IC11 - LICENTIATE - Practice Of General Insurance 2

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Q 1. When will the underwriter use the burning cost method?

The risk is huge and requires a cover for a diversified conglomerate

When the claims experience is not consistent

When technical guide rates are not available

All the above

None of the above

Q 2. The total loss of any package lost overboard or dropped whilst loading on to or unloading from a vessel or craft is ___________.

covered by the Institute Cargo Clauses C

covered by the Institute Cargo Clauses B

covered by the Institute Cargo Clauses C & B

covered by the Institute Cargo Clauses A, B, and C

covered by the Institute Cargo Clauses A & C

Q 3. There cannot be a legal relationship between __________.

Nominee and insured

reinsurer and insurer

reinsurer and insured

insurer and insurer

All of the above

Q 4. When amendments are made in the policy, they are termed as ____________.

exclusions

representations

warranties

endorsements

declarations

Q 5. The Institute Time Clauses pertain to __________.

Marine cargo insurance

International trade insurance

Foreign exchange insurance

Aviation insurance

Marine hull insurance

Q 6. Calculate the refund under the declaration policy. Sum assured 100000 Rate Re 1 per 100 Premium Rs.1000 Declarations - Jan-65000, Feb-60000, March-50000, April-75000, May-50000, June-50000, July- 80000, Aug- 60000, Sept-50000, Oct-40000, Nov-90000, Dec-50000.

Rs.400

Rs.600

Rs.1000

Rs.1200

Rs. 1800

Q 7. Which of the following is NOT a function of the underwriter?

Identify and calculate the risk of loss from policyholders

Determine premium, terms, conditions

Retention and reinsurance

Advise about the quality of risk

To confirm terms, draft policies to cover the risk

Q 8. Indemnity under public liability policy does NOT cover __________.

costs towards repair

costs arising out of any product guarantee

for costs arising out of the recall of products

for injury damage

for failure of any product to fulfill its purpose

Q 9. If the total premium is Rs.10000 and the limit of liability is Rs.5000000, what is the rate online?

0.02%

0.00%

0.20%

2%

2.20%

Q 10. The Industrial All Risks Insurance Policy covers risks over ______.

Rs. 50 crores

Rs. 100 crores

Rs. 200 crores

Rs. 250 crores

Rs. 500 crores

Q 11. Act only' policy covers _________.

Own damages and also third-party damages

Liability to third parties

Liability in case of permanent disability

Liability in case of death

There is no such policy

Q 12. When looking for reinsurance, the underwriter works at two levels - one is at the risk level and the other is _____.

Macro

Micro

Primary

Retention

Portfolio

Q 13. If Mr. Abhay's car collides with another car and the other car's driver gets injured, who will pay for the claims of the other driver ?

Mr. Abhay will have to pay

The other driver if if in uninsured

Third-party insurance pool

Mr. Abhay's insurance company

The other driver's insurance company

Q 14. Which policy covers damage to the actual structure of the vessel?

Marine Hull insurance

Marine Cargo insurance

Marine Fire insurance

All of the above

None of the above

Q 15. In the case of Motor Insurance which document is considered as the only evidence of the existence of a valid insurance by police authorities and RTO?

Insurance Notice Document

Cover Notice

Policy Document

Certificate of Insurance

Any of the above

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