC
American Consulting Engineers Council.
ACII
Associateship Of The Chartered Insurance Institute.
ACLA
Automobile Claim Law Associate.
ACLI
American Council Of Life Insurers.
ACLS
Automobile Claim Law Specialist.
ACLU
American College Of Life Underwriters.
ACM
Asbestos-Containing Material.
ACORD
Association For Cooperative Operations Research And Development.
ACSC
Association Of Casualty & Surety Companies.
ACSR
Accredited Customer Service Representative.
ACT
Agents Council For Technology.
ACV
Actual Cash Value.
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ACWRRE
American Cargo War Risk Reinsurance Exchange.
ADA
Americans With Disabilities Act Of 1990.
ADAAA
ADA Amendments Act Of 2008.
ADB
Accidental Death Benefit.
AD&D
Accidental Death And Dismemberment.
ADEA
Age Discrimination In Employment Act Of 1967.
ADR
Alternative Dispute Resolution.
AEIA
American Excess Insurance Association.
AFIA
American Foreign Insurance Association.
AFIS
Agribusiness And Farm Insurance Specialist.
AFSB
Associate In Fidelity And Surety Bonding.
AGC
Associated General Contractors Of America.
AGRP
Association Of Governmental Risk Pools.
A&H
Accident And Health (Insurance).
AHAS
Advocates For Highway And Auto Safety.
AHERA
Asbestos Hazard Emergency Response Act Of 1986.
AHIA
Association Of Health Insurance Advisors.
AHIP
Americas Health Insurance Plans.
AHIS
American Hull Insurance Syndicate.
24 | P a g e
AIA
Aviation Insurance Association.
AIAB
Alliance Of Insurance Agents And Brokers.
AIAF
Associate In Insurance Accounting And Finance.
AIBM
Automobile Insurers Bureau Of Massachusetts.
AIC
Associate In Claims.
AICP
Association Of Insurance Compliance Professionals.
AICPA
American Institute Of Certified Public Accountants.
AICPCU
American Institute For Chartered Property Casualty Underwriters .
AIHA
American Industrial Hygiene Association.
AIM
Associate In Management.
AIMA
As Interest May Appear.
AIME
Average Indexed Monthly Earnings.
AIMU
American Institute Of Marine Underwriters.
AIP
Annual Implementation Plan.
AIPSO
Automobile Insurance Plans Service Office.
AIRAC
All Industry Research Advisory Council.
AIRB
Aviation Insurance Rating Bureau.
AIRMIC
Association Of Insurance And Risk Managers.
AISG
American Insurance Services Group, Inc.
25 | P a g e
AIT
Associate In Information Technology.
AL
Automobile Liability.
ALAE
Allocated Loss Adjustment Expense.
ALC
American Life Convention.
ALCM
Associate In Loss Control Management.
ALE
Additional Living Expense.
ALHA
Association Of Life And Health Administrators.
ALIMDA
Association Of Life Insurance Medical Directors Of America.
ALM
Association Of Lloyds Members.
ALOP
Advance Loss Of Profit .
ALOS
Average Length Of Stay.
ALTA
American Land Title Association.
AMA
American Medical Association.
AMBAC
American Municipal Bond Assurance Corp.
AMEMIC
Association Of Mill & Elevator Mutual Insurance Companies.
AMIC
American Marine Insurance Clearinghouse.
AMIF
American Marine Insurance Forum.
AMIM
Associate In Marine Insurance Management.
AMW
Average Monthly Wage.
26 | P a g e
ANI
American Nuclear Insurers.
ANL
Above Normal Loss.
ANSI
American National Standards Institute
AOP
All Other Perils.
AP
Additional Premium.
APA
Associate In Premium Auditing.
API
Associate In Personal Insurance.
APIW
Association Of Professional Insurance Women.
AR
Accounts Receivable.
ARCO
Associated Reporting Companies.
ARE
Associate In Reinsurance.
ARIA
American Risk And Insurance Association.
ARM
Associate In Risk Management.
ARMP
Associate In Risk Management For Public Entities.
ARO
Asset Retirement Obligation.
ARP
Associate In Research And Planning.
ARPI
Australian Risk Policy Institute.
ARS
Auction Rate Security.
ART
Annual Renewable Term.
27 | P a g e
ASA
Associate In Society Of Actuaries.
ASC
Associated Specialty Contractors.
ASCLU
American Society Of Chartered Life Underwriters.
ASCN
Applied Systems Client Network.
ASHRM
American Society For Healthcare Risk Management.
ASIM
American Society Of Insurance Management.
ASIS
American Society Of Industrial Security.
ASLI
Associate In Surplus Lines Insurance.
ASM
Available Seat Miles.
ASME
American Society Of Mechanical Engineers.
ASO
Administrative Services Only.
ASOP
Actuarial Statement Of Practice.
ASPPA
American Society Of Pension Professionals & Actuaries .
ASSE
American Society Of Safety Engineers.
ASTM
American Society For Testing And Materials
ATA
American Trucking Associations, Inc.
ATIMA
As Their Interests May Appear
ATLA
Association Of Trial Lawyers Of America.
ATRA
American Tort Reform Association.
28 | P a g e
AU
Associate In Underwriting.
AWCBC
Association Of Workers Compensation Boards Of Canada.
AWW
Average Weekly Wage.
BACM
Best Available Control Measures.
BAP
Business Auto Policy.
BAPCPA
Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005.
BBB
Bankers Blanket Bond.
B&C
Building And Contents.
BCAR
Bests Capital Adequacy Ratio.
BCBSA
Blue Cross And Blue Shield Association.
BCE
Bermuda Commodities Exchange.
BCEGS
Building Codes Effectiveness Grading Schedule.
BCM
Business Continuity Management.
BCP
Business Continuity Plan.
BCSP
Board Of Certified Safety Professionals.
BDAT
Best Demonstrated Available Technology.
BELRIM
Belgian Risk Management Association.
BERP
Basic Extended Reporting Period.
BFCGL
Broad Form Comprehensive General Liability .
29 | P a g e
BFPD
Broad Form Property Damage.
BI
Bodily Injury; Business Interruption.
BIC
Business Income Coverage.
BIM
Building Information Modeling.
BM
Boiler And Machinery.
B&M
Boiler And Machinery.
BOP
Businessowners Policy.
BOW
Breach Of Warranty.
BPB
Blanket Position Bond.
BPF
Basic Premium Factor.
BPL
Bankers Professional Liability.
BPLI
Bankers Professional Liability Insurance.
BPT
Branch Profits Tax.
BR
Builders Risk.
BRAC
Base Realignment And Closure Act.
BTR
Below-Target Risk.
BV
Brick Veneer .
CAC
Combined Additional Coverage.
CAE
Chief Audit Executive.
30 | P a g e
CAGR
Compounded Annual Growth Rate.
CAL
Comprehensive Automobile Liability.
C AND F
Cost And Freight.
CAPA
Certified Automotive Parts Association.
CAPEX
Capital Expenditures.
CAPM
Capital Asset Pricing Model.
CAPP
Conference Of Actuaries In Public Practice.
CAR
Contractors All Risks.
CARE
Concerned Alliance Of Responsible Employers.
CARF
Commission On Accreditation Of Rehabilitation Facilities.
CARFM
Coalition Of Alternative Risk Funding Mechanisms.
CARFRA
Coordinated Advertising, Rate And Form Review Authority.
CAS
Casualty Actuarial Society.
CBMU
Canadian Board Of Marine Underwriters.
CBOT
Chicago Board Of Trade.
CBRA
Coastal Barrier Resources Act Of 1982.
CBRS
Coastal Barrier Resources System.
CCIA
Consumer Credit Insurance Association.
CCIP
Contractor Controlled Insurance Program.
31 | P a g e
CCIR
Canadian Council Of Insurance Regulators.
CCLA
Casualty Claim Law Associate..
CCLS
Casualty Claim Law Specialist
CD
Certificate Of Deposit.
CDS
Credit Default Swap.
CDW
Collision Damage Waiver.
CEB
Council Of Employer Benefits.
CEBS
Certified Employee Benefits Specialist.
CEL
Contractors Environmental Liability.
CEN
Confiscation, Expropriation, Nationalization .
CEND
Confiscation, Expropriation, Nationalization, And Deprivation.
CEPT
Credit Equivalent Bypass Trust.
CERCLA
Comprehensive Environmental Response, Compensation, And Liability Act Of

1980.
CF
Contract Frustration.
C&F
Cost And Freight.
CFA
Chartered Financial Analyst.
CFC
Chartered Financial Consultant; Controlled Foreign Corporation.
CFMA
Construction Financial Management Association.
32 | P a g e
CFP
Certified Financial Planner; Coordinated Financial Planning.
CFROI
Cash Flow Return On Investments.
CFTC
Commodities And Futures Trading Commission.
CFU
Customary Freight Unit.
CGL
Commercial General Liability .
CHCM
Certified Hazard Control Manager.
CHIAA
Crop Hail Insurance Actuarial Association.
CIA
Canadian Institute Of Actuaries.
CIAA
Canadian Independent Adjusters Association.
CIAB
Council Of Insurance Agents And Brokers.
CIC
Certified Insurance Counselor.
CICA
Captive Insurance Companies Association.
CIF
Cost, Insurance, And Freight.
CIH
Certified Industrial Hygienist; Compensated Intercorporate Hauling.
CII
Chartered Insurance Institute.
CIM
Commercial Inland Marine.
CIP
Consolidated Insurance Program; Controlled Insurance Program.
CIPO
Controlled Insurance Program For Operations.
CIRB
Crop Insurance Research Bureau.
33 | P a g e
CISR
Certified Insurance Service Representative.
CIT
Critical Incident Technique.
CL
Claims Leakage.
CLHIA
Canadian Life & Health Insurance Association.
CLIEDIS
Canadian Life Insurance Edi Standards Association.
CLM
Commercial Lines Manual.
CLU
Chartered Life Underwriter.
CM
Construction Management; Construction Manager.
CMAA
Construction Management Association Of America.
CMP
Commercial Multiple Peril; Controlled Master Program.
CMT
Crisis Management Team.
CNHI
Committee For National Health Insurance.
CNP
Cotton Named Perils (Insurance).
C/O
Completed Operations.
COAA
Construction Owners Association Of America.
COB
Coordination Of Benefits.
COBRA
Consolidated Omnibus Budget Reconciliation Act Of 1985.
COC
Course Of Construction.
COGSA
Carriage Of Goods By Sea Act Of 1936.
34 | P a g e
COGWA
Carriage Of Goods By Water Act Of 1993.
COI
Certificate Of Insurance.
COIL
Conference Of Insurance Legislators.
COLA
Cost Of Living Adjustment.
COO
Chief Operating Officer.
COP
Commercial Output Policy.
COPE
Construction, Occupancy, Protection, Exposure.
COPPA
Childrens Online Privacy Protection Act Of 1998.
COR
Cost Of Risk.
COSO
Committee Of Sponsoring Organizations.
CP
Commercial Property .
CPA
Certified Public Accountant; Consumer Protection Act.
CPCU
Chartered Property Casualty Underwriter.
CPE
Certified Professional Engineer.
CPI
Consumer Price Index.
CPIW
Certified Professional Insurance Woman.
CPL
Comprehensive Personal Liability.
CPM
Critical Path Method
CPP
Certified Protection Professional.
35 | P a g e
CPPA
Cable Communications Policy Act Of 1984
CPPL
Care Providers Professional Liability.
CPRL
Contractors Professional Liability.
CPSA
Consumer Product Safety Act Of 1972.
CPSC
Consumer Product Safety Commission.
CPSM
Certified Product Safety Manager.
CPU
Central Processing Unit.
CPWR
Center To Protect Workers Rights.
CQE
Certified Quality Engineer.
CR
Commercial Crime.
CRA
Cargo Reinsurance Association.
CRE
Certified Reliability Engineer.
CRIS
Construction Risk And Insurance Specialist.
CRM
Canadian Risk Management.
CRO
Chief Risk Officer.
CRS
Community Rating System.
C&S
Capital And Surplus.
CSC
Construction Safety Council.
CSIO
Centre For Study Of Insurance Operations.
36 | P a g e
CSL
Combined Single Lim.It.
CSO
Claim Services Only
CSO
TABLE
Commissioners Standard Ordinary Table.
CSP
Commercial Statistical Plan.
CSR
Customer Service Representative.
CTD
Cumulative Trauma Disorder.
CTG
Control Technique Guidelines.
CURT
Construction Users Roundtable.
CV
Cash Value.
CVA
Captive Value Added.
CVIF
Compound Value Interest Factor.
CWCI
California Workers Compensation Institute.
CWR
Countrywide Rate Pages.
DAC
Deferred Acquisition Cost.
DAP
Deposit Administration Plan.
D&B
Dun & Bradstreet.
D/B/A
Doing Business As.
DB&C
Dwelling, Building And Contents.
37 | P a g e
DBIA
Design- Build Institute Of America
DCC
Domestic Cell Captive.
DCF
Discounted Cash Flow.
DCIP
Developer Controlled Insurance Program.
DDD
Dishonesty, Disappearance, And Destruction.
DDL
Disclosure Dollar Loss.
DDP
Distributed Data Processing.
DEC
Declarations Page.
DED
Deductible.
DEFS
Direct Applied Exterior Finish System.
DEP
Direct Earned Premium.
DFA
Dynamic Financial Analysis.
DFIRM
Digital Flood Insurance Rate Map.
DI
Disability Income; Double Indemnity.
DIC
Difference-In-Conditions.
DICGC
Deposit Insurance and Credit Guarantee Corporation of India.
DIL
Difference-In-Limits.
DITC
Disability Insurance Training Council.
DJIA
Dow Jones Industrial Average.
38 | P a g e
DMA
Direct Marketing Association.
DMIC
Direct Marketing Insurance Council.
DNI
Distributable Net Income.
D&O
Directors And Officers (Liability Insurance).
DOB
Date Of Birth.
DOC
Drive Other Car Coverage.
DOD
Date Of Death.
DOHSA
Death On The High Seas Act Of 1920.
DOJ
Department Of Justice.
DOL
Department Of Labor.
DOS
Denial Of Service.
DOT
Department Of Transportation.
DPP
Deferred Premium Payment Plan.
DPPA
Drivers Privacy Protection Act Of 1994.
DQO
Data Quality Objective.
DR
Daily Report.
DRE
Destruction And Removal Efficiency.
DRG
Diagnostic Related Group.
DRI
Defense Research Institute.
39 | P a g e
DSU
Delay In Start-Up.
DTI
Department Of Trade And Industry.
EA
Enrolled Actuary.
EAB
Experience Account Balance.
EAP
Employee Assistance Program; Estimated Annual Premium.
EAR
Erection All Risks.
EBIDDA
Earnings Before Interest, Dividends, Depreciation, And Amortization.
EBIT
Earnings Before Interest And Taxes.
EBITDA
Earnings Before Interest,Taxes,Depreciation And Amortization.
EBRI
Employee Benefit Research Institute.
EC
Extended Coverage.
ECC
Eastern Claims Conference.
ECF
Extended Care Facility.
ECFC
Employers Council On Flexible Compensation.
ECI
Export Credit Insurance.
ECO
Extra Contractual Obligations.
ECOR
Economic Cost Of Run.
ECP
Exempt Commercial Policyholder.
ECPA
Electronic Communications Privacy Act Of 1986.
40 | P a g e
EDD
Enforcement Decision Document.
EDI
Export Development Corporation.
EDP
Extended Discovery Period/Provision.
EEL
Emergency Exposure Limits.
EEOC
Equal Employment Opportunity Commission.
EIFS
Exterior Insulation And Finish Systems.
EIL
Environmental Impairment Liability.
EIS
Environmental Impact Statement.
EJCDC
Engineers Joint Contracts Documents Committee.
EL
Employers Liability; Expected Loss.
ELL
Educators Legal Liability.
ELP
Excess Loss Premium .
ELR
Expected Loss Rate.
EMAP
Environmental Monitoring And Assistance Program.
EMT
Emergency Medical Technician.
ENCP
Erisa Non Compliance Program.
E&O
Errors And Omissions.
EP
Earned Premium.
EPA
Environmental Protection Agency.
41 | P a g e
EPC
Engineering/Procurement Construction.
EPD
Expected Policyholder Deficit.
EPL
Employment Practices Liability.
EPLI
Employment Practices Liability Insurance.
EPS
Earnings Per Share.
ERD
Expected Reinsurer Deficit.
ERIC
Erisa Industry Committee.
ERISA
Employee Retirement Income Security Act Of 1974.
ERM
Enterprise Risk Management.
ERP
Extended Reporting Period.
ERPL
Employment-Related Practices Liability.
ERSC
Environmental Response Services Contractor.
E&S
Excess And Surplus.
ESA
Employee Spending Account.
ESI
Electronically Stored Information.
ESOP
Employee Stock Ownership Plan.
ESOT
Employee Stock Ownership Trust.
ETB
Engaged In Trade Or Business.
EUO
Examination Under Oath.
42 | P a g e
EXPRO
Expedited Process
FAA
Federal Arbitration Act.
FAC
Facultative Reinsurance.
FACTA
Fair And Accurate Credit Transactions Act Of 2003.
FAIA
Florida Association Of Insurance Agents.
FAIR
Fair Access To Insurance Requirements.
FALU
Fellow Of The Academy Of Life Underwriting.
FAP
Family Automobile Policy.
FAR
Federal Aviation Regulations.
FAS
Free Along Side.
FASB
Financial Accounting Standards Board.
FATA
Financial Anti-Terrorism Act (Patriot Act) Of 2001.
FATCA
Foreign Account Tax Compliance Act (Fatca).
F&C
Fire And Casualty.
FCAS
Fellow Of The Casualty Actuarial Society.
FCC
Federal Communications Commission.
FCE
Functional Capacity Evaluation.
FCIC
Federal Crop Insurance Corporation.
FCII
Fellowship Of The Chartered Insurance Institute.
43 | P a g e
FCLA
Fraud Claim Law Associate.
FCLS
Fraud Claim Law Specialist.
FCPA
Federal Corrupt Practices Act Of 1910.
FCPA
Foreign Corrupt Practices Act Of 1977.
FCPL
Farmers Comprehensive Personal Liability.
FCRA
Fair Credit Reporting Act Of 1970.
FC&S
Free Of Capture And Seizure.
FDIC
Federal Deposit Insurance Corporation.
FDPA
Flood Disaster Protection Act Of 1973.
FECA
Federal Employees Compensation Act Of 1916.
FEGLI
Federal Employees Group Life Insurance.
FELA
Federal Employers Liability Act Of 1908.
FEMA
Federal Emergency Management Agency.
FERMA
Federation Of European Risk Management Associations.
FET
Federal Excise Tax.
FHBM
Flood Hazard Boundary Map.
FHWA
Federal Highway Administration
FIA
Federal Insurance Administration.
FIC
Fraternal Insurance Counselor.
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FICA
Federal Insurance Contribution Act Of 1935.
FICC
Federation Of Insurance And Corporate Counsel
FIIC
Fellow Of The Insurance Institute Of Canada.
FIO
Federal Insurance Office.
FIRM
Flood Insurance Rate Map.
FIRREA
Financial Institutions Reform, Recovery, And Enforcement Act Of 1989.
FLMI
Fellow Of The Life Management Institute.
FLSA
Fair Labor Standards Act Of 1938.
FM
Factory Mutual.
FMCSA
Federal Motor Carrier Safety Administration.
FMCSR
Federal Motor Carrier Safety Regulations.
FMHSA
Federal Mine Health And Safety Act Of 1969.
FMLA
Family And Medical Leave Act Of 1993.
FMV
Fair Market Value.
FNMA
Federal National Mortgage Association.
FOB
Free On Board.
FOC
Fire Office Committee Forms.
FOSFI
Federal Office Of The Superintendent Of Financial Institutions.
FPA
Free Of Particular Average.
45 | P a g e
FPAAC
Free Of Particular Average.
FPEB
Fire Prevention And Engineering Bureau.
FRM
Fellow In Risk Management
FRV
Fair Rental Value.
FSA
Flexible Spending Account.
FSLIC
Federal Savings And Loan Insurance Corporation
FTC
Federal Trade Commission.
FTCAC
Fire, Theft, And Combined Additional Coverage.
FVD
Full Value Declared.
FVWC
Foreign Voluntary Workers Compensation.
GA
General Agent.
GAAP
Generally Accepted Accounting Principles.
GAAS
Generally Accepted Auditing Standards.
GAB
General Adjustment Bureau.
GAMA
General Agents And Managers Association.
GAMC
General Agents And Managers Conference.
GAO
Government Accountability Office.
GAP
Guaranteed Auto Protection.
GASB
Governmental Accounting Standards Board.
46 | P a g e
GC
Guaranteed Cost.
GCCI
Guy Carpenter Catastrophe Index.
GCD
Guaranteed Cost Discount.
GCW
Gross Combination Weight.
GDP
Gross Domestic Product.
GFCI
Ground Fault Circuit Interrupter.
GHAA
Group Health Association Of America.
GIC
Guaranteed Investment Contract.
GINA
Genetic Information Nondiscrimination Act Of 2008.
GIO
Guaranteed Insurability Option.
GKLL
Garage Keepers Legal Liability.
GL
General Liability.
GLB
Gramm-Leach-Bliley Act Of 1999.
GNEPI
Gross/Net Earned Premium Income.
GNMA
Government National Mortgage Association.
GNPI
Gross/Net Premium Income.
GPO
Government Printing Office.
GULP
Group Universal Life Program.
GWP
Gross Written Premium.
47 | P a g e
HB
House Bill.
HCQIA
Health Care Quality Improvement Act Of 1986.
HFIE
Huebner Foundation For Insurance Education.
HHG
Household Goods.
HI
Health Insurance.
HIAA
Health Insurance Association Of America.
HII
Health Insurance Institute.
HIPAA
Health Insurance Portability And Accountability Act Of 1986.
HLDI
Highway Loss Data Institute.
HLV
Human Life Value.
HMO
Health Maintenance Organization.
HOLUA
Home Office Life Underwriters Association.
HPL
Hospital Professional Liability.
HPR
Highly Protected Risk.
HR
Human Resources.
HRS
Hazardous Ranking System.
HSA
Health System Agency.
HSP
Healthcare Safety Professional.
IAC
Industrial Accident Commission.
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IAHU
International Association Of Health Underwriters.
IAIABC
International Association Of Industrial Accident Boards & Commissions.
IAIS
International Association Of Insurance Supervisors.
IAOC
Insurers Advisory Organization Of Canada.
IASA
Insurance Accounting And Systems Association, Inc.
IBAC
Insurance Brokers Association Of Canada.
IBANS
Insurance Brokers Association Of Nova Scotia.
IBC
Insurance Bureau Of Canada.
IBNER
Incurred But Not Enough Reserved.
IBNR
Incured But Not Reported.
IBT
Income Before Taxes.
ICA
International Claim Association; Insurance Consortium Of America.
ICAC
Insurance Committee For Arson Control.
ICC
Interstate Commerce Commission.
ICEDS
Insurance Company Education Directors Society.
ICIA
International Credit Insurance Association.
ICISA
International Credit Insurance & Surety Association.
ICP
Insurance Conference Planners.
ICPA
Insurance Conference Planners Association.
49 | P a g e
ICPI
Insurance Crime Prevention Institute.
ICSID
International Center For The Settlement Of Investment Disputes.
IDBI
Industrial Development Bond Insurance.
IDI
Inherent Defects Insurance.
IDL
Independent Director Liability.
IDLH
Immediately Dangerous To Life And Health.
IDM
Integrated Disability Management.
IDMA
Insurance Data Management Association.
IEA
Insurance Educational Association.
IFC
Insured Fixed-Price Cleanup.
IFCA
Insurance Fair Conduct Act.
IFEBP
International Foundation Of Employee Benefit Plans.
IFSC
International Financial Services Centre.
IFSRA
Irish Financial Services Regulatory Authority.
IFTA
International Fuel Tax Agreement.
IGF
Insurance Guaranteed Financing.
IHOU
Institute Of Home Office Underwriters.
IIA
Insurance Institute Of America, Inc.
IIAA
Independent Insurance Agents Of America, Inc.
50 | P a g e
IIABA
Independent Insurance Agents And Brokers Of America, Inc.
IIAC
International Insurance Advisory Council.
IIAT
Independent Insurance Agents Of Texas.
IIC
Insurance Institute Of Canada.
IICAE
Insurance Industry Consumer Affairs Exchange.
IIE
Illinois Insurance Exchange.
IIED
Intentional Infliction Of Emotional Distress.
IIHS
Insurance Institute For Highway Safety.
III
Insurance Information Institute.
IILA
International Institute Of Loss Adjusters.
IIMA
Insurance Industry Meetings Association.
IIS
International Insurance Seminars, Inc.
IJA
Interjurisdictional Agreement On Workers Compensation.
IL
Interline .
ILAB
Insurance Library Association Of Boston.
ILCA
Insurance Loss Control Association.
ILF
Increased Limits Factor.
ILOC
Irrevocable Letter Of Credit.
ILU
Institute Of London Underwriters.
51 | P a g e
IMCA
Insurance Marketing Communications Association.
IMUA
Inland Marine Underwriters Association.
IOS
International Organization For Standardization.
IPA
Independent Practice Association.
IPAC
Insurance Public Affairs Council.
IPD
Integrated Project Delivery.
IPFA
Insurance Premium Finance Association.
IPO
Initial Public Offering.
IPT
Insurance Premium Tax.
IR
Incident Recall.
IRA
Individual Retirement Account.
IRC
Insurance Research Council; Internal Revenue Code.
IRES
Insurance Regulatory Examiners Society.
IRI
Industrial Risk Insurers.
IRIS
Insurance Regulatory Information System.
IRM
Improved Risk Mutuals.
IRMC
Institute For Risk Management Consultants.
IRMI
International Risk Management Institute, Inc.
IRP
International Registration Plan.
52 | P a g e
IRPM
Individual Risk Premium Modification.
IRR
Internal Rate Of Return.
IRS
Internal Revenue Service.
IRUA
Intermediaries & Reinsurance Underwriters Association.
ISCEBS
International Society Of Certified Employee Benefits Specialists.
ISO
Insurance Services Office, Inc.
ISTEA
Intermodal Surface Transportation Efficiency Act Of 1991.
ITA
Interjurisdictional Trucking Agreement.
ITC
Investment Tax Credit.
ITCIF
International Trade Credit Insurance Facility.
ITES
Information Technology Enabled Services.
ITI
Insurance Testing Institute.
IVANS
Insurance Value Added Network Services.
IWH
Institute For Work & Health.
JCAH
Joint Commission On The Accreditation Of Hospitals.
JCAHO
Joint Commission On Accreditation Of Healthcare Organizations
JHA
Job Hazard Analysis.
JOA
Joint Operating Agreement.
JOBS
Jumpstart Our Business Startups Act.
53 | P a g e
JSA
Job Safety Analysis.
JUA
Joint Underwriting Authority; Joint Underwriting Association.
JV
Joint Venture.
LAE
Loss Adjustment Expense.
LASH
Lighter Aboard Ship
LCA
Life Communicators Association.
LCF
Loss Conversion Factor.
LDF
Loss Development Factor.
LDW
Limited Damage Waiver.
LEA
Loss Executives Association.
LEED
Leadership In Energy And Environmental Design.
LEPC
Local Emergency Planning Committee.
LHWCA
Longshore And Harbor Workers Compensation Act Of 1927.
LIAA
Life Insurance Association Of America.
LIAMA
Life Insurance Agency Management Association.
LIBOR
London Interbank Offered Rate.
LIC
Life Insurance Corporation of India.
LIMRA
Life Insurance Marketing & Research Association.
LIRB
Liability Insurance Research Bureau.
54 | P a g e
LLC
Limited Liability Company.
LMU
Loss Mitigation Underwriting.
LOC
Letter Of Credit.
LOMA
Life Office Management Association.
LPCS
Legal Principles Claim Specialist.
LPRT
Leading Producers Round Table.
LPSO
Lloyds Policy Signing Office.
LPT
Loss Portfolio Transfer.
LRRA
Liability Risk Retention Act Of 1986.
LTA
Lost Time Accident.
LTC
Long Term Care.
LTD
Long-Term Disability.
LTL
Less Than Truckload.
LUMP
Limits Under Multiple Policy Years.
LUTC
Life Underwriter Training Council,
MAAA
Member Of American Academy Of Actuaries.
MAC
Maximum Allowable Concentration.
MAP
Market Assistance Plan.
MAS
Management Advisory Service.
55 | P a g e
MBIA
Municipal Bond Insurance Association.
M&C
Manufacturers And Contractors (Insurance).
MCA
Motor Carrier Act Of 1980.
MCO
Managed Care Organization.
MCR
Minimum Capital Requirement.
MCS
Monte Carlo Simulation.
M&D
Minimum And Deposit.
MDL
Maximum Dollar Loss.
MDO
Monthly Debit Ordinary Life Insurance.
MDRT
Million Dollar Round Table.
MET
Multiple Employer Trust.
MEWAS
Multiple Employer Welfare Associations.
MEWP
Mobile Elevated Work Platform.
MFL
Maximum Foreseeable Loss.
MGA
Managing General Agent.
MGU
Managing General Underwriter.
MIB
Medical Information Bureau.
MICA
Mortgage Insurance Companies Of America.
MICRA
Medical Injury Compensation Reform Act Of 1975
56 | P a g e
MIGA
Multilateral Investment Guarantee Agency.
MIS
Management Information System.
MLE
Maximum Loss Expectancy.
MLEA
Multiple Line Exclusive Agent.
MLIS
Management Liability Insurance Specialist.
MLR
Multiple Location Risk.
MMI
Maximum Medical Improvement.
MMII
Mass Marketing Insurance Institute.
MMSEA
Medicare, Medicaid, And SCHIP Extension Act Of 2007.
MOL
Mitigation Of Loss.
MOP
Manufacturers Output Policy.
MORT
Management Oversight And Risk Tree.
MOSB
Mercantile Open Stock Burglary.
MP
Minimum Premium; Multiple Peril.
MPCI
Multi-Peril Crop Insurance.
MPEE
Multi-Period Excess Earnings.
MPL
Maximum Possible Loss.
MPP
Managed Premium Plan.
MPRMA
Missouri Public Risk Management Association.
57 | P a g e
MSA
Market Service Agreement; Master Service Agreement.
MSAWPA
Migrant And Seasonal Agricultural Worker Protection Act Of 1983.
MSBF
Money And Securities Broad Form.
MSD
Musculoskeletal Disorder.
MSDS
Material Safety Data Sheet.
MSVR
Mandatory Securities Valuation Reserve.
MTC
Motor Truck Cargo.
MVC
Mean/Variance/Covariance.
MVIC
Market Value Of Invested Capital.
MVR
Motor Vehicle Record.
MYSL
Multiyear Single Limit.
NAA
National Association Of Accountants.
NAAQS
National Ambient Air Quality Standard.
NABRTI
National Association Of Bar- Related Title Insurers.
NACA
National Association Of Catastrophe Adjusters.
NACIA
National Association Of Crop Insurance Agents.
NAFI
National Association Of Fire Investigators.
NAFIC
National Association Of Fraternal Insurance Counselors.
NAFTA
North American Free Trade Agreement.
58 | P a g e
NAHU
National Association Of Health Underwriters.
NAIA
National Association Of Insurance Agents.
NAIC
National Association Of Insurance Commissioners.
NAICS
North American Industry Classification System.
NAIFA
National Association Of Insurance And Financial Advisors.
NAII
National Association Of Independent Insurers.
NAIIA
National Association Of Independent Insurance Adjusters.
NAIIO
Non- Admitted Insurers Information Office.
NAIW
National Association Of Insurance Women.
NALC
National Association Of Life Companies.
NAMIC
National Association Of Mutual Insurance Companies.
NAOHP
National Association Of Occupational Health Professionals.
NAPEO
National Association Of Professional Employer Organizations.
NAPIA
National Association Of Public Insurance Adjusters.
NAPSLO
National Association Of Professional Surplus Lines Offices.
NARAB
National Association Of Registered Agents And Brokers.
NASBA
National Association Of State Boards Of Accountancy.
NASBP
National Association Of Surety Bond Producers.
NASD
National Association Of Securities Dealers.
59 | P a g e
NASDAQ
National Association Of Securities Dealers Automated Quotations.
NASI
National Academy Of Social Insurance.
NASP
National Association Of Subrogation Professionals.
NATB
National Automobile Theft Bureau.
NAUA
National Auto Underwriters Association.
NBCR
Nuclear, Biological, Chemical Or Radiological Weapons.
NBFU
National Board Of Fire Underwriters.
NCCI
National Council On Compensation Insurance.
NCCMP
National Coordinating Committee For Multi
NCIGF
National Conference Of Insurance Guaranty Funds.
NCIL
National Conference Of Insurance Legislators.
NCOIL
National Conference Of Insurance Legislators.
NCPI
National Committee On Property Insurance.
NCSI
National Council Of Self.
NCUA
National Credit Union Administration.
NDI
National Disaster Insurance Association.
NEAB
Notional Experience Account Balance.
NEFE
National Endowment For Financial Education.
NEISS
National Electronic Injury Surveillance System.
60 | P a g e
NEPA
National Environmental Policy Act Of 1969.
NFIA
Nonappropriated Fund Instrumentalities Act Of 1952.
NFCA
National Fraternal Congress Of America.
NFFE
Nonfinancial Foreign Entity.
NFIP
National Flood Insurance Program.
NFIRA
National Flood Insurance Reform Act Of 1994.
NFPA
National Fire Protection Association.
NFUCWC
National Foundation For Unemployment Compensation And Workers

Compensation.
NHCAA
National Health Care Anti- Fraud Association.
NHI
National Health Insurance.
NHTSA
National Highway Traffic Safety Administration.
NICB
National Insurance Crime Bureau.
NICO
National Insurance Consumer Organization.
NIDC
National Insurance Development Corporation.
NIOSH
National Institute For Occupational Safety And Health.
NIPA
National Institute Of Pension Administrators.
NIRP
National Insurance Risk Profile.
NISS
National Independent Statistical Service.
61 | P a g e
NLE
Normal Loss Expectancy Of A Risk.
NOA
Naturally Occurring Asbestos.
NOC
Not Otherwise Classified.
NODS
Non-Owned Disposal Sites.
NOL
Not Officially Lapsed.
NOLHIGA
National Organization Of Life And Health Insurance Guaranty Associations.
NP
Named Perils.
NPD
No Payroll Division.
NPDB
National Practitioner Data Bank.
NPL
National Priority List.
NPV
Net Present Value.
NRC
Nuclear Regulatory Commission.
NRMC
Nonprofit Risk Management Center.
NRRA
National Risk Retention Association.
NRT
National Response Team.
NSIPA
National Society Of Insurance Premium Auditors.
NSLI
National Service Life Insurance.
NSP
Net Single Premium.
NSPA
National Society Of Public Accountants.
62 | P a g e
NSPE
National Society Of Professional Engineers.
NSPS
New Source Performance Standards.
NTSB
National Transportation Safety Board.
NVD
No Value Declared.
OASDHI
Old Age, Survivors, Disability, And Health Insurance (Act) Of 1935.
OCA
Outstanding Claims Account.
OCIP
Owner Controlled Insurance Program.
OCP
Owners And Contractors Protective.
OCSLA
Outer Continental Shelf Lands Act Of 1953.
OECD
Organization For Economic Cooperation And Development.
OEE
Operators Extra Expense.
OFA
Organized Flying Adjusters.
OGP
Original Gross Premium.
OI
Outage Insurance.
OIS
Operating Information System.
OL&T
Owners, Landlords, And Tenants.
O&M
Operations And Maintenance.
OMCS
Office Of Motor Carrier Standards.
OPIC
Overseas Private Investment Corporation.
63 | P a g e
OPPI
Owners Protective Professional Indemnity.
ORFS
Operational Risk Financing Securities.
ORM
Operational Risk Management.
OSHA
Occupational Safety And Health Administration.
OSLR
Outstanding Loss Reserves.
OTC
Other Than Collision.
PA
Particular Average; Predictive Analytics.
PAAS
Premium Audit Advisory Service.
PAC
Political Action Committee.
PAIU
Professional Association Of Insurance Underwriters.
PAP
Personal Auto Policy.
PARMA
Public Agency Risk Managers Association.
PAS
Premium Allocation System.
PBGC
Pension Benefits Guaranty Corporation.
PC
Professional Corporation.
P&C
Property And Casualty.
PCAOB
Public Company Accounting Oversight Board.
PCC
Protected Cell Captive.
PCI
Property Casualty Insurers Of America.
64 | P a g e
PCIP
Partner Controlled Insurance Program.
PCLA
Property Claim Law Associate.
PCLS
Property Claim Law Specialist.
PDA
Pregnancy Discrimination Act Of 1978.
PDL
Personal Director Liability.
PEBB
Public Employee Blanket Bond.
PEO
Professional Employer Organization.
PERT
Performance, Evaluation, And Review Technique.
PI
Personal Injury.
P&I
Protection And Indemnity.
PIA
Primary Insurance Account.
PIAA
Physician Insurers Association Of America.
PICA
Professional Insurance Communicators Of America.
PII
Personally Identifiable Information.
PIP
Personal Injury Protection.
PIPEDA
Personal Information Protection And Electronic Documents Act Of 2000.
PIPSO
Property Insurance Plans Service Office.
PL
Professional Liability.
PLE
Primary Loss Expectancy.
65 | P a g e
PLL
Pollution Legal Liability.
PLR
Primary Loss Retention.
PLRB
Property Loss Research Bureau.
PLUS
Professional Liability Underwriting Society.
PMA
Package Modification Adjustment.
PMF
Package Modification Factor.
PMI
Private Mortgage Insurance.
PML
Probable Maximum Loss.
PMPL
Project Management Protective Liability.
PNOC
Provisional Notice Of Cancellation.
POL
Public Officials Liability.
PORC
Producer-Owned Reinsurance Company.
PPACA
Patient Protection And Affordable Care Act.
PPF
Personal Property Floater.
PPO
Preferred Provider Organization.
PR
Pro Rata.
PRD
Pro Rata Distribution.
PRI
Political Risk Insurance.
PRIMA
Public Risk Management Association.
66 | P a g e
PRM
Personal Risk Management.
PRO
Peer Review Organization.
PRP
Potentially Responsible Party; Preferred Risk Policy.
PSA
Placement Service Agreement.
PSAC
Policy Signing And Accounting Centre .
PSC
Public State Commission; Public Service Commission.
PSI
Pollutant Standard Index.
PSLRA
Private Securities Legislation Reform Act.
PSRO
Professional Standards Review Organization.
PTE
Prohibited Transaction Exemption.
P3
Public
PUC
Public Utilities Commission.
PURMA
Public Utilities Risk Management Association.
PV
Present Value.
QC
Quality Control.
QIP
Quality Indicator Profile.
QIS
Quantitative Impact Study.
QPC
Qualified Pollution Exclusion.
Q TIP
Qualified Terminable Interest Property Trust.
67 | P a g e
TRUST
RA
Remedial Action.
RAA
Reinsurance Association Of America.
RACM
Regulated Asbestos-Containing Material.
RACT
Reasonably Available Control Technology.
RAROC
Risk-Adjusted Return On Capital.
RARORAC
Risk-Adjusted Return On Risk-Adjusted Capital.
RBC
Risk-Based Capital.
RBNE
Reserved But Not Enough.
RC
Replacement Cost.
RCRA
Resource Conservation And Recovery Act Of 1976.
RDF
Retro Development Factor.
REEL
Real Estate Environmental Liability.
REIT
Real Estate Investment Trust.
REL
Recommended Exposure Limit.
RFIS
Remedial Feasibility Investigation Study.
RFP
Request For Proposal.
RICO
Racketeer Influenced And Corrupt Organizations Act Of 1970.
RIF
Reduction In Force.
68 | P a g e
RIMAS
Risk & Insurance Management Association Of Singapore.
RIMS
Risk And Insurance Management Society, Inc.
RM
Risk Management.
RMF
Rate Modification Factor.
RMIA
Risk Management Institution Of Australasia Ltd.
RMIS
Risk Management Information System.
RML
Residual Market Load.
ROC
Research And Oversight Council On Workers Compensation.
ROCIP
Rolling Owner Controlled Insurance Program.
ROE
Return On Equity.
ROEBI
Return On Employee Benefits Investment.
ROI
Return On Investment.
ROL
Rate On Line.
RORAC
Return On Risk-Adjusted Capital.
RP
Return Premium.
RPG
Risk Purchasing Group.
RPII
Related Party Insurance Income.
RPLU
Registered Professional Liability Underwriter.
RPM
Remedial Project Manager.
69 | P a g e
RPMP
Risk Premium Modification Plan.
RQ
Reportable Quantity.
RRA
Risk Retention Act Of 1986.
RRE
Responsible Reporting Entity.
RRG
Risk Retention Group.
RRP
Railroad Protective.
RRSP
Registered Retirement Saving Plan.
RSPA
Research And Special Programs Administration.
RTC
Resolution Trust Corporation.
RTW
Return To Work.
SA
Society Of Actuaries.
SAA
Surety Association Of America.
(SAAS)
Software As A Service Model.
SAC
Separate Account Company.
SAP
Statutory Accounting Principles.
SARA
Superfund Amendments And Reauthorization Act Of 1986.
SARBOX
Sarbanes-Oxley Act Of 2002.
SAWCA
Southern Association Of Workers Compensation Administrators.
SAWW
Statewide Average Weekly Wage.
70 | P a g e
SB
Senate Bill.
SBLI
Savings Bank Life Insurance.
SBU
Series Business Unit.
SCAS
Securities Class Action Suits Filings.
SCC
Segregated Cell Captive.
SCCIA
South Carolina Captive Insurance Association.
SCHIP
State Childrens Health Insurance Program.
SCIC
Society Of Certified Insurance Counselors.
SCLA
Senior Claim Law Associate.
SCOH
Statistical Coding Occupancy Hazard.
SCOPE
Supervision, Construction, Occupancy, Protection, Exposure.
SCPCU
Society Of Chartered Property & Casualty Underwriters.
SCR
Solvency Capital Requirement.
SEC
Securities And Exchange Commission.
SEMCI
Single-Entry Multiple Company Interface.
SEP
Simplified Employee Pension.
SERC
State Emergency Response Commission.
SERP
Senior Executive Retirement Plan.
SERP
Supplementary Employee Retirement Plan.
71 | P a g e
SEUA
Southeastern Underwriters Association.
SF
Standard Fire Forms.
SFAA
Surety & Fidelity Association Of America .
SFHA
Special Flood Hazard Area.
SFIP
Standard Flood Insurance Policy.
SFP
Standard Fire Policy.
SGLI
Servicemens Group Life Insurance.
SIA
Society Of Insurance Accountants.
SIC
Standard Industrial Classification.
SIFM
Society Of Insurance Financial Management.
SIG
Self- Insurance Group.
SIIA
Self- Insurance Institute Of America.
SIO
Surety Information Office.
SIP
State Implementation Plans.
SIPC
Securities Investor Protection Corporation.
SIR
Self-Insured Retention; Society Of Insurance Research.
SIRP
Self- Insured Reimbursement Policy.
SITE
Society Of Insurance Trainers And Educators.
SIU
Special Investigative Unit.
72 | P a g e
SK
Storekeepers.
S&L
Savings And Loan.
SL
Sprinkler Leakage.
SLC
Special Litigation Committee.
SLR
Stop-Loss Reinsurance.
SLUSA
Securities Litigation Uniform Standards Act.
SME
Small And Medium Enterprises.
SMP
Special Multi
SNUR
Significant New Use Rule.
SOA
Society Of Actuaries.
SOX
Sarbanes-Oxley Act Of 2002.
S&P
Standard And Poors.
SPAP
Special Personal Auto Policy.
SPBA
Society Of Professional Benefit Administrators.
SPCV
Special Purpose Corporate Vehicle.
SPECS
Specifications.
SR
Short Rate.
SRA
Society For Risk Analysis.
SR&CC
Strikes, Riots, And Civil Commotions.
73 | P a g e
SRMC
Society Of Risk Management Consultants.
SSA
Social Security Administration.
SSAP 62
Statement Of Statutory Accounting Principles No. 62.
SSRS
Single State Registration System.
STD
Short- Term Disability.
TAM
Technical Advice Memorandum.
TAIL VAR
Tail Value At Risk.
TAMRA
Technical And Miscellaneous Revenue Act Of 1988.
TCD
Treasury Certificate Of Deposit.
TCE
Tail Conditional Expectation.
TCN
Third Country National.
TCPA
Telephone Consumer Protection Act Of 1991.
TDA
Tax Deferred Annuity.
TDB
Temporary Disability Benefits.
TDI
Trade Disruption Insurance.
TECH E&O
Technology Errors And Omissions.
TEFRA
Tax Equity And Financial Responsibility Acts Of 1982 & 1983.
TERI
Targeted Enterprise Risk Insurance.
TEXAS
Texas Public Risk Management Association.
74 | P a g e
PRIMA
TIAA
Teachers Insurance And Annuity Association.
TIF
Tax Incremental Financing.
TIL
Truth In Lending (Act Of 1968).
TIRB
Transportation Insurance Rating Bureau
TIV
Total Insurable Value.
TL
Truckload.
TLO
Total Loss Only.
TLV
Threshold Limit Value.
TM
Tax Multiplier.
TMP
Texas Multi
TOLI
Trust-Owned Life Insurance.
TOR
Technique Of Operations Review.
TPA
Third-Party Administrator.
TPRMA
Tennessee Public Risk Management Association.
TRA
Tax Reform Act Of 1984.
TRIA
Terrorism Risk Insurance Act Of 2002.
TRIEA
Terrorism Risk Insurance Extension Act Of 2005.
TRIP
Terrorism Risk Insurance Program.
75 | P a g e
TRIPRA
Terrorism Risk Insurance Program Reauthorization Act Of 2007.
TRIREA
Terrorism Risk Insurance Revision And Extension Act Of 2007.
TRS
Total Reduced Sulphur.
TSA
Tax Sheltered Annuity.
TSCA
Toxic Substances Control Act Of 1976.
TSDF
Treatment, Storage, And Disposal Facility.
TSLA
Texas Surplus Lines Association, Inc.
TTD
Temporary Total Disability.
UBIT
Unrelated Business Income Tax.
UBTI
Unrelated Business Taxable Income.
UCC
Uniform Commercial Code.
UCD
Unemployment Compensation Disability.
UCI
Unemployment Compensation Insurance.
UCR
Usual, Customary, Reasonable.
UCRA
Unified Carrier Registration Agreement.
UEL
Upper Explosive Level.
UEP
Unearned Premium.
UEPR
Unearned Premium Reserve.
UFTA
Uniform Fraudulent Transfer Act.
76 | P a g e
UIM
Under Insurance Motorist.
UIMV
Underinsured Motor Vehicle.
UJF
Unsatisfied Judgment Fund.
UL
Umbrella Liability.
ULAE
Unallocated Loss Adjustment Expense.
ULC
Underwriters Laboratories Of Canada.
UM
Uninsured Motorists.
UMPD
Uninsured Motorist Property Damage.
UMV
Uninsured Motor Vehicle.
UNL
Ultimate Net Loss.
U&O
Use And Occupancy.
UP
Unearned Premium.
UPR
Unearned Premium Reserve.
UPS
Uninterruptible Power System.
URL
Uniform Resource Locator.
URMIA
University Risk Management & Insurance Association.
USDA
U.S. Department Of Agriculture.
USERRA
Uniformed Services Employment And Reemployment Rights Act Of 1994.
USGLI
U.S. Government Life Insurance.
77 | P a g e
USITC
U.S. International Trade Commission.
USL&HW
United States Longshore And Harbor Workers (Compensation Act) Of 1927.
UST
Underground Storage Tank.
UTBMS
Uniform Task Based Management System.
VAR
Value-At-Risk.
VCIA
Vermont Captive Insurance Association.
VEBA
Voluntary Employees Beneficiary Association.
VGLI
Veterans Group Life Insurance.
VIE
Variable Interest Entity.
V&MM
Vandalism And Malicious Mischief.
VOC
Volatile Organic Compound.
VOR
Value Of Risk.
VP
Valuable Papers.
VPP
Voluntary Protection Program.
VPPA
Video Privacy Protection Act Of 1988.
VSI
Vendors Single Interest.
WA
With Average.
WACC
Weighted Average Cost Of Capital.
WAEPA
Worldwide Assurance For Employees Of Public Agencies.
78 | P a g e
WARN
Workers Adjustment Retraining Notification (Act Of 1988).
WC
Workers Compensation.
WCLA
Workers Compensation Claim Law Associate.
WCLS
Workers Compensation Claim Law Specialist.
WCRI
Workers Compensation Research Institute.
WLRT
Women Leaders Round Table.
WMD
Weapon Of Mass Destruction.
WPA
With Particular Average.
WYO
Write-Your-Own.
YRCT
Yearly Renewable Convertible Term.
YRT
Yearly Renewable Term.
INSURANCE AWARENESS QUESTIONS ASKED IN

INSURANCE ASSISTANT EXAM 2015 :
Which of the following is the regulator of insurance sector in India?
a)RBI
b)AMFI
c)IRDA
d)SEBI
With which of the following did the State Bank of India enter into a joint venture agreement
for undertaking general insurance business?
a)New India Assurance Ltd.
b)Insurance Australia Group
c)Lehman Brothers Holdings Inc.
d)Allianz
79 | P a g e
What does the term FSDC, used in financial sectors stand for?
a)Financial Security and Development Council
b)Financial Stability and Development Council
c)Fiscal Security and Development Convention
d)Fiscal Stability and Development Council
Which Insurance Company started its operation in the year in which India got
Independence:
a)UIICL
b)GIC
c)LIC
d)OICL
Who was the actual Pioneer of LIC:
a)Debendranath Tagore
b)S.K.Roy.
c)Surendranath Tagore
d)A.K.Roy.
Who among the following was appointed as member(actuary) in Insurance Regulatory
Authority of India (IRDA) recently?
a)Pournima Gupte
b)Pournima Sarkar
c) Jyotsna Suri
d) None of these
The Total Business of 4 Public Sector General Insurance Company in 2013-14 put together
was about:
a)40000cr.
b)41000cr.
c)42000cr
d)45000cr.
NIACLs pioneer was:
a)Sir jamshedji Tata
b)Sir Dorabji Tata
c)Sir Ratan Tata
d)None of these
What does the term Actuary stands for in Insurance:
a)A specialist in Insurance claimsettlement
b)A specialist in insurance marketing
80 | P a g e

c)A specialist in Insurance calculations
d)None of this
ECGC is made to provide:
a)Insurance cover in external trade
b)Insurance cover in internal trade
c)Insurance cover in export trade
d)Insurance cover in import trade.
Which is not a part of Life insurance:
a)Endowment
b)Term
c)Priority
d)Annuity
Prithvi Agni Jal Akash,Sab ki suraksha humare pas this tagline is associated with:
a)NICL
b)OICL
c)DHFL
d)NIACL
GIC was incorporated in the year:
a)1971
b)1972
c)1973
d)1974
General Insurance(Public Sector) Association of Indias HQ is situtated in:
a)Telengana
b)Mumbai
c)Delhi
d)Chennai
Which of this recently got RBIs permission to enter Non-Life sector of Insurance:
a)Karur Vysya Bank
b)Indusind Bank
c)Kotak Mahindra Bank
d)ICICI Bank
Aditya Birla group announced their decision to foray into:
a)Personal accident Insurance
b)Life insurance
c)Marine insurance
81 | P a g e

d)Health Insurance
IIB stands for:
a)International Insurance Board
b)Intellectual Insurance Board
c)Insurance Information Bureau
d)None
Indias Agricultural Insurer is:
a)NABARD
b) GIC
c)KIshan Bima Sanstha
d)AIC
RTI facility is not completely applicable in:
a)ICICI Lombard General Insurance Company
b)Export Credit Guarantee Corporation
c)United India Insurance Company
d)None Of these
IRDA has the power to frame the regulations under___of the Insurance Act.1938:
a)Section 112A
b)Section 114A
c)Section 114B
d)None of these
Parliament passed a bill delinking its 4 General insurance subsidaries in:
a)June 2007
b)August 2005
c)July 2000
d)July 2002
According to 1st Januray 1973 reports How many insurer were amalgameted & grouped
into four General Insurance companies:
a)102
b)107
c)245
d)None of these
The General manager of NICL is:
a)Joseph Plappallil.
b)G.Srinivasan.
c)K.P.Brahma
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d)A.V.G.Kumar
Tsunami Jan Bima Yojona was a special insurance plan associated with:
a)UIICL
b)LIC
c)GIC
d)NICL
NIACL was started in the year:
a)1938
b)1947
c)1973
d)1919
The Chairman of Agricultural Insurance Company of India is:
a)Mr.Millind Kharat
b)Mr. Joseph Plappallil
c)Mr.G.Srinivasan
d)Mr.K.P.Brahma
Rest Assured with us This tagline is associated with:
a)SBI Life Insurance
b)NIACL
c)Kotak Mahindra Life Insurance
d)UIICL
Chairman of Rajya Sabha Select Committee Chandan Mitra tabled the report on Insurance
Ammendement bill 2008, recommending a hike in FDI from 26% to 49% recently,for this
sector to improve,On:
a)11th Dec 2014
b)16th Dec 2013
c)31st Dec.2014
d)None of these
Twins of Wood is related to Financial system as well as to Insurance market.These are:
a)RBI & IRDA
b)RBI & IMF
c)World Bank & RBI
d)World Bank & IMF
The representative for IMF in Indian Constittuiency is:
a)Raghuram Rajan
b)T.S.Vijayan
c)Virman Arvind
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d)Arun Jaitley
According to 1956 index,LIC absorbed how many Provident Societies:
a)245
b)107
c)154
d)75
Institute of Insurance and Risk Management is situated in:
a)Jodhpur
Mumbai
Hyderabad
Chennai
IRDAs HQ was shifted to Hyderabad (Now Telengana) in the year:
a)1999
b)2000
c)2001
d)None of these
The Institution of Insurance Ombudsman was created in accordance of Government of
Indias notification dated:
a)11th Nov 1998
b)11th Nov 1999
c)12th Sept 1947
d)12th Sept 1973
IIS is related to Insurance,What is IIS?
a)International Insurance Support
b)International Insurance Service
c)International Insurance Summit
d)International Insurance Society
The Geneva Association identifies fundamental trends and strategic issues where insurance
plays a substantial role or which influence the insurance sector,Who was the Secretary
General of Geneva Association during 2012-2014:
a)Prof. Orio Giarini,
b)Mr Patrick M. Liedtke,
c)Mr John H. Fitzpatrick
d)Dr Garen.D.Patrick
Which of these is related to Prime Minister Jan Dhan Yojona(PMJDY):
a)HDFC LIFE
b)IFFCOTokiyo
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c)HDFC Ergo
d)None
Where is the HQ of International Association of Insurance Supervisors:
a)New York.
b)London
c)Hyderabad
d)Basel
What does GIMAR stands for:
a)General Insurance Market Report
b)Global Insurance Market Report
c)Growing Insurance Market Report
d)None
National Insurance Academy is situated in:
a)Delhi
b)Pune
c)Salem
d)Telengana
IRDA's previous Headquater was in:
a)Delhi
b)Mumbai
c)Chennai
d)Kolkata
The Chairman of General Insurers' (Public Sector) Association of India:
a)G.Srinivasan
b)T.Vijayan
c)M.Kharrat
d)None
NICL's Director is:
a)AVG KUmar
b)SK Roy
c)A.K.Saxena.
d)K.P.Brahma
Which company celebrated its platinum Jubliee in 2012:
a)UIICL
c)NICL
b)GIC
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d)LIC
Hindusthan Insurance Society was founded by:
a)Rabindranath Tagore.
b)Surrendranath Tagore
c)Debendranath Tagore
d)Sharmila Tagore
LIC started its journey in 1956.Which of the Financial Institution also started its journey in
the same year:
a)International Financial Corporation(IFC)
b)Organization for Economic Cooperation & Development(OECD)
c)World Trade Organization.(WTO)
d)None
GIBNA was passed in the year:
a)1971
b)1972
c)1973
d)1974
Full form of IRDA is:
a) Insurance Regulatory and Development Authority
b)Insurance Regulation & Developers Authority
c)Insurance Regulatory and Development Authority of India .
d)None
Which is NOT an Indian Development bank:
a)NABARD
b)EXIM BANK
c)IBRD
d)none of these
Which of these is a Old Private Sector Bank:
a)Dhanlaxmi bank
b)Axis Bank
c)HDFC
d)None of these
Which of these is NOT a Principle of Insurance:
a)Principle of Insurable Interest
b)Principle of Indemnity
c)Principle of Last Resource
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d)None of these
According to 1956 Index,LIC absorbed how many Non-Indian Insurers:
a)15
b)16
c)75
d)76
Which is a part of Indian Insurance Repository:
a)Muthoot group
b)IIFL
c)NSDL
d)None
Which General Insurance company was a subsidary of LIC till 1973:
a)UIICL
b)NICL
c)NIACL
d)OICL
The establishment of Insurance Repository system in India was mainly directed by:
1.Man Mohan Singh
2.Arun Jaitley
3.P.Chidambaram
4.S.Subhramaniam
The first life insurance policies were taken out in the early 18th century. The first company
to offer life insurance was:
a)Amicable Society for a Perpetual Assurance Office
b)Society for Equitable Assurances on Lives.
c)Lloyd's Coffee House
d)None of these
Who was the founder of Oriental Life Insurance Company(1818-1834):
a)Anita Kochar
b)Anita Bhavsar .
c)Anita Kapur.
d)None
IRDA was renamed on:
a)29th Dec 2014
b)31st Dec 2014
c)26th Dec 2014
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d)30th Dec 2014
Oldest operating General Insurance company in India:
a)NICL
b)NIACL
c)LIC
d)OICL
IIS's last Annual seminar on Insurance held in 2014 recently,Its Venue was:1.
a)Geneva.
b)Basel.
c)London
d)New York
Which General Insurance company completed its 50years in 1997:
a)GIC.
b)UIICL
c)NICL
d)OICL
In Insurance Sector,Freelook Period stand for:
a)The time you may cancel your policy be returning it to the Insurance company.
b)The time you may stop paying premium as it is overpaid
before your payment.
c)The time in which you can draw back deathpenalty.
d)None
Insurance Repository system was launched by IRDA on:
a)16th Sept.2013
b)16th Oct.2013
c)16th Sept.2012
d)None of these
First Indian Insurer is:
a)Delhi Mutual Funds
b)IRDA
c)GIC.
d)Bombay Mutual Life Assurance Society
Which of this term is associated with Insurance sector:
a)Blower
b)Racer
c)Rider
88 | P a g e

d)Serial
The Total Business of 4 Public Sector General Insurance Company in 2014:
put together was about:
a)40000CR.
b)41000 CR
c)42000 CR
d)45000 CR
LIC garnered new premium of approx _____crore during the first three quarters of 2014-15.
a)57000 CR
b)54000 CR
c)52000 CR
d)66000 CR
Recently LIC has also launched _______ a participating, non-linked, savings-cumprotection Single premium plan wherein the risk cover is a multiple of single premium.
a)Jeevan Samridhi
b)Jeevan Sampad
c)Jeevan Sangram
d)Jeevan Sangam
Registering the nomination or cancellation or change of nomination shall be regarded as
important policy holder services.as observed by IRDA.Recently it has taken steps regarding
this registration that:
a)No charge for change of nomination
b)No charge for change of address.
c)No charge for late payment of premium.
d)No charge for reimburstment.
Insurance Bill was submitted in Rajya Sabha on:
a)12th March 2014
b)12th March 2015
c)13th March 2014
d)13th March 2015
Insurance Sector contributes to our country's GDP growth at approx:
a)4.5%
b)5.5%
c)5.3%
d)4.1%
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According Union Budget 2015 Health Insurance limit for Senior Citizen:
a)25000
c)30000
c)35000
d)40000
According Insurance Bill.GOI expecting:
a)25000Cr
b)30000Cr.
c)35000Cr.
d)40000Cr.
Which of the following terms is NOT related to the insurance sector?
a)Indemnity
b)Coverage
c)Misuse Alert
d)Annuity
A contract that pledges payment of an agreed upon amount to the person (or his/her
nominee) on the happening of an event covered against" is technically known as?
a)Death coverage
b)Life insurance
c)Savings for future
d)Provident fund
The insurance companies collect a fixed amount from its customers at a fixed interval of
time. What is it called?
a)Instalment
b)Contribution
c)Premium
d)EMI
Expand the term IFRS.
a)Indian Financial Reporting Standards
b)Indian Financial Reporting Systems
c)International Financial Reporting Standards
d)International Financial Reporting System
Which amongst the following is not an insurance company functioning in India?
a)ICICI prudential
b)ING Vysya
90 | P a g e

c)National Securities Depository Limited
d)New India Assurance company
Which of the following public sector companies/organizations provides insurance cover to
exporters?
a)ECGC
b)NABARD
c)SIDBI
d)IRDA
The main feature of the National Agricultural Insurance Scheme is to insure which of the
following?
a)Life of the farmer
b)Crop of the farmer
c)Animals who are used in agricultural activities
d)Land of the farmer
Anmol Jeevan is a _____ of the LIC.
a)Basic Life Insurance Plan
b)Term Insurance Plan
c)Childrens Plan
d)Pension Plan
Which insurance company recently declared to invest 1.5 lakh crore rupees for various
railway projects in next five years?
a)NICL
b)NIACL
c)LIC
d)HDFC
The central office of the Life Insurance Corporation of India (LIC) is located at ?
a) Kolkata
b) New Delhi
c) Chennai
d) Mumbai
Which of the following is not the name of an Insurance Scheme launched by the
Government of India ?
a) Janashree Bima Yojana
b) Krishi Shramik Sarnajik Suraksha Yojana
c) Shiksha Sahyog Yojana
d) Varsha Bima Yojana
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The Life Insurance Corporation Of India has how many Zonal offices in India ?
a) Five
b) Eight
c) Ten
d) Fifteen
As per the news published in various newspapers, Life Insurance policies may become
paperless in the near future. This means
a) LIC will not insure any person here after as it has already reached its peak
b) LIC will not ask for any documents from a person who wishes to purchase an Insurance
policy
c) All policy related documents and policy certificates will henceforth be available in
electronic form and not in their present physical
d) LIC henceforth will not entertain any claim or complaint in written form or on paper.
Things should be in electronic condition
The punch line of the advertisement of which of the following organization is Jindagi ke
sath bhi Jindagi ke bad bhi ?
a) New India Assurance
b) General Insurance Corporation
c) ICICI Prudential
d) Life Insurance Corporation Of India
Which of the following insurance companies writes its punch line in the advertisements
Insurance is the subject matter of solicitation?
a) CIC
b) LIC
c) ING Vysya Life InsuranceCo.
d) Tata AIG Life Insurance Co
If an organization wishes to venture into Insurance Business it has to obtain a licence first
from which of the following ?
a) Indian Banks Association (IBA)
b) Security and Exchange Board of India (SEBI)
c) Tariff Advisory Committee (TAC)
d) Insurance Regulatory and Development Authority of India (IRDAI)
Which of the following was the parent company of New India Assurance ?
a) LIC
b) GIC
c) Oriental Insurance Co. Ltd.
d) United India Insurance
92 | P a g e

The New India Assurance Company was established in 1919 by
a) Dorab Tata
b) G. D. Birla
c) Jamunalal BajaJ
d) Kamlapat Singhania
Which of the following is largest Non Life Insurance Company in India ?
a) ICICI Lombard General Insurance Company Ltd.
b) United India Insurance Company Ltd.
c) General Insurance Company Ltd.
d) New India Assurance Company Ltd.
Which of the following Insurance Companies was launched with NABARD as one of its
promoters with 30% stake in it ?
a) General Insurance Corporation Ltd.
b) National Insurance Cornpany Ltd.
c) Agriculture Insurance Company Ltd,
d) SBI Life Insurance Company Ltd.
Which of the following words/ terms is closely associated with the insurance business
a) Archives
b) Donation
c) Actuary
d) Quest
Which of the following is the best description of what insurance is?
a) Insurance = Collective bearing of risk
b) Insurance = Paying for others mistake
c) Insurance = Taking from A to pay B
d) Insurance = Paying for something which will never happen
Which of the following correctly describes what the Bancassurance is
1. It is an arrangement whereby the branches of a bank sell / distribute insurance products
of an insurance company.
2. It is a new product developed/ launched by the banks in which the risks of the high value
customers are covered for any losses to their property and/or lives through an insurance
cover.
3. It is a new product launched by some banks by which they are providing insurance cover
to exporters/ importers for the losses, if any due to high fluctuations in the exchange rates
of dollars and other major currencies.
a) Only 1
b) Only2
c) Only 3
93 | P a g e

d) All 1, 2 and 3
In Insurance policies we always find a date which is Date of Maturity. What does it mean?
a) This is the date on which the policy was sold to the customer/person insured.
b) This is the date on which the policy holder will have to submit his/her claim seeking the
amount of the policy. Otherwise the company will not make any payment to him/her.
c) This is the date on which the contract between the person and insurance company will
come to an end.
d) The date on which the insurance company makes the final payment to the insured
person which is normally fifteen days after the payment due date.
Which of the following types of companies/ organisations issue ULIP?
a) Insurance companies
b) Banks
c) NABARD
d) RBI
All of the following is true regarding ULIPs EXCEPT:
a)Unit Holders acn choose between different kind of funds.
b)Life insurers provide Guarantee for all unit values.
c)Units may be purchased by payment of single premium or via regular premium payments.
d)ULIP policy structure is transparent with regards to insurance expenses components.
Insurance business in India is regulated by which of the following authorities?
a) NFCG
b) IRDA
c) CII
d) FICCI
A contract that pledges payment of an agreed upon amount to the person (or his/her
nominee) on the happening of an event covered against is technically known as
a) Death coverage
b) Life Insurance
c) Savings for future
d) Provident Fund
As we know, the Government is paying much attention to Micro Finance these days.
Which of the following is one of the examples of Micro Finance?
a) Insurance for life
b) Investment in Mutual Funds
c) Self Help Groups
d) Letter of Credit
94 | P a g e

Which of the following insurance plan is not launched by LIC?
a) Jeevan Abhaya
b) Life Mahalife Gold Plan
c) Child Career Plan
d) Child Future Plan
Which of the following terms is Not used in the world of finance, banking and insurance?
a) Devaluation
b) Amnesty
c) Hard currency
d) Preference share
How many maximum children from a family are covered for the benefits under the Shiksha
Sahyog Yojana launched by the LIC ?
a) One only
b) Two only
C) Three only
d) One Girl Child only
Which of the following schemes launched in the year 2000 by the LIC replaced social
Securitty group Insurance Schemes (SSIGS) and Rural Group Life Insurance Schemes
(RGLIS)?
a) Janshree Bima Yojana
b) Bhagyashree Child Welfare Bima Yojana
c) Jan Arogya Bima Yojana
d) Raj Rajeshwari Mahila Kalyan Yojana
Which of the following Scheme was launched by the LIC to provide life insurance
protection, perodical lumpsum survival benefit and pension to the agricultural workers in
India ?
a) Krishi Shramik Samajik Suraksha Yojana
b) Jan Shree Bima Yojana
c) Mahila Kalyan Yojana
d) Sampurna Arogya Bima Policy
Insurance company transfers the insurance which cannot bear by them to which of the
following ?
a)TPAs
b)Bancassurance
c)Reinsurance
d)Actuaries
Which of the following is customer of a Reinsurer?
95 | P a g e

a)Insurance Companies
b)High Networth Individual
c)Licenced Insurance Agents
d)NGOs
The Non Government organizations(NGO) helps the insurance industry mainly in
a)Linking third party administrators
b)Promotional activities
c)Drafting new regulations
D)Linking buyers and sellers
Investment by foreign direct investors in to Insurance companies is restricted to what
percent?
a)22%
b)24%
c)30%
d)26%
Based on which aspect,Churning is bad ?
a)Agents earn Lower Commission on churning
b)Policyholders suffer due to surrender charges and benefits
c)Policyholder gets more benefits
d)Insurance companies get good branding
What is the maximum Time in which The insurer should settle a claim when all documents
are submitted
a)5 days
b)20 days
c)30 days
d)15 days
A missing person is considered to be dead after how many years of missing ?
a)3years
b)5years
c)15 years
d)7years
A insurer advertises through daily newspaper . What type of marketing is
a)cross selling
b)policy selling
c)Solicitation of Policy
d)Insurance selling
96 | P a g e

MWP- If the policy is endorsed under MWP then the beneficiaries are wife and ?
a)ex-wife
b)children
c)mother
d)parents
How is complaint to be launched with an insurance ombudsman?
a)Made face to face
b)made in writing
c)through newspaper advertisement
d)orally over the phone
Deduction allowable up-to Rs.____________ if an amount is paid to keep in force an
insurance on health of assessee or his family (i.e. spouse & dependent children) or
any contribution made to Central Government Health Scheme or such other schemes
as may be notified by the Central Government in this behalf or on account of
Preventive Health Check-up of the assessee or his family.
a) Rs.25, 000
b) Rs.15, 000
c) Rs.20, 000
d) None of these
For Individual & HUF below age of 60 years income up to Rs. __________ is exempted from
Income for the financial year 2016-17.
a) Rs. 2,50,000
b) Rs. 5,00,000
c) Rs. 3,00,000
d) None of these
Insurable interest has to be a__________.
a) legal binding
b) business relationship
c) trustee protected
d) life assured
A person legally holding the goods of another which may be for payment of
gratuitously is
called____________.
a) mortgagee
b) bailee
c) joint owner
d) executor
The principle of indemnity helps to maintain the premium at____________.
a) high level
97 | P a g e

b) low level
c) moderate level
d) very low level
An insurance policy providing compensation only for losses caused by the perils works
under the principle of ____________.
a) indemnity
b) observation
c) proximate cause
d) compensation
In which policy, the cause of death is of very high importance___________.
a) accident benefit
b) suicide
c) war
d) illness
A contingency that cause a loss is referred to as__________.
a) peril
b) risk
c) damage
d) hazard
A decline of value due to contingency is called__________.
a) indifference
b) prime loss
c) financial loss
d) prime loss
Hazards are the conditions that increase the____________.
a) severity of loss
b) cause of loss
c) probability of loss
d) chance of loss
Physical properties that increase the chance of loss from the various perils are known
as_______.
a) Intangible hazard
b) Societal hazard
c) Physical hazard
d) Legal hazard
A peril that may cause a loss to the business is__________.
a) stocking crackers
b) economic slow down
c) non-financial risk
d) property condition
In case of the person covered under the categories having a total income exceeding
98 | P a g e

one crore rupees, income tax as calculated above be increased by a surcharge at the
rate of ____________ percent of such income-tax.
a) Four
b) Five
c) Ten
d) None of these
Insurance is a_________.
a) Contract
b) Straddle
c) Dealing
d) transaction
Life insurance provide relief to the members of the society from_________________
a) risk
b) burden
c) financial difficulty
d) surviving to old age
A mechanism through which risk is transferred from an individual to a group is
__________.
a) share
b) asset
c) insurance
d) balda transaction
Insurance is not possible, without _________.
a) charity
b) premium
c) portfolio
d) property
Insurance companies are ____________.
a) risk managers
b) risk takers
c) risk managers
d) risk bearers
When both the parties have agreed to a contract in the same sense and spirit, it is
called_____.
a) competency
b) legal consideration
c) guarantee
d) free consent
Making untrue statements during the negotiations for the contract is an example for
___________.
a) subrogation
b) indemnity
c) utmost good faith
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d) duty of disclosure
Which of the following is a specific principle of insurance?
a) offer
b) acceptance
c) uberrima fide
d) legal object
Facts which are superfluous to disclose by reason of a warranty ___________.
a) must be disclosed
b) need not be disclosed
c) may be disclosed
d) may not be disclosed
Insurance policy carry special exemption from_____________.
a) sale tax
b) gift tax
c) customs duty
d) income tax
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Insurance Booster Capsule For IRDAI,OICL and

Modern Day Insurance

Life Insurance Companies Act, 1912

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Insurance Act 1938

Birth of Life Insurance Corporation of India

History of General (non-life) Insurance

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Insurance a thriving sector

Obviously insurer is generally an organization (Insurance Company),which is willing to share the

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(i) Life Insurance :

(ii) Fire Insurance :

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(iii) Marine Insurance :

(iv) Other types of Insurance :

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1. Utmost Good Faith :

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6. Principle of loss Minimization :

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7. Principle of CAUSA PROXIMA :

INSURANCE PLANS - AN OVERVIEW :

WHOLE LIFE INSURANCE

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GROUP LIFE INSURANCE

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JOINT LIFE INSURANCE PLAN

SINGLE LIFE INSURANCE PLAN

TERM INSURANCE PLAN

CONVERTIBLE INSURANCE PLAN

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PURE ENDOWMENT PLAN

Bank Insurance Model is also termed as Banccassurance.

A person with expertise in the fields of economics, statistics and mathematics,

A professional statistician working in an insurance company is an Actuary.

What is an Actuarial Science?

Actuarial science is the discipline that applies mathematical and statistical

probability, mathematics, statistics, finance, economics, financial economics, and

Who are Third Party Administrators?

AC Insurance Booster Capsule

What is Mortality Charge?

What is Maturity Date?

Captive Agent Agent sell Insurance of a specific Company.

Independent Agent Agent who works independently and sells

specialist in insurance and risk

Insurance brokers can be best described as a kind of super-independent agent.

A long-term contract sold by an insurance company designed to provide

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What are Insurable and Uninsurable Risks?

What is AD&D in Insurance?

It is a policy that pays benefits to the beneficiary if the cause of death is an

What is Lapse in Insurance?

What is Surrender Value?

What is Maturity claim?

What is Death claim?

AC Insurance Booster Capsule

What is Valid claim & Fradulent claim?

An insurance company validates the authenticity and amount claimed by the

If it is a valid reason it is classified as valid claim or else it is classified as