IC11 Mock Test Sample 17
These questions highlight key insurance concepts such as reserving, risk assessment, and policy features. Insurers maintain reserves (like 50% for fire and marine cargo) to meet future liabilities. Cashless facilities are mainly available in motor insurance. Risk premium is based on average loss ratios, and reserves represent estimated future liabilities. Group health policies allow installment payments, while long-term policies suit retail customers. Public liability policies define fixed compensation amounts for death and disability. Balance sheets show a company’s financial position. Cargo insurance considers warehousing and handling risks. Bill of Lading is issued by shipping companies, and insurers must file rates and guidelines with the insurance regulator (IRDAI).
Q1. In case of fire and marine cargo insurance, the percentage of premium that the insurer is required to provide for as reserves is ______.
a) 25%
b) 30%
c) 50%
d) 75%
Q2. In which of these insurance is cashless facility available?
a) Motor insurance
b) Aviation insurance
c) Hull insurance
d) Cargo insurance
Q3. It is possible to provide the reserve for each policy separately by calculating ______.
a) Number of period
b) Number of days
c) Number of year
d) Number of weeks
Q4. Policy under Group Health insurance scheme can be accepted in ______.
a) EMI
b) Debentures
c) Loans
d) Installments
Q5. Risk premium is calculated on the basis of ______.
a) Number of people insured
b) Average loss ratio
c) Profit ratios
d) Number of vehicles insured
Q6. Speculative risk is also known as ______.
a) Company risk
b) Trade risk
c) Insured risk
d) Declined risk
Q7. The amount of relief fixed under Compulsory Public Liability policy in case of death and permanent total disability is ______.
a) Rs 20000
b) Rs 25000
c) Rs 30000
d) Rs 35000
Q8. The Balance Sheet of companies represents ______.
a) Company position
b) Legal status of the company
c) Company status
d) Financial position of the company
Q9. The long term insurance policies are suitable for ______.
a) Industrial customers
b) SMEs customers
c) Multinational customers
d) Retail customers
Q10. Under Compulsory Public Liability policy in case of permanent partial disablement, the amount of relief fixed is ______.
a) Rs 10000
b) Rs 12500
c) Rs 15000
d) Rs 12000
Q11. What do 'Reserves' refer to in insurance accounting?
a) Estimate for future liabilities
b) Funds for future expansions
c) Funds available for investments
d) Invested funds
Q12. What does the insurer incorporate in order to reduce physical hazard?
a) Appropriate rules
b) Appropriate agreements
c) Appropriate contracts
d) Appropriate clauses
Q13. What is issued by the insurers a month in advance before the date of expiry?
a) Warning
b) Declaration
c) Renewal notice
d) Notice
Q14. Warehousing facilities and loading/unloading conditions are looked into in ______.
a) Lift insurance
b) Public liability insurance
c) Store insurance
d) Cargo insurance
Q15. What is the cause of Hit and Run accidents?
a) Marathon runners
b) Pedestrians
c) Watercraft
d) Motor vehicles
Q16. Which commission entertains disputes where compensation exceeds Rs 100 lakhs?
a) Central Commission
b) National Commission
c) State Commission
d) District forum
Q17. Which policy gives indemnity for employer’s liability towards employees for injury?
a) Compulsory public liability policy
b) Legal liability policy
c) Workmen’s compensation policy
d) Professional indemnities policy
Q18. Which policy covers stock, goods in trust, and cash in safe at business premises?
a) Bhavishya Arogya policy
b) Mediclaim insurance policy
c) Liability only policy
d) Burglary insurance policy
Q19. Who issues the Bill of Lading?
a) Road transporters
b) Shipping companies
c) Couriers
d) Railways
Q20. With whom must premium rates and underwriting guidelines be filed?
a) Insurance regulator
b) RBI
c) Controller of insurance
d) Policy holders association
