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JAIIB IE&IFS Unit 42 — Insurance Products: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 42 — Insurance Products (Module D — Financial Products and Services). The Mock Centre holds 82 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D82 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Insurance = insurer-insured contract (POLICY) for PREMIUM; pooling of common risks; life vs non-life; six principles.
  2. Principles: uberrimae fidei (innocent non-disclosure = VOIDABLE; fraud = VOID); insurable interest (no interest, no contract; presumed in spouse/parent-child); indemnity (restore, don't enrich — life & personal accident excluded); subrogation (insurer inherits recovery rights — indemnity-only); contribution (insurers share); proximate cause (direct dominant cause — fire→pipe→water = FIRE).
  3. Under-insurance average: ₹8L cover on ₹10L asset, ₹6L loss → ₹4.8L; paid-up value = sum assured × premiums paid/premiums payable (₹1L × 10/20 = ₹50,000).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Insurance is a legal agreement between:
Why (b): Insurance is a legal agreement between the INSURER (the company taking the risk) and the INSURED (the person transferring it) — a risk-transfer contract for a price.
Question 2 of 5
The insurer's consideration is the:
Why (b): The consideration the insurer receives is the PREMIUM — the price paid for carrying the risk.
Question 3 of 5
'Uberrimae fidei' is the principle of:
Why (b): 'Uberrimae fidei' is the principle of UTMOST GOOD FAITH — both parties must disclose every material fact fully and honestly; insurance demands more than ordinary contract candour.
Question 4 of 5
Life benefit patterns fit into:
Why (a): Life insurance benefit patterns fit three building blocks: TERM, WHOLE LIFE and ENDOWMENT — every life product is a variation on these.
Question 5 of 5
The most popular property insurance:
Why (b): The most popular property insurance is the STANDARD FIRE POLICY — the Standard Fire & Special Perils policy covering fire plus listed allied perils.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
VoidableVoidInnocent vs fraudulent non-disclosure
SubrogationContributionThird-party rights vs insurer sharing
Practise all 82 questions on Unit 42. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.