IC11 - LICENTIATE - Practice Of General Insurance 50

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Q 1. How are rates quoted in Marine cargo insurance and burglary?

a) Total amount basis

b) Round off basis

c) Recurring basis

d) Percentage basis

Q 2. Cargo carried by an airline will usually be covered under what class of business?

a) Aviation.

b) Casualty.

c) Marine.

d) Property.

Q 3. In a customer relationship, the first impression is created:

a) By being confident

b) By being on time

c) By showing interest

d) By being on time, showing interest, and being confident

Q 4. Which of the following is generally not covered under Personal Accident insurance?

a) Permanent total disablement

b) Permanent partial disablement

c) Temporary total disablement

d) Temporary partial disablement

Q 5. What is the General Insurance Corporation commonly known as?

a) Government Re-insurer

b) National Re-insurer

c) International Re-insurer

d) Re-insurer

Q 6. As per the Consumer Protection Act 1986, the jurisdiction of a District commission extends up to the value of services and compensation not exceeding_________

a) Rs 10 Lakhs

b) Rs 20 Lakhs

c) Rs 50 Lakhs

d) Rs 1 crore

Q 7. Where are the rights of subrogation commonly enforced?

a) Motor Third Party (TP) insurance

b) Burglary insurance

c) Marine insurance

d) Fire insurance

Q 8. 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 9. To whom should the insurer inform while devising their re-insurance program every year?

a) RBI

b) GIC

c) SEBI

d) IRDAI

Q 10. Insurance brokers are licensed by:

a) Insurance Regulatory and; Development Authority

b) Reserve Bank of India

c) Security Exchange Board of India

d) Government of India

Q 11. Settlement of claims is one of the important functions in an _________.

a) Service organization

b) Insurance organization

c) NGO

d) Industrial organization

Q 12. Which of the following is not the correct reason? The insurer requires material information.

a) To decide on acceptance

b) To fix the rate of premium

c) To fix the sum insured

d) To fix the terms and conditions of the cover

Q 13. Q13) ________ hazard is not one of the prime hazards an underwriter looks at.

a) Physical

b) Moral

c) Risk

d) Financial

Q 14. Form A under the Motor Insurance Policy covers _______ liability.

a) Faulty Design

b) Own Damage

c) Employers

d) Act Liability

Q 15. ______ 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

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