IC01 Mock Test
These questions cover essential insurance concepts including hazards, roles of brokers and agents, and regulatory frameworks. They test understanding of policy types such as single premium and valued policies, along with principles like risk, liability, and exclusions. Key topics include IRDAI regulations, free-look periods, and e-insurance accounts. Practical knowledge such as policy renewal, insurer liability (sum assured), and consumer protection limits is also assessed. The set emphasizes clarity on insurance operations, financial concepts like accrual and periodicity, and decision-making aspects in policies, helping build a strong foundation in insurance principles and industry practices.
1. Which of the following is a group of hazards?
A. Storage, Construction, Liability
B. Flood, Earthquake, Terrorism
C. Accident, Property, Liability
D. Age, Method of Packing, Usage
E. None of the above
2. A broker who places his insurance with a primary insurer is known as a ________.
A. Reinsurance broker
B. Composite broker
C. Direct broker
D. Primary broker
E. None of the above
3. Insurance agents are remunerated by way of _______ by the insurers.
A. Brokerage
B. Salaries
C. Commissions
D. Consultancy fees
E. Charges
4. Which of the following Acts does not deal with Liability?
A. Carriage by Road Act, 2007
B. Companies Act, 2013
C. Mental Healthcare Act, 2017
D. Employees Compensation Act, 1923
E. All of the above
5. When does the Insurer have the burden to prove that the loss is due to an excluded Peril?
A. For claims in All Risks Policies
B. If the Insurer denies the claim on the ground that it was caused by an excluded Peril
C. For claims in Named Peril Policies
D. For claims in all Policies
E. None of the above scenarios
6. Which concept seeks to account all expenses relating to the financial year?
A. Accounting Concept
B. Consistency Concept
C. Accrual Concept
D. Periodicity Concept
E. None of the above
7. What is the policy called in which the premium is paid only once, that is only at the commencement of the policy?
A. Special Term Policy
B. Limited Premium Policy
C. Flexible Premium Policy
D. Only Premium Policy
E. Single Premium Policy
8. Which of the following statements is INCORRECT?
A. Bad construction of a building is a risk
B. Living too long is a risk
C. Critical illness is a risk as it leads to heavy expenses and loss of income
D. We can control natural calamities by proper risk management
E. Foreign exchange fluctuations is also a risk
9. How can you define an insurance broker?
A. An insurance broker is an individual, a company, a society, or a firm, wholly engaged in sourcing insurance business for various insurance companies.
B. An insurance broker is an individual who collect the information about insurance policies of various insurance companies from various sources and databases.
C. An insurance broker is the person appointed for canvassing and procuring the insurance business for three life assurance companies, three general insurance companies and three health insurance companies.
D. An insurance broker is an individual who is outside the purview of IRDA and the Insurance Act.
E. An insurance broker is an institution established by the act of Parliament.
10. Who has prescribed a free look period for Life insurance, General insurance and Health insurance policies?
A. General Insurance Corporation of India
B. Insurance Regulation of India
C. Life Insurance Corporation of India
D. Liability Insurance Corporation of India
E. Insurance Regulatory and Development Authority of India
11. Judge the statement:
‘Insurance companies can be certain as to when the claims would occur but cannot be certain as to how big the claims would be.’
A. Incorrect - Insurance companies cannot be certain as to when claims would occur and how big the claims would be
B. Incorrect - Insurance companies can be certain as to when claims would occur and how big the claims would be
C. Incorrect - Insurance companies cannot be certain as to when claims would occur but can be certain as to how big the claims would be
D. Incorrect - Insurance companies can be only 50% certain
E. Correct - Insurance companies can be certain as to when claims would occur but cannot be certain as to how big the claims would be
12. Identify the correct statement with respect to valued policies.
A. Floater policies
B. Full value policies
C. First loss policies
D. Admitted value policies
E. Declaration policies
13. Identify the statement which is not true regarding e-insurance account.
A. Offered free of cost
B. Multiple accounts allowed as per IRDA
C. Application form used to open account
D. Requires KYC documents
E. Unique login ID and password
14. Sunder bought a general insurance policy for one year. Can he renew it?
A. Yes, after two years
B. Yes, at the end of one year
C. Yes, after 2.5 years
D. Yes, after three years
E. No, not renewable
15. The policy holder cannot decide the ________ in case of linked insurance policy.
A. Premium
B. Term
C. Sum assured
D. Fund design
E. Choice of funds
16. Which option is dissimilar from other four options?
A. Exclusions
B. Gross direct
C. Loss ratio
D. Solatium fund
E. Expense ratio
17. What is the maximum amount of liability of the insurer under a policy?
A. Policy Fund
B. Value assured
C. Sum assured
D. Sum assured + bonus
18. As per the Consumer Protection Act 1986, District Commission jurisdiction is up to:
A. ₹ 10 lakh
B. ₹ 20 lakh
C. ₹ 50 lakh
D. ₹ 1 crore
19. _____________ is not a common term to both Traditional and Linked life insurance policies.
A. Bonuses
B. Maturity value
C. Sum insured
D. Exclusions
20. Which of these policies is/are freely assignable?
A. Marine Cargo policies
B. Marine Hull policies
C. Floater policies
D. Valued policies
