IC11 Mock Test Sample 7
This MCQ set covers key concepts in motor, reinsurance, underwriting, and risk management. It highlights compulsory excess in motor insurance and premium discounts like NCB and voluntary excess. It includes IRDA investment norms, risk pooling calculations, and ALOP policy covering project delay losses. Core topics include proposal form structure, retrocession in reinsurance, and claim documentation requirements. It also explains concepts like leakage, fraud as a legal condition, and fundamentals of contracts. Risk-related topics include catastrophes, compliance risk, and underwriting considerations like inflation and legal changes. It also covers mediclaim exclusions and insurer financial statements.
1. Compulsory Excess is applicable only to _________.
a) Motor cars
b) All Imported vehicles
c) Two wheelers
d) Ambulances
2. In motor insurance, discounts may be given for _______.
a) Deletion of risks like riot, strike, flood
b) Membership of automobile association
c) Voluntary excess
d) No claim bonus
3. IRDA guidelines: Investment in Central Govt. Securities should not be less than ______.
a) 10%
b) 20%
c) 30%
d) 35%
4. Contribution per owner (given data) is ______.
a) Rs. 100000
b) Rs. 200000
c) Rs. 50000
d) Rs. 150000
5. The ALOP policy ________.
a) Covers financial consequences of project delay
b) Covers machinery breakdown
c) Means consequential loss of profits
d) Means deterioration of stock
6. The proposal form is part of __________.
a) Operating clause
b) Heading
c) Preamble
d) Policy schedule
7. Reinsurer of a reinsurance company is called ________.
a) Retrocedent
b) Retrocessionaire
c) Primary reinsurer
d) General reinsurer
8. Documents required for motor claim processing are ______.
a) Driving Licence
b) Police Report
c) RC Book
d) All of the above
9. Leakage relates to ______.
a) Drop in claim reserves
b) Recoverable claim losses
c) Employee embezzlement
d) Online fraud losses
10. Fraud is a _______.
a) Condition precedent
b) Condition subsequent
c) Implied condition
d) Legal condition
11. Which is NOT a fundamental of a contract?
a) Consent of parties
b) Offer and acceptance
c) Written agreement
d) Legality
12. Underwriter need not consider which trend?
a) Legal changes
b) Inflation
c) Claims made during year
d) Technology
13. Which is NOT an exclusion in Mediclaim?
a) Pregnancy
b) Pre-existing diseases
c) Gallbladder surgery
d) Spectacles cost
14. _______ are rare but devastating losses.
a) Catastrophes
b) Speculative
c) Chronic
d) Fundamental
15. Catastrophic events strain ______ funds.
a) Insured
b) Insurer
c) Solatium
d) Underwriters
16. All insurers must prepare ______.
a) Cash book
b) Balance sheet
c) Income & Expense statement
d) Company register
17. If loss exceeds limit, balance goes to ______.
a) Insurer
b) Re-insurer
c) Insured
d) Underwriter
18. Special Declaration Policy applies for turnover above ______.
a) 1 crore
b) 2 crore
c) 3 crore
d) 4 crore
19. Motor insurance policy is also known as ________.
a) Vehicle Damage policy
b) Liability only policy
c) Declaration policy
d) Floating policy
20. Regulatory Issues is an example of ______ risk.
a) Operational
b) Strategic
c) Compliance
d) Financial
