IC11 - LICENTIATE - Practice Of General Insurance 46

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Q 1. Which policy does not take into account depreciation?

a) First loss policy

b) Fire policy

c) Marine cargo policy

d) Reinstatement value policy

Q 2. Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding accident. The pneumonia resulted in the death of Mr. Pinto. What is the proximate cause of the death?

a) Pneumonia

b) Horse

c) Horse riding accident

d) Bad luck

Q 3. The insurance under Overseas Medical Policy does not operate Beyond a period of ____ days continuous absence ( unless specifically agreed by insurers )

a) 60 days

b) 90 days

c) 120 days

d) 180 days

Q 4. Which of the following is covered under sheep and Goat insurance?

a) Indigenous animals

b) Cross-breed animals

c) Exotic animals

d) All of the above

Q 5. ______________ is not a source of information for the underwriter.

a) Annual accounts of a proposer

b) Pre-acceptance risk survey of the asset

c) Proposal form

d) Registration certificate of insurer

Q 6. Agent license is to be renewed __________.

a) Every year

b) After 5 years

c) After 3 years

d) After 15 years

Q 7. What is the significance of the principle of contribution?

a) It ensures that the insured also contributes a certain portion of the claim along with the insurer

b) It ensures that all the insured who are a part of the pool, contribute to the claim made by a participant of the pool, in proportion to the premium paid by them

c) It ensures that multiple insurers covering the same subject matter; come together and contribute the claim amount in proportion to their exposure to the subject matter

d) It ensures that the premium is contributed by the insured in equal installments over the year.

Q 8. For which of the following professional indemnities, per capita premium in addition to the basic rate is not provided?

a) Medical establishments

b) Doctors

c) Chartered Accountants

d) Solicitors

Q 9. If the insurer wants to avoid liability on grounds of non-disclosure, he must prove certain facts - which of the following is INCORRECT?

a) Facts were within the actual or presumed knowledge of the insured

b) Undisclosed facts were material

c) The client was fraudulent

d) Facts were not communicated to the insurer

Q 10. All insurers can invest only in those investments which are approved under____________

a) Investment Act

b) Insurance Act

c) Companies Act

d) Stock Broking Act

Q 11. A fire deliberately caused by the Insured is called

a) Immolation

b) Malicious Damage

c) Deliberation

d) Arson

Q 12. Which of the following statements is True? A Group Mediclaim is available to any group, subject to the following: (1) The Group has a central administration point. (2) The prescribed number of persons is covered.

a) Statement 1 is True

b) Statement 2 is True

c) Both are true

d) Both are false

Q 13. Q13) Consequential Loss (Fire Policy) covers:

a) Loss of profit due to damage to the factory

b) Loss of Goodwill

c) Material wear and tear in machinery

d) Losses due to foreign exchange fluctuations

Q 14. Overseas Medical policy can be granted to Indian residents undertaking bona fide trips for the following purposes.

a) Business

b) Official

c) Holiday

d) All the above purposes

Q 15. In private motor Insurance, separate rates apply for vehicles below and above

a) 2000 CC

b) 1800 CC

c) 1500 CC

d) 1200 CC



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