IC11 Mock Test Sample 6
This MCQ set focuses on claims handling, motor insurance, marine policies, and risk management concepts. It covers classification of losses like total loss in theft claims and use of discharge vouchers for final settlement. Key operational aspects include policy renewal notices, open cover validity, and railway claim tribunal relevance. It highlights regulatory changes like FDI limits and motor policy coverage (Form A – Act liability). Concepts such as subrogation, operative clause, retention in reinsurance, and fire policy indemnity are tested. It also includes financial statements, risk analysis processes, and specialized policies like consequential loss and event cancellation insurance.
1. A claim reported as ‘Theft Claim’ under motor policy is categorized as ______.
a) No Loss
b) Partial Loss
c) Total Loss
d) Motor Loss
2. A ‘Discharge Voucher’ is mainly used for _______.
a) Final Settlement
b) Investigation
c) Closure
d) Setting up a claim reserve
3. For how long is the open cover generally valid?
a) 6 months
b) 1 year
c) 2 years
d) 5 years
4. If insurers do not want to renew a policy, which notice is given?
a) Cancellation notice
b) Public notice
c) Expired notice
d) Prior notice
5. Railway Claim Tribunal Act is relevant to ______.
a) Train Accident insurance
b) Personal accident insurance
c) Cargo insurance
d) Medical insurance
6. FDI in insurance was increased to ______ % in 2015.
a) 41%
b) 43.50%
c) 45%
d) 49%
7. Form A under Motor Insurance covers ______ liability.
a) Faulty Design
b) Own Damage
c) Employers
d) Act Liability
8. Individual, Collective, Floating and Blanket are types of ______.
a) Money Insurance
b) Baggage Insurance
c) Liability Insurance
d) Fidelity Guarantee Insurance
9. The key issue under ‘Subrogation’ is ________.
a) Recovery from third party
b) Locating fault party
c) Checking third party insurance
d) Taking over insured’s legal rights
10. The part of policy outlining actual cover is _______.
a) Policy Wordings
b) Preamble
c) Conditions
d) Operative clause
11. Maximum amount insurer retains on a risk is called ______.
a) Retention
b) Capacity
c) Maximum Limit
d) Ceding Amount
12. Object of Fire Policy is to indemnify ______.
a) Loss of turnover
b) Loss of profit
c) Material Damages
d) All of the above
13. Revenue A/c, P&L A/c and Balance Sheet are ________.
a) Trial Balance
b) Income & Expenditure A/c
c) Final A/c
d) Bank Reconciliation
14. Process of selecting risk control measures is called ______.
a) Risk detection
b) Risk evaluation
c) Risk identification
d) Risk analysis
15. Insurance covering gate money, ads revenue losses is ______.
a) Films / Entertainment
b) Standard Fire & LOP
c) Fire burglary & Liability
d) Event Cancellation
16. Policy covering loss of gross profit due to stoppage is ______.
a) Consequential Loss
b) Loss Recovery
c) Long Term
d) Reinstatement Value
17. ______ policy section covers vehicle damage.
a) Theft claims
b) Liability claims
c) Own damage claims
d) Total loss claims
18. ______ is engaged by insurer and paid by reinsurer.
a) Direct broker
b) Composite broker
c) Insurance broker
d) Reinsurance broker
19. Policy covering a single shipment is called ______.
a) Single policy
b) Open policy
c) Special policy
d) Specific policy
20. Ambulances are classified as ______ under Motor Insurance.
a) Commercial vehicles
b) Passenger vehicles
c) Private vehicles
d) Emergency vehicles
