IC01 (LICENTIATE) Principles of Insurance -13
| Q1.When should one take the steps to reduce the risks? |
| Before the peril strikes |
| While the peril strikes |
| After the peril strikes |
| Only options 1 and 2 |
| Only options 2 and 3 |
| Q2.Which of these Government bodies does not contribute to the Solatium Fund? |
| Central Government |
| State Government |
| General insurers |
| Municipal Corporations |
| None of the above |
| Q3.In which of these insurance is a cashless facility available? |
| Term Insurance |
| Fire Insurance |
| Life Insurance |
| Marine Insurance |
| Health Insurance |
| Q4.When a risk is retained, the implication is that ___. |
| The cost of damage caused will be borne by the person responsible for the damages |
| The cost of damage caused will be borne by IRDAI |
| The cost of damage caused will be met by relatives and friends |
| The cost of damage caused will be met with internal resourses |
| None of the above |
| Q5.In which of the below cases has the insurer breached the principle of utmost good faith? |
| Promises are made about returns or bonuses in future |
| Premium is collected without looking at the applicability of rebates allowed by the insurer |
| The proposer is advised not to mention the fact that he was on leave for two weeks |
| The proposer is not informed that the use of a sprinkler system may affect the premium |
| All of above |
| Q6.Which of the following statements is INCORRECT with reference to complaints to the insurance Ombudsman? |
| Any delay in settlement of the claim |
| Any partial or total repudiation of claims by the insurance companies |
| Non-issuance of any insurance document to customers after receipt of premium |
| Any dispute on the legal construction of the policy wordings in case such dispute relates to claims |
| Cases where redressal amount is less than Rs 10 lakhs |
| Q 7.In Insurance terms, PML stands for __. |
| Part Manageable Loss |
| Protocol Management Laws |
| Prime Management Live |
| Probable Minimum loss |
| Probable Maximum loss |
| Q8.A broker who places an insurance business with a primary insurer is known as ___. |
| Reinsurance broker |
| Composite broker |
| Direct broker |
| Primary broker |
| None of the above |
| Q9.The risk which can lead to bankruptcy is best described as ___. |
| Financial |
| Dynamic |
| Catastrophic |
| Static |
| Speculative |
| Q10.With reference to insurance agents, which of these statements is INCORRECT? |
| The remuneration of agents is by way of commissions |
| They are appointed by insurance companies |
| They are licensed to sell both life and non-life insurance |
| They have to get a license from IRDAI to conduct insurance business |
| The license of an insurance agent is valid for 3 years at a time |