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 |