S09-Crop Insurance Mock Test 12
S-09 Crop Insurance covers important concepts in crop loss assessment, underwriting, insurance units, and agricultural risk. A constructive total loss can occur when the crop becomes unmarketable despite substantial value remaining. Hail insurance premium determination considers the frequency of hailstorm occurrence at a location. Assessors must ensure complete documentation before leaving the farm. Farmer details may be uploaded to NCIP through PACS, Common Service Centres, and Banking Correspondents. Historical crop insurance experience includes major events that influenced crop-hail insurance markets. NAIS uses different indemnity levels based on risk areas. Chapter 2 focuses on Risks in Agriculture, while PMFBY defines an Insurance Unit for area-based yield calculations.
1. What is a 'constructive total loss' in crop insurance?
a) When the crop is completely destroyed by fire
b) When the government declares a crop failure
c) When more than 90% of the crop is destroyed
d) When the farmer abandons the crop voluntarily
e) When the insurer pays full indemnity and tries to salvage some value, even if the bulk of the crop may be undamaged but is unmarketable
2. What does 'location' refer to in the context of hail insurance premium determination?
a) Distance from the nearest town
b) Altitude of the farm
c) Frequency of occurrence of hailstorm
d) Proximity to water bodies
e) Soil type of the region
3. What is the key requirement when the assessor is 'Leaving the Farm' (Step 10)?
a) The farmer must pay the assessor's travel expenses
b) The assessor must take photographs of the farm boundary
c) The assessor must collect soil samples for laboratory analysis
d) There should be no gaps in the assessment paperwork; every item should be completed; all forms should be complete and the assessor should have the signature of the farmer
e) The assessor must provide the farmer with a written compensation estimate
4. Which entity is responsible for uploading farmer details on the NCIP portal via Banking Correspondents?
a) State Agriculture Department
b) Insurance Companies
c) PACS/Common Service Centres/Banking Correspondents
d) District Collectors
e) Block Development Officers
5. What happened following the great plains storms of 1915 in the USA?
a) Many new companies entered the market
b) Government introduced crop insurance
c) Many companies were forced to withdraw from crop-hail insurance
d) Premium rates were reduced drastically
e) MPCI was introduced
6. Under NAIS, what are the three levels of indemnity and corresponding areas?
a) 60%, 70%, 80% for Low, Medium, High risk areas
b) 90% for Low Risk Areas, 80% for Medium Risk Areas and 60% for High Risk Areas
c) 50% for all risk areas
d) 100% for all areas
e) 75% for all areas regardless of risk
7. What distinguishes the 'Pure premium method (Loss cost)' from the loss ratio method?
a) Pure premium method is simpler than loss ratio method
b) Pure premium method calculates a new premium rate each time it is used (a ratio of losses paid to insurance provided), whereas the loss ratio method adjusts a previously established premium rate
c) Pure premium method uses government data only
d) Pure premium method applies only to loanee farmers
e) Pure premium method uses international benchmarks
8. Phase IV (2001 to present) of Indian agriculture is characterized by:
a) Development of infrastructure for scientific agriculture
b) Rapid rise in oilseed production
c) Focus on maximising benefits of irrigation and technology transfer
d) Policy fatigue, resulting in technology extension and production fatigues
e) Green Revolution initiatives
9. What is the title of Chapter 2 in S-09 Crop Insurance?
a) Introduction to Indian Agriculture
b) Risks in Agriculture
c) Crop Insurance Schemes
d) Agricultural Finance
e) Climate Change and Food Security
10. What is an 'Insurance Unit' in the context of PMFBY?
a) A government department dealing with insurance
b) The smallest administrative area for which area-based yield is calculated under PMFBY
c) The unit of premium calculation
d) The district insurance office
e) The group of farmers forming a cooperative
