IC01 (LICENTIATE) Principles of Insurance - 01
| Q 1.Who entrusts their savings to an insurer, trusting it to look after these funds and look after their interests and those of their dependents in later years? |
| Internal customers |
| Policyholders |
| External customers |
| Peers |
| None of the above |
| Q2.Which words are dissimilar from the other four options |
| Life Insurer amp;ndash; Policyholder |
| Partners in business |
| Brother andSister |
| Creditor and Debtor |
| Cargo owners and goods in transit |
| Q3.There are 1000 cars in a town. It is expected that, on average, 2% of the cars or 20 cars, may meet with an accident in a year. The economic value of the loss suffered by the owner of each car is taken to be Rs. 25,000. What will be the insurance premium charged to each car? |
| Rs 250 |
| Rs 500 |
| Rs 780 |
| Rs 1050 |
| Rs 1300 |
| Q4.In which year did private players enter the insurance market in India? |
| 1999 |
| 1995 |
| 2001 |
| 2003 |
| 2005 |
| Q5.Which of the below statement is INCORRECT? |
| The risk of motor accidents can be reduced by following traffic rules |
| The risk of death can be prevented |
| The risk of damage to ships can be controlled by using weather information |
| All of the above |
| None of the above |
| Q6.An insurance agent wishes to show his client how advantageous a life insurance policy is as compared to a Recurring Deposit. Which of these options does not support this view? |
| In life insurance the sum assured is assured from the beginning |
| The accumulated value of a recurring deposit available at any time will be money invested plus interest to date |
| In life insurance, the fund available is the amount one wished to have at the end of the saving period |
| The sum assured fund will be paid when the specified contingency occurs, regardless of the premium amount paid to date |
| Life insurance is just another good avenue for savings |
| Q 7.Bharat Insurance Company Ltd. was ___. |
| 1st life insurance company in India |
| 1st non-life insurance company in India |
| started in Mumbai in 1870 |
| was started in Delhi in 1896 |
| None of the above |
| Q8.Insurance is a way to ___. |
| avoid loss |
| reduce loss |
| prevent risk |
| finance risk |
| None of the above |
| Q9.Mr. Suresh wants an insurance plan which will satisfy his three requirements viz 1) Get regular income at fixed intervals for his son's education 2) A lump sum amount later on when he goes for higher studies 3) A lump sum amount in case he meets an untimely early death. Which plan is best suited for Mr. Suresh? |
| Linked insurance plans |
| Whole life insurance plans |
| Annuities |
| Endowment Assurance Plans |
| Money-back plans |
| Q10.Which of these factors (s) affect the premium of any insurance cover? |
| Age |
| Profession |
| Family History |
| Diseases |
| All of the above |