IC01 Mock Test
These questions focus on core principles and regulatory aspects of insurance. Topics include marine insurance clauses, limitations of insurance in covering non-economic losses, and the importance of risk reduction before occurrence. Concepts like insurable interest, reinsurance, and roles of intermediaries such as brokers are covered. The role of IRDAI in regulation and investment guidelines is highlighted. Risk management methods like transfer, retention, reduction, and avoidance are discussed. Questions also test understanding of premium calculation, customer behavior challenges, and insurance as protection of economic value. Practical examples include term insurance, probability through law of large numbers, and investment restrictions under the Insurance Act.
1. Which clauses are used in marine insurance when goods are moved internationally?
A. Institute Cargo Clauses
B. Time or Voyage Clauses
C. Indemnity Clauses
D. Indisputability Clauses
E. Institute Voyage Clauses
2. Insurance cannot compensate for ________.
A. Losses due to act of God
B. Non-economic losses
C. Economic losses
D. Financial losses
E. All of the above
3. When should steps be taken to reduce risks?
A. Before the peril strikes
B. While the peril strikes
C. After the peril strikes
D. Only option 1 and 2
E. Only option 2 and 3
4. Which statement is INCORRECT?
A. Motor accident risk reduced by traffic rules
B. Risk of death can be prevented
C. Ship damage risk controlled by weather info
D. All of the above
E. None of the above
5. Insurance companies have _____________ in subject matter for reinsurance.
A. Keen interest
B. Insurable interest
C. High stakes
D. Goodwill
E. Compassion
6. ____________ sources insurance business but is not appointed by insurer.
A. Agents
B. Insurance Employees
C. Surveyors
D. TPAs
E. Brokers
7. Which statement is INCORRECT?
A. Bad construction is a risk
B. Living too long is a risk
C. Critical illness is a risk
D. Natural calamities can be controlled
E. Forex fluctuation is a risk
8. Insurers have _______ in subject matter for reinsurance.
A. Indemnity
B. Goodwill
C. Stake
D. Insurable interest
E. Trust
9. As per IRDAI Act, who makes rules?
A. IRDAI
B. Insurance advisory
C. Insurance association
D. Insurance council
E. Insurance Institute of India
10. Insurance tries to _________.
A. Minimize risk exposure
B. Reduce impact of risk
C. Reduce emotional trauma
D. Reduce burden of expenses
E. None of the above
11. What challenges customers in insurance?
A. Buyer may not get benefit
B. No immediate pleasure
C. Long waiting in life insurance
D. Delay in benefits
E. All of the above
12. Insurance Act restricts investment in _______.
A. Government bonds
B. Stable companies
C. Stock markets
D. Currency markets
E. Both 1 and 2
13. Insurance manages risk by:
A. Transfer
B. Retention
C. Reduction
D. Avoidance
E. All of the above
14. Premium is based on expectations of:
A. Profits
B. Losses
C. Trade amount
D. Business volumes
E. None
15. Insurance business relates to:
A. Protection of economic value
B. Emotional value protection
C. Maintenance of assets
D. Economic maintenance
E. Valuation of assets
16. Mr. Sudesh’s policy type:
A. Endowment Assurance
B. Money Back
C. Pure Endowment
D. Double Endowment
E. Term Assurance
17. Probability example represents:
A. Laws of statistics
B. Law of a million
C. Law of large numbers
D. Law of gravity
E. None
18. Controller of insurance in India:
A. Insurance Ombudsman
B. Insurance Institute of India
C. IRDAI
D. Insurance Council
E. Insurance Association
19. INCORRECT regarding IRDA regulation:
A. Registration powers
B. Code of conduct
C. Inspection & audit
D. Conduct training
E. Adjudication of disputes
20. Which statement(s) is/are INCORRECT?
A. IRDA allows speculative investments
B. IRDA lays investment strategies
C. IRDA gives investment guidelines
D. Statement A and B
E. Statement B and C
