IC11 Mock Test Sample 5
This MCQ set covers legal, marine, fire, liability, and engineering insurance concepts. It highlights regulatory roles like IRDAI and laws such as the Public Liability Insurance Act. Key topics include marine trade terms (FOB, CIF), Institute Cargo Clauses, and classification of marine losses. It explains fire policy exclusions (e.g., boiler implosion), condition of average (underinsurance), and public liability limitations. Practical scenarios test claim admissibility, underwriting decisions, and policies like Contractors All Risk. Concepts like contra proferentem rule, reinstatement value policies, and conditions precedent are also included, along with numerical applications of average clause and declaration policy refunds.
1. As per the Insurance Act, the __________ may relax requirements of advance premium.
a) IRDAI
b) Central Government
c) State Government
d) SEBI
2. Compensation for accidents while handling hazardous substances is provided under ________.
a) Public Liability Insurance Act
b) Carriage by Air Act
c) Indian Post Office Act
d) Workmen's Compensation Act
3. In which contract does buyer arrange insurance after goods are placed on board?
a) FOB
b) CIF
c) C&F
d) Both FOB and C&F
4. Will fire policy cover boiler damage due to implosion?
a) No, outside purview of fire policy
b) No, implosion/explosion not covered
c) Yes, damage is covered
d) None of the above
5. What does ‘Condition of Average’ mean?
a) Property is double insured
b) Property is over insured
c) Property is fully insured
d) Property is under insured
6. Partial losses in marine insurance are classified as ________.
a) Actual average and General average
b) Particular average and standard average
c) Average average and General average
d) Particular average and General average
7. Refund under Declaration Policy (given data) is ________.
a) Rs. 400
b) Rs. 600
c) Rs. 1000
d) Rs. 1200
8. Lift malfunction caused death and injury. Will policy indemnify?
a) Only injured person
b) Only deceased person
c) No indemnity
d) Both persons
9. Public liability policy does NOT cover ________.
a) Repair costs
b) Product guarantee costs
c) Product recall costs
d) Injury damage
10. Total loss of package lost overboard is covered under ________.
a) ICC C
b) ICC B
c) ICC B & C
d) ICC A, B and C
11. Claim amount for building & machinery loss is ________.
a) Rs. 6.85 crore
b) Rs. 7.83 crore
c) Rs. 9.37 crore
d) Rs. 10.5 crore
12. Can underwriters accept furniture shop with basement storage?
a) No, high risk
b) No, cannot be insured
c) Yes, no inspection needed
d) Yes, with proper inspection
13. Forklift caused damage to cloth. Is fire claim admissible?
a) Yes, during manufacturing
b) Yes, own vehicle involved
c) No, own vehicle damage
d) Yes, at insurer’s discretion
14. Marine Hull policy covers ________.
a) Ship damage only
b) Goods damage only
c) Ship motor only
d) Ship damage only (not goods)
15. Risk is measured in risk register by ________.
a) Probability and Transferability
b) Probability and Severity
c) Probability and Financial
d) Probability and Ownership
16. Policy for construction of bridge & tunnel is ________.
a) Machine Insurance
b) Storage cum Erection
c) Erection All Risk
d) Contractors All Risk
17. Condition of Average means ________.
a) Double insurance
b) Over insurance
c) Full insurance
d) Under insurance
18. Reinstatement insurance is generally issued on ________.
a) Building & stocks
b) Only stocks
c) Building, plant & machinery
d) Plant & machinery only
19. Contra proferentem rule is used against ________.
a) Insurer (claim rejection)
b) Insurer (ambiguous wording)
c) Insured (non-disclosure)
d) Underwriter (wrong premium)
20. Condition requiring action before contract obligation is ________.
a) Implied condition
b) Express condition
c) Condition subsequent
d) Condition precedent
