IC01 Mock Test Sample 05
This IC01 Licentiate question set focuses on core insurance concepts, legal frameworks, and regulatory aspects in India. It covers features of endowment plans, roles of brokers, and documents like cover notes. It tests understanding of Indian Contract Act provisions, assignment in insurance, and insurable interest. Key topics include actuarial valuation, Section 45 of the Insurance Act, and entry of private insurers in 2000. It also highlights risk management methods, perils, and consequential losses. Ethical behavior, governance, and roles of IRDA are examined. Additionally, it includes knowledge of insurance agents, policyholder rights, and legal acts like the Transfer of Property Act.
1. Which of these parameter can be set to suit the preference of the proposer in an Endowment Plan?
A. Amount of sum assured
B. Policy duration
C. Mode of premium payment
D. Frequency of premium payment
E. All 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. Cover Notes are ____________.
A. Temporary documents issued for property insurance as proof of cover
B. Meant for giving reinsurance cover
C. Given when policy is finalized
D. Issued for motor policies as proof under Motor Vehicle Act
4. Which word closely matches the following: It is valuable, has a lifetime, and provides benefits (income/service)?
A. Agricultural Land
B. Money
C. Office
D. Car
E. All of the above
5. Which of these statements is INCORRECT with reference to Indian Contract Act?
A. Forms rules for enforceability of contract
B. Lays down conditions for valid contract
C. Relevant to insurance contracts
D. Provides conditions where contract can be void
E. None of the above
6. Which of the below option is INCORRECT?
A. Unethical behavior shows concern for self
B. Using position for self-interest is unethical
C. Doing duty sincerely leads to good governance
D. None of the above
7. Which of these statements is/are INCORRECT?
A. Assignor loses rights after assignment
B. Assignment transfers rights & liabilities
C. Person making assignment is assignor
D. Insurer consent not needed but must be informed
E. Marine hull policy can be assigned without consent
8. When a person takes a Household Insurance Policy, insurable interest exists at the outset and _________.
A. On termination date
B. On date of claim
C. On policy receipt
D. On cancellation period expiry
E. On proposal stage
9. Who makes periodic valuations of funds and certifies solvency margins?
A. PFRDA
B. RBI
C. Underwriter
D. Chief Financial Officer
E. Actuary
10. According to Section 45 of Insurance Act, policy can be declared void within ______.
A. First six months
B. First year
C. First three years
D. First five years
E. Never
11. Who does the process of valuation in a life insurance company?
A. Insurance Institute of India
B. Actuary
C. IRDAI
D. Ministry of Finance
12. Apart from Insurance, how can one reduce costs and manage risks?
A. Maintenance expenses
B. Security measures
C. Backup systems
D. All of the above
E. None of the above
13. In which year did private players enter the insurance market in India?
A. 2000
B. 1995
C. 2001
D. 2003
E. 2005
14. In an assignment, the policyholder transferring rights is called ________.
A. Transferor
B. Beneficiary
C. Assignor
D. Assignee
E. Nominee
15. Which of these is a PERIL?
A. Lightning Arrestors
B. Burglary Alarms
C. Fire Alarms
D. Fire extinguishers
E. Landslides
16. ______ are the likely consequential losses or damages.
A. Perils
B. Risks
C. Hazards
D. Insurance
E. Expenses
17. With reference to insurance agents, which statement is INCORRECT?
A. Paid via commissions
B. Appointed by companies
C. Licensed for both life & non-life
D. Need IRDAI license
E. License valid for 3 years
18. Which of the below options is INCORRECT?
A. Self-interest use = unethical
B. Ethical behavior leads to good governance
C. Unethical = self-focused behavior
D. Sincere duty leads to good governance
E. None of the above
19. Which statement is INCORRECT about IRDA?
A. Regulates insurance industry
B. Issues guidelines
C. Issues licenses
D. Formed in 1999 Act
E. None of the above
20. Which act provides rules for transfer of property and rights/liabilities?
A. Transfer of Property Act
B. Indian Registration Act
C. Indian Stamp Act
D. Indian Partnership Act
E. Negotiable Instruments Act
