IC11 Mock Test Sample 13
These questions cover important insurance concepts such as hazard assessment, underwriting, policy documentation, and premium rating. They highlight legal aspects like licensing under the Insurance Act and liability under the Public Liability Insurance Act. Operational topics include TPA services, auditing practices, and claims handling through adjusters. Key insurance products such as motor, fire, fidelity, and personal accident policies are also covered. Concepts like moral hazard, floater policies, and reinsurance treaties enhance understanding of risk management. Overall, this set builds strong foundational knowledge of insurance principles, regulations, and practical applications essential for exams and professional roles in the insurance industry.
1. Physical hazard is assessed on the basis of ________.
a) Nature of product
b) Information given in the form
c) Contract
d) Damages caused
2. Select the one that is dissimilar with respect to Professional Indemnities.
a) Architects
b) Lawyers
c) Doctors
d) Engineers
3. The actions to be done before contract commences are reiterated in which document?
a) Contract Form
b) Policy form
c) Renewal notice
d) Proposal form
4. The most common method of fixing premium rates is by classification of ______.
a) Damages
b) Risks
c) Policy
d) Loss
5. The treaty of reinsurance has a validity term of ________ year(s).
a) 1
b) 2
c) 3
d) 4
6. Under what are dumpers and tippers insured?
a) Heavy Vehicle
b) Marine cargo
c) Motor
d) Marine hull
7. Under which act have the insurance agents to be licensed?
a) RBI Act
b) Insurance Act
c) IRDAI Act
d) GIC Act
8. What are the services given by a TPA under an agreement called?
a) Insurance Services
b) Financial services
c) Banking services
d) Agency services
9. When are the accounts of an insurer audited?
a) Weekly
b) Monthly
c) Quarterly
d) Annually
10. Which act provides insurance liability against accidents while handling hazardous materials?
a) The Contract Act
b) Workmen’s Compensation Act
c) Public Liability Insurance Act
d) SEBI Act
11. Which policy section deals with damage to insured vehicles?
a) Own damage claims
b) Total Loss claims
c) Theft claims
d) Liability claims
12. Who uses the services of specialist adjusters?
a) Underwriters
b) Insurance Brokers
c) Insured
d) Insurer
13. Whom does the Fidelity Insurance policy cover?
a) Non-Govt employees
b) Semi Govt employees
c) All employees of any organization
d) Private company employees
14. Why do Moral Hazard arise?
a) From natural calamities
b) From individual’s moral weakness
c) From carelessness
d) From low morale
15. A cover note in motor insurance is valid for ______ days.
a) 20
b) 30
c) 45
d) 60
16. All insurers can invest only in investments approved under _______.
a) IRDA
b) Investment Act
c) Companies Act
d) Stock Broking Act
17. Floater policies are issued for ________.
a) Ships
b) Marine Hull
c) Plant and Machinery
d) Stocks
18. How are premium rates quoted for Fire and Miscellaneous insurance?
a) Weekly basis
b) Monthly basis
c) Quarterly basis
d) Annual basis
19. In Personal Accident insurance, loss of one limb and one eye is _____ %.
a) 10
b) 20
c) 30
d) 40
20. Into how many broad categories are vehicles classified in motor insurance?
a) 1
b) 2
c) 3
d) 4
