IC11 Mock Test Saple 10
This set of MCQs covers important concepts of general insurance such as personal accident limits, marine policies, fire insurance, underwriting, and risk management. Temporary total disablement under PA policy has a capped weekly benefit. Marine cover notes are issued with specific numbering, and motor vehicles are broadly classified into categories. Fire policies without reinstatement clause pay claims on market value basis. Average clause discourages underinsurance. EAR policy has specific cessation timelines after testing. General average refers to shared loss in marine insurance. Risk premium is based on loss ratios. Concepts like risk avoidance, reinsurance treaties, and portfolio theory are also tested, reflecting practical and theoretical understanding of insurance operations.
1. Maximum weekly amount under temporary total disablement (PA policy) is ______.
a) Rs. 1000
b) Rs. 3000
c) Rs. 5000
d) Rs. 7500
2. Marine cover note is worded along with the ______.
a) Marine insurance number
b) Marine note number
c) Marine cover note number
d) Marine serial note number
3. Motor vehicles are classified into ____ major categories.
a) 1
b) 2
c) 3
d) 4
4. Marine policy where sum insured reduces with each declaration is ______.
a) Open Policy – enhance SI
b) Open Cover – enhance SI
c) Specific Marine – new policy
d) Open Policy – wait till expiry
5. Fire policy does NOT cover ______.
a) Lightning strike
b) Explosion / Implosion
c) Spontaneous combustion
d) Malicious damage
6. Fire policy without reinstatement clause pays claim on ______.
a) No payment
b) Market value basis
c) Reinstatement value basis
d) Higher of both
7. Coverage for 11-year-old private and public vehicles will be ______.
a) Act only, Comprehensive
b) Comprehensive, Act only
c) Both Act only
d) Both Comprehensive
8. Spoilage Material Damage cover relates to ______.
a) Loss of stock, Temporary removal
b) Temporary removal, Loss of rent
c) Loss of stock in process, Start-up expenses
d) Temporary removal, Damage to machine
9. Policy for erection/installation with little civil work is ______.
a) Marine cum Erection policy
b) Storage cum Erection policy
c) Contractors All Risk policy
d) Advance Loss of Profits policy
10. Pure premium for 100 houses (2 losses/year) is ______.
a) Rs. 500
b) Rs. 750
c) Rs. 1000
d) Rs. 1500
11. Average Clause discourages ______.
a) Over insurance
b) Under insurance
c) Proper insurance
d) Inclusion of perils
12. Under EAR policy, insurance ceases ______.
a) 2 weeks after first test
b) 6 weeks after first test
c) 1 year after start
d) 4 weeks after first test
13. General average act refers to ______.
a) Underinsurance condition
b) Avg. premium calculation
c) Extraordinary sacrifice/expenditure loss
d) Annual average loss
14. After MACT award, amount is ______.
a) Paid to state govt
b) Paid to third party
c) Deposited with civil court
d) Deposited with MACT
15. Policy without sum assured is ______.
a) Professional indemnity
b) Personal accident
c) Product liability
d) Directors & Officers liability
16. Risk premium is calculated on ______.
a) Value of people insured
b) Number of people
c) Profit & Loss ratios
d) Average loss ratios
17. Shifting factory to avoid flood is ______.
a) Risk avoidance
b) Risk evaluation
c) Risk identification
d) Risk detection
18. Special declaration premium is based on ______.
a) Estimated next year turnover
b) Current year turnover
c) Previous year turnover
d) Last two years turnover
19. Treaty arranged per risk or per event is ______.
a) Excess of loss treaty
b) Excess of profit treaty
c) Proportional treaty
d) Reinsurance treaty
20. NOT a deficiency of MPT is ______.
a) Investors are emotional
b) Returns are asymmetrical
c) Correlation changes
d) Optimal diversification strategy
