IC11 Mock Test Sample 11
These questions cover key concepts in insurance such as accounting practices, risk management, underwriting, and policy structure. They highlight important areas like claim processing, reinsurance methods, types of policies (mediclaim, liability, open cover), and regulatory practices. Concepts such as endorsement, risk inspection, and franchise limits are also tested. The set emphasizes understanding of practical insurance operations, including premium calculation, fraud impact (GIGO), and risk categorization. It also reflects real-world applications like export insurance, burglary risks, and personal accident coverage. Overall, the questions help build strong foundational knowledge required for insurance exams and professional practice.
1. Which ratio should be regularly reviewed and reduced by an Insurance Company?
a) around 60–70%
b) around 60–80%
c) around 50–60%
d) around 40–55%
2. Policies under group health insurance schemes may be accepted in _______.
a) Equity Shares
b) EMIs
c) Loans
d) Installments
3. Premium and claims are shown in accounts on _______.
a) Actual basis
b) Gross basis
c) Net basis
d) Claim basis
4. The Open Cover contract is generally issued for a period of _____ months.
a) 3
b) 6
c) 9
d) 12
5. The questions on Circumstances and Date of incident form a part of ________.
a) Contract form
b) Claim form
c) Proposal form
d) Policy form
6. There is an increase in burglaries due to _______.
a) Fall in the stock markets
b) Economic Depression
c) Non-education
d) Unemployment
7. What has to be duly maintained for efficient management of cover notes?
a) Balance Sheet
b) Cash Book
c) Ledger
d) Register
8. What is also known as endorsement?
a) Assignments
b) Stamping of the policy
c) Cover letter
d) Advertisement
9. What is the amount of claim payable under franchise limit is 300 when amount of loss is Rs 580?
a) Rs 100
b) Rs 300
c) Rs 500
d) Rs 580
10. What is the method of reinsurance known as where the individual proposal are referred for reinsurance acceptance or otherwise?
a) Contractual Relationship
b) Treaty Reinsurance
c) Excess of loss
d) Facultative reinsurance
11. What presents a full picture of the risk for deciding the rates of premium for drafting the policy and incorporating warranties?
a) Risk inspection
b) Risk standardisation
c) Damage inspection
d) Premium rates inspection
12. Which insurance policy reimburses hospitalisation and domiciliary hospitalisation expenses?
a) Endowment Insurance
b) Life Insurance
c) Mediclaim Insurance
d) Accident Insurance
13. Which of these options is dissimilar in personal accident insurance?
a) On duty
b) Off duty
c) 24 hours hospitalisation
d) India
14. Which part of the insurance policy introduces the Insurer and Insured?
a) Heading
b) Preamble
c) Operative Clause
d) Contractual Clause
15. Whose services do Property and Liability insurers use for rate setting?
a) Actuaries
b) Underwriters
c) Brokers
d) Commissioners
16. An exporter regularly insures consignments. If deposit falls short, the risk is ________.
a) equal to the policy amount
b) equal to the amount paid / deposited
c) equal to the commission
d) terminated
17. Bonus is a ________ in the renewal premium for favourable claims experience.
a) Top Up charge
b) Commission
c) Addition
d) Discount
18. Changes in the physical environment can be identified as what type of risk?
a) Strategic risk
b) Operational risk
c) Financial risk
d) Knowledge management risk
19. GIGO is ________ for the insurers.
a) Advantageous
b) Profitable
c) Neutral
d) Harmful
20. In which category of insurance the insured is not paid the loss?
a) Motor Vehicle insurance
b) Fire insurance
c) PA policy
d) Liability insurance
