IC11 Mock Test Sample 8
This set of MCQs highlights key concepts of general insurance such as claim settlement, underwriting, risk management, policy terms, and regulatory roles. Insurance organizations handle claim settlements, while specialized policies like refrigeration and boiler insurance cover specific risks. Proper documentation and data processing are essential for policy issuance. Investment norms ensure funds are allocated to infrastructure and social sectors. Policies typically expire at midnight on the expiry date. Underwriters and brokers play vital roles in risk assessment and information gathering. IRDAI regulates insurers and surveyors. Various policies like erection insurance and fire insurance address specific needs, while business risk is generally non-insurable in nature.
1. Settlement of claims is an important function of which organization?
a) Mutual Fund organization
b) Insurance organization
c) NGO's
d) Service organization
2. The indemnity of _________ is covered under the refrigeration plant insurance.
a) Shopping Malls
b) Factories
c) Warehouses
d) Cold storage
3. The information obtained from proposal form and risk inspection is fed into computers. This procedure is called ______.
a) Policy Procedure
b) Duty Procedure
c) Agreement Procedure
d) Documentation Procedure
4. The insurance of which companies is dealt mainly by State Insurance Funds?
a) Private companies in a particular State
b) State Government owned companies
c) Unlisted State companies
d) Local Government owned companies
5. Investment in approved sectors like infrastructure and social sector should not be less than ______.
a) 5%
b) 10%
c) 15%
d) 20%
6. Vessels under steam or pressure, boilers, pipes etc. are insured under ______.
a) Vessels insurance
b) Fire insurance
c) Engineering insurance
d) Boiler insurance
7. What do insurers do if they are not interested in policy renewal?
a) Actual notice
b) Public notice
c) Prior notice
d) Meeting notice
8. Term used for the retention risk that an insurer keeps is ______.
a) Reinsurance limit
b) Excess limit
c) Marginal limit
d) Base limit
9. When does a General Insurance policy expire?
a) At 12 noon of expiry day
b) Midday of expiry date
c) Midnight of expiry date
d) Midnight of previous day
10. Where are accounting transactions posted?
a) Balance Sheet
b) Cash book
c) Day book
d) Subsidiary book
11. Which peril is excluded under inland transit (B) clause?
a) Collision of vehicles
b) Derailment of railway wagons
c) Malicious damage
d) Breakage of bridges
12. Which policy covers plant and machinery during erection and testing?
a) Pre Launch insurance
b) Erection insurance
c) Loss of profit insurance
d) Fire insurance
13. Which policy specifies perils covered at specified locations?
a) Hull insurance policy
b) Motor insurance policy
c) Fire insurance policy
d) Medi Claim policy
14. Whose responsibility is to collect detailed information of client’s business?
a) Sales agent
b) Insurers
c) Direct brokers
d) Underwriters
15. Why was the expert group constituted by General Insurance Council?
a) Insurance disputes
b) Underwriting issues
c) Customer complaints
d) Misrepresentation
16. Minimum premium Rs 15 in Janta PA policy gives sum assured of ______.
a) Rs 20000
b) Rs 22500
c) Rs 25000
d) Rs 27500
17. Minimum and maximum sum assured for Industrial All Risks insurance is ______.
a) 100000 - 10,00,000
b) 10,00,000 - 1,00,00,000
c) 1,00,00,000 - 50,00,00,000
d) 50,00,00,000 - 100,00,00,000
18. ______ can intervene in the affairs of an insurer.
a) RBI
b) Finance Ministry
c) State Government
d) IRDAI
19. As per IRDAI, a Surveyor and Loss Assessor should have a ______.
a) Proof of Authority
b) Contract
c) License
d) Legal document
20. Business risk is a/an ______ risk.
a) Catastrophic
b) Controllable
c) Non Controllable
d) Non Insurable
