IC01 Mock Test Sample 14
These questions focus on practical and regulatory aspects of insurance, especially micro insurance for low-income groups and the role of IRDAI in supervising insurers. Key topics include liability insurance types, underinsurance, and benefits of insurance in reducing financial risks and improving quality of life. The importance of insurance in business continuity, risk management, and social protection is highlighted. Concepts like insurable interest, arbitration for dispute resolution, and underwriting objectives are covered. The questions also explore differences between life insurance and savings products, origins of insurance, pension planning, and the role and regulation of insurance brokers in the industry.
1. Micro Insurance is meant for ________.
A. Small families
B. People who work in small companies
C. People with low income
D. NRIs living abroad
E. All of the above
2. With respect to IRDA regulation, which is INCORRECT?
A. Issuing certificate of registration
B. Appointing CEO of insurance companies
C. Specifying rural/social sector business
D. Regulating solvency
E. Regulating investments
3. Who regulates remuneration of agents, brokers & intermediaries?
A. Central Govt – Ministry of Finance
B. RBI
C. IRDA
D. SEBI
E. Insurance Ombudsman
4. Which statement(s) is/are inappropriate?
A. Small businesses suffer without insurance
B. Non-life insurance supports business trade
C. Non-life insurance makes life comfortable in old age
D. Statements 1 and 2
E. Statements 2 and 3
5. Why keep spare units in a factory?
A. Cheaper bulk buying
B. Training new recruits
C. Build similar units
D. Reduce repair delays and losses
E. None of the above
6. Liability insurance covers _______.
A. Public liability
B. Products liability
C. Motor third party
D. Professional indemnity
E. All of the above
7. What is Liability Insurance?
A. Covers medical needs of family
B. Covers accidental death/disability
C. Covers third-party injury/property liability
D. Covers employee fraud
E. Covers overseas medical expenses
8. Which families are a burden on society?
A. Orthodox
B. Cultural
C. Traditional
D. Destitute
E. Rich and powerful
9. Correct outlook towards insurance:
A. Just a savings avenue
B. Only tax saving product
C. Can ignore safety precautions
D. Improves quality of life & reduces destitution
E. Treated as investment discussion
10. Which does NOT support life insurance vs RD?
A. Sum assured guaranteed
B. RD gives invested amount + interest
C. Desired fund available in insurance
D. Sum assured paid on contingency
E. Life insurance is just another savings avenue
11. Origins of health & life insurance:
A. Greeks and Romans
B. Chinese and Babylonian
C. Greeks and Babylonian
D. Romans and Chinese
12. ______ branch covers variety of risks:
A. General
B. Life
C. Reinsurance
D. All of the above
E. None
13. Life insurance protects against living too long via:
A. Term plans
B. Death plans
C. Pension plans
D. Gratuity
E. Tax saving plans
14. Not common to Traditional & Linked plans:
A. Bonuses
B. Maturity value
C. Sum insured
D. Exclusions
E. Premium frequency
15. Insurer retains risk to _________.
A. Avoid reinsurers
B. Increase profits
C. Increase market share
D. Reduce losses
E. Reduce competition
16. Dispute resolution forum in insurance contracts:
A. Supreme Court
B. High Court
C. Motor Vehicle Tribunal
D. Arbitration
E. Consumers forum
17. Purpose of Under-insurance:
A. Minimise losses
B. Increase losses
C. Premium matches exposure
D. Reduce loss
E. Lesser claim amount
18. Correct statement:
A. Both statements correct
B. Neither correct
C. Only statement b correct
D. a correct if b correct
E. Only statement a correct
19. Can Mr. Ved insure Mr. Dev’s life?
A. Yes, debt > ₹5 lakh
B. Yes, debt > 1 year
C. Yes, up to debt amount
D. No, only friends
E. No, not 5 years old
20. Incorrect statement about brokers:
A. Broker sources business for multiple insurers
B. Paid by brokerage
C. Handle large business & advise clients
D. Independent & licensed by IRDAI
E. Minimum capital ₹10 lakh
