IC11 PRACTICE OF GENERAL INSURANCE EXAM – 06

Q1.A factory building is insured for Rs.50 lakhs and the plant and machinery for Rs.25 lakhs. The actual value should be Rs.100 lakhs for building and Rs.60 lakhs for the plant and machinery. In a fire, the building suffers a loss of Rs. 10 lakhs and the plant and machinery of Rs.20 lakhs. What will the insurer pay?
 Rs. 14.33 lakhs
 Rs. 13.33 lakhs
 Rs. 17.26 lakhs
 Rs. 30 lakhs
 Rs. 33.33 lakhs

 

Q2.100 houses require a Sum Insured of Rs.100000 each. Statistically, 2 houses may get destroyed by fire each year. Calculate the pure premium.
 Rs. 500
 Rs. 750
 Rs. 1000
 Rs. 1500
 Rs. 2000

 

Q3.The reinsurer of the reinsurance co is known as _____.
 Retrocedent
 Retrocessionaire
 Primary reinsurer
 General reinsurer
 National reinsurer

 

Q4.What is a ‘General average act’?
 The condition of average applied when there is underinsurance
It is the average of premiums paid in declaration policies
It is loss caused when any extraordinary sacrifice or expenditure is made
It is the average of losses that occur in one financial year
 It is the average of stocks maintained at various location

 

Q5.Under the ‘Erection All Risks (EAR) insurance policy ___.
the insurance will cease two weeks after the first test operation
the insurance will cease six weeks after the first test operation
 insurance will continue for one year
insurance will cease four weeks after the first test operation
 None of the above

 

Q6.__ is engaged by the insurer and paid by the reinsurer.
 Direct broker
 Composite broker
 Insurance broker
Stockbroker
 Reinsurance broker

 

Q7.Which of these is NOT an exclusion in Mediclaim policies?
 Pregnancy, childbirth
Pre-existing diseases
 Surgery for gallbladder
 Cost of spectacles, contact lenses hearing aids
 Cataract, hernia

 

Q8.___ policy provides cover for loss of gross profit due to stoppage of production.
 Consequential Loss policy
 Loss Recovery policy
 Long Term policy
Reinstatement Value policy
 Declaration policy

 

Q9.IRDA premium investment guidelines state that investments in Central Government Securities should not be less than ___.
 10%
 20%
 30%
 35%
 No such guidelines

 

Q10.Which of the following is not a part of the fundamentals of a contract?
 Consent of the parties
 Offer and Acceptance
 Written agreement
 Legality and being capable of performance
 None of the above

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