IC29 Mock Test Sample 2

Question 1: Insured 'keeps books of account at another location' clause is intended to:

a) Protect records from damage at main site
b) Avoid tax
c) Reduce premium
d) Inflate claim

Question 2: Depreciation on glass in motor claim is:

a) 0
b) 0.25
c) 0.5
d) 1

Question 3: Ex-gratia payment is made:

a) As per legal right
b) Out of goodwill without admitting liability
c) Only by regulator
d) On complaint

Question 4: Loss by 'own fermentation or spontaneous combustion' in fire policy is:

a) Covered fully
b) Generally excluded (property that caused it)
c) Always payable
d) Ex-gratia

Question 5: Hull excluded perils include:

a) Ordinary wear and tear, inherent vice, delay, loss of freight
b) Fire
c) Stranding
d) Lightning

Question 6: Sue and Labour vs salvage:

a) Different — S&L is mitigation expense; salvage is property remains
b) Same
c) Premium
d) Bonus

Question 7: Salvage management is important because:

a) It reduces net claim cost
b) It increases premium
c) It cancels policy
d) It denies claim

Question 8: IRDAI may cancel a licence on:

a) Misconduct, fraud, professional incompetence
b) Premium pay
c) Bonus
d) Salvage

Question 9: Credit insurance covers:

a) Loss from non-payment by buyers (commercial/political risks)
b) Premium
c) Bonus
d) Fire

Question 10: IIISLA was set up under:

a) Section 64UM of the Insurance Act
b) Companies Act only
c) IRDA Act
d) Contract Act

Question 11: Average adjuster is appointed by:

a) Ship owners usually, with shared costs
b) Regulator
c) Only cargo
d) Only broker

Question 12: If proximate cause is an insured peril but a remote cause is excluded, the claim is:

a) Not payable
b) Payable
c) Ex-gratia
d) Rejected

Question 13: Under the Consumer Protection Act, an aggrieved insured can approach:

a) Civil court only
b) Consumer forums / commissions
c) RBI
d) SEBI

Question 14: Surveyor's communication:

a) Professional with all parties
b) Personal
c) Bonus
d) Premium

Question 15: Claim documents in health insurance should generally be submitted within:

a) No time
b) Prescribed time (e.g., 15/30 days from discharge)
c) One year
d) Five years

Question 16: Declaration under average clause reflects:

a) Correct value at risk to avoid proportional reduction
b) Only SI
c) Only premium
d) Only salvage

Question 17: Goods held in trust must be:

a) Declared in the policy to be covered
b) Always covered automatically
c) Excluded always
d) Ex-gratia

Question 18: Surveyor's professional language:

a) Clear, technical and unambiguous
b) Vague
c) Slang
d) Premium based

Question 19: Other Insurance' clause:

a) Coordinates coverage when multiple policies apply
b) Premium
c) Bonus
d) Salvage

Question 20: Recovery from regulator (Solatium Fund):

a) For hit-and-run motor accidents
b) All claims
c) Premium
d) Bonus