IC14 Mock Test Sample 5
This set of questions covers key regulatory and legal aspects of insurance business under IC14. It includes appeal procedures to the Supreme Court and State Commission, timelines for settlements, and deposit requirements. Topics include marine insurance under the Carriage of Goods by Sea Act, microinsurance tie-ups, and assignment types. It highlights AML risks, premium collection responsibility, and ULIP conditions such as minimum sum assured and yield limits. Consumer protection provisions, interest on delayed claims, and nomination purposes are also covered. Additionally, it addresses public liability principles, IRDAI registration rules, and general principles of risk coverage, settlement procedures, and insurance contract requirements.
1. An appeal against the order of National Commission can be made in the Supreme Court within a period of:
A. 7 days
B. 10 days
C. 30 days
D. 45 days
2. Which insurance does the Carriage of Goods by Sea Act provide for?
A. Packaging of cargo
B. Carriage of branded merchandise
C. Transit risks
D. Cargo shipment
3. Regulations for micro insurance provide for a tie-up between:
A. Insurer and Agents
B. Life and non-life insurance companies
C. Low income people and insurers
D. Life insurer and non-life insurer
4. Appeal in State Commission can be made subject to deposit of ____ of the amount awarded or ____ whichever is less:
A. 10%, Rs. 25,000
B. 20%, Rs. 25,000
C. 30%, Rs. 25,000
D. 40%, Rs. 25,000
5. Upon acceptance of an offer of settlement by the insured, payment shall be made within ____ days:
A. 7 days
B. 10 days
C. 15 days
D. 21 days
6. In ________ assignment, the liability of the insurer is limited to the amount secured by partial assignment:
A. Subjective assignment
B. Partial assignment
C. Conditional assignment
D. Unconditional assignment
7. Which of the following statement is true?
A. Premium must be paid only in cash
B. Risk is covered only after receipt of premium unless paid in cash
C. Cover starts even if premium is not received on time
D. Premium cannot be paid using debit/credit cards
8. ______ of registration certificate is not covered under IRDAI Act:
A. Issuance
B. Inheritance
C. Modification
D. Renewal
9. From a Money Laundering perspective, _________ is the most vulnerable medium of transaction:
A. Pay orders
B. Cheque transactions
C. Electronic fund transfers
D. Cash transactions
10. Insurer who bears the rates on the policy refers to rates at the time of the ________:
A. Agreement
B. Contract
C. Investigation
D. Assignment
11. On whom does the responsibility of collecting the premium lie?
A. Agent
B. Insurer
C. Insured
D. Nominee
12. In Single Premium (SP) contracts, minimum sum assured for age below 45 years is:
A. 55% of single premium
B. 75% of single premium
C. 105% of single premium
D. 110% of single premium
13. Which of these statement is correct?
A. Insurability increases with age
B. Insurability reduces with age
C. Insurability increases as age reduces
D. Insurability reduces as age reduces
14. Which statement(s) is/are TRUE as per Consumer Protection (Amendment) Act?
A. It is an addition to the Act
B. Remedy is simple, speedy and inexpensive
C. It covers public, private and co-operative sectors
D. All of the above
15. If there is delay by insurer in claim processing, interest is payable at:
A. Bank rate + 3%
B. Bank rate
C. Bank rate + 1%
D. Bank rate + 2%
16. The net reduction in yield for policies with term more than 10 years should not be:
A. More than 3% on maturity
B. More than 2.75% on maturity
C. More than 2.25% on maturity
D. Less than 2.25% on maturity
17. Risk covering period for aircraft hull, aviation risks and marine hulls is:
A. Very short
B. Short
C. Long
D. Very long
18. Public liability insurance act gives relief based on principle of:
A. No increment
B. No accident
C. No damage
D. No fault
19. A policy in any proposal or document is issued or re-instated by the:
A. Agent
B. Broker
C. Banker
D. Insurer
20. What is the purpose of nominations?
A. Immediate payment of sum assured
B. Protection of policyholders’ interest
C. Avoidance of risks
D. All of the above
