IC11 - LICENTIATE - Practice Of General Insurance 17

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Q 1. What is the difference between representation and warranty?

a) A representation need only be substantially correct while a warranty must strictly and be complied with

b) An insurer cannot repudiate its liability against an improper representation unless that is proved to be a material one while anything wrong in the warranty is sufficient to avoid the liability

c) A representation does not lead to any risk to the policyholder while a warranty may lead to serious contingency to the policyholder.

d) Both (a) and (b) above

Q 2. __________ is the maximum limit of liability of the insurer under the policy

a) Sum insured

b) Premium

c) Surrender value

d) Amount of loss

Q 3. ____________cannot be an intermediary.

a) Bank

b) Insurer

c) Agent

Q 4. Which of these policies do not specify any sum assured?

a) Professional indemnity policy

b) Personal accident insurance

c) Product liability policy

d) Employer liability policy

Q 5. The authority responsible for the redressal of disputes between the insurer and the insured is known as

a) Ombudsman

b) Arbitrator

c) Judge

d) advocate

Q 6. Which among the following cannot be an element in a valid insurance contract?

a) Offer and acceptance

b) Coercion

c) Consideration

d) Legality

Q 7. Under Overseas Medical Policy, an extension of the period of insurance is automatic, for the period not exceeding ____ days and without extra, if due to delay of public transport services beyond the control of the insured.

a) 7 days

b) 15 days

c) 21 days

d) 30 days

Q 8. A ship was transporting goods from one location to another when an explosion in the ship damaged the vessel as well as the goods. Under the Marine Hull policy, the compensation will be paid for __________.

a) the damage to the ship only

b) the damage to the goods only

c) the damage to the ship motor only

d) the damage to the ship and goods both

Q 9. Professional indemnity insurance does not cover

a) Acts of commission and omission

b) Acts of negligence

c) Liability arising out of failure of doctors treatment

d) Criminal Act

Q 10. Which of the following statements is True?(1) Personal Accident cover is not granted for a high sum insured which is disproportionate to the monthly salary of the insured. (2) Non-earning housewives are granted personal accident cover for capital sums on

a) Statement 1 is True

b) Statement 2 is True

c) Both are true

d) Both are false

Q 11. The Annual Policy in marine insurance covers ___________.

a) covers cargo in the voyage by sea

b) covers goods being airlifted

c) all cargo in transit annually

d) covers goods which are in transit from one depo to another by rail or road

Q 12. Which of the following on NOT covered under Bankers Blanket policies?

a) Fraud of insured employees in respect of goods hypothecated to the insured

b) Payment of forged cheques

c) Loss due to faculty computer programming

d) Loss of security by burglary

Q 13. Q13) As per the Insurance Act, of 1938 (as amended) an insurer has to obtain a report from a licensed surveyor if the loss equals or exceeds.

a) Rs 15,000

b) Rs 20,000

c) Rs 25,000

d) Rs 50,000

Q 14. 2000 Factories require a Sum Insured of Rs 10 Crore each. Statistics show that at least 2 factories get destroyed each year. What should be the contribution of each factory owner by way of Pure Premium?

a) Rs 75,000

b) Rs 1,00,000

c) Rs 2,00,000

d) Rs 3,00,000

Q 15. Which of the following is covered by extra premium under the cattle policy?

a) Riot and Strike

b) Surgical operations

c) Famine

d) Permanent total disability

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