IC01 (LICENTIATE) Principles of Insurance - 02

Q1.Motor insurance covers which of the following?
 Damage to individual
Damage to the car only
 Damage to property belonging to third parties
 All of the above
 None of the above
Q2.For which of the family members mentioned below can a man take HEALTH INSURANCE?
 His Brothers
 His Sisters
 His Uncles
 His Parents
 All of the above
Q3.IBNR claims are __.
 Incurred But Not Reviewed
incurred But Not Report
 Involved But Not Responsible
 Incurred But Not Responsible
 Investigated But Not Reported
Q4.Which was the first company to conduct a life insurance business in India?
 LIC of India
 Oriental Life Insurance Company
 GIC of India
 Madras Equitable
 Bharat Insurance Company
Q5.In which type of contract, the annuitant makes a lump sum payment to the insurance company and the insurance company starts paying annuities (periodic payments) soon after the policy commences?
 Deferred Annuity
 Lumpsum Annuity
 Immediate Annuity
 None of the above
 Any of the above
Q6.Mr. X and Mr. Y are brothers who are traveling on their respective bikes. Due to negligent driving by Mr. Y, their bikes collide and Mr. X's bike is damaged. Both their bikes are insured. How will the insurance claim be settled?
Mr. Y will take the money from his insurance company and pay for the repairs of his brother's bike.
The insurance company will not interfere as it is a family matter between the two brothers and the insurance company has got no role to play as insurance companies don't interfere in family matters.
Mr. X's insurance company will settle the claim and recover the money from, Mr.Y, as he was responsible for the accident due to his negligent driving
Mr. X's insurance company will settle the claim and Mr. Y will get away with his negligent driving as he is Mr. X's brother.
 None of the above
Q7.What is the purpose of insurance?
 Bring people who are exposed to similar risks together
 Pay claims
 Collect premium
 All of the above
 Make profits for the insurance company
Q8.Which of the below is a reinsurance company?
 Life Insurance Corporation (LIC)
 Oriental Insurance Company Limited
 United India Insurance Company Limited
 General Insurance Corporation (GIC)
 New India Insurance Company Limited
Q9.____ is not covered under both Life and Nonlife insurance.
 Critical illness
 Personal accident
 None of the above
Q10.Which of these statements is CORRECT?
 Commuted values of pensions are not exempt from income tax
Life insurance policies do not provide a saving of taxes
 The claim amount received under a life insurance policy is not exempted from Income tax
Tax benefits may not be the same for all insurance policies every year
In general insurance plans, the tax benefit is available only on all insurance plans

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