QID #26078
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Subrogation?
A
Person or property whose risk is covered
B
Life cover for a specified period, generally without savings component
C
Insurer's right, after paying a loss, to pursue recovery from a responsible third party
D
Duty of parties to disclose material facts relevant to insurance contract
Correct Answer: C. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
Question: Which statement best explains Subrogation?
A. Person or property whose risk is covered
B. Life cover for a specified period, generally without savings component
C. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
D. Duty of parties to disclose material facts relevant to insurance contract
Correct Answer: C. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
Explanation: Subrogation: Insurer's right, after paying a loss, to pursue recovery from a responsible third party
QID #26077
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Insurer's right, after paying a loss, to pursue recovery from a responsible third party
A
Annuity
B
Subrogation
C
Insured
D
Indemnity
Correct Answer: B. Subrogation
Question: Which of the following is best described as: Insurer's right, after paying a loss, to pursue recovery from a responsible third party
A. Annuity
B. Subrogation
C. Insured
D. Indemnity
Correct Answer: B. Subrogation
Explanation: The correct answer is Subrogation. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
QID #26076
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Insurable interest?
A
Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
B
Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
C
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
D
Series of periodic payments often used for retirement income
Correct Answer: A. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
Question: Which statement best explains Insurable interest?
A. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
B. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
C. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
D. Series of periodic payments often used for retirement income
Correct Answer: A. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
Explanation: Insurable interest: Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
QID #26075
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
A
Life insurance
B
Moral hazard
C
Insurable interest
D
Reinsurance
Correct Answer: C. Insurable interest
Question: Which of the following is best described as: Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
A. Life insurance
B. Moral hazard
C. Insurable interest
D. Reinsurance
Correct Answer: C. Insurable interest
Explanation: The correct answer is Insurable interest. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
QID #26074
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Utmost good faith?
A
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
B
Duty of parties to disclose material facts relevant to insurance contract
C
Change in behavior or risk arising because protection from loss exists
D
Insurer's right, after paying a loss, to pursue recovery from a responsible third party
Correct Answer: B. Duty of parties to disclose material facts relevant to insurance contract
Question: Which statement best explains Utmost good faith?
A. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
B. Duty of parties to disclose material facts relevant to insurance contract
C. Change in behavior or risk arising because protection from loss exists
D. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
Correct Answer: B. Duty of parties to disclose material facts relevant to insurance contract
Explanation: Utmost good faith: Duty of parties to disclose material facts relevant to insurance contract
QID #26073
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Duty of parties to disclose material facts relevant to insurance contract
A
Proximate cause
B
General insurance
C
Premium
D
Utmost good faith
Correct Answer: D. Utmost good faith
Question: Which of the following is best described as: Duty of parties to disclose material facts relevant to insurance contract
A. Proximate cause
B. General insurance
C. Premium
D. Utmost good faith
Correct Answer: D. Utmost good faith
Explanation: The correct answer is Utmost good faith. Duty of parties to disclose material facts relevant to insurance contract
QID #26072
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Indemnity?
A
Dominant effective cause used to determine whether a loss falls within policy coverage
B
Consideration paid for insurance coverage
C
Insurance Regulatory and Development Authority of India
D
Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Question: Which statement best explains Indemnity?
A. Dominant effective cause used to determine whether a loss falls within policy coverage
B. Consideration paid for insurance coverage
C. Insurance Regulatory and Development Authority of India
D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Explanation: Indemnity: Principle of restoring insured to approximately the financial position before loss, subject to policy terms
QID #26071
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Principle of restoring insured to approximately the financial position before loss, subject to policy terms
A
Insurable interest
B
Indemnity
C
Insured
D
Annuity
Correct Answer: B. Indemnity
Question: Which of the following is best described as: Principle of restoring insured to approximately the financial position before loss, subject to policy terms
A. Insurable interest
B. Indemnity
C. Insured
D. Annuity
Correct Answer: B. Indemnity
Explanation: The correct answer is Indemnity. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
QID #26070
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Sum assured?
A
Pre-agreed amount payable under specified life-insurance conditions
B
Insurance purchased by an insurer to transfer part of its own risk
C
Person or entity that owns an insurance policy
D
Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: A. Pre-agreed amount payable under specified life-insurance conditions
Question: Which statement best explains Sum assured?
A. Pre-agreed amount payable under specified life-insurance conditions
B. Insurance purchased by an insurer to transfer part of its own risk
C. Person or entity that owns an insurance policy
D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: A. Pre-agreed amount payable under specified life-insurance conditions
Explanation: Sum assured: Pre-agreed amount payable under specified life-insurance conditions
QID #26069
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Pre-agreed amount payable under specified life-insurance conditions
A
Utmost good faith
B
Sum assured
C
Subrogation
D
Life insurance
Correct Answer: B. Sum assured
Question: Which of the following is best described as: Pre-agreed amount payable under specified life-insurance conditions
A. Utmost good faith
B. Sum assured
C. Subrogation
D. Life insurance
Correct Answer: B. Sum assured
Explanation: The correct answer is Sum assured. Pre-agreed amount payable under specified life-insurance conditions
QID #26068
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Insured?
A
Insurance covering risks associated with human life
B
Person or entity that owns an insurance policy
C
Person or property whose risk is covered
D
Pre-agreed amount payable under specified life-insurance conditions
Correct Answer: C. Person or property whose risk is covered
Question: Which statement best explains Insured?
A. Insurance covering risks associated with human life
B. Person or entity that owns an insurance policy
C. Person or property whose risk is covered
D. Pre-agreed amount payable under specified life-insurance conditions
Correct Answer: C. Person or property whose risk is covered
Explanation: Insured: Person or property whose risk is covered
QID #26067
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Person or property whose risk is covered
A
Term insurance
B
Deductible
C
Insured
D
Policyholder
Correct Answer: C. Insured
Question: Which of the following is best described as: Person or property whose risk is covered
A. Term insurance
B. Deductible
C. Insured
D. Policyholder
Correct Answer: C. Insured
Explanation: The correct answer is Insured. Person or property whose risk is covered
QID #26066
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Policyholder?
A
Amount of a covered loss borne by the insured before insurer payment
B
Person or entity that owns an insurance policy
C
Duty of parties to disclose material facts relevant to insurance contract
D
Dominant effective cause used to determine whether a loss falls within policy coverage
Correct Answer: B. Person or entity that owns an insurance policy
Question: Which statement best explains Policyholder?
A. Amount of a covered loss borne by the insured before insurer payment
B. Person or entity that owns an insurance policy
C. Duty of parties to disclose material facts relevant to insurance contract
D. Dominant effective cause used to determine whether a loss falls within policy coverage
Correct Answer: B. Person or entity that owns an insurance policy
Explanation: Policyholder: Person or entity that owns an insurance policy
QID #26065
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Person or entity that owns an insurance policy
A
General insurance
B
Insurance
C
Reinsurance
D
Policyholder
Correct Answer: D. Policyholder
Question: Which of the following is best described as: Person or entity that owns an insurance policy
A. General insurance
B. Insurance
C. Reinsurance
D. Policyholder
Correct Answer: D. Policyholder
Explanation: The correct answer is Policyholder. Person or entity that owns an insurance policy
QID #26064
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Insurer?
A
Person or entity that owns an insurance policy
B
Consideration paid for insurance coverage
C
Insurance purchased by an insurer to transfer part of its own risk
D
Entity that undertakes insurance risk
Correct Answer: D. Entity that undertakes insurance risk
Question: Which statement best explains Insurer?
A. Person or entity that owns an insurance policy
B. Consideration paid for insurance coverage
C. Insurance purchased by an insurer to transfer part of its own risk
D. Entity that undertakes insurance risk
Correct Answer: D. Entity that undertakes insurance risk
Explanation: Insurer: Entity that undertakes insurance risk
QID #26063
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Entity that undertakes insurance risk
A
Insurer
B
Sum assured
C
Annuity
D
IRDAI
Correct Answer: A. Insurer
Question: Which of the following is best described as: Entity that undertakes insurance risk
A. Insurer
B. Sum assured
C. Annuity
D. IRDAI
Correct Answer: A. Insurer
Explanation: The correct answer is Insurer. Entity that undertakes insurance risk
QID #26062
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Premium?
A
Dominant effective cause used to determine whether a loss falls within policy coverage
B
Person or entity that owns an insurance policy
C
Consideration paid for insurance coverage
D
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: C. Consideration paid for insurance coverage
Question: Which statement best explains Premium?
A. Dominant effective cause used to determine whether a loss falls within policy coverage
B. Person or entity that owns an insurance policy
C. Consideration paid for insurance coverage
D. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: C. Consideration paid for insurance coverage
Explanation: Premium: Consideration paid for insurance coverage
QID #26061
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Consideration paid for insurance coverage
A
Premium
B
Insurance
C
IRDAI
D
Subrogation
Correct Answer: A. Premium
Question: Which of the following is best described as: Consideration paid for insurance coverage
A. Premium
B. Insurance
C. IRDAI
D. Subrogation
Correct Answer: A. Premium
Explanation: The correct answer is Premium. Consideration paid for insurance coverage
QID #26060
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Insurance?
A
Insurer's right, after paying a loss, to pursue recovery from a responsible third party
B
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
C
Insurance purchased by an insurer to transfer part of its own risk
D
Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Question: Which statement best explains Insurance?
A. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
C. Insurance purchased by an insurer to transfer part of its own risk
D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: B. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Explanation: Insurance: Risk-transfer arrangement under which an insurer provides financial protection in return for premium
QID #26059
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Risk-transfer arrangement under which an insurer provides financial protection in return for premium
A
Utmost good faith
B
Proximate cause
C
Deductible
D
Insurance
Correct Answer: D. Insurance
Question: Which of the following is best described as: Risk-transfer arrangement under which an insurer provides financial protection in return for premium
A. Utmost good faith
B. Proximate cause
C. Deductible
D. Insurance
Correct Answer: D. Insurance
Explanation: The correct answer is Insurance. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
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