IC11 Mock Test Sample 20
These questions cover key concepts of general insurance such as risk factors, claims settlement, marine and motor insurance, and policy conditions. Social factors like unemployment increase burglary risk, while principles like risk avoidance help reduce exposure. Marine insurance topics include cargo clauses, declaration policies, and hull coverage. Motor insurance highlights cover notes, deductibles, and IDV determination. Claims concepts such as franchise limits, surveyor requirements, and records maintenance are tested. Professional indemnity excludes criminal acts, and intermediaries exclude insurers themselves. Regulatory aspects like the Insurance Act, 1938 and grievance redressal through the Ombudsman are also included, ensuring a comprehensive understanding of insurance operations and practices.
1. The social scenario of ________ has caused an increase in burglaries.
a) Deflation
b) Unemployment
c) Downfall in markets
d) Boom
2. What is the amount of claim payable under franchise limit is 400 when the amount of loss is Rs 580?
a) Rs. 400
b) Rs. 580
c) Rs. 200
d) Rs. 290
3. What is the validity period of a cover note in Motor Insurance?
a) 20 days
b) 40 days
c) 60 days
d) 80 days
4. Which one of these perils is covered under Institute Cargo Clause (B)?
a) Bursting / tearing of bags
b) Hook damage
c) Volcanic eruption
d) Theft pilferage
5. The special declaration deposit premium of 100% of the premium on the sum insured is based on the __________ (Marine Insurance).
a) Current year’s turnover
b) First year’s turnover
c) Next year’s turnover
d) Last year’s turnover
6. What happens to the risk if the deposit to the credit of the insured is insufficient to cover a consignment in transit?
a) The risk is terminated
b) The risk is equal to the entire amount of the policy value
c) The risk is equal to the entire amount of commission
d) The risk is equal to the entire amount of premium paid
7. What is the process called wherein the risk of damage by flooding is avoided by moving the factory to another safer site?
a) Risk evaluation
b) Risk avoidance
c) Risk detection
d) Risk control
8. What is the term used for loss or damage to buildings, machinery, stocks etc. by fire and other perils?
a) Loss of personnel
b) Loss of legal liabilities
c) Loss of assets
d) Loss of profit
9. Which two records are maintained for claims?
a) Claims paid and claims intimated
b) Policy assured and policy document
c) Client details and policy document
d) Basic details and policy documents
10. __________ is the maximum limit of liability of insurer under the policy.
a) Sum insured
b) Premium
c) Surrender value
d) Amount of loss
11. __________ cannot be an intermediary.
a) Bank
b) Insurer
c) Agent
d) —
12. 2000 factories require a sum insured of Rs 10 crore each. At least 2 factories get destroyed each year. What should be the contribution by each factory owner (pure premium)?
a) Rs 75,000
b) Rs 1,00,000
c) Rs 2,00,000
d) Rs 3,00,000
13. Under Marine Hull policy, compensation will be paid for __________.
a) Damage to the ship only
b) Damage to the goods only
c) Damage to the ship motor only
d) Damage to the ship and goods both
14. Deductible under package policies applies to
a) Motorized two wheelers
b) Private cars
c) Goods vehicles
d) All three vehicles
15. Identify the incorrect statement regarding non-disclosure:
a) Undisclosed facts were material
b) Facts were within knowledge of the insured
c) Facts were not communicated to the insurer
d) The client was fraudulent
16. Insured Declared Value (IDV) of an obsolete vehicle is determined by
a) Surveyor
b) Insured
c) Insurer
d) Insured and insurer
17. Professional indemnity insurance does not cover
a) Acts of commission and omission
b) Acts of negligence
c) Liability from failed treatment
d) Criminal act
18. As per Insurance Act 1938, surveyor report is required if loss equals or exceeds
a) Rs 15,000
b) Rs 20,000
c) Rs 25,000
d) Rs 50,000
19. The Annual Policy in marine insurance covers __________.
a) Cargo in sea voyage
b) Goods by air
c) All cargo in transit annually
d) Goods by rail/road between depots
20. The authority responsible for redressal of disputes between insurer and insured is
a) Ombudsman
b) Arbitrator
c) Judge
d) Advocate
