IC-38 Corporate Agent SP Practice Questions - IC-38 Corporate Agent Specified Person Exam (IRDAI III) Exam - IC-38 Corporate Agent SP Practice Questions - IC-38 Corporate Agent Specified Person Exam (IRDAI III) Exam

Question 1

What is the primary economic function of insurance?

To eliminate all risk from society To transfer and pool financial risk among many participants To guarantee investment returns to all policyholders To replace the banking system

Correct Answer:

To transfer and pool financial risk among many participants

Question 2

Under the law of large numbers, what happens as the number of similar, independent exposure units in an insurance pool increases?

Actual loss experience becomes harder to predict Actual loss ratios become more predictable and closer to expected values Premiums must always fall to zero Moral hazard disappears completely

Correct Answer:

Actual loss ratios become more predictable and closer to expected values

Question 3

Which statement best describes risk pooling in insurance?

A few people pay large premiums so one person can avoid all loss Many people contribute small premiums so a common fund can pay the losses of the few who suffer them The government pays all insurance claims from tax revenue Insurers never share risk with reinsurance

Correct Answer:

Many people contribute small premiums so a common fund can pay the losses of the few who suffer them

Question 4

Who is the statutory regulator of the insurance business in India?

Securities and Exchange Board of India (SEBI) Insurance Regulatory and Development Authority of India (IRDAI) Reserve Bank of India (RBI) Insurance Institute of India (III)

Correct Answer:

Insurance Regulatory and Development Authority of India (IRDAI)

Question 5

Which of the following is generally treated as a pure risk that insurance is designed to address?

Possibility of stock-market gains or losses Possibility of loss from fire damage to a building with no chance of gain from the fire Possibility of higher sales after a marketing campaign Possibility of currency appreciation

Correct Answer:

Possibility of loss from fire damage to a building with no chance of gain from the fire

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About this Exam

Prepare with the IC-38 Corporate Agent SP Practice Questions - IC-38 Corporate Agent Specified Person Exam (IRDAI III) Exam practice quiz. This question bank includes 100 questions covering insurance, life, typically, risk, and ic-38. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IC-38 Corporate Agent SP Practice Questions - IC-38 Corporate Agent Specified Person Exam (IRDAI III) Exam

This practice set contains 100 questions from the matching question bank and focuses on insurance, life, typically, risk, and ic-38. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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IC-38 Corporate Agent SP Practice Questions - IC-38 Corporate Agent Specified Person Exam (IRDAI III) Exam

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