IC01 Mock Test sample 09
These questions cover key concepts of insurance including roles, principles, policies, and regulations. They highlight ethical practices, such as agents not charging claim percentages, and the importance of licensing and training for brokers. Concepts like layering, maximum possible loss, and consequential losses explain risk management techniques. The questions also test understanding of policy features like named perils, exclusions, and indemnity. Regulatory aspects such as investment limits and IRDA guidelines are included. Practical topics like premium calculation and customer needs analysis are covered. Overall, the set builds a strong foundation in insurance operations, risk assessment, and customer-focused practices essential for the insurance industry.
1. Which one of the below option is INCORRECT?
A. The insurance broker lists features and benefits
B. Broker must reveal commission on questioning
C. Agent can ask percentage of claim amount
D. Surveyor assesses loss correctly
2. What does the term ‘Layering’ mean in insurance?
A. Financial transaction to offset loss
B. Spreading risks across areas
C. Insurance arranged in layers with increasing liabilities
D. Isolation of risk subjects
3. Which words are dissimilar from other four options?
A. Life Insurer – Policy holder
B. Partners in business
C. Brother and Sister
D. Creditor and Debtor
4. Which statement is incorrect about lapsed policies?
A. No penalty in grace period
B. Nothing payable after lapse
C. Lapse due to financial difficulty
D. Lapse if premium not paid in grace
5. Dhawal wants to become an insurance broker. Next step?
A. Start meeting clients
B. Cannot solicit business
C. Obtain license after exam
D. Only option B and C
6. Which policies are related to Time or Voyage?
A. Air insurance
B. Cargo insurance
C. Fire insurance
D. Hull insurance
7. Select correct option for Web Aggregators
A. Lead generation for insurers
B. Collect policy information
C. Compile and present data
D. None of the above
8. What is Maximum Possible Loss?
A. Total loss that can happen
B. Repair cost
C. Replacement cost
D. Cleaning cost
9. Which is NOT a consequential loss?
A. Insurance cost
B. Loss of rent
C. Loss of production
D. Cleaning expenses
10. Which item is not included in insurance policy?
A. Depreciation fund account
B. Conditions attached
C. Promises by insurer
D. Terms and conditions
11. Limits are placed on insurers regarding
A. Investment in gold bonds
B. Investment in one company
C. Number of products
D. Premium charged
12. Inter-relationship of departments is called
A. Internal customer
B. External customer
C. Department politics
D. Transparency
13. “Not all risks are insurable” statement
A. Correct
B. All risks insurable
C. 30% non-insurable
D. 10% non-insurable
14. Named peril policies are
A. Non-financial loss policies
B. Perils listed in policy
C. Bills related losses
D. Life loss policies
15. Healthcare policies exclude diseases within ____ days
A. 2
B. 5
C. 15
D. 30
16. Husband and wife insurance statement
A. Life only allowed
B. Wife only allowed
C. Correct statement
D. Health only allowed
17. Calculate premium (1000 + 200 + 30%)
A. 1538.46
B. 1358
C. 1489
D. 1512.9
18. Premium is the ______ paid to insurer
A. Expense
B. Fee
C. Compensation
D. Consideration
19. What is long tail liability?
A. Animal insurance
B. Long projects
C. Pet insurance
D. Outgo known much later
20. ______ insurance is a contract of indemnity
A. Life
B. Critical
C. Personal accident
D. Motor
