IC11 - LICENTIATE - Practice Of General Insurance 35

IC11 - LICENTIATE - Practice Of General Insurance 35

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Q 1. Negotiation is a process _____________.

a) To win somehow

b) To give discounts to the customer

c) To reach a win-win situation

d) To argue and defeat the prospect

Q 2. Hazards are:

a) Factors that increase the impact of losses

b) Factors that increase the frequency of loss

c) Factors that increase the impact and severity of losses

d) Factors that decrease the impact and severity of losses

Q 3. An insurer has a large number of individual contracts within a region that has frequent earthquakes. What type of reinsurance is the insurer likely to effect to protect the portfolio from a catastrophic loss?

a) Excess of loss treaty

b) Facultative reinsurance

c) Quota share treaty

d) Surplus treaty

Q 4. ________ policy provides cover for loss of gross profit due to stoppage of production.

a) Consequential Loss policy

b) Loss Recovery policy

c) Long Term policy

d) Reinstatement Value policy

Q 5. Where are the accounting transactions posted?

a) Balance Sheet

b) Cash book

c) Daybook

d) Account book

Q 6. Third-Party Administrators (TPA) are separate organizations either owned by ___________.

a) Hospitals

b) Pharmaceutical Firms

c) Insurance Brokers

d) Companies

Q 7. Excess in a Fire policy implies

a) a discount

b) a malus

c) a deductible

d) a bonus

Q 8. The margin for commission built into the rates should be that level at which the ___________ will be paid.

a) Commission

b) Premium

c) Claim

d) Cash

Q 9. For certain classes of business, insurers issue agreed-valued policies. This means that

a) where the insured is underinsured, he may not fully recover any partial loss that is less than the value stated.

b) the insured is always obliged to bear part of any loss.

c) the amount recoverable in the event of a total loss is the value stated in the policy without taking into account allowances for depreciation.

d) when the loss payment exceeds a fixed amount, the insurer becomes liable to pay the loss in full.

Q 10. What is the maximum weekly amount that can be claimed under the temporary total disablement benefit of a PA policy?

a) Rs 3000

b) Rs 4000

c) Rs 5000

d) Rs 8000

Q 11. What is Profit and Loss?

a) Interests and Dividends

b) Balance of account

c) total of debits

d) total of credits

Q 12. When claim recoveries are made from third parties, it's known as ________.

a) Premium Recovery

b) Subrogation

c) Deductible

d) Co-pay

Q 13. Q13) Which of the following covers in Householders Package insurance is not included in Shopkeepers Package Insurance

a) Legal liability to third parties

b) Personal baggage

c) Television

d) Fixed Plate glass

Q 14. A furniture shop also has a basement storage. Can the underwriters accept the risk? If yes, how?

a) No, furniture is supposed to be high-risk

b) No, as a shop with basement storage cannot be insured

c) Yes, as per the rules it can be insured and no inspection is required

d) Yes, but with proper inspection

Q 15. A warranty

a) Is a condition expressly stated in the policy

b) Has to be complied with

c) Both a and b

d) None of the above


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