IC01 Mock Test Sample 17
This set of questions focuses on advanced IC01 Licentiate concepts related to risk management, marine insurance, and regulatory framework. It explains that when risk cannot be prevented or retained, it should be transferred (e.g., insurance). It covers marine policies like open policy for exporters and types of losses such as particular average (partial loss). It highlights risk transfer techniques like insurance, hedging, and indemnity agreements. Topics include overseas travel insurance coverage, FDI limits (74%), and classification of risks like dynamic risks. It also explains principles such as subrogation, roles like proposer, and functions of IRDA, along with intermediaries like reinsurance brokers.
1. Which of the following options is most appropriate to complete the statement –
"If both prevention and retention of risks are unavailable as options, then ______"?
A. The risk has to be avoided
B. Do nothing and accept it as an act of God
C. The risk has to be passed on to another person, partly or wholly, to share it
D. The risk has to be minimized
E. None of the above
2. Mr. Mohit (exporter) wants insurance for regular consignments without repeated proposals. He will opt for ________.
A. Time or Voyage policies
B. Cover notes
C. Open policy
D. Specific Policy
E. Actual total loss policy
3. Which of these options are Risk Transfer techniques?
A. Indemnity agreements
B. Hedging
C. Insurance
D. Duplication
E. Only 1, 2 and 3
4. What risks are covered under an overseas medical policy?
A. Hospital expenses abroad
B. Loss of baggage
C. Loss of passport
D. All of the above
E. None of the above
5. Maximum FDI allowed in Insurance Industry in India?
A. 26%
B. 49%
C. 74%
D. 100%
6. A Particular Average loss is ______ loss.
A. Average
B. Total
C. Partial
D. Primary
E. Unstated
7. Which word closely matches money or finances?
A. Pecuniary
B. Actuary
C. Underwriter
D. Fidelity
E. Solvency
8. In personal accident policies, risk assessment is mainly based on ________.
A. Occupation
B. Illness
C. Age
D. Lifestyle
E. All of the above
9. Why cannot a Marine Hull be assigned without insurer’s consent?
A. Because it is a marine insurance contract
B. Because it is a marine insurance contract
C. Because it is a non-personal contract
D. Because it is an insurance contract
E. Because it is a general insurance contract
10. Political upheaval is classified as which type of risk?
A. Static risk
B. Dynamic risk
C. Particular risk
D. Non-financial risk
E. Financial risk
11. The only specialised insurance excluded from Nationalisation Act 1956 is ______.
A. Agricultural Insurance Co. Ltd
B. Export Credit and Guarantee Insurance Company Ltd.
C. Postal Life Insurance
D. Health Insurance
E. Three wheeler insurance
12. The only specialised insurance excluded from Nationalisation Act 1956 is ______.
A. Agricultural Insurance Co. Ltd
B. Export Credit and Guarantee Insurance Company Ltd.
C. Postal Life Insurance
D. Health Insurance
E. Three wheeler insurance
13. Which statement is INCORRECT regarding payments of an insurance company?
A. Payment to suppliers
B. Salaries to employees
C. Commission to agents
D. Premium to policyholders
E. Taxes to government
14. Recovering claim cost from negligent third party is known as ________.
A. Insurable Interest
B. Subrogation
C. Contribution
D. Loss Recovery
E. Average
15. The person who applies for insurance policy is called ________.
A. Life Insured
B. Proposer
C. Nominee
D. Policyholder
E. All of the above
16. Premium paid under insurance contract is called ________.
A. Assignment
B. Consideration
C. Contribution
D. Indemnity
17. Reinstatement Value Policy is issued in Marine Insurance.
A. TRUE
B. FALSE
18. ________ works as intermediary between insurer and reinsurer.
A. Agents
B. Composite broker
C. Reinsurance broker
D. All of the above
E. Both 2 and 3
19. Which is NOT a function of IRDA?
A. Take over insurer management
B. Promote professional organizations
C. Constitution of Insurance Association
D. Control rates and terms
E. Decide claim disputes
20. Which risk management techniques apply after peril occurs?
A. Retention, Separation and Diversification
B. Diversification and Duplication
C. Insurance, Separation and Duplication
D. Retention and Insurance
E. Separation and Duplication
