IC45 Mock Test Sample 5

Q1. _______ is/are example(s) of Internal Tariff Rated Products.

a) Life Insurance
b) Motor Insurance
c) Health Insurance
d) Both Motor Insurance and Health Insurance

Q2. Certificate by Appointed Actuary is provided in which form?

a) Form A
b) Form B
c) Form C
d) Form D

Q3. Filing of rates and policy forms for the regulator's review ensures protection of _____.

a) IRDAI
b) Consumers only
c) Insurers only
d) Both Consumers and Insurers

Q4. The principal areas regulated in insurance include all the following except:

a) Rate Regulation
b) Formation and Licensing of Insurers
c) Number of Policies Sold
d) Sales Practices and Consumer Protection

Q5. Which are specific requirements under a contract, violation of which can adversely affect policy liability?

a) Exclusions
b) Policy Document
c) Warranties
d) Endorsements

Q6. Which of the following is an example of a Class Rated Product?

a) Exposure Rated Products
b) Insurance of Large Risks
c) Individual Experience Rated Products
d) Package or Customized Products

Q7. Documentation for insurance also includes _____.

a) Statement of Vision of the Insurer
b) Code of Conduct for Agents
c) Reinsurance Slip
d) Both Statement of Vision and Reinsurance Slip

Q8. The pertinent elements used to build a rating plan are known as ________.

a) Relevant Factors
b) Premium Factors
c) Rating Factors
d) Deterministic Factors

Q9. What is the correct plan for underwriting profitability?

a) Have a good advertising budget
b) Provide all types of risk covers
c) Underwriting philosophy should be vetted by top management/actuary
d) Charge heavy premiums for catastrophe insurance

Q10. Which policy generally cannot be underwritten by the operating office without approval from the controlling office?

a) Products Liability Insurance
b) Motor Insurance
c) Householders’ Policy
d) Mediclaim Insurance

Q11. Appropriate data in insurance policies includes information on:

a) All Relevant Factors
b) Insurance Agent
c) Insurance Regulator
d) Both Relevant Factors and Insurance Regulator

Q12. According to IRDAI Regulations, the design and rating of insurance products should ______.

a) Be Reasonable
b) Have Convoluted Policy Wordings
c) Have Arbitrary Premiums
d) Both a and b

Q13. Identify the true statement regarding insurance products.

a) New products should be materially different from existing products
b) Product name should not be misleading regarding coverage
c) Product design should be customer-oriented
d) Both a and b

Q14. If a surveyor is to be appointed, it should be done within ____ hours of claim intimation.

a) 12 Hours
b) 24 Hours
c) 48 Hours
d) 72 Hours

Q15. Which of the following is a rating factor in Motor Insurance?

a) Address
b) Lingual Preference
c) Annual Income
d) Educational Qualification

Q16. Which of the following forms part of an effective product proposal?

a) Product Issue List
b) Expected Results and Monitoring Process
c) Past Claim Experience of Other Products
d) Both Product Issue List and Expected Results & Monitoring Process

Q17. Problems in underwriting for a portfolio can arise due to:

a) Competitors’ Actions in the Marketplace
b) Paucity of Awareness
c) Consumer Mindset Regarding Insurance
d) Both Competitors’ Actions and Paucity of Awareness

Q18. What are Large Risks as per File and Use Guidelines?

a) Risks that cannot be managed
b) Risks that cannot be predicted
c) Risks of ₹100 Crores or more per event for liability insurance
d) Risks that cannot be controlled

Q19. What items may necessitate a restatement of historical experience?

a) Change in Management at the Insurer
b) Changes in Mix of Business Written
c) Client Profile of the Insurer
d) Both Change in Management and Change in Mix of Business

Q20. Which of the following is an example of an Exposure Rated Product?

a) Blanket Insurance for Bankers
b) Individual Health Insurance
c) Shopkeepers Comprehensive Insurance
d) Homeowners Comprehensive Insurance