IC11 Mock Test Sample 1
This set of MCQs covers key concepts in general insurance practice. It includes topics like machinery breakdown insurance for operational losses, open cover for consignments, and accounting tools such as trial balance and premium registers. It highlights claim control through effective loss management and clarifies that issuing a claim form is not admission of liability. Core principles like subrogation, insurable interest, and utmost good faith are tested. It also covers personal accident benefits, event cancellation insurance, reinsurance roles, and third-party liability under motor insurance. Practical aspects like certificate of insurance and rate on line calculations are also included.
1. __________ covers operational loss to engines, air compressors, pumps etc.
a) ALOP Policy
b) Boiler insurance
c) Hull insurance
d) Contractors All Risk insurance
e) Machinery breakdown insurance
2. For what is Open Cover generally issued?
a) Fire insurance
b) Consignments
c) Trade
d) Stocks
e) Supply
3. For what is the 'Premium Register Copy' must for?
a) Underwriting premium
b) Underwriting loans
c) Underwriting services
d) Underwriting balance sheet
e) Underwriting returns
4. For what is the Trial Balance used?
a) To prepare the Premium Register
b) To prepare the cash book
c) To prepare the account book
d) To prepare the Balance sheet
e) To prepare the Pass book
5. How are the claims cost ideally controlled?
a) By improved application of dividend payments
b) By improved application of loss management
c) By improved application of risks
d) By improved application of damage control
e) By improved application of underwriting
6. If a / an _________ issues a Claim Form, it does not constitute an admission of liability on its part.
a) Agent
b) Insured
c) Claimant
d) Broker
e) Insurer
7. If the insurer wants to avoid liability on grounds of non-disclosure, which of the following is INCORRECT?
a) Undisclosed facts were material
b) Facts were not communicated to the insurer
c) Facts were within the actual or presumed knowledge of the insured
d) The client was fraudulent
e) None of the above
8. In PA, the coverage for loss of two limbs and two eyes is ____ %.
a) 25
b) 50
c) 75
d) 95
e) 100
9. With rapid changes in the insurance sector and increased competition, what should insurance companies do to stand out?
a) Organise camps
b) Recruit more agents
c) Increase channel selling
d) Product differentiation
e) Mis-selling
10. The full form of ILU is __________.
a) Institute of London Ultrasounds
b) Institute of London Unified
c) Institute of London Undertakers
d) Institute of London Universities
e) Institute of London Underwriters
11. The proposals for imported motor vehicles are accepted subject to _________.
a) Country of import
b) Depreciated value
c) Market value
d) Damage
e) Condition
12. What are the claims recoveries made from third parties known as?
a) Contribution
b) Closure
c) Salvage
d) Co-pay
e) Subrogation
13. What is not an implied condition of insurance?
a) Contribution
b) Legality of object
c) Insurable interest
d) Existence of subject matter
e) Utmost good faith
14. Which is the most appropriate insurance cover for contingent losses like cancellation, loss of reputation, loss of gate money, etc.?
a) Cyber Risks
b) Event Cancellation
c) Standard Fire burglary & Liability
d) Standard Fire and LOP
e) Films / Entertainment
15. Who arranges the re-insurance on behalf of insurer?
a) Sales Agents
b) Corporate agents
c) Individual agents
d) Re-insurance brokers
e) Bancassurance
16. __________ cannot be an intermediary.
a) Bank
b) Insurer
c) Agent
d) Insurance Broker
e) All of the above
17. 'Act only' policy covers _________.
a) Own damages and also third party damages
b) Liability to third parties
c) Liability in case of permanent disability
d) Liability in case of death
e) There is no such policy
18. If Mr. Abhay's car collides with another car and the other driver is injured, who will pay the claim?
a) Mr. Abhay will have to pay
b) The other driver if uninsured
c) Third party insurance pool
d) Mr. Abhay's insurance company
e) The other driver's insurance company
19. If total premium is Rs.10,000 and limit of liability is Rs.50,00,000, what is the rate on line?
a) 0.02%
b) 0.00%
c) 0.20%
d) 2%
e) 2.20%
20. In Motor Insurance, which document is accepted as valid proof of insurance by police and RTO?
a) Insurance Notice Document
b) Cover Note
c) Policy Document
d) Certificate of Insurance
e) Any of the above
