IC11 Mock Test Sample 12
These questions focus on key insurance concepts such as reinsurance, risk classification, claims procedures, and regulatory requirements. They highlight practical aspects like subrogation, fraud detection, and customer service scope. Important topics include TPA structure, disclosure norms, public liability compensation, and policy servicing processes. The role of agents, surveyors, and organizational structures is also emphasized. Risk management steps, renewal procedures, and insurance fraud scenarios are tested to build conceptual clarity. Overall, the set strengthens understanding of operational, legal, and ethical aspects of insurance, which are essential for exams and real-world application in the insurance industry.
1. Just because an insurer places facultative reinsurance on a policy will not make it ______.
a) Risk free
b) More risky
c) Sudden risk
d) Constant risk
2. Pure Risk falls within the ________.
a) Scope of premium
b) Framework of business
c) Framework of management
d) Scope of risk of management
3. The amount of relief fixed under the Compulsory Public Liability policy in case of permanent partial disablement is ______.
a) Rs 11000
b) Rs 11500
c) Rs 12500
d) Rs 17500
4. The public disclosure of unaudited balance sheet has to be made ________ by the insurance firm.
a) Half monthly
b) Monthly
c) Quarterly
d) Half yearly
5. TPA's are in the form of ________.
a) Partnership Firms
b) Companies
c) Insurance Brokers
d) Hospitals
6. What pattern does the procedure in respect of claims under various classes of insurance follow?
a) Common Pattern
b) Special Pattern
c) Modular Pattern
d) Fixed Pattern
7. What shall the surveyor not disclose to a third party?
a) Any information acquired during survey works
b) Any information acquired during policy analysis
c) Any information acquired during policy findings
d) Any information acquired during policy classification
8. When claim recoveries are made from third parties, it is known as ______.
a) Premium Recovery
b) Subrogation
c) Deductible
d) Co-pay
9. Where are the rights of subrogation commonly enforced?
a) Motor Third Party (TP) insurance
b) Burglary insurance
c) Marine insurance
d) Fire insurance
10. Which is one main important provision of Insurance Act?
a) Claiming
b) Application
c) Filing
d) Registration
11. Which natural peril is covered under a standard fire policy?
a) Ship damage
b) Aircraft damage
c) Riot and Strike
d) Explosion
12. Whose task is to meet people, explain and persuade them to buy the correct insurance?
a) Brokers
b) Banks
c) Individuals
d) Agents
13. _______ is the most common form of organization in business.
a) NGO
b) Company
c) Retail business
d) Financial institution
14. ________ is the last step in Risk Management.
a) Risk analysis
b) Risk review
c) Risk management
d) Risk evaluation
15. A _________ is issued one month before policy expiry.
a) Cover Notes
b) Policy Expiry letters
c) Warning notice
d) Renewal notice
16. A person inflates furniture claim from ₹3 lakh to ₹5 lakh. This is ______.
a) Under insurance
b) Over insurance
c) Claims fraud
d) Deductible
17. As per modern concept, the scope of customer service in insurance is _______.
a) Not much
b) Limited
c) Very big
d) Wide
18. Householders insurance are allowed to be accepted by the _______ offices.
a) Operating office
b) Head office
c) Registered office
d) SEBI’s office
19. Janta Personal Accident (JPA) policy contracts are for __________.
a) Very short term basis
b) Annual basis
c) Long term basis
d) Annual or Long term basis
20. The full form of IRDP is Integrated Rural Development Programme. True or False?
a) True
b) False
