IC11 Mock Test Sample 18
These questions focus on core insurance operations, underwriting, and policy features. Consignment notes exclude documents like bills of exchange, while brokers (especially direct brokers) collect client information. Stop loss treaties depend on claims ratio, and declaration policy premiums are based on sum insured. Premium is the consideration in an insurance contract. Fire policies cover risks like self-ignition (if specified), and refrigeration insurance applies to cold storage. Surveyors assess losses, and claim settlement is a key insurer function. MACT stands for Motor Accident Claims Tribunal. Policies serve as evidence of contracts. Public liability premium includes ERF loading, and reserves fall under liabilities or reserves & surplus in accounts.
Q1. _________ is not considered as a Consignment Note?
a) Airway bill
b) Goods receipt
c) Bill of exchange
d) Bill of lading
Q2. Obtaining detailed information of client’s business is the duty of ______.
a) Sales agents
b) Indirect brokers
c) Business agents
d) Direct brokers
Q3. On what is the cover of stop loss treaty based?
a) Claims ratio
b) Sum insured
c) Premium
d) Loss amount
Q4. How is the premium calculated under Declaration policy?
a) On the basis of sum insured
b) On the basis of damage caused
c) On the basis of risk involved
d) On the basis of property
Q5. Insurers take risks for certain perils. Which of the following is a valid insured peril?
a) Storm
b) Riot and strike
c) Malicious damage
d) Aircraft damage
Q6. Premium is the consideration paid by the insured under ______ of insurance.
a) Body
b) Terms
c) Agreement
d) Contract
Q7. Refrigeration plant insurance covers indemnity of ______.
a) Factories
b) Shops
c) Cold storage
d) Warehouses
Q8. Self ignition damage is covered under which standard policy?
a) Personal accident
b) Motor package
c) Fire
d) Marine hull
Q9. Services of ______ are used to assess property losses.
a) Investigator
b) Underwriter
c) TPA
d) Surveyor and loss assessor
Q10. Settlement of claims is one of the important functions in an ______.
a) Service organization
b) Insurance organization
c) NGO
d) Industrial organization
Q11. The amount above the per loss will be recovered from the ______.
a) Reinsurer
b) Agent
c) Policy holder
d) Company
Q12. The full form of MACT is ______.
a) Major Accident Claim Tribunal
b) Motor and Aviation Claim Tribunal
c) Maximum Action Core Team
d) Motor Accident Claim Tribunal
Q13. The Insurance Policy is a formal document which provides ______ of the contract of insurance.
a) Intimation
b) Facts
c) Information
d) Evidence
Q14. Companies should review rates frequently in light of changing claims experience in ______.
a) Classes of risks
b) Continuous classes of risk
c) Sudden classes of risks
d) General classes of risks
Q15. The fourth phase of customer service comprises ______.
a) Actual preparation of policy documents
b) Customer satisfaction
c) Dealing with customers demand
d) Dealing with problems of customers
Q16. The Janta Personal Accident (JPA) policy contracts are for ______.
a) Annual basis
b) Long term basis
c) Annual or long term basis
d) Agreement basis
Q17. The margin for commission built into rates should be at the level at which ______ will be paid.
a) Commission
b) Premium
c) Claim
d) Cash
Q18. The premium payable for Public Liability Act policy is ______ including ERF.
a) 1.5 times
b) 2 times
c) 2.5 times
d) 3 times
Q19. Under which clause are costs like blowout control, clean-up, and pollution liability covered?
a) Blow out clause
b) All risk clause
c) Energy explosion and development clause
d) Launch clause
Q20. Under which head are General Reserves categorized?
a) Liabilities
b) Contingency reserve
c) Capital reserves
d) Reserve and surplus
