IC01 Mock Test
This set of IC01 Licentiate questions covers key concepts of insurance principles, regulations, and practices in India. It includes topics like the role of IRDA in regulating advertisements, GIC functioning as a national reinsurer, and calculations in reinsurance treaties. Fundamental principles such as utmost good faith, insurable interest, and burden of proof are tested. It also covers life insurance concepts like nominees and benefits, underwriting profitability ratios, and policy types such as term, joint, and family floater. Additionally, it assesses knowledge of risk types, claim admissibility factors, broker roles, and regulatory aspects like surveyor licensing and health insurance terms like co-payment.
1. Who checks the advertisements of insurance companies to ensure that they do not misguide the customers?
A. RBI
B. Finance Ministry
C. Insurance Council
D. Insurance Regulatory and Development Authority (IRDA)
E. Insurance Institute of India (3i)
2. When the General Insurance Business Act was amended in 1999, the GIC was made ______.
A. A life insurer
B. A general insurance council
C. National reinsurer
D. A general insurer
E. None of the above
3. A risk with a Sum Insured of Rs. 600 Crores is ceded to a Reinsurer under a Five Line Surplus Treaty. The Insurer's Retention is Rs. 100 Crores. If the loss is for Rs. 60 Crores, how much would the Reinsurer pay?
A. Rs. 10 Crores
B. Rs. 24 Crores
C. Nothing
D. Rs. 50 Crores
E. Rs. 20 Crores
4. Uberrimae fidei means:
A. Duty of Disclosure
B. Contract of Bailment
C. Utmost Good Faith
D. Fiduciary Relationship
E. Contract of Insurance
5. In a life insurance policy, the person who makes a claim, on the death of the policy holder is known as the ______.
A. Nominee
B. Assignee
C. Legal heir
D. Claimant
E. Beneficiary
6. Which of the following is not true with regard to Burden of Proof?
A. In an All Risks Policy, the insured need only prove accidental loss
B. In named Peril Policy, the insured need not prove the peril
C. Customer is not expected to prove cause of peril
D. If insurer disagrees, burden shifts to insurer
E. All of the above
7. With reference to 'Term insurance', which is the correct answer?
A. It creates equitable distribution of risks & losses
B. Reduces destitution
C. Promotes thrift
D. Helps in savings
E. All of the above
8. Which of the following is not relevant to decide admissibility of a claim?
A. Sum Insured
B. Date of Loss
C. Location of property
D. Cause of Loss
E. All of the above
9. An Insurer has Insurable Interest in the property insured by them because:
A. They own the property
B. They are contractors
C. They benefit from its existence and lose from its loss
D. They are bailees
E. They rent the property
10. Which of the following is a speculative risk?
A. Damage by rioters
B. Damage by hackers
C. Loss due to fashion change
D. Loss of profit after fire
E. All of the above
11. Which was the first company to conduct life insurance business in India?
A. LIC of India
B. Oriental Life Insurance Company
C. GIC of India
D. Madras Equitable
E. Bharat Insurance Company
12. When converting a whole life policy to an Endowment policy the premium will ______.
A. Remain same
B. Change
C. Increase
D. Decrease
E. None of the above
13. ______ is an indication of the company's overall underwriting profitability.
A. Loss ratio
B. Combined ratio
C. Expense ratio
D. Surrender ratio
E. Loss ratio
14. A co-payment or co-pay is a term used in ______.
A. Wealth insurance
B. Health insurance
C. Marine insurance
D. Fire insurance
E. Term insurance
15. A broker who places insurance business with a primary insurer is known as ______.
A. Reinsurance broker
B. Composite broker
C. Direct broker
D. Primary broker
E. None of the above
16. A broker who places insurance business with a primary insurer is known as _____.
A. Composite broker
B. Reinsurance broker
C. Primary broker
D. Direct broker
E. None of the above
17. Mr. Chetan has taken a common health insurance policy for himself and his spouse. Which type of policy is this?
A. Group Policy
B. Joint Policy
C. Family Floater Policy
D. Any of the above
E. None of the above
18. An insurance surveyor licence is valid of __________.
A. Three years
B. Five years
C. Seven years
D. Ten years
19. In an insurance policy, Maturity Benefit is also known as ______.
A. Survival Benefit
B. Death Benefit
C. Death Cover
D. Maturity benefit
E. None of the above
20. Who gets the benefits under a Life Insurance policy?
A. Claimant
B. Policy holder
C. Life Assured
D. Assignor
E. Assignee
