IC01 (LICENTIATE) Principles of Insurance – 01

Q 1.Who entrusts their savings to an insurer, trusting it to look after these funds and look after their interests and those of their dependents in later years?
 Internal customers
 External customers
 None of the above


Q2.Which words are dissimilar from the other four options
Life Insurer amp;ndash; Policyholder
 Partners in business
 Brother andSister
 Creditor and Debtor
Cargo owners and goods in transit


Q3.There are 1000 cars in a town. It is expected that, on average, 2% of the cars or 20 cars, may meet with an accident in a year. The economic value of the loss suffered by the owner of each car is taken to be Rs. 25,000. What will be the insurance premium charged to each car?
 Rs 250
 Rs 500
 Rs 780
 Rs 1050
 Rs 1300


Q4.In which year did private players enter the insurance market in India?


Q5.Which of the below statement is INCORRECT?
The risk of motor accidents can be reduced by following traffic rules
 The risk of death can be prevented
 The risk of damage to ships can be controlled by using weather information
 All of the above
 None of the above


Q6.An insurance agent wishes to show his client how advantageous a life insurance policy is as compared to a Recurring Deposit. Which of these options does not support this view?
 In life insurance the sum assured is assured from the beginning
The accumulated value of a recurring deposit available at any time will be money invested plus interest to date
In life insurance, the fund available is the amount one wished to have at the end of the saving period
The sum assured fund will be paid when the specified contingency occurs, regardless of the premium amount paid to date
 Life insurance is just another good avenue for savings


Q 7.Bharat Insurance Company Ltd. was ___.
 1st life insurance company in India
 1st non-life insurance company in India
 started in Mumbai in 1870
 was started in Delhi in 1896
 None of the above


Q8.Insurance is a way to ___.
 avoid loss
 reduce loss
 prevent risk
 finance risk
 None of the above


Q9.Mr. Suresh wants an insurance plan which will satisfy his three requirements viz 1) Get regular income at fixed intervals for his son’s education 2) A lump sum amount later on when he goes for higher studies 3) A lump sum amount in case he meets an untimely early death. Which plan is best suited for Mr. Suresh?
 Linked insurance plans
 Whole life insurance plans
 Endowment Assurance Plans
Money-back plans


Q10.Which of these factors (s) affect the premium of any insurance cover?
 Family History
 All of the above

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