IC11 Mock Test Sample 4
This MCQ set covers important concepts of underwriting, marine, fire, and general insurance practices. It tests knowledge of non-disclosure conditions, role of actuaries, and pricing of insurance products. Key marine topics include special declaration policies, annual policies, and increased value covers. It also highlights principles like indemnity, policy structure (schedule, insuring clause), and document hierarchy. Operational aspects such as underwriting, warranties, endorsements, and social perils like riots are included. Practical claim calculations using the average clause are also tested. Overall, it strengthens understanding of policy terms, risk assessment, and regulatory aspects in general insurance.
1. If the insurer wants to avoid liability on grounds of non-disclosure, which of the following is INCORRECT?
a) Facts were within the actual or presumed knowledge of the insured
b) Undisclosed facts were material
c) The client was fraudulent
d) Facts were not communicated to the insurer
2. In which insurance can the certificate take the place of policy?
a) Fidelity insurance
b) Marine insurance
c) Contractors All Risks insurance
d) Fire insurance
3. In which of the below activities is an actuary not involved?
a) Loss assessment
b) Pricing
c) Financial management
d) Product design
4. ‘Increased value’ insurance covers are issued for ________.
a) Imports
b) Exports
c) Both exports and imports
d) Marine cargo imports
5. In marine insurance, Special Declaration Policy can be applied by companies having minimum turnover of Rs ______.
a) 1 crore
b) 2 crore
c) 3 crore
d) 4 crore
6. Pricing of insurance products is done by ________.
a) Underwriter
b) Surveyor
c) Assessor
d) Actuary
7. Risk, Strike and Malicious Damage (RSMD) cover is associated with ________.
a) Aviation cover
b) Marine hull insurance
c) Terrorism cover
d) Earthquake cover
8. The All Risks Insurance Policy _________.
a) Is decided on the principle of indemnity
b) Is settled on agreed value basis
c) Is based on the principle of contribution
d) Is settled on the basis of loss incurred
9. The Annual Policy in marine insurance covers _________.
a) Cargo in voyage by sea
b) Goods being airlifted
c) All cargo in transit annually
d) Goods in transit by rail or road
10. The first aviation policy was issued in the year ______.
a) 1901
b) 1911
c) 1921
d) 1931
11. The Motor Vehicles Act was enacted in the year _______.
a) 1937
b) 1938
c) 1939
d) 1940
12. The Operative Clause is also known as ______.
a) Preamble
b) Policy Condition
c) Heading
d) Insuring clause
13. Which component of the policy document is unique to each insured person?
a) The preamble
b) The policy schedule
c) The operating clause
d) The annexure
14. Which document has final supremacy in case of conflict?
a) Proposal
b) Policy
c) Contract
d) Preamble
15. Which policy covers stocks at various specific locations under one sum assured?
a) Floater policy
b) Declaration policy
c) Stock policy
d) Marine cargo policy
16. ______ is the procedure of assessing, accepting and pricing risks.
a) Risk Assessment
b) Investment
c) Risk Evaluation
d) Underwriting
17. ______, a social peril, is included in Standard Fire Insurance policy.
a) Explosion / implosion
b) Riot
c) AOG perils
d) Hurricane
18. ______ can also be known as an Endorsement.
a) Signature on policy
b) Policy Document
c) Articles
d) Memorandum
19. A ______ requires an insured to do or not to do certain things.
a) Exclusion
b) Warranty
c) Legal Document
d) Deductible
20. Property insured = Rs 10,00,000; actual value = Rs 12,50,000; loss = Rs 2,00,000. Claim payable?
a) No claim will be paid
b) Rs 2,00,000
c) Rs 40,000
d) Rs 1,60,000
