IC01 Mock Test Sample 16
This set of IC01 Licentiate questions covers key concepts of insurance, regulations, and products. It includes topics like the composition of the Insurance Advisory Committee, benefits of the Merchant Shipping Act, and limits of microinsurance policies. It also explains customer behavior differences, suitability of insurance plans (money back, endowment, ULIP), and principles like mortality and death rates. Questions highlight legal frameworks such as the Motor Vehicles Act and third-party insurance. Core insurance principles like warranties, insurable interest, and valid contracts are tested. Additionally, it touches on risk management, foreign investment limits in insurance, and decision-making when risk cannot be avoided or retained.
1. The Insurance Advisory Committee consists of members from ________.
A. The central and state government
B. Field of commerce, transport, consumer forums, agents and other intermediaries
C. The general public
D. The life / general insurance companies
E. None of the above
2. In which way does the Merchant Shipping Act benefit ship owners?
A. Codifies the law relating to marine insurance
B. Makes insurance compulsory for inland water vehicles
C. Provides protection against claims for loss/damage to goods and passengers
D. Helps determine title and liability in marine claims
E. Provides tribunals for railway claims
3. What is the maximum amount of a Micro Insurance policy?
A. Rs 5,000
B. Rs 10,000
C. Rs 50,000
D. Rs 75,000
E. Rs 1,00,000
4. What is the difference between Mohan and Soham’s situations?
A. Mohan’s situation is compulsory, Soham’s is optional
B. Mohan is anxious, Soham is not under stress
C. Both can change their minds without loss
D. All of the above
E. Only 1 and 2
5. Which plan is best suited for Mr. Suresh?
A. Linked insurance plans
B. Whole life insurance plans
C. Annuities
D. Endowment Assurance Plans
E. Money back plans
6. A Money Back policy is a combination of _______.
A. Pure endowment + multiple term assurance plans
B. Term assurance + multiple pure endowment plans
C. Endowment assurance + multiple term assurance plans
D. Only pure endowment plan
E. Only multiple term plans
7. Who will receive the benefits on maturity?
A. Mr. Parag only
B. Mrs. Parag only
C. Mr. Parag, son and daughter
D. Mr. Parag, Mrs. Parag, son and daughter
E. Mrs. Parag, son and daughter
8. Death Rates means _________.
A. Uncertainty
B. Indemnity
C. Morbidity
D. Mortality
E. All of the above
9. Which option is INCORRECT?
A. Convertible plans allow conversion to endowment
B. Money back plan is pure endowment plan
C. Children deferred policy is on child’s life
D. Whole life is term with indefinite term
E. Endowment = term + pure endowment
10. What are Mortality Rates?
A. Payments to insurer
B. Tables showing expectations of death
C. Tables showing illness
D. Certainty of sickness
E. None of the above
11. _______ is constituted by State Govt. for road accident claims.
A. Motor Vehicles Act
B. Marine Insurance Act
C. Limitations Act
D. Railway Claims Tribunal Act
E. Motor Accidents Claims Tribunal
12. Motor insurance covers which of the following?
A. Damage to individual
B. Damage to car only
C. Damage to third-party property
D. All of the above
E. None of the above
13. Third-party motor insurance is compulsory under _______.
A. Motor Vehicles Act
B. Insurance Act
C. Public Liability Act
D. Carriers Act
E. Multi Modal Transportation Act
14. Third-party motor insurance covers ________.
A. Hit-and-run damages
B. Employee embezzlement
C. Vehicle repair cost
D. All of the above
E. None of the above
15. Which is NOT a valid contract?
A. Mr P insures his car
B. Mr Q insures house items
C. Mr R takes a bank loan
D. Mr S rents house to student
E. Mr T insures friend’s house
16. Mr. Shah’s promises are ________.
A. Waivers
B. Guarantees
C. Warranties
D. Expressed powers
E. Representations
17. What will be mentioned in ULIP policy document?
A. Bonus calculation basis
B. Contingencies covered
C. Investment plans chosen
D. Only 1 and 2
E. Only 2 and 3
18. Which risks cannot be measured in monetary terms?
A. Dynamic risks
B. Speculative risks
C. Financial risks
D. Non-financial risks
E. Stock market risks
19. Foreign partnership limit in Indian insurance companies?
A. 26%
B. 13%
C. 74%
D. 51%
E. 65%
20. If prevention and retention are not possible, ______.
A. Transfer/share the risk
B. Avoid the risk
C. Accept as act of God
D. All of the above
E. None of the above
