IC11 - LICENTIATE - Practice Of General Insurance 23

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Q 1. Householders insurance covers

a) Only the structure of the home

b) Only the Contents of the home

c) Both the structure and contents

d) Both Structure and contents only when the insured is not at home

Q 2. Two main sources of Income for an Insurance Company are Investment Income and __________

a) Claims Salvage

b) Risk Management

c) Reinsurance Commission

d) Underwriting Income

Q 3. What is an endorsement?

a) A peril or contingency specifically excluded from the cover of the policy.

b) The first portion of a loss which the insured agrees to bear.

c) A stipulation used to limit the nature of the risk under an insurance policy which must be complied with by the insured.

d) An amendment which changes a policy

Q 4. Which of the following are standing charges?

a) Insurance premiums

b) Rent

c) Interest on loans from banks

d) All of the above

Q 5. Incurred claims are the value of paid and outstanding claims for the year after the deduction of ________ at the end of the previous year.

a) Brought over balances

b) Surplus balances

c) Fiscal deficit

d) Claims outstanding

Q 6. Fire reinstatement value policy is not issued in respect of _______

a) Building

b) Plant

c) Machinery

d) Stocks

Q 7. What is the cause of hit-and-run accidents?

a) Marathon Runners

b) Pedestrians

c) Watercraft

d) Motor vehicles

Q 8. What does Commercial Pricing in a hard market refer to?

a) Increasing the premium above book rates

b) Decreasing the premium below book rates

c) Special premium rates

d) Below-market deductibles

Q 9. Which of the following documents is not required for processing private car Own Damage Claims?

a) Driving license

b) Registration certificate book

c) Fitness Certificate

d) Final bill from repairers

Q 10. When a reinsurer shares his loss exposure(s) with another reinsurer (s), it is called a?

a) reinsurance

b) retrocession

c) retention

d) re-reinsurance

Q 11. Which policy specifies the perils covered for property at specified locations?

a) Hull insurance policy

b) Motor insurance policy

c) Fire insurance policy

d) Medi Claim policy

Q 12. The minimum qualification required for an insurance agent is _______ pass.

a) Graduate

b) 10th

c) Post-Graduate

d) 7th

Q 13. Q13) Which of these terms refers to 'Partially Damaged Property?

a) Claim

b) Risk

c) Damage

d) Salvage

Q 14. Premium is the consideration paid by the insured under _________ of insurance.

a) Body

b) Terms

c) Agreement

d) Contract

Q 15. In the case of Motor Insurance of Private Cars if the age of the vehicle is less than 15 years but more than 10 years then Which of the following is True?

a) Comprehensive Cover Shall be issued

b) Comprehensive cover subject to satisfactory inspection report

c) The act Covers only

d) Comprehensive cover subject to the satisfactory inspection report and additional excess


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