IC01 Mock Test Sample 12
These questions focus on key concepts of non-life insurance, health insurance, and insurance principles in India. Topics include classification of general insurance, role of GIC as national reinsurer, and protection of insurer funds. Health insurance features like cashless facility, no claim bonus, malus, and exclusions are highlighted. It also covers micro insurance rules, policy documents, and types of health policies like family floater. Annuities, deferment period, and immediate annuity concepts are tested. Fundamental principles such as insurable interest and risk financing are included, along with tax benefits of insurance and differences between insurance and wagering contracts.
1. Non-life insurance business is classified into _______ in India.
A. Fire, Marine, Automobile and Miscellaneous
B. Fire, Marine and Automobiles
C. Fire, Automobiles and Miscellaneous
D. Automobiles, Marine and Miscellaneous
E. Fire, Marine and Miscellaneous
2. Insurers protect the funds of the group by ________.
A. Paying up all claims
B. Making the premiums excessive
C. Paying exaggerated claims
D. Not paying for losses which are not accidental
E. None of the above
3. Which of the following entities was nominated as the national re-insurer?
A. New India Assurance Co. Ltd.
B. Oriental Insurance Company Ltd.
C. LIC
D. General Insurance Corporation of India
E. IRDA
4. In respect of Health Plans offered by insurance companies, which is INCORRECT?
A. Fixed % amount per day of hospitalization
B. Sum assured determines benefits
C. Not reimbursement-based in life insurance
D. Fixed cash benefit for critical illness
E. No exclusions in health plan
5. In which of these insurance is cashless facility available?
A. Term Insurance
B. Fire Insurance
C. Life Insurance
D. Marine Insurance
E. Health Insurance
6. Which option is dissimilar from others?
A. Duplication
B. Hedging
C. Separation
D. Diversification
E. None of the above
7. If a Mediclaim policyholder has no claim and renews, they get:
A. No Claim Premium
B. Special Bonus
C. No Claim Reward
D. Medi Reward
E. No Claim Bonus
8. Malus happens due to a claim which _______ a specified limit.
A. Under states
B. Exceed
C. Similar
D. Is less than
E. None of the above
9. Malus happens when a claim _______ a specified limit.
A. Falls below
B. Exceeds
C. Is equal to
D. Under states
E. None of the above
10. With reference to health insurance, which option is FALSE?
A. Covers pre-existing diseases immediately
B. Group policies for employees
C. Covers hospitalization expenses
D. Cashless arrangements available
E. Discounts for low claim ratio
11. Which statement(s) is/are FALSE with respect to Micro Insurance?
A. Both life & non-life insurers can offer
B. Life insurer can collect premium for both risks
C. Life insurer settles non-life claims
D. Non-life insurer passes life premium to life insurer
E. None of the above
12. Premium increase due to high claim is called:
A. No Claim Bonus
B. Deductible
C. Floater
D. New contract
E. Malus
13. Which statement is INCORRECT about policy document?
A. Policy becomes void if lost
B. Proof of contract
C. States obligations of policyholder
D. States terms & conditions
E. Shows insurer promises
14. Which statement is INCORRECT about policy document?
A. Proof of contract
B. Terms & conditions stated
C. Becomes void if lost
D. Shows insurer promises
E. States policyholder obligations
15. Arjun takes health insurance for himself and spouse. Type?
A. Joint Policy
B. Family Floater Policy
C. Group Policy
D. Any of the above
16. Period between policy start and annuity start is:
A. Deferment period
B. Postponed period
C. Adjourned period
D. Delayed period
E. Definite period
17. Lump sum paid and annuity starts immediately:
A. Deferred Annuity
B. Lumpsum Annuity
C. Immediate Annuity
D. None of the above
E. Any of the above
18. Insurance is a way to _________.
A. Avoid loss
B. Reduce loss
C. Prevent risk
D. Finance risk
E. None of the above
19. Which statement is CORRECT?
A. Pension commutation not tax exempt
B. Life insurance gives no tax benefit
C. Claim not tax exempt
D. Tax benefits may vary each year
E. Tax benefit on all general insurance
20. What distinguishes insurance from wagering contract?
A. Principle of utmost good faith
B. Principle of indemnity
C. Principle of division of risk
D. Principle of insurable interest
E. Principle of contribution
