IC01 Mock Test Sample 04
This IC01 Licentiate question set covers important concepts of insurance practices, regulations, and principles in India. It includes topics like types of brokers, health insurance policies such as family floater, and roles of TPAs in claim settlement. Key concepts like maturity benefits, compulsory motor insurance, and exclusions in contracts are tested. It also focuses on risk management, loss assessment by surveyors, and underwriting aspects. Regulatory and legal topics include IRDA functions, consumer protection limits, and contract competency. Additionally, it highlights insurance fundamentals like total loss, agent remuneration, and the role of institutions such as the Life Insurance Council in the insurance industry.
1. 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
2. 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
3. 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
4. An insurance surveyor licence is valid of __________.
A. Three years
B. Five years
C. Seven years
D. Ten years
5. 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
6. Who gets the benefits under a Life Insurance policy?
A. Claimant
B. Policy holder
C. Life Assured
D. Assignor
E. Assignee
7. Ms. Reeta would like to buy a car. Which insurance is compulsory before bringing the car to the road?
A. Motor Own Damage cover
B. Personal Accident cover
C. Burglary Insurance
D. Third Party Motor Liability Insurance
E. None of the above
8. Exclusions are used in Insurance Contracts for all of the following reasons except _______.
A. To prevent moral hazard
B. To eliminate duplication of coverage
C. To avoid un-insurable perils
D. To provide physical description of property
E. None of the above
9. In the insurance sector, who attempts to identify and eliminate or reduce risks?
A. Peril Manager
B. Professional Manager
C. Event Manager
D. Insurance Manager
E. Risk Manager
10. Which word is dissimilar to the other four options?
A. Loss Ratio
B. Expense Ratio
C. Solatium Fund
D. Exclusions
E. Gross Direct
11. Which of these Government bodies does not contribute to the Solatium Fund?
A. Central Government
B. State Government
C. General insurers
D. Municipal Corporations
E. None of the above
12. Who assesses the losses in Non-Life Insurance?
A. Underwriters
B. Agents
C. Surveyors
D. Actuaries
E. Engineers
13. ______ policy offers a tax deferred saving account.
A. Pension plans
B. Child education protection plan
C. Endowment plans
D. Term plans
E. Universal life insurance
14. The full form of TPA is _______.
A. Third Party Accounts
B. Third Party Analyst
C. Third Party Agreement
D. Third Party Administrators
E. Third Party Association
15. What is the role of a TPA?
A. To get new business for the insurer
B. To scrutinize proposal forms
C. To settle medical and hospital expenses
D. To calculate premium
E. To issue policy documents
16. As per Indian Contract Act, who is not competent to contract?
A. A person of unsound mind
B. A person convicted of criminal offence
C. A person of age 16 years
D. All of the above
E. None of the above
17. The national commission under consumer protection act can entertain a complaint where compensation exceeds Rs ____.
A. 25 lakhs
B. 50 lakhs
C. 75 lakhs
D. 2 crores
18. A physical loss when the subject matter of insurance is irreparably destroyed is known as _____.
A. Constructive total loss
B. Particular average loss
C. First loss
D. General average loss
E. Actual total loss
19. Insurance agents are remunerated by way of _______.
A. Brokerage
B. Salaries
C. Commissions
D. Charges
E. All of the above
20. All insurers transacting life insurance business are members of the ________.
A. General Insurance Council
B. Life Insurance Council
C. Institute of Actuaries of India
D. Tariff Advisory Committee
E. Malhotra Committee
