IC01 Mock Test Sample 08
This IC01 Licentiate question set covers key insurance concepts including COPA (Consumer Protection Act) and the role of cover notes as temporary proof of insurance. It explains different types of risks such as financial, catastrophic, dynamic, and critical risks, and their impact on individuals and the economy. The questions highlight customer satisfaction, risk management techniques like diversification, and insurance products like ULIPs with various fund options. It also includes regulatory aspects like IRDA guidelines for TPAs and ownership of ECGC. Overall, it builds understanding of risk classification, insurance operations, customer focus, and financial protection mechanisms in the insurance sector.
1. The full form of COPA is ________.
A. Consumer Protection Act
B. Cancellation Of Premium Advance
C. Control of Pollution Act
D. Committee of Public Accounts
E. Center of Policy Attributes
2. Which statement is INCORRECT about a Cover Note?
A. Issued for quick insurance cover
B. Used for fire risks at multiple locations under one sum assured
C. Can be issued on the spot
D. Premium can be changed retrospectively after underwriting
E. Issued for motor insurance before road use
3. The risk which can lead to bankruptcy is _________.
A. Financial
B. Dynamic
C. Catastrophic
D. Static
E. Speculative
4. Which risk can possibly lead to bankruptcy?
A. Financial
B. Dynamic
C. Static
D. Speculative
E. Catastrophic
5. Cover Notes are ________.
A. Temporary proof of insurance
B. Fire cover for stocks at multiple locations
C. Issued after final policy
D. Motor proof under Motor Vehicle Act
E. None of the above
6. What are Critical Risks?
A. Loss of reputation/goodwill
B. Very large risks leading to bankruptcy
C. National consequence risks
D. No national consequence risks
E. Value change risks
7. Which statement is correct?
A. Only gain in speculative risks
B. Dynamic risks have no national impact
C. Fundamental risks affect small population
D. Catastrophic risks may cause bankruptcy
E. None of the above
8. When do customers feel happy?
A. When cared for
B. Not taken advantage of
C. Views are respected
D. Recognised
E. All of the above
9. In ULIPs, which fund invests mostly in Government Bonds?
A. Equity Fund
B. Balanced Fund
C. Debt Fund
D. Money Market Fund
E. All of the above
10. Consequences of destitution?
A. Government subsidy burden
B. Population growth
C. Behaviour issues in children
D. Lack of education
E. All of the above
11. With reference to Term Insurance, correct answer?
A. Risk distribution
B. Reduces destitution
C. Promotes thrift
D. Helps savings
E. All of the above
12. Spreading risk across areas is called ________.
A. Transfer
B. Duplication
C. Diversification
D. Separation
E. Arbitration
13. ______ means spreading risks across areas.
A. Duplication
B. Separation
C. Diversification
D. Reduction
E. Spread
14. Example of Dynamic Risk?
A. Volcano eruption
B. Gambling
C. Rupee fluctuations
D. Train accident
E. Stock market trading
15. Example of Dynamic Risk?
A. Volcano eruption
B. Gambling
C. Rupee fluctuations
D. Train accident
E. Stock market trading
16. Select the INCORRECT statement.
A. Typhoid is unimportant risk
B. Inflation is dynamic risk
C. Forex fluctuation is financial risk
D. Plane crash is fundamental risk
E. Earthquake is speculative risk
17. ECGC Limited is owned by _______.
A. LIC of India
B. General insurers
C. Government of India
D. Export Promotion Councils
E. All Public General Insurers
18. TPA license requires director to be _________.
A. Pathologist
B. Cardiac specialist
C. Microbiologist
D. Hospital manager
E. Medical practitioner
19. Engineering Insurance covers ________.
A. All accident risks
B. Contractor/project risks (tunnels etc.)
C. Motor risks
D. Air/sea transport risks
E. Air/sea transport risks
20. Types of ULIP funds?
A. Debt
B. Equity
C. Balanced
D. All of the above
E. None of the above
