IC11 Mock Test Sample 3

1. All insurers in India will have to inform ______ every year while devising their re-insurance programme.
a) IRDAI
b) RBI
c) LIC
d) Finance Ministry

2. Analysis and Pricing of an insurance product is the job of _______.
a) Underwriter
b) Actuary
c) Surveyor
d) Risk Engineer

3. Employee State Insurance policy is applicable to _________.
a) All Employees
b) Industrial Employees
c) Government Employees
d) Workmen

4. Excess of loss re-insurance is a type of ________ re-insurance.
a) Proportional
b) Non-Proportional
c) Surplus
d) Special

5. Fitness and Permit certificate is required for claims processing in case of _____.
a) Private Yatch
b) Two Wheelers
c) Private car policies
d) Goods carrying vehicles

6. Insurance companies have two major sources of income, they are ______ and ______.
a) Underwriting, Investment
b) Underwriting, Inspection
c) Inspection, Investment
d) Evaluation, Underwriting

7. Mr. X transferred his rights to recover claim from third party. This is known as ______.
a) Arbitration
b) Utmost good faith
c) Subrogation
d) Mediation by Ombudsman

8. The increase or loading on premium is called ________.
a) No Claim Bonus
b) Malus
c) New Contract
d) Subrogation

9. Third Party Administrators (TPA) are separate organisations either owned by ______.
a) Hospitals
b) Pharmaceutical Firms
c) Insurance Brokers
d) Agents

10. Which insurance is considered for the Indian Ports (Major Ports) Act?
a) Public liability insurance
b) Hull insurance
c) Workmen’s compensation insurance
d) Cargo insurance

11. Which of the following is an ex-gratia payment?
a) Payment when policy is cancelled
b) Payment when risk is not covered
c) Payment when policy is voided
d) All of the above

12. Which of the following is not likely to be a rating factor in Fire Insurance?
a) Security of the building
b) Fire extinguishers
c) Deductible
d) Construction

13. Which of these pools is not managed by GIC?
a) Fire Catastrophe Pool
b) Third Party Motor Pool
c) Terrorism Pool
d) Marine Hull Pool

14. Which policy covers Self Ignition damage?
a) Explosion policy
b) Loss of profit
c) Personal accident
d) Motor Insurance

15. ______ covers are related to total claims in a year over a particular limit.
a) Treaty
b) Surplus
c) Stop Loss
d) Premium

16. ______ hazard is not one of the prime hazards an underwriter looks at.
a) Physical
b) Moral
c) Risk
d) Financial

17. A deductible is also known as ________.
a) Franchisee
b) Warranty
c) Representation
d) Excess

18. A fire deliberately caused by the insured is called ________.
a) Accident
b) Arson
c) Immolation
d) Deliberation

19. Property insured = Rs.500000, actual value = Rs.750000, loss = Rs.100000. Claim amount?
a) Rs.100000
b) Rs.500000
c) Rs.83000
d) Rs.125000

20. A subrogation claim is recovered from the Third Party and/or ______.
a) Client's insurers
b) Reinsurers
c) Third Party Reinsurers
d) Third Party insurers