IC01 (LICENTIATE) Principles of Insurance - 06
| Q1.Any transaction by an NRI with respect to buying an insurance policy will be subject to the rules laid down in ___. |
| The limitation act |
| Foreign exchange management act |
| Inheritance laws |
| Transfer of property act |
| The Negotiable instruments act |
| Q2.The actual loss arising out of a __ includes costs of repair, replacement or reinstatement, and consequential losses. |
| risk |
| hazard |
| peril |
| accident |
| None of the above |
| Q3.Outline the activities in sequential order in the process of Risk Management: A) Checking the credibility of the data B) Analyzing the risk C) Identifying the Risk D) Using MPL and PML to analyze the risk. |
| B,D,A,C |
| C,A,B,D |
| A,B,C,D |
| C,B,D,A |
| D,A,C,B |
| Q 4.What is excess of loss? |
| An arrangement where a number of insurers agree to pool premiums and claims are met out of the pool |
| An arrangement where the reinsurer has the option to decide the terms of acceptance |
| An arrangement where the reinsurer steps in only when there is a loss in excess of the specified limit |
| An arrangement which becomes operational when the net claims ratio of the direct insurer in a financial year exceeds a specified limit |
| An arrangement where the reinsurer insures himself with another insurer or reinsurer |
| Q5.Mr. Mohit is an exporter and wants insurance for his consignments which are shipped regularly. He does not want the hassles of creating different insurance proposals for each consignment, so he will opt for __. |
| Time or Voyage policies |
| Cover notes |
| Open policy |
| Specific Policy |
| The actual total loss policy |
| Q6.Which of the following sentence is incorrect with reference to the powers of IRDA to protect the interest of policyholders ? |
| Defines the manner in which premium can be paid by a policyholder for purchasing an insurance |
| Guidelines for assignment or transfer of policies and nominations |
| Regulate maintenance of solvency |
| Monitor contents of advertisements to ensure that they do not misguide |
| Regulate the investment of funds |
| Q 7.When the General Insurance Business Act was amended in 1999, the GIC was made ___. |
| A life insurer |
| A general insurance council |
| National reinsurer |
| A general insurer |
| None of the above |
| Q8.Why should one keep an extra spare of important units in a factory? |
| It is cheaper to buy in bigger quantities so as to save costs |
| It helps training new recruits about how they operate |
| It helps in building similar units in future |
| It helps in reducing delays in repairs to the minimum and thereby cut losses |
| None of the above |
| Q9.Which of these statements is INCORRECT with respect to an insurance policy document? |
| The policy becomes void if the original insurance policy document is lost or destroyed |
| The policy is the proof of the contract |
| The policy document states the obligation of the policyholders |
| The policy document states the terms and conditions of the contract |
| The policy document gives details of the promises of the insurer |
| Q10.Which of these words closely matches money or finances? |
| Pecuniary |
| Actuary |
| Underwriter |
| Fidelity |
| Solvency |