IC11 - LICENTIATE - Practice Of General Insurance 19

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Q 1. Which of these is NOT a deficiency of the Modern Portfolio Theory (MPT)?

a) Investors are emotional

b) The financial returns distribution is asymmetrical'

c) Co-relation of asset classes changes on externals

d) Optimal diversification strategy

Q 2. Erection All Risks Policy is also known as

a) Storage cum Erection Policy

b) PR Costs Involved in Disaster Management

c) Cover for Failure to Perform

d) Transportation of the defective products

Q 3. Which of the following is NOT covered under the Neon Sign insurance policy?

a) Theft

b) Lighting

c) Mechanical breakdown

d) External explosion

Q 4. A claim under the critical illness policy is payable if, during the policy period, the Insured is found to have contracted a critical illness and survives such critical illness for at least _____ days from the date of its discovery.

a) 15 days

b) 30 days

c) 45 days

d) 60 days

Q 5. Which of these pools is not managed by GIC?

a) Fire Catastrophe Pool

b) Third-Party Motor Pool

c) Terrorism Pool

d) Marine Hull Pool

Q 6.
In PA (Personal Accident) insurance, the coverage for loss of one limb and one eye is___________%.

a) 10

b) 20

c) 50

d) 40

Q 7. A waiting period of ________ months is applicable for payment of a maternity claim.

a) 8 months

b) 9 months

c) 10 months

d) 12 months

Q 8. A policyholder was NOT at fault for a motor accident and his insurer settled his claim. The insurer then pursues the negligent third party to recoup its claims costs. This principle of insurance is known as

a) average.

b) contribution.

c) subrogation.

d) uninsured loss recovery.

Q 9. The standard fire and special perils policy automatically covers works of art for an amount not exceeding

a) Rs.5,000/-

b) Rs. 10,000/-for every loss

c) 20,000/-

d) Rs.25,000/-

Q 10. In which of the following contracts does the seller's responsibility of arranging insurance begin once the goods are placed on board?

a) FOB

b) CIF

c) CandF

d) Both FOB and CandF

Q 11. The insurer shall, within a period of _____Days of receipt of the survey report, offer a settlement of claim to the insured

a) 15 days

b) 30 days

c) 45 days

d) 60 days

Q 12. Which component of the policy document is unique to each insured person?

a) The preamble

b) The policy schedule

c) The operating clause

d) The annexure

Q 13. Q13) Who receives the complaints in respect of repudiation of claims by an insurer?

a) Agents

b) Insurance Brokers

c) Insurance Companies

d) Ombudsman

Q 14. Foreign Direct Investment (FDI) in insurance was hiked to ________ % in the Union Budget of 2015.

a) 41%

b) 43.5%

c) 45%

d) 49%

Q 15. The principle of indemnity is applied through deduction

a) For under-insurance

b) For depreciation

c) Under franchise clause

d) Under the excess clause


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