IC11 Mock Test Sample 15
These questions cover essential insurance concepts including motor insurance sections, premium pricing in hard markets, and policy enforceability. They highlight regulatory aspects such as prohibition of rebates and Motor Vehicles Act requirements. Key topics include export-import clauses, workmen compensation liability, and specialized covers like bankers blanket and boiler insurance. Practical aspects such as claim calculation, expense ratios, and insured value determination are also tested. The importance of timely communication, renewal notices, and risk classification is emphasized. Overall, this set strengthens understanding of underwriting, claims, legal compliance, and operational efficiency, which are crucial for insurance exams and professional knowledge.
1. Own damage is covered under which Section of the Package Policy?
a) Section II
b) Section III
c) Section I
d) None of these
2. What does Commercial Pricing in a hard market refer to?
a) Increasing the premium above book rates
b) Decreasing the premium below book rates
c) Special premium rates
d) Below market deductibles
3. When a Cover Note is issued, it is _______.
a) Valid for 30 days
b) Permanent
c) Temporary
d) Contractual
4. Where is the 'prohibition of rebates' mentioned?
a) Claim form
b) Endorsement
c) Renewal notice
d) Proposal form
5. Which category of insurers has the largest share of general insurance premium in India?
a) Private Insurance Companies
b) Public Private Insurance Companies
c) Public Sector Insurance Companies (PSU)
d) Foreign Insurance Companies
6. What is the minimum premium condition?
a) To cover administrative costs under separate policy
b) To cover administrative costs under all-in-one policy
c) To cover administrative costs under each policy
d) To cover administrative costs under category policy
7. When does an insurance policy become legally enforceable?
a) When it is signed
b) When it is stamped
c) When recorded in policy register
d) When accepted by policy holder
8. Which clauses are used for export/import policies?
a) London cargo clauses
b) American cargo clauses
c) East Indian cargo clauses
d) Institute cargo clauses
9. Whose position is adversely affected by delay in notification?
a) Surveyor
b) Client
c) Agent
d) Insurer
10. Workmen's Compensation Act provides insurance for ______.
a) Loss due to floods/fire
b) Railway liabilities
c) Employer’s liability to pay compensation to employees
d) Postal losses
11. ________ is a package cover for theft, forgery, fraud etc.
a) Bankers blanket insurance
b) Crime insurance
c) Cyber insurance
d) Office package insurance
12. If insurer is not interested in renewal, it must give _______.
a) Actual notice
b) Meeting notice
c) Prior notice
d) Public notice
13. Individual fidelity guarantee policies are issued for temporary ______ employees.
a) Private
b) NGOs
c) Public sector bank
d) Government
14. Extra hazardous risks that are declined are called ______.
a) Speculative risk
b) Damage risk
c) Declined risk
d) Hazardous risk
15. Certificate of Insurance in motor insurance is required by ______.
a) General Insurance Act
b) Consumer Act
c) Property Insurance Act
d) Motor Vehicles Act
16. Value of goods to be insured (Raw 10L + Finished 16L + Semi 4L) = ?
a) Rs 16,00,000
b) Rs 30,00,000
c) Rs 20,00,000
d) Rs 10,00,000
17. Insurance companies should reduce the _______.
a) Normal expenses ratio
b) Fluctuating expenses ratio
c) Management expenses ratio
d) General expenses ratio
18. Incurred claims = Paid + Outstanding – ________.
a) Brought over balances
b) Surplus balances
c) Fiscal deficit
d) Claims outstanding
19. Janta Personal Accident policy is designed for ______.
a) Higher sections
b) Weaker sections
c) All sections
d) Common sections
20. Boilers, steam pipes etc. are insurable under ______.
a) Fire insurance
b) Boiler insurance
c) Aviation insurance
d) Engineering insurance
