IC01 Mock Test Sample 13
These questions focus on advanced insurance concepts including ULIPs, life insurance features, and legal aspects. ULIPs highlight policyholder responsibility for fund performance, while linked plans emphasize market-linked returns without guarantees. The Carriers Act defines liability in goods transport. Concepts like insurable interest, IBNR claims, and risk management (retention vs transfer) are covered. Practical scenarios include nominee claims, property insurance timing, and coverage decisions. Retirement planning through annuities and income protection is emphasized. Questions also test understanding of policy flexibility, health conditions in underwriting, market-linked maturity values, and principles like indemnity and contribution preventing unjust profit in insurance.
1. In a Unit Linked Insurance Plan, the policy holder chooses the fund of his choice, _________.
A. The policy holder is totally responsible for its growth
B. The insurance company is totally responsible for its growth
C. Both the policy holder and insurance company are responsible
D. Neither the policy holder nor insurance company are responsible
E. None of the above
2. With respect to Linked Life Insurance Plan, which is INCORRECT?
A. Insurers publish fund performance regularly
B. Policyholders can choose funds
C. Growth or income is guaranteed
D. Bond funds give steady income
E. Equity funds may grow faster
3. How does the Carriers Act relate to insurance?
A. Compulsory third party motor insurance
B. Rights & liabilities of truck owners for goods by road
C. Govt. liability for postal goods
D. Ship owners’ responsibilities
E. Airlines liability for goods
4. In Life Insurance, insurable interest must exist at policy start and claim time – True/False?
A. TRUE
B. FALSE
5. IBNR claims are:
A. Incurred But Not Reviewed
B. Incurred But Not Reported
C. Involved But Not Responsible
D. Incurred But Not Recorded
E. Investigated But Not Reported
6. Which option is INCORRECT?
A. Retention & transfer are mutually exclusive
B. Some risks transferred, some retained
C. All risks cannot be retained
D. Retention possible via excess
E. All risks cannot be transferred
7. If nominee and policyholder both die, claim is settled by:
A. As per will
B. Legal heirs via succession certificate
C. Close relative claim
D. Investor Protection Fund
E. None of the above
8. Suresh wants to insure resale property before ownership:
A. Take insurance immediately
B. Only after legal ownership
C. Force current owner
D. Take policy valid after 6 months
E. None of the above
9. What makes life comfortable in old age?
A. Salary & pension
B. Pension & annuities
C. Stipend & annuities
D. Pension & allowances
E. Endowment & earnings
10. Why is life insurance a non-personal contract?
A. For benefit of others
B. Risk is huge
C. Can assign without insurer consent
D. All of the above
E. None of the above
11. Which of the following is TRUE?
A. Income generating asset
B. Can become non-functional due to illness
C. Can be lost due to death
D. Functional while person lives
E. All of the above
12. Insurable interest in property insurance must exist:
A. At policy purchase
B. At time of loss
C. At claim filing
D. Throughout policy period
E. At renewal
13. Insurable interest must exist:
A. At inception
B. At loss
C. Both
D. Neither
E. None
14. Private players entered insurance market in:
A. 1995
B. 1999
C. 2000
D. 2003
15. Increasing value insurance relates to:
A. Endowment
B. Marine cargo
C. Hull
D. Fire
E. Mediclaim
16. Life cover option in some plans:
A. Only step up
B. Step up / constant / step down
C. Always constant
D. Only step down
E. None
17. Will insurer cover HIV/AIDS patient?
A. Yes always
B. Depends on age/history
C. No
D. Covered under mediclaim
E. None
18. ULIP maturity amount depends on:
A. Not guaranteed
B. Insurer’s investment
C. Fund chosen
D. Market conditions
E. All of the above
19. Increased Value Insurance applies to:
A. Time/Voyage policies
B. Mediclaim
C. Motor
D. Endowment
E. Marine cargo
20. Principle preventing profit from multiple insurers:
A. Subrogation
B. Contribution
C. Co-insurance
D. Indemnity
