IC11 - LICENTIATE - Practice Of General Insurance 3

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Q 1. Which of the following is not likely to be a rating factor in Fire Insurance?

Security of the building

Fire Extinguishers

Deductible

Construction

None of the above

Q 2.
What does "Condition of Average" mean?

The property is double insured.

The property is overinsured.

The property is fully insured.

The property is underinsured.

The property is Uninsured.

Q 3. Which of the following is an ex-gratia payment?

Payment made when the policy is canceled

Payment made when risk is not covered under policy

Payment made when the policy is voided

All of the above

None of the above

Q 4. In which two ways can risk be measured within a risk register?

Probability and Transferability

Probability and Severity

Probability and Financial

Probability and Ownership

Probability and Assurance

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

Fire Catastrophe Pool

Third-Party Motor Pool

Terrorism Pool

Marine Hull Pool

None of the above

Q 6. A man owns a company that manufactures seat covers for cars from leather cloth. While lifting the leather cloth roll with the help of a forklift, a cut occurred to the cloth. Is the claim admissible under the fire policy?

Yes, the claim is admissible as it happened while manufacturing

Yes, the claim is admissible as it happened with the insured's vehicle

No, the claim is not admissible as it happened with the insured's vehicle

Yes, the claim is admissible at the discretion of the insurer

No, the claim is not admissible as the insurers will not entertain it

Q 7. Insurance companies have two major sources of income, they are ______ and ______.

Underwriting, Investment

Underwriting, Inspection

Inspection, Investment

Evaluation, Underwriting

Sales, Marketing

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 ________.

the damage to the ship only

the damage to the goods only

the damage to the ship motor only

the damage to the ship and goods both

the damage to the goods and motor only

Q 9. A fire that is deliberately caused by the insured is called ______.

sabotage

intent to damage

immolation

riot

arson

Q 10. ________ is the primary source of income for an insurer.

Commission

Dividend

Bonus

Premium

Remuneration

Q 11. The increase or loading on the premium is called ________.

No Claim Bonus

Malus

New Contract

Subrogation

Floater

Q 12. Mr. X was met with an accident by a car driven at a fast speed by Mr. Y. Mr. X filed a claim for losses suffered by his insurers. His insurers suggested he approach Mr. Y's insurers under third-party liability cover. Mr. X transferred his rights of c

Arbitration

Utmost good faith

Subrogation

Mediation by Ombudsman

Such transfer is not possible

Q 13. M/s. XYZ Construction Co. has got an order to construct a bridge and tunnel. Which policy should they take before they start the project?

Machine Insurance Policy

Storage cum Erection Policy

Erection All Policy

CPM Policy

Contractors All Risk Policy

Q 14. A company insures its factory building for Rs 12 crore and the machinery for Rs 3 crore. The actual value for these was Rs 18 crore and Rs 4 crore respectively. In a fire, the building suffers damage to the tune of Rs 10 crore and machinery Rs 3.6 cr

Rs. 6.85 crore

Rs. 7.83 crore

Rs. 9.37 crore

Rs. 10.5 crore

Rs. 13.6 crore

Q 15. Which insurance is considered for the Indian Ports (Major Ports) Act?

Public liability insurance

Hull insurance

Workmen’s compensation insurance

Cargo insurance

Personal accident insurance


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