IC11 - LICENTIATE - Practice Of General Insurance 33

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Q 1. Under the Public Liability Insurance Act, an Application for a claim for relief must be made to the collector within _______ years of the occurrence of the accident.

a) 1 year

b) 2 years

c) 3 years

d) 4 years [This is the Right Answer]

Q 2. Cost of risk is determined by ________________.

a) Probability only

b) Impact only

c) Probability and impact [This is the Right Answer]

d) Timing of risk

Q 3. Fire Consequential loss policy pays the insured

a) Net profit

b) St and ing charges

c) Increased cost of working

d) All of the above [This is the Right Answer]

Q 4. With rapid changes in the insurance sector and increased competition, what should the insurance companies do to stand out?

a) Organise camps

b) Recruit more agents

c) Increase channel selling

d) Product differentiation [This is the Right Answer]

Q 5. How is the fire insurance for residential properties classified?

a) Simple Risk [This is the Right Answer]

b) Dynamic Risk

c) Hazardous Risk

d) Storage Risk

Q 6. Identify the two factors that affect insurance ratemaking.

a) Probability and severity of risk [This is the Right Answer]

b) Source and nature of risk

c) Source and timing of risk

d) Nature and impact of risk

Q 7. Which of these statements is correct? (1) Subrogation under common law is implied in a contract of indemnity. (2) Subrogation under common law arises only after payment of loss

a) Statement 1 is True

b) Statement 2 is True

c) Both are correct [This is the Right Answer]

d) Both are incorrect

Q 8. Which of the following statements is True? (1) General average sacrifice is covered under ICC(C) (2) Jettison is covered under ICC ( C )

a) Statement 1 is True

b) Statement 2 is True

c) Both are true [This is the Right Answer]

d) Both are false

Q 9. Which among the following activities can be classified as promotion?

a) Product development

b) Quality control

c) Product advertisement [This is the Right Answer]

d) Product benchmarking

Q 10. Which of the following statements is True? (1) All disputes regarding claims under the fire policy are to be referred to a civil court. (2) Disputes regarding the amount of claim payable are to be referred to arbitration.

a) Statement 1 is True

b) Statement 2 is True [This is the Right Answer]

c) Both are true

d) Both are false

Q 11. ______ is the procedure of assessing, accepting, and pricing risks, applying policy conditions, and managing exposures.

a) Risk Assessment

b) Investment

c) Risk Evaluation

d) Underwriting [This is the Right Answer]

Q 12. What is a 'General average act'?

a) The condition of average applied when there is underinsurance

b) It is the average of premiums paid in declaration policies

c) It is loss caused when an extraordinary sacrifice or expenditure is made [This is the Right Answer]

d) It is the average of losses that occur in one financial year

Q 13. Q13) A Doctor can be sued if a patient dies because of the doctor's negligence. In this case, the Doctor can protect himself against the claim under

a) Financial loss insurance

b) Legal expenses insurance

c) Professional indemnity insurance [This is the Right Answer]

d) Public liability insurance

Q 14. Which of the following does not fall under the miscellaneous classification of motor vehicles?

a) Ambulance

b) Mobile dispensaries

c) Motorized rickshaws [This is the Right Answer]

d) Cinema, film recording vans

Q 15. _____________covers operational loss to engines, air compressors, pumps etc.

a) ALOP Policy

b) Boiler insurance

c) Hull insurance

d) Machinery breakdown insurance [This is the Right Answer]


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