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1
IC-34 – SP Certification
Mock Tests
MOCK TEST 1
2
3
1: Out of 400 houses, each valued at Rs.20,000, 4 houses get burnt
every year on an average resulting in a loss of Rs.80,000. What
should be the annual contribution of each house owner to make good
this loss
a. Rs.100/-
b. Rs.200/-
c. Rs.80/-
d. Rs.400/-
Ans: Rs 200
2: Which of the following statements is true?
1: Insurance prevents the losses from happening
2 : Insurance spreads the losses amongst the insureds
a.Only statement 1
b.Only statement 2
c.Both statements
d.Neither of the statements
Ans:Only statement 2
4
5
3: Which of the following is NOT the correct reason
a. to decide about acceptance
b. to fix the rate of premium
c. to fix the sum insured
d. to fix terms and conditions of cover
Ans:to fix the sum insured
6
4: If there is no insurable interest the insurance contract becomes
a. unenforceable in a court of law
b. illegal
c. void
d. voidable
Ans:Void
7
5: Insurable interest is NOT always required at the time of taking the policy
a. fire insurance
b. marine hull insurance
c. marine cargo insurance
d. burglary insurance
Ans:Marine Cargo Insurance
8
6: Consent of insurers is NOT required for the assignment of
a. marine hull policies
b. marine cargo policies
c. fire policies
d. burglary policies
Ans:Marine Cargo Policies
9
7: Agreed value policies are issued for
a. marine cargo
b. marine hull
c. marine cargo and hull
d. fire insurance on high valued machinery
Ans:Marine Cargo and Hull
10
8: Subrogation condition does not appear in
a. fire policy
b. marine cargo policy
c. burglary policy
d. baggage policy
Ans:Marine Cargo Policy
11
9: Which of the following does NOT affect the amount of loss payable under the
policy
a. breach of utmost good faith
b. salvage
c. pro-rata average
d. ‘excess’ clause
Ans:Breach of utmost good faith
12
10: Insurance contracts are NOT gambling transactions because
a. they are based on insurable interest
b. the policy is stamped
c. full premium is paid
d. all material facts are disclosed
Ans:they are based on insurable interest
13
11: When there is fraudulent breach of utmost good faith the insurance contract
becomes
a. unenforceable in a court of law
b. illegal
c. void
d. voidable
Ans:Void
14
12: Which of the following statements is true or false
1: No claim can be paid under an illegal policy
2: Claim can be paid, at the option of the insurer under a void policy
a. 1 is true
b. 2 is true
c. both 1 and 2 are true
d. both are false
Ans :1 is true
15
13: If there is a non-disclosure of a material fact due to oversight, the insurance
contract becomes
a. void
b. voidable
c. illegal
d. invalid
Ans:voidable
16
14: The principle of utmost good faith requires the proposer to disclose material
facts
a. which he knows
b. which he ought to know
c. which he knows and ought to know
d. none of the above
Ans:which he knows and ought to know
17
15: Which of the following statements is true
1: The proposer need not disclose facts which he considers as not material
2: Facts which are of common knowledge need not be disclosed
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans:2 is true
18
16: Transfer of rights and liabilities of an insured to another person who has
insurable interest is known as
a. consideration
b. subrogation
c. assignment
d. endorsement
Ans:assignment
19
17: Which of the following principles prevents an insured from making a profit out
of his loss
a. proximate cause
b. pro-rata average
c. indemnity
d. insurable interest
Ans:indemnity
20
18: In which of the following insurances the principle of indemnity is modified
a. public liability
b. fidelity guarantee
c. marine cargo
d. baggage insurance
Ans:marine cargo
21
19: An insured cannot recover more than his actual loss because of
a. under-insurance
b. excess clause
c. principle of indemnity
d. franchise clause
Ans:principle of indemnity
22
20: Which of the following is NOT a contract of indemnity in the strict sense
a. mediclaim insurance
b. personal accident insurance
c. fidelity guarantee
d. burglary insurance
Ans:personal accident insurance
23
21: The principle of indemnity is applied through deduction
a. for under insurance
b. for depreciation
c. under franchise clause
d. under excess clause
Ans:for depreciation
24
22: When there are several policies on the same subject-matter, each insurer pays
only a proportion of the loss. This is known as
a. pro-rata average
b. franchise
c. contribution
d. subrogation
Ans:contribution
25
23: How much is the amount of claim payable, if sum insured is Rs.2 lakhs, the
‘excess’ limit is Rs.20,000/- and the loss is Rs.25,000.
a. Rs.2,000
b. Rs.25,000
c. Rs.15,000
d. Rs.5000
Ans: Rs.5000
26
24: What is the amount of claim payable if the loss is Rs.8000/- under a policy with
a sum insured of Rs.1 lakh and excess limit is Rs.10,000/-
a. nil
b. Rs.10,000
c. Rs.8000
d. Rs.2000
Ans:nil
27
25: A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of
Rs.10,000/- . What is the amount payable if the loss is Rs.15,000/-
a. Rs.15,000/-
b. Rs.5,000
c. Rs.25,000/-
d. Nil
Ans:Rs.15,000/-
28
26: A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of
Rs.10,000/-. What is the amount of claim payable if the loss is Rs.5,000/-
a. Rs.10,000
b. Rs.15,000
c. Rs.5,000
d. Nil
Ans:Nil
MOCK TEST 2
29
30
1: In which of the following clauses of the ‘scheduled’ form of policy, the parties to
the contract are mentioned
a. signature clause
b. operative clause
c. recital clause
d. warranties clause
Ans:recital clause
31
2: In which of the following clauses of the ‘scheduled’ form of policy references is
made to the sum insured or limit of liability.
a. recital clause
b. operative clause
c. signature clause
d. warranties clause
Ans:operative clause
32
3: If a warranty is breached the policy becomes
a. void
b. voidable
c. invalid
d. unenforceable in a court of law
Ans:voidable
33
4: Certificates of insurance are issued in
a. marine hull insurance
b. marine cargo insurance
c. engineering insurance
d. workmen’s compensation insurance
Ans:marine cargo insurance
34
5: Renewal notice is issued because
a. it is required under the insurance act
b. of IRDA regulations
c. it is a healthy business practice
d. it is provided by policy conditions
Ans:it is a healthy business practice
MOCK TEST 3
35
36
1: Which of the following is paid out of ‘pure premium
a. losses
b. agency commission
c. expenses of management
d. unexpected heavy losses
Ans:losses
37
2: To arrive at final rate by loading the pure rate which of the following is NOT taken
into account
a. past losses
b. unexpected heavy losses in the future
c. margin for expenses of management
d. margin for profits
Ans:past losses
38
3: After withdrawal if tariffs w.e.f. 1.1.2007,issurers cannot charge their own rates
for which of the following classes of insurance.
a. fire insurance
b. engineering insurance
c. motor third party insurance
d. workmen’s compensation insurance
Ans:motor third party insurance
39
4: Which of the following statements is true
1: Insurers charge for motor third party policies rates of premium fixed by
IRDA
2: Insurers can charge higher rates based on their own past loss experience
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
40
5: Under IRDA guidelines which of the following policies fall under exposure rated
products
a. earthquake risk
b. policies with a sum insured of Rs.2500 crores or more at one location for
material damage
c. policies with a sum insured of Rs.2500 crores or more at one location for
combined material damage and business interruption
d. liability insurance(Rs.100 crores or more per event)
Ans: earthquake risk
41
MOCK TEST 4
42
1: As per the insurance act,1938(as amended) an insurer has to obtain a
report from a licensed surveyor if the loss equals or exceeds
a.Rs.15,000
b.Rs.20,000
c.Rs.25,000
d.Rs.50,000
Ans: 20,000
43
2: As per general insurance business(nationalization) amendment act
2002,general insurance corporation of India shall carry on
a.reinsurance business only
b.overseas reinsurance business only
c.aviation insurance business only
d.administration of motor third party insurance pool only
Ans: reinsurance business only
44
3: An insurance agent whose licence has been cancelled by the designated
person cannot apply for fresh license unless a period of ----- years has elapsed
from the date of such cancellation
a.3 years
b.4 years
c.5 years
d.6 years
Ans :5 years
45
4:Which of the following is not a function of a direct broker as per IRDA regulations
a.advise clients on appropriate cover and terms
b.submit insurers premium quotation to client
c.pay premium to insurers on behalf of client
d.assist in negotiation of claims
Ans: pay premium to insurers on behalf of client
46
5: Which of the following statements is true
1: code of conduct does NOT apply to insurance brokers
2: code of conduct does NOT apply to surveyors and loss assessors
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: both are false
47
6: Under IRDA regulations it is the duty of an insurer to furnish to the insured free
of charge a copy of the proposal form. Within -------days of the acceptance of a
proposal
a.7 days
b.15 days
c.30 days
d.45 days
Ans : 30 days
48
7: As per IRDA regulations a surveyors has to be appointed within ------- hours/days
of receipt of claim intimation from the insured
a.24 hours
b.72 hours
c.7 days
d.15 days
Ans: 72 hours
49
8: As per IRDA regulations surveyors shall submit the survey report to the
insurer within -----days of his appointment
a.15 days
b.30 days
c.45 days
d.60 days
Ans: 30 days
50
9: Insurer shall, within a period of ----- days of receipt of survey report, offer a
settlement of claim to the insured
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans : 30 days
51
10: Rejection of claim by the insurer shall be communicated to the insured
within a period of ----- days from the receipt of the survey report
a.15 days
b.30 days
c.45 days
d.60 days
Ans: 30 days
52
11: On acceptance of offer of settlement by the insured, insurer shall make the
payment within -----days from the date of acceptance of offer
a.7 days
b. 10 days
c.15 days
d.30 days
Ans: 7 days
53
12: An insurer shall respond within ----- days of receipt of communication from
policyholders in matters of servicing under the policy
a.3 days
b.7 days
c.10 days
d.15 days
Ans: 10 days
54
13: As per IRDA regulations, the remuneration to the micro-insurance agent for
non-life insurance business shall not exceed -----% of premium
a. 5
b. 10
c. 15
d. 20
Ans: 15
55
14: A district forum under the consumer protection act can entertain a complaint
where the compensation claimed is less than Rs.----- lakhs
a.10 lakhs
b.20 lakhs
c.30 lakhs
d.50 lakhs
Ans: 20 lakhs
56
15: The national commission under consumer protection act can entertain a
complaint where the compensation claimed exceeds Rs.----
a.25 lakhs
b.50 lakhs
c.75 lakhs
d.1 crore
Ans: 1 crore
57
16: An appeal against the order of the national commission can be made within
a period of ----- days from the date of order
a.30 days
b.45 days
c.60 days
d.90 days
Ans: 30 days
58
MOCK TEST 5
59
1: Which of the following is not insured under standard fire & special perils policy
a.goods in factories
b.goods in open
c.goods in transit by rail/road
d.goods in godowns
Ans: goods in transit by rail/road
60
2: The terms ‘fire’ under the fire policy means
a.natural heating
b.burning by order of public authority
c.spontaneous combustion
d.accidental ignition
Ans: accidental ignition
61
3: Which of the following meanings of aircraft damage is NOT correct
a.damage by aircraft
b.damage by other aerial devices
c.damage by pressure waves
d.damage by other space devices
Ans: damage by pressure waves
62
4:Terrorism cover for industrial risks is subject to a deduction of
a.0.5% of total sum insured
b.1.0% of total sum insured
c.2.0% of total sum insured
d.3.0% of total sum insured
Ans: 0.5% of total sum insured
63
5: Which of the following is NOT impact damage covered under standard fire
and special perils. Visible physical damage by direct contact with
a.any road vehicle
b.any rail vehicle
c.insured’s own forklift on the premises
d.any animal
Ans: insured’s own forklift on the premises
64
6: Which of the following is NOT covered under standard fire and special perils
policy
a.cyclone
b.hurricane
c.earthquake
d.flood
Ans: earthquake
65
7: The deductible for perils other than act of god perils under standard fire and
special perils policy is
a.Rs.5,000/- for each and every loss
b.Rs.10,000/- for each and every loss
c.Rs.15,000/- for each and every loss
d.Rs.20,000/- for each and every loss
Ans: Rs.10,000/- for each and every loss
66
8: The standard fire and special perils policy automatically covers works of art
for an amount not exceeding
a.Rs.5,000/-
b.Rs.10,000/-
c.Rs.20,000/-
d.Rs.25,000/-
Ans: Rs.10,000/-
67
9: Which of the following statements is true
1: All disputes regarding claim under the fire policy are to be referred to a
civil court.
2: disputes regarding the amount of claim payable are to be referred to
arbitration
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
68
10: The maximum limit of cover under architects ‘fees’ add-on cover is -----% of
the adjusted loss
a. 2.5%
b. 5.0%
c. 7.5%
d. 10.0%
Ans: 7.5%
69
11: The sum insured under debris removal add-on cover cannot exceed -----%
of the total sum insured under the fire policy
a. 5%
b. 10%
c. 15%
d. 20%
Ans: 10%
70
12: Which of the following is covered under fire policy at extra premium
a.impact damage
b.bush fire
c.forest fire
d.subsidence
Ans: forest fire
71
13: According to policy condition the fire policy ceases cover if the building insured
becomes unoccupied for more than
a.15 days
b.30 days
c.45 days
d.60 days
Ans: 30 days
72
14: Under fire policy pro-rata average applies when there is
a.double insurance
b.over insurance
c.under insurance
d.subrogation
Ans: under insurance
73
15: If liability for a claim under the fire policy is disclaimed by the insurer, the insured
has to file a suit in a court of law within ----- months of the date of disclaimer
a.6 months
b.12 months
c.24 months
d.36 months
Ans: 12 months
74
16: Which of the following perils can be an ‘add-on’ cover at extra premium under
the standard fire and special perils policy
a.flood
b.explosion
c.earthquake
d.cyclone
Ans: earthquake
75
17: Debris removal expenses are covered upto ------% of the claim amount under
standard fire and special perils policy
a. 1 %
b. 2%
c. 3%
d. 4%
Ans: 1%
76
18: Architect’s fees are covered upto -------% of the claim amount under standard
fire and special perils policy
a. 1 %
b. 2%
c. 3%
d. 4%
Ans: 3%
77
19: Which of the following statements is true
As per fire policy condition on the happening of a loss
1: the insurers have a right to take possession of the premises where the
loss has occurred
2: the insured can abandon the damaged property to the insurers
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
78
20: Under fire policy sum insured is Rs.1,00,000/- , loss is Rs.60,000/- , value of
property at the time of proposal Rs.1,50,000/- value of property at the time of loss
Rs.2,00,000/- .
What is the amount of loss payable
a.Rs.40,000/-
b.Rs.30,000/-
c.Nil
d.Rs.60,000/-
Ans: Rs.30,000/-
79
21: Which of the following is NOT covered under spoilage material damage
extension
a.loss of stock in process
b.loss of stock in godowns
c.damage to machinery
d.damage to containers and equipment
Ans: loss of stock in godowns
80
22: Escalation clause added to the fire policy allows automatic regular increase not
exceeding ------% in sum insured throughout the period of the policy
a. 5%
b. 10%
c. 25%
d. 50%
Ans: 25%
81
23: Which of the statements is true or false under fire insurance
1: escalcation clause applies to buildings and machinery only
2: escalcation clause applies to fluctuating stocks
a. statement 1 is true
b. statement 2 is true
c. both statements are true
d. both statements are false
Ans: statement 1 is true
82
24: The maximum retention of premium under fire declaration policy is ------%
of the annual premium
a. 10%
b. 25%
c. 50%
d. 75%
Ans: 50%
83
25: Sum insured(provisional) under fire declaration policy is Rs.100,00,000/- Rate
of premium is Re.1.00 per mile. Average sum insured is Rs.50,00,000/-
The refund premium is
a. Rs.5000/-
b. Rs.6,000/-
c. Rs.10,000/-
d. nil
Ans: Rs.5000/-
84
26: Under which of the following circumstances market value only is payable
under fire reinstatement value policy
a.insured is unwilling to reinstate
b.heavy under insurance
c.breach of warranty
d.breach of utmost good faith
Ans: insured is unwilling to reinstate
85
27: Which of the following is correct in relation to fire reinstatement value policy
1: depreciation applies to claims
2: pro-rata average applies
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
86
28: Which of the following statements is correct
Fire reinstatement value policy is granted on
1: Buildings and machinery only
2: Stocks only
a. Statement 1 is correct
b. Statement 2 is correct
c. Both statements are not correct
d. Both statements are correct
Ans: Statement 1 is correct
87
29: Of the following which is an optional cover under industrial all risks policy
a.machinery breakdown policy
b.electronic equipment policy
c.business interruption(machinery breakdown)
d.business interruption( fire and special perils)
Ans: business interruption(machinery breakdown)
88
30: Gross profit, in the context of consequential loss(fire) policy means:
a.Turnover minus variable and standing charges
b.Net profit and cost of production
c.Net profit and standing charges
d.Net profit and variable charges
Ans: Net profit and standing charges
89
31: Turnover is Rs.10 lacs. Cost of production Rs.7 lacs. Fixed overheads
Rs.2 lacs. Calculate the net profit for consequential loss(fire) policy
a. 1 lac
b. 3 lacs
c. 5 lacs
d. 8 lacs
Ans: 1 lac
90
32: Which of the following statements is true
1: The sum insured under consequential loss(fire) policy should be equal
to gross profits of the indemnity period selected.
2: The sum insured should be equal to the net profits of the indemnity
period selected.
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
91
33: Annual gross profit is Rs.1,20,000/-. Calculate the sum insured under
consequential loss(fire) policy for a period of 9 months
a.Rs.60,000/-
b.Rs.90,000/-
c.Rs.1,20,000/-
d.Rs.1,80,000/-
Ans: Rs.1,20,000/-
92
MOCK TEST 6
93
1:Which of the following is NOT covered under institute cargo clauses©
a.standing of vessel
b.washing overboard
c.collision of vessel
d.jettison
Ans: washing overboard
94
2: Malicious damage is automatically covered under
a.ICC(A) clauses
b.ICC(B) clauses
c.ICC© clauses
d.Not covered under any of the above
Ans: ICC(A) clauses
95
3: Which of the following exclusios does NOT appear under ICC(A) clause
a.inadequate packing
b.inherent vice
c.malicious damage
d.loss by delay
Ans: malicious damage
96
4: Which of the following statements is true
1: The duration of cover for strikes, riot and civil commotion applies during
the entire voyage on a warehouse to warehouse basis
2: The duration of cover for strike, riot and civil commotion applies only
when the goods are waterborne and not on land
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
97
5: Under institute cargo clause(AIR) the period of cover after unloading of cargo
from the aircraft at the final place of discharge is limited to -----days
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans: 30 days
98
6: Under inland transit(rail/road) clause B on payment of extra premium
1: war risks can be covered
2: strike,riots and civil commotion risks can be covered
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
99
7: Under inland transit(rail/road) clause B & A, the duration of cover terminates
after expiry of ------days after arrival of the railway wagon at the final
destination railway station
a. 3 days
b. 7 days
c. 10 days
d. 15 days
Ans: 7 days
100
8: The basis of valuation adopted under marine open cover is the prime cost
of goods, costs of freight and insurance plus ----% to cover profits
a. 5%
b. 10%
c. 15%
d. 20%
Ans: 10%
101
9: Which of the following risks covered under institute cargo clause(B) are not
covered under institute cargo clauses(C)
a.standing of vessel
b.collision of vessel
c.sea-water damage
d.explosion
Ans: sea-water damage
102
10: Which of the following risk is automatically covered under institute cargo
clauses(A) without extra premium
a.inherent vice
b.country damage
c.war and kindred risks
d.strikes,riots and civil commotion
Ans: country damage
103
11: Which of the following perils CANNOT be added by extra premium to
institute cargo clauses(B)
a.fresh water damage
b.rain water damage
c.inherent vice
d.country damage
Ans: inherent vice
104
12: The clause in open cover which limits the liability of insurers at any one time
or place before the shipment is known as
a.declaration clause
b.basis of valuation clause
c.location clause
d.limit per bottom clause
Ans: location clause
105
13: When badly damaged goods are abandoned because the cost of
reconditioning exceeds the value of goods after reconditioning, the loss is settled
as
a.salvage loss
b.actual total loss
c.constructive total loss
d.general average loss
Ans: constructive total loss
106
14: Which of the following is NOT required under rail transit claims
a.invoice
b.bill of lading
c.original policy
d.non-delivery certificate
Ans: bill of lading
107
MOCK TEST 7
108
1: Which of the following does NOT fall under ‘miscellaneous’ classification of
motor vehicles
a. ambulance
b. mobile dispensaries
c. motorized rickshaws
d. cinema, film recording vans
Ans: motorized rickshaws
109
2: Under the motor vehicles act, the limit of liability for damage to third party
is Rs.
a.Rs.10,000/-
b.Rs.6,000/-
c.Rs.20,000/-
d.Rs.25,000/-
Ans: Rs.6,000/-
110
3: Which of the following statements is true
Liability under workmen’s compensation act is to be compulsory insured
is respect of
1: workers carried in a goods vehicle
2: workers carried in a public service vehicle
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
111
4: Under the motor vehicles act, the amount of compensation for death on the
basis of no-fault liability is Rs.------
a. Rs.25,000/-
b. Rs.50,000/-
c. Rs.1,00,000/-
d. Rs.2,00,000/-
Ans: Rs.50,000/-
112
5: Under the motor vehicles act, the fixed compensation for death in ‘hit and run’
motor accident is Rs.-----
a. Rs.12,500/-
b. Rs.25,000/-
c. Rs.50,000/-
d. Rs.1,00,000/-
Ans: Rs.25,000/-
113
6: Liability only motor policy covers liability for damage to
a.property of third party
b.property belonging to insured
c.property held in trust by the insured
d.property in the custody of the insured
Ans : property of third party
114
7: Under personal accident cove for owner-driver the capital sum insured for
two-wheelers is
a. Rs.25,000/-
b. Rs.50,000/-
c. Rs.1,00,000/-
d. Rs.2,00,000/-
Ans: Rs.1,00,000/-
115
8: Under personal accident cover for owner-driver the capital sum insured for
private cars is
a. Rs.50,000/-
b. Rs.1,00,000/-
c. Rs.2,00,000/-
d. Rs.3,00,000/-
Ans: Rs.2,00,000/-
116
9: Under personal accident cover for owner-driver the capital sum insured for
commercial vehicles is
a. Rs.50,000/-
b. Rs.1,00,000/-
c. Rs.2,00,000/-
d. Rs.3,00,000/-
Ans: Rs.2,00,000/-
117
10: In the event of death of sole insured under a motor policy the policy will
remain valid for a period of ------months from the date of death of the insured or
until the expiry of the policy(whichever is earlier)
a. 3 months
b. 6 months
c. 9 months
d. 12 months
Ans: 3 months
118
11: Applications from legal heirs of the deceased insured for transfer of policy to
their name should be accompanied by documents. Which of the following is NOT
required
a.death certificate
b.post-mortem report
c.proof of title to the vehicle
d.original policy
Ans: post-mortem report
119
12: Which of the following is NOT covered under private car package policy
a.earthquake
b.lightning
c.loss of accessories unless the vehicle is stolen at the same time
d.landside
Ans: loss of accessories unless the vehicle is stolen at the same time
120
13: The maximum towing charges of a private car payable is restricted to
a. Rs.750/-
b. Rs.1000/-
c. Rs.1500/-
d. Rs.2000 /-
Ans: Rs.1500/-
121
14: Under private car package policy constructive total loss arises if the cost of
repairs of the damaged vehicle exceeds-------%
a. 75%
b. 80%
c. 90%
d. 100%
Ans: 75%
122
15: Which of the following statements is true
1: rates of premium for motor third party risks are fixed by the IRDA
2: rates of premium for motor ‘own damage’ risks are fixed by the tariff
advisory committee
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
123
16: Which of the following is NOT a rating factor for private cars (own
damage)
a.insured’s declared value of vehicle
b.cubic capacity
c.passenger capacity
d.geographical zone
Ans: passenger capacity
124
17: Under motor package policy which of the following does NOT attract
additional premium
a.personal accident cover for owner-driver
b.electronic fittings
c.use of CNG fuel
d. fibre glass fuel tanks
Ans: personal accident cover for owner-driver
125
18: Which of the following is NOT eligible for discount in ‘own damage’
premium(private car package policy)
a.vintage cars
b. brand new cars
c.membership of automobile association
d.anti-theft devices approved by automobile research association of India
Ans: brand new cars
126
19: Which of the following is NOT taken into consideration for fixing rates of
premium for buses(package policy)
a.age of vehicle
b.licensed passenger capacity
c.insured declared value of vehicle
d.geographical area
Ans: insured declared value of vehicle
127
20: Which of the following documents is NOT required for processing private car
‘own damage’ claims
a.driving license
b.registration certificate book
c.fitness certificate
d.final bill from repairs
Ans: fitness certificate
128
21:Out of the following documents for ‘own damage’ motor claims, select one
which is additionally required for commercial vehicle(goods carrier) claims
a.registration certificate book
b.permit
c.driving license
d.police report
Ans: permit
129
22: Which of the following does NOT attract additional premium under motor
policies
a.CNG/LPG fuel kit
b.Anti-theft devices
c.Fibre glass fuel tanks
d.Electronic items fitted to the vehicles but not included in manufacturer’s price
Ans: Anti-theft devices
130
23: Which of the following statements is true
Motor third party premium shall be shared among all the general insurers
writing motor insurance business in proportion to gross direct premium in
1: motor insurance business
2: all classes of general insurance business
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
131
24: The administrator of motor third party insurance is
a.IRDA
b.GIC
c.General insurance council
d.Motor accident claims tribunal
Ans: GIC
132
25: Which of the following statements is true
1:motor third party (injury claims) are adjudicated by motor accident claims
tribunal
2: motor third party(properly damage claims) are adjudicated by civil courts
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
133
MOCK TEST 8
134
1:For which of the following, full capital sum insured is NOT payable under
personal accident policy
a.Permanent total disablement
b.Permanent partial disablement
c.Loss of two limbs
d.Loss of one limb and one eye
Ans: Permanent partial disablement
135
2: Which of the following contingencies is NOT covered under personal accident
insurance
a.temporary total disablement
b.temporary partial disablement
c.permanent total disablement
d.permanent partial disablement
Ans: temporary partial disablement
136
3: Which of the following is NOT considered as permanent total disablement
a.loss of both eyes
b.loss of hearing in both ears
c.paralysis
d.loss of one limb and one eye
Ans: loss of hearing in both ears
137
4: The amount of weekly payment for temporary total disablement under
personal accident insurance is restricted to
a. Rs.1000/-
b. Rs.2000/-
c. Rs.3000/-
d. Rs.5000/-
Ans: Rs.3000/-
138
5: Which of the following additional benefits under personal accident insurance
attracts extra premium
a.medical expenses
b.expenses for carriage of dead body’
c.children’s education fund
d.cumulative bonus
Ans: medical expenses
139
6: Which of the following is NOT excluded under personal accident insurance
a.service in the armed forces
b.air travel in standard type of aircraft
c.suicide
d.attempted suicide
Ans: air travel in standard type of aircraft
140
7: Which of the following is true in relation to personal accident insurance
1: the cover is on a 24-hour basis
2: the geographical area of cover is India
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans:1 is true
141
8: Which of the following occupations does NOT fall under risk group I for rating
purposes(personal accident)
a.accountants
b.veterinary doctors
c.lawyers
d.bankers
Ans: veterinary doctors
142
9: which of the following occupations does NOT fall under group II for rating
purposes(personal accident)
a.3lorry drivers
b.motor mechanics
c.consulting architects
d.paid drivers of motor cars
Ans: consulting architects
143
10:Which of the following statements is true
1: no medical examination is required for fresh cover for personal accident
insurance
2: medical examination is required for renewal of personal accident
insurance
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
144
11: Under group P.A policy which of the following is true
1: cumulative bonus does not apply
2: children’s education grant is available
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
145
12: Group P.A cover is arranged to cover only accidents to employees arising
out of and in the course of employement reduced premium equivalent to ------
% of the appropriate is charged
a. 50%
b. 60%
c. 75%
d. 80%
Ans: 75%
146
13: Bonus(discount) and malus(loading of premium) applies under P.A insurance
under
a.individual policies
b.group policies
c.both individual and group policies
d.neither individual nor group policies
Ans: group policies
147
14: If group P.A policy cover is required when the employees is not at work
and/or not on official duty i.e ‘off-duty’ cover, the reduced premium of -----% of
the normal premium is charged
a. 40%
b. 50%
c. 60%
d. 75%
Ans: 50%
148
MOCK TEST 9
149
1: Relevant medical expenses incurred during upto ----- days prior to hospitalization
are treated as part of the claim
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans: 30 days
150
2: Which of the following diseases is excluded under domiciliary hospitalization
benefit
a. tonsillitis
b. sinusitis
c. cataract
d. hemia
Ans: tonsillitis
151
3: Which of the following diseases is excluded during the first year of operation
of mediclaim policy
a. Bronchitis
b. Diabetes
c. hemia
d. chronic nephritis
Ans: hemia
152
4: Under mediclaim policy any disease contracted by the insured during the first ----
- days from the commencement of policy is excluded
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans: 30 days
153
5: Which of the following diseases is NOT excluded during the first year of operation
of mediclaim policy
a. epilepsy
b. cataract
c. hemia
d. piles
Ans: epilepsy
154
6: Under mediclaim policy, which of the following is NOT covered
a.chemotherapy
b.radiotherapy
c.naturopathy
d.cost of pacemaker
Ans: naturopathy
155
7: Subject to no claim, cost of medical checkup once in every ----- underwriting
years is payable under mediclaim policy
a. 2 years
b. 3 years
c. 4 years
d. 5 years
Ans: 4 years
156
8: The sum insured under mediclaim policy is increased by 5% for each claim
free year of insurance subject to a maximum accumulation of ----- Years
a. 3 years
b. 5 years
c. 10 years
d. 15 years
Ans: 10 years
157
9:Which of the following is true under group mediclaim policy
1: cumulative bonus is not available
2: health check-up expenses are payable
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
158
10: Which of the following is NOT available under group mediclaim policy
a.no claim bonus
b.group discount
c.cumulative bonus
d.maternity extension
Ans: cumulative bonus
159
11: A waiting period of ----- months is applicable for payment of a maternity claim
a. 8 months
b. 9 months
c. 10 months
d. 12 months
Ans: 9 months
160
12: Claim under maternity extension in respect of any one insured person is
payable only for
a.first child
b.first two children
c.first three children
d.first four children
Ans: first two children
161
13: which of the following is NOT payable under maternity benefit extension
a.pre-natal expenses prior to hospitalization
b.caesarean section
c.miscarriage due to accident
d.abortion due to accident
Ans: pre-natal expenses prior to hospitalization
162
14: Which of the following statements is true
1: bonus/malus clause applies to individual mediclaim policy
2: bonus/malus clause applies to individual mediclaim policy
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
163
15: In relation to cancer patients aid association policy which of the following is true
1: The premium is payable to CPAA as part of the membership fee
2: claims are paid by CPAA
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
164
16: No claim is payable under CPAA policy if the insured contracts cancer within
a period of -----days from the date of becoming a member of CPAA
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans: 30 days
165
17: The sum insured under CPAA cancer policy, is increased by ----% for each
completed year of policy in force prior to claim
a. 5%
b. 10%
c. 15%
d. 20%
Ans: 5%
166
18: Which of the following is true
Differences as to the claim or quantum thereof are to be referred to
1: arbitration as per policy conditions
2: committee set up by CPAA and the insurance company
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
167
19: Under critical illness policy which of the following is NOT specified as critical
illness
a.cancer
b.paralysis
c.tuberculosis
d.parkinson’s disease
Ans: tuberculosis
168
20:Claim under the critical illness policy is payable if during the policy period the
insured is found to have contracted a critical illness and survives such critical
illness for at least----days from the date of its discovery
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans: 30 days
169
21: Any critical illness discovered or discoverable within -------days of the inception
date of the policy is not covered under this policy
a. 30 days
b. 45 days
c. 60 days
d. 90 days
Ans: 90 days
170
22: Under overseas medical policy, extension of the period of insurance is
automatic, for the period not exceeding----- days and without extra, if due to delay
of public transport services beyond the control of insured
a. 7 days
b. 15 days
c. 21 days
d. 30 days
Ans: 7 days
171
23: Which of the following is NOT paid upto the full limit of cover under the
overseas medical policy
a.physician services
b.hospital services
c.dental services for immediate relief of dental pain only
d. local emergency medical transportation
Ans: dental services for immediate relief of dental pain only
172
24: Under personal accident section of overseas medical policy which of the
following is not covered
a.death
b.permanent total disablement
c.permanent partial disablement
d.loss of eyes or limbs
Ans: permanent partial disablement
173
25: Under overseas medical policy, emergency purchases of replacement items
is paid if there is delay or more than -----hours in delivery of baggage at the
destination of outbound flight from India
a. 6 hours
b. 12 hours
c. 18 hours
d. 24 hours
Ans: 12 hours
174
26: Under which of the following sections of overseas medical policy, deductible
does not apply
a.medical expenses
b.personal accident
c.personal liability
d.loss of passport
Ans: personal accident
175
27: Under corporate frequent travel annual policy the duration of any one trip not
to exceed ----- days
a. 30 days
b. 45 days
c. 60 days
d. 90 days
Ans: 60 days
176
28: Under corporate group overseas medical policy employees above -----
years of age have to submit the prescribed medical reports
a. 55 years
b. 60 years
c. 65 years
d. 70 years
Ans: 60 years
177
29: Which of the following persons are NOT eligible for overseas employment
and study policy
a.students prosecuting studies
b.students doing research
c.construction workers temporary posted abroad
d.software engineers temporary posted abroad
Ans: construction workers temporary posted abroad
178
MOCK TEST 10
179
1:The amount of relies payable under public liability insurance act, 1991 for
fatal accident is
a. Rs.10,000/-
b. Rs.12,500/-
c. Rs.25,000/-
d. Rs.50,000/-
Ans: Rs.25,000/-
180
2: The amount of relief payable under public liability insurance act, 1991 for
permanent total disability is
a. Rs.12,500/-
b. Rs.25,000/-
c. Rs.50,000/-
d. Rs.1,00,000/-
Ans: Rs.25,000/-
181
3: Under public liability insurance act, 1991 a company handling hazardous
substance has to insure for an amount not less than the amount ----- of the
company
a.market value of assets
b.market value of stocks
c.paid-up capital
d.turnover of hazardous substances
Ans: paid-up capital
182
4: The maximum liability of the insurer under public liability insurance act 1991
to pay relief to several claimants arising out of one accident shall not exceed----
-
a.Rs.2.50 crores
b.Rs.5.00 crores
c.Rs.7.50 crores
d.Rs.10.00 crores
Ans: Rs.5.00 crores
183
5:Which of the following liabilities is NOT excluded under insurance policy under
public liability insurance act, 1991
a.arising out of willful non-compliance of statutory provision
b.damage to property leased by the insured
c.damage to property of third party
d.fines and penalties
Ans: damage to property of third party
184
6: Which of the following is taken into account to fix rates of premium for the
policy under public liability insurance act , 1991
a.limit of indemnity , any one accident
b.limit of indemnity, any one year
c.limit of indemnity, any one year and turnover
d.limit of indemnity, any one accident and turnover
Ans: limit of indemnity, any one accident and turnover
185
7: Which of the following exclusions of industrial risks public liability policy can
be covered under a separate policy
a.liability for pollution
b.liability of collaboration who has a technical collaboration with the insured
c.liability for injuries to employees
d.liability arising out of earthquake
Ans: liability for injuries to employees
186
8: Under industrial risks public liability policy the compulsory excess of a
specified percentage is applied on the limit of indemnity
1: any one accident
2: any one year
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
187
9: Which of the following is NOT relevant in fixing rates of premium under
industrial risks public liability policy
a.risk group
b.type of construction of risk
c.ratio of limits of indemnity-AOA to AOY
d.turnover
Ans: type of construction of risk
188
10: Which of the following risks falls under group IV for rating purposes under
industrial risks public liability policy
a.distilleries
b.match factories
c.breweries
d.biscuit factories
Ans: match factories
189
11: Which of the following exclusions does NOT apply under products liability
policy
a.pollution
b.costs of repair of a defective product
c.costs of recall of any product
d.product guarantee
Ans: pollution
190
12: which of the following products is charged the highest rate of premium
under products liability policy
a.motor vehicles
b.motor vehicle tyres
c.alcoholic beverages
d.pharmaceutical products
Ans: motor vehicle tyres
191
13: For which of the following professional indemnities ‘per capita’ premium in
addition to basic rate is NOT provided
a.medical establishments
b.doctors
c.chartered accountants
d.solicitors
Ans: doctors
192
14: Which of the following does NOT appear in the indemnity clause of workmen’s
compensation insurance
a.employees state insurance act
b.workmen’s compensation act
c.fatal accidents act
d.common law
Ans: employees state insurance act
193
15: Which of the following statements is true
1: compulsory excess is applicable to doctors professional indemnities
2: compulsory excess is applicable to professional indemnities for medical
establishments
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 2 is true
194
16: Which of the following extensions is NOT granted under workmen’s
compensation policy
a.specified diseases in the W.C.act
b.medical expenses
c.technical collaboration
d.contractor’s workmen
Ans: technical collaboration
MOCK TEST 11
195
196
1: Which of the following project does NOT fall under contractor’s all risk policy
a. installation of machinery
b. buildings
c. tunnels
d. bridges
Ans:installation of machinery
197
2: Which of the following is NOT covered under boiler and pressure plant policy
a. damage to boiler
b. damage to surrounding property of insured
c. damage by fire
d. damage to third party property
Ans:damage by fire
198
MOCK TEST 12
199
1: Which of the following requirements does NOT apply for granting cash-in- safe
insurance
a. the safe is ‘burglar-proof’
b. the safe is brand new
c. the safe is of approved make
d. the safe is approved design
Ans:the safe is brand new
200
2: Which of the following risks is NOT covered at extra premium under burglary
( business) premises policy
a. strike
b. riot
c. breakage of plate glass
d. terrorism
Ans:breakage of plate glass
201
3: Which of the following losses caused by burglars is NOT payable under
burglary ( business premises) policy
a. damage to external doors by fire
b. damage to goods which were not stolen
c. damage to furniture
d. theft of cash safe through original key obtained by threats of violence
Ans:damage to external doors by fire
202
4: Which of the following is covered under baggage insurance policy
a. traveling saleman’s samples
b. traveling dealer’s stocks
c. accompanied baggage
d. unaccompanied baggage
Ans:accompanied baggage
203
5: Which of the following policies are NOT granted in burglary ( business
premises) policy
a. first loss policy
b. reinstatement value policy
c. declaration policy
d. floating policy
Ans:reinstatement value policy
204
6: Under money insurance which of these statements is correct. Estimated amount
of cash in transit during the policy period
1: is the maximum amount payable for any one loss
2: is the amount on which the premium is collected
a. 1 is correct
b. 2 is correct
c. both are correct
d. both are incorrect
Ans: 2 is correct
205
7: Which of the following risks does NOT require additional premium under money
in transit policy
a.riot
b.strike
c.robbery
d.terrorism
Ans:robbery
206
8:Which of the following can be covered under money-in-transit policy at extra
premium
1: dishonesty of persons carrying the cash
2: loss of wages on premises during payment to employees
a.1 only
b. 2 only
c. both can be covered
d. neither can be covered
Ans: both can be covered
207
9: Under fidelity guarantees, the customary time limit for discovery of loss is
not later than ----- months after the resignation of the dishonest employee
a 6
b. 12
c. 18
d. 24
Ans:12
208
10: which of the following fidelity guarantee policies is usually granted to
large reputable firms to cover their entire staff
a. floating policy
b. collective policy
c. blanket policy
d. positions policy
Ans:blanket policy
209
11: Under which of the following fidelity guarantee policies individual amount of
guarantee is NOT specified
a. collective policy
b. floating policy
c. positions policy
d. blanket policy
Ans:floating policy
210
12: Under which of the following fidelity guarantee policies, ‘per capita’
additional premium is charged
a. collective
b. floating
c. positions
d. blanket
Ans: floating
211
13: Which of the following is NOT covered under neon sign insurance
policy
a. theft
b. lightning
c. mechanical breakdown
d. external explosion
Ans:mechanical breakdown
212
14: which of the following covers in ‘householders’ package insurance is NOT
included in shopkeepers package insurance
a. personal baggage
b. television
c. fixed plate glass
d. legal liability to third parties
Ans: television
213
15: Which of the following covers in shopkeepers package insurance is not
included in householders package insurance
a. fixed plate glass
b. neon sign
c. pedal cycles
d. legal liability to employees
Ans:neon sign
214
16: Which of the following are NOT covered under bankers blanket policies
a. trading losses
b. payment of raised cheque
c. dishonesty of the employee of the bank with respect to loss of money
d. loss of securities by fire
Ans:trading losses
215
17: Which of the following are NOT covered under bankers blanket policies
a. fraud of insured’s employees in respect of goods hypothecated to
the insured
b. payment of forged cheques
c. loss due to faulty computer programming
d. loss of securities by burglary
Ans: loss due to faulty computer programming
216
18: Under jewelers block policy which of the following property is covered
against specified risks only not on ‘all risks’ basis
a. on premises
b. in transit by air freight
c. in transit by angadia
d. in the custody of brokers
Ans:on premises
217
MOCK TEST 13
218
1: Under cattle policy, the claim is not payable for death due to disease
occurring within ------ days of the commencement of the risk
a.7 days
b.15 days
c. 21 days
d. 30 days
Ans:15 days
219
2: Which of the following is true in relation to sheep and goat insurance
1: indemnity is provided on the basis of sum insured or market value
whichever is less
2: salvage value is deducted from claim amount payable
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans: 1 is true
220
3: For which of the following features, no discount is granted for premium rates
for poultry insurances
a. farms in rural areas
b. farms having resident veterinary doctor
c. farms having dead bird disposal system
d. farms having standard layout
Ans:farms in rural areas
221
4: For which of the following crops horticulture policy is NOT available
a. grapes
b. oranges
c. papaya
d. bananas
Ans: papaya
222
5: Under agricultural pump set policy which of the following risks is covered at
extra premium
a. mechanical breakdown
b. electrical breakdown
c. flood
d. burglary
Ans: flood
223
6: Under IRDA regulations every insurer shall underwrite business in the rural
sector to the extent of at least -----% of the total gross premium in the first
financial year
a. 1 %
b. 2 %
c. 3%
d. 4%
Ans:2%
224
MOCK TEST 14
225
1: which of the following is true as per the arbitration condition in fire and most
miscellaneous policies
1:All differences in respect of a claim are to be referred to arbitration
2: differences regarding amount of claim only to be paid are to be referred to
arbitration
a. 1 is true
b. 2 is true
c. both are true
d. both are false
Ans:2 is true
Important Terms
1) Losses
2) Papaya
3) Coffee
4) Robbery
5) Pollution
6) Assignment
7) ICC(A)
8) Malicious Damage
9) Rs. 5 Crore
10) Contribution
11) 1500 (towing charge)
12) Motor Constructive Total Loss =75%
13) Match Factory
14) Earthquake
15) Veterinary Doctors
16) Tonsillitis
17) Epilepsy
18) First two children
19) Tuberculosis
20) Motor vehicle tyres
21) Television
22) Neon sign
23) Marine cargo insurance
24) Marine cargo and hull
25) Civil Court = False statements
26) Architects 'fees' = 3% and 7.5%
27) Debris removal = 1% and 10%
28) Act of god perils = Rs.10,000/- for
each and every loss
29) Forklift on the premises
30) No – fault liability = Rs. 50,000
31) Hit and run motor accident = 25,000