IC11 Mock Test Sample 9
This set of MCQs focuses on key principles of general insurance including risk classification, underwriting, claims, and legal frameworks. Employment practices fall under operational risk, while speculation risk is linked to business risk. Fire insurance for residential properties is classified as simple risk. Claims under non-marine insurance are settled in Indian Rupees. The Bill of Lading determines liability in sea transport. Surveyors assess property losses, and underwriters evaluate and accept risks. The Ombudsman handles claim complaints. Agricultural Insurance Corporation deals with crop insurance. Insurance contracts follow utmost good faith. Proposal acceptance is done by underwriters, and special declaration policies cannot be issued in an agent’s name.
1. Employment Practices fall under what type of risk?
a) Strategic risk
b) Operational risk
c) Knowledge management risk
d) Compliance risk
2. Renewal notice is effected by _________.
a) Payment of penalty
b) Payment of renewal charges
c) Payment of premium
d) Payment of bonus
3. Fire insurance for residential properties is classified as ______.
a) Simple Risk
b) Dynamic Risk
c) Hazardous Risk
d) Storage Risk
4. Settlement of claims under non-marine insurance is made in ______.
a) Indian Rupees
b) Swiss Francs
c) US Dollars
d) Euros
5. Carriage of Goods by Sea Act determines liability based on ______.
a) Marine port warehouse receipt
b) Transporters challan
c) Airways bill
d) Bill of Lading
6. Speculation risk is also known as ______.
a) Stock Market risk
b) Insured risk
c) Trade risk
d) Business risk
7. Maximum validity of a cover note in motor insurance is ______ days.
a) 10
b) 20
c) 25
d) 45
8. Compensation for death of a pedestrian under motor third party insurance is ______.
a) Rs 5000
b) Rs 25000
c) Rs 50000
d) Rs 100000
9. Consignment sent by registered parcel post is called ______.
a) Air consignment
b) Postal consignment
c) Land consignment
d) Speed consignment
10. Final process where selected techniques are implemented is called ______.
a) Management of Risks
b) Voluntary deductibles
c) Risk retention
d) Implementation
11. Independent agency used to assess property losses is ______.
a) Insurance Agents association
b) TPA's
c) Claim technician
d) Surveyor and loss assessor
12. Social peril included in standard fire insurance is ______.
a) Explosion
b) Lightning
c) Landslide
d) Riot
13. Who is exempt from IRDA compulsory training?
a) Surveyors
b) TPAs
c) Brokers
d) Corporate agents
14. Who receives complaints regarding repudiation of claims?
a) Agents
b) Insurance Brokers
c) Insurance Companies
d) Ombudsman
15. Who identifies and accepts risk based on evaluation?
a) Underwriters
b) TPAs
c) Surveyors
d) Agents
16. Agricultural Insurance Corporation takes care of ______.
a) Pesticides and Fertilizers
b) Agro chemicals
c) Crop
d) Farmers
17. All insurance contracts follow the principle of ______.
a) Utmost good promise
b) Utmost good loyalty
c) Utmost good truthfulness
d) Utmost good faith
18. ERF contribution forms part of which liability?
a) Public liability act
b) Insurance Act
c) Workmen Compensation Act
d) Motor Vehicle Act
19. Acceptance of proposal in insurance is done by ______.
a) Actuaries
b) Agent
c) Underwriter
d) Insurance Executive
20. Special Declaration Policy CANNOT be issued in ______ name.
a) Single name
b) Own name
c) Nominee name
d) Agent’s name
