QID #26098
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Moral hazard?
A
Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
B
Change in behavior or risk arising because protection from loss exists
C
Consideration paid for insurance coverage
D
Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: B. Change in behavior or risk arising because protection from loss exists
Question: Which statement best explains Moral hazard?
A. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
B. Change in behavior or risk arising because protection from loss exists
C. Consideration paid for insurance coverage
D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Correct Answer: B. Change in behavior or risk arising because protection from loss exists
Explanation: Moral hazard: Change in behavior or risk arising because protection from loss exists
QID #26097
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Change in behavior or risk arising because protection from loss exists
A
Contribution
B
Indemnity
C
Moral hazard
D
Insured
Correct Answer: C. Moral hazard
Question: Which of the following is best described as: Change in behavior or risk arising because protection from loss exists
A. Contribution
B. Indemnity
C. Moral hazard
D. Insured
Correct Answer: C. Moral hazard
Explanation: The correct answer is Moral hazard. Change in behavior or risk arising because protection from loss exists
QID #26096
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains IRDAI?
A
Entity that undertakes insurance risk
B
Insurance covering risks associated with human life
C
Person or property whose risk is covered
D
Insurance Regulatory and Development Authority of India
Correct Answer: D. Insurance Regulatory and Development Authority of India
Question: Which statement best explains IRDAI?
A. Entity that undertakes insurance risk
B. Insurance covering risks associated with human life
C. Person or property whose risk is covered
D. Insurance Regulatory and Development Authority of India
Correct Answer: D. Insurance Regulatory and Development Authority of India
Explanation: IRDAI: Insurance Regulatory and Development Authority of India
QID #26095
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Insurance Regulatory and Development Authority of India
A
Insurer
B
Deductible
C
IRDAI
D
Indemnity
Correct Answer: C. IRDAI
Question: Which of the following is best described as: Insurance Regulatory and Development Authority of India
A. Insurer
B. Deductible
C. IRDAI
D. Indemnity
Correct Answer: C. IRDAI
Explanation: The correct answer is IRDAI. Insurance Regulatory and Development Authority of India
QID #26094
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Annuity?
A
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
B
Insurance Regulatory and Development Authority of India
C
Series of periodic payments often used for retirement income
D
Consideration paid for insurance coverage
Correct Answer: C. Series of periodic payments often used for retirement income
Question: Which statement best explains Annuity?
A. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
B. Insurance Regulatory and Development Authority of India
C. Series of periodic payments often used for retirement income
D. Consideration paid for insurance coverage
Correct Answer: C. Series of periodic payments often used for retirement income
Explanation: Annuity: Series of periodic payments often used for retirement income
QID #26093
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Series of periodic payments often used for retirement income
A
Annuity
B
Indemnity
C
Moral hazard
D
Proximate cause
Correct Answer: A. Annuity
Question: Which of the following is best described as: Series of periodic payments often used for retirement income
A. Annuity
B. Indemnity
C. Moral hazard
D. Proximate cause
Correct Answer: A. Annuity
Explanation: The correct answer is Annuity. Series of periodic payments often used for retirement income
QID #26092
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Term insurance?
A
Insurance Regulatory and Development Authority of India
B
Life cover for a specified period, generally without savings component
C
Person or property whose risk is covered
D
Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
Correct Answer: B. Life cover for a specified period, generally without savings component
Question: Which statement best explains Term insurance?
A. Insurance Regulatory and Development Authority of India
B. Life cover for a specified period, generally without savings component
C. Person or property whose risk is covered
D. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
Correct Answer: B. Life cover for a specified period, generally without savings component
Explanation: Term insurance: Life cover for a specified period, generally without savings component
QID #26091
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Life cover for a specified period, generally without savings component
A
Term insurance
B
Insurer
C
Life insurance
D
Sum assured
Correct Answer: A. Term insurance
Question: Which of the following is best described as: Life cover for a specified period, generally without savings component
A. Term insurance
B. Insurer
C. Life insurance
D. Sum assured
Correct Answer: A. Term insurance
Explanation: The correct answer is Term insurance. Life cover for a specified period, generally without savings component
QID #26090
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains General insurance?
A
Dominant effective cause used to determine whether a loss falls within policy coverage
B
Non-life insurance such as motor, fire, marine and health categories
C
Entity that undertakes insurance risk
D
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: B. Non-life insurance such as motor, fire, marine and health categories
Question: Which statement best explains General insurance?
A. Dominant effective cause used to determine whether a loss falls within policy coverage
B. Non-life insurance such as motor, fire, marine and health categories
C. Entity that undertakes insurance risk
D. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: B. Non-life insurance such as motor, fire, marine and health categories
Explanation: General insurance: Non-life insurance such as motor, fire, marine and health categories
QID #26089
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Non-life insurance such as motor, fire, marine and health categories
A
Annuity
B
Insurance
C
Insured
D
General insurance
Correct Answer: D. General insurance
Question: Which of the following is best described as: Non-life insurance such as motor, fire, marine and health categories
A. Annuity
B. Insurance
C. Insured
D. General insurance
Correct Answer: D. General insurance
Explanation: The correct answer is General insurance. Non-life insurance such as motor, fire, marine and health categories
QID #26088
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Life insurance?
A
Insurance covering risks associated with human life
B
Entity that undertakes insurance risk
C
Insurer's right, after paying a loss, to pursue recovery from a responsible third party
D
Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: A. Insurance covering risks associated with human life
Question: Which statement best explains Life insurance?
A. Insurance covering risks associated with human life
B. Entity that undertakes insurance risk
C. Insurer's right, after paying a loss, to pursue recovery from a responsible third party
D. Risk-transfer arrangement under which an insurer provides financial protection in return for premium
Correct Answer: A. Insurance covering risks associated with human life
Explanation: Life insurance: Insurance covering risks associated with human life
QID #26087
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Insurance covering risks associated with human life
A
IRDAI
B
Life insurance
C
Sum assured
D
Subrogation
Correct Answer: B. Life insurance
Question: Which of the following is best described as: Insurance covering risks associated with human life
A. IRDAI
B. Life insurance
C. Sum assured
D. Subrogation
Correct Answer: B. Life insurance
Explanation: The correct answer is Life insurance. Insurance covering risks associated with human life
QID #26086
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Reinsurance?
A
Duty of parties to disclose material facts relevant to insurance contract
B
Insurance purchased by an insurer to transfer part of its own risk
C
Series of periodic payments often used for retirement income
D
Non-life insurance such as motor, fire, marine and health categories
Correct Answer: B. Insurance purchased by an insurer to transfer part of its own risk
Question: Which statement best explains Reinsurance?
A. Duty of parties to disclose material facts relevant to insurance contract
B. Insurance purchased by an insurer to transfer part of its own risk
C. Series of periodic payments often used for retirement income
D. Non-life insurance such as motor, fire, marine and health categories
Correct Answer: B. Insurance purchased by an insurer to transfer part of its own risk
Explanation: Reinsurance: Insurance purchased by an insurer to transfer part of its own risk
QID #26085
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Insurance purchased by an insurer to transfer part of its own risk
A
Proximate cause
B
General insurance
C
Reinsurance
D
Contribution
Correct Answer: C. Reinsurance
Question: Which of the following is best described as: Insurance purchased by an insurer to transfer part of its own risk
A. Proximate cause
B. General insurance
C. Reinsurance
D. Contribution
Correct Answer: C. Reinsurance
Explanation: The correct answer is Reinsurance. Insurance purchased by an insurer to transfer part of its own risk
QID #26084
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Deductible?
A
Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
B
Dominant effective cause used to determine whether a loss falls within policy coverage
C
Amount of a covered loss borne by the insured before insurer payment
D
Duty of parties to disclose material facts relevant to insurance contract
Correct Answer: C. Amount of a covered loss borne by the insured before insurer payment
Question: Which statement best explains Deductible?
A. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
B. Dominant effective cause used to determine whether a loss falls within policy coverage
C. Amount of a covered loss borne by the insured before insurer payment
D. Duty of parties to disclose material facts relevant to insurance contract
Correct Answer: C. Amount of a covered loss borne by the insured before insurer payment
Explanation: Deductible: Amount of a covered loss borne by the insured before insurer payment
QID #26083
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Amount of a covered loss borne by the insured before insurer payment
A
Insured
B
Moral hazard
C
Term insurance
D
Deductible
Correct Answer: D. Deductible
Question: Which of the following is best described as: Amount of a covered loss borne by the insured before insurer payment
A. Insured
B. Moral hazard
C. Term insurance
D. Deductible
Correct Answer: D. Deductible
Explanation: The correct answer is Deductible. Amount of a covered loss borne by the insured before insurer payment
QID #26082
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Proximate cause?
A
Insurance purchased by an insurer to transfer part of its own risk
B
Dominant effective cause used to determine whether a loss falls within policy coverage
C
Change in behavior or risk arising because protection from loss exists
D
Non-life insurance such as motor, fire, marine and health categories
Correct Answer: B. Dominant effective cause used to determine whether a loss falls within policy coverage
Question: Which statement best explains Proximate cause?
A. Insurance purchased by an insurer to transfer part of its own risk
B. Dominant effective cause used to determine whether a loss falls within policy coverage
C. Change in behavior or risk arising because protection from loss exists
D. Non-life insurance such as motor, fire, marine and health categories
Correct Answer: B. Dominant effective cause used to determine whether a loss falls within policy coverage
Explanation: Proximate cause: Dominant effective cause used to determine whether a loss falls within policy coverage
QID #26081
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which of the following is best described as: Dominant effective cause used to determine whether a loss falls within policy coverage
A
Reinsurance
B
Proximate cause
C
Insurer
D
Policyholder
Correct Answer: B. Proximate cause
Question: Which of the following is best described as: Dominant effective cause used to determine whether a loss falls within policy coverage
A. Reinsurance
B. Proximate cause
C. Insurer
D. Policyholder
Correct Answer: B. Proximate cause
Explanation: The correct answer is Proximate cause. Dominant effective cause used to determine whether a loss falls within policy coverage
QID #26080
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium
Which statement best explains Contribution?
A
Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
B
Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
C
Consideration paid for insurance coverage
D
Insurance Regulatory and Development Authority of India
Correct Answer: A. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
Question: Which statement best explains Contribution?
A. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
B. Financial or legal relationship giving a person a legitimate interest in preservation of insured subject matter
C. Consideration paid for insurance coverage
D. Insurance Regulatory and Development Authority of India
Correct Answer: A. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
Explanation: Contribution: Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
QID #26079
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 by which multiple insurers sharing the same risk contribute to an indemnity loss
A
Insurer
B
Contribution
C
General insurance
D
Term insurance
Correct Answer: B. Contribution
Question: Which of the following is best described as: Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
A. Insurer
B. Contribution
C. General insurance
D. Term insurance
Correct Answer: B. Contribution
Explanation: The correct answer is Contribution. Principle by which multiple insurers sharing the same risk contribute to an indemnity loss
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