IC11 Mock Test Sample 19
These questions cover fundamental insurance concepts including personal accident (PA) policy limits, underwriting, and regulatory framework. Janta Personal Accident policies have fixed sum insured limits, with weekly compensation caps for disability. Premium is the primary income source for insurers. The Tariff Advisory Committee regulates premium rates, while underwriters assess and accept risks. Open cover in marine insurance is an agreement, not a policy. Proposal forms are mandatory for most insurances. Business risks are generally non-insurable. Claims under Industrial All Risk policies are based on material damage. Insurance in India operates under the Insurance Act 1938 and IRDAI Act 1999, with annual reinsurance planning.
1. What is the maximum amount of sum insured under Janta Personal Accident policy?
a) Rs. 25000
b) Rs. 50000
c) Rs. 75000
d) Rs. 100000
2. What is the maximum weekly amount which can be claimed under the temporary total disablement benefit of a PA policy?
a) Rs 3000
b) Rs 4000
c) Rs 5000
d) Rs 8000
3. What is the primary source of income for an insurer?
a) Bonus
b) Remuneration
c) Commission
d) Premium
4. What are the broad functions of Tariff Advisory Committee?
a) Regulate share values
b) Regulate market rates
c) Regulate policy rates
d) Regulate the premium rates
5. Whose functions are identification and acceptance of risk based on factual information, evaluation and acceptance?
a) Underwriters
b) Agents
c) Surveyors
d) Brokers
6. ________ is an example of packaged products.
a) Bankers blanket insurance
b) Horse insurance
c) Marine insurance
d) Micro insurance
7. An open cover is not a policy but is more like a _______.
a) Document note
b) Debit note
c) Bank note
d) Agreement
8. As per IRDAI, which document is compulsory for acceptance of all insurances except Marine Cargo?
a) Proposal form
b) Endorsement
c) Renewal notice
d) Policy form
9. Business risk is an ________.
a) Insurable
b) Non insurable
c) Hazardous
d) Uncontrollable
10. Claims under Industrial All Risk insurance are computed on the basis of ______.
a) Premium
b) Disability
c) Contract
d) Material damage
11. In which year was the Insurance Act passed?
a) 1928
b) 1938
c) 1948
d) 1952
12. Motor vehicles are classified into ____ major categories.
a) 1
b) 2
c) 3
d) 4
13. On which basis are the reinsurance arrangements of the insurance companies decided upon?
a) Weekly basis
b) Quarterly basis
c) Half yearly basis
d) Annual basis
14. Proprietary concerns are owned by ________.
a) Single individual
b) Group of individuals
c) The public
d) Board of directors
15. Damage to machinery or machine breakdown may result in business interruption and is termed as ________.
a) Loss of finance
b) Loss of profit
c) Loss of personnel
d) Loss of legal liability
16. In which insurance are the rights of subrogation commonly enforced?
a) Erection all risk insurance
b) Burglary insurance
c) Marine cargo insurance
d) Motor TP insurance
17. On which act are the transactions of general insurance business in India based?
a) Motor Vehicles Act
b) Fire Insurance Act
c) Insurance Act 1938 and IRDAI Act 1999
d) Liability Insurance Act
18. The dumpers and tippers are insured under _________.
a) Motor
b) Fire insurance
c) Machinery breakdown
d) Marine cargo
19. The first phase of customer service comprises of _______.
a) Dealing with customer demand
b) Dealing with problems of customers
c) Pre-sales service
d) Identification of customers need
20. The major life insurers in the world are located in which continent?
a) Asia
b) Europe
c) North America
d) South America
