IC11 PRACTICE OF GENERAL INSURANCE EXAM – 05

Q1.__ is the procedure of assessing, accepting, and pricing risks, applying policy conditions, and managing exposures.
 Risk Assessment
 Investment
 Risk Evaluation
 Underwriting
 Hedging

 

Q2.____ , a social peril, is included in the Standard Fire Insurance policy.
 Explosion / implosion
 Riot
 AOG perils
 Hurricane
 Aircraft damage

 

Q3.Foreign Direct Investment (FDI) in insurance was hiked to ___ % in the Union Budget of 2015.
 41%
 43.50%
 45%
 47.50%
 49%

 

Q4.A cotton processing plant wants to have insurance. The insurance company issued a fire policy that covered damages against fire except for __ .
 Lightning strike
 Explosion / Implosion
 Spontaneous combustion
 Malicious damage
 None of the above

 

Q 5.Spoilage Material Damage’ cover relates to ____ and ___, including the cost of removal of debris.
 Loss of stock, Temporary removal
Temporary removal, Loss of rent
Loss of stock in process, Startup expenses
Temporary removal, Damage to the machine
Loss of stock, Damage to the machine

 

Q6.The maximum amount that an insurer wishes to keep on any risk is known as __.
 Retention
 Capacity
 Maximum Limit
 Ceding Amount
 Re-insurance

 

Q7.Which insurance will cover the contingent losses of – Own property damage, Gate money, and advertising revenues, Own property damage, etc.
 Films / Entertainment
 St and ard Fire and amp; LOP
 Standard Fire burglary & Liability
 Standard Fire and Liability
 Event Cancellation

 

Q8.An insurer accepts two proposals – one of a private carrier and the other of a public carrier. Both the vehicles are 11 years old. What kind of coverage will be offered for these?
Act only, Comprehensive
Comprehensive, Act only
 Both Act only
 Both Comprehensive
Cannot ensure such vehicles

 

Q9.The key issue under ‘Subrogation’ is __.
 Establishing fault and getting the other party to accept liability
 To locate the party which is a fault
 To ascertain whether the third party is insured
 To take over the insured’s legal rights
 None of the above

 

Q10.For some reason, the insurers do not want to renew a policy. Which notice has to be given to the policyholder?
 Cancellation notice
 Public notice
 Expired notice
 Prior notice
 Actual notice

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