IC01 (LICENTIATE) Principles of Insurance -15

Q1.Which of the following options is the most appropriate answer to complete the statement - ' If both prevention and retention of risks are unavailable as options, then ___ '
 the risk has to be avoided
 do nothing about it and accept it as a work of god
the risk has to be passed on to another person, partly if not wholly, so that the risk may be shared
 the risk has to be minimized
 None of the above
 
Q2.Which is not a function of IRDA?
 Take over the management of an insurer and appoint administrators if required
Promote and regulate professional organizations connected with the insurance business
 Constitution of the Insurance Association
Control and regulate rates, terms, and conditions offered by insurers
Decide on disputes relating to the settlement of claims
 
Q3.A physical loss when the subject matter of insurance is irreparably destroyed is known as __.
 Constructive total loss
 Particular average loss
 First loss
 General average loss
 Actual total loss
 
Q4.Which of the following statement is INCORRECT?
 On assignment, the assignor loses rights over the policy
Assignment means the transfer of rights and liabilities of the policyholder to another person
 The person who makes an assignment is called the assignor
In insurance, the consent of the insurer is not necessary but the insurer has to be informed when the assignment is made
 A marine hull policy can be assigned without the consent of the insurer
 
Q 5.Who pays reimbursement to a TPA ( Third Party Administrator )?
 The insured
 The Insurance companies
 The concerned hospital
 The doctors
 All of the above
 
Q6.Which of the following statement is INCORRECT with respect to the powers of IRDAI to protect the interest of policyholders?
IRDAI regulates the investment of the fund
 IRDAI regulates the maintenance of solvency
IRDAI defines the manner in which premium can be paid by a policyholder for purchasing an insurance policy
IRDAI monitors the contents of advertisements to ensure that they do not misguide
IRDAI issues guidelines for the assignment of transfer of policies and nominations
 
Q7.In relation to the regulation of insurance companies by IRDA, which of the following options is INCORRECT?
 Issuing the certificate of registration
 Appointing the CEO of insurance companies
 Specifying the extent of business to be done in rural and social sectors
 Regulate maintenance of solvency
 Regulate investments of funds
 
Q 8.GIC was made the __ after the amendment to the General Business Ins Act in 1999.
 national life insurer
 national reinsurer
 national general insurer
 general insurance council
 None of the above
 
Q9.Which of these statements is INCORRECT with respect to an insurance policy document?
 The policy is the proof of the contract
The policy document states the terms and conditions of the contract
 The policy becomes void if the original insurance policy document is lost or destroyed
 The policy document gives details of the promises of the insurer
The policy document states the obligation of the policyholders
 
Q10.Which parameter is not relevant when designing a life insurance product?
The mentality of specific customer
The cost of a benefit
 Type of benefit under the plan
 Age
 Physical health of the customer
 

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