IC01 Mock Test Sample 07
This IC01 Licentiate question set covers key aspects of non-life and life insurance in India, including classification of insurance types such as fire, marine, motor, and miscellaneous. It explains principles like insurable interest, asset protection, and risk types including catastrophic and financial risks. The questions highlight regulatory guidelines like IRDA code of conduct, roles of brokers, and capital requirements. It also includes practical scenarios of claim settlement and reinsurance concepts like ceding and acceptance. Additionally, it covers legal frameworks such as the Indian Trust Act and Insurance Act 1938, along with insurance products like pension plans and life insurance benefits.
1. Non-Life Insurance business in India is classified into which categories?
A. Fire, Auto, Marine
B. Fire, Auto, Marine, Miscellaneous
C. Fire, Auto, Miscellaneous
D. Fire, Marine, Miscellaneous
E. Auto, Marine, Miscellaneous
2. Non-Life Insurance business in India is classified into which categories?
A. Fire, Health, Marine, Automobiles, Miscellaneous
B. Fire, Marine, Miscellaneous
C. Health, Marine, Automobiles
D. Fire, Marine, Automobiles, Miscellaneous
E. Marine, Automobiles, Miscellaneous
3. Rajesh gave Rs. 50,000 loan, Rs. 40,000 repaid. Insurable interest?
A. Rs. 50,000
B. Rs. 40,000
C. Rs. 90,000
D. Rs. 25,000
E. Rs. 10,000
4. For which family members can a man take Health Insurance?
A. Brothers
B. Sisters
C. Uncles
D. Parents
E. All of the above
5. As per IRDA code, which statement is TRUE?
A. Agent must carry ID card
B. Agent may be asked for ID
C. Prospect can ask license
D. Only A and B
E. Only A and C
6. Where does the Indian Trust Act play an important role?
A. Married Women’s Property Act cases
B. Railway carrier liability
C. Ownership disputes
D. Partnership insurance
E. Marine cargo claims
7. Claim settlement in case of bike accident (Mr X & Mr Y)?
A. Mr Y pays via his insurer
B. Insurance won’t interfere
C. Mr X insurer pays and recovers from Mr Y
D. Mr Y escapes liability
E. None of the above
8. _______ are economic resources.
A. Capital
B. Assets
C. Liabilities
D. All of the above
E. None of the above
9. Why are assets insured?
A. Risk of accidental destruction
B. Becoming old
C. Depreciation
D. Long life
E. None of the above
10. Aviation insurance falls under which category?
A. Miscellaneous Insurance
B. Engineering Insurance
C. Marine Insurance
D. Motor Insurance
E. Fire Insurance
11. Which is covered under Life Insurance?
A. Hospital expenses
B. Work injury
C. Product damage
D. Death benefits
E. All of the above
12. Which term is NOT common in Traditional & Linked policies?
A. Choice of funds
B. Sum assured
C. Schedule of charges
D. Options 2 and 3
E. Options 1 and 3
13. Brokers are remunerated by _______.
A. Fixed fees
B. Salaries
C. Commissions
D. Consultancy fees
E. None of the above
14. What must businesses keep in mind for success?
A. Recommendation ability
B. Usage of product
C. Paying capacity
D. Customer needs
E. All of the above
15. Minimum capital for reinsurance/composite broker?
A. Rs. 100 lakhs
B. Rs. 150 lakhs
C. Rs. 200 lakhs
D. Rs. 250 lakhs
E. Rs. 300 lakhs
16. ______ risk can lead to bankruptcy.
A. Financial
B. Insurable
C. Non-insurable
D. Catastrophic
E. Speculative
17. Reinsurance received from other insurers is called _______.
A. Taken over
B. Outsourced
C. Accepted
D. Preceded
E. Ceded
18. In which policy can Commutation be done?
A. Health Insurance
B. Pension policy
C. Endowment policy
D. ULIP
E. Term policy
19. Abandonment of goods leads to _______ loss.
A. Actual total loss
B. Salvage loss
C. Total average loss
D. Constructive total loss
E. Partial average loss
20. Which body is not under Insurance Act 1938?
A. Life Insurance Council
B. Tariff Advisory Committee
C. General Insurance Council
D. Insurance Association
E. Consumer Protection Act
