IC01 (LICENTIATE) Principles of Insurance - DEMO
| Q1.Which word is dissimilar to the other four options? |
| Loss Ratio |
| Expense Ratio |
| Solatium Fund |
| Exclusions |
| Gross Direct |
| Q2.The minimum subscribed capital to become a re-insurance or composite broker is __. |
| Rs. 100 lakhs |
| Rs. 150 lakhs |
| Rs. 200 lakhs |
| Rs. 250 lakhs |
| Rs. 300 lakhs |
| Q3.An insurance surveyor license is valid for ___. |
| three years |
| five years |
| seven years |
| ten years |
| for lifetime |
| Q4.The Government of India promotes Life and General Insurance. Which of the below statement is incorrect in this regard? |
| The insurance funds are channeled into investments for economic growth |
| Insurance helps industry and trade for managing the risks in the manufacture and in commerce |
| Insurance is a major instrument for the mobilization of savings of people particularly from the middle and lower-income group |
| The cost to help destitute families are considerably reduced if insurance arrangements are in place |
| A lot of idle and unaccounted money of public are available to the Govt and this is deployed in insurance |
| Q5.____ are the likely consequential losses or damages. |
| Perils |
| Risks |
| Hazards |
| Insurance |
| Expenses |
| Q6.Which of these is NOT a valid contract? |
| Mr. P, aged 21 insures his second-hand car |
| Mr. Q, aged 50 insures his house furniture and gold |
| Mr. R, aged 45 takes a bank loan to renovate his house |
| Mr. S, aged 40 years gives on rent his house to a 19-year-old science student |
| Mr. T, aged 30 takes insurance on his friends' house |
| Q7.With reference to Loss Ratios, which of the following statement is INCORRECT? |
| If the loss ratio is 100% or less, there is cause for concern |
| Loss ratios help insurers make decisions on the future growth of the business |
| Loss ratios are calculated for each class of business separately |
| Loss ratios are calculated for each class of policyholders |
| Loss ratios are an indication of the viability of the business |
| Q 8. What are Mortality Rates? |
| Payments which are to be made to the insurer under the policy |
| Tables showing expectations of death |
| Tables showing expectations of illness |
| Certainty of sickness in a particular age group |
| None of the above |
| Q9.Which one of the below options is INCORRECT? |
| The insurance broker lists down the features and benefits which will benefit the customer while suggesting a plan |
| On questioning the broker has to reveal the commissions to the customer which he receives from insurers |
| While settling a claim, the agent can ask for a percentage of the claim amount |
| While assessing a loss the insurance surveyor ensures that the loss is assessed correctly |
| Before explaining a plan, the agent does a need analysis of the customer |
| Q10.How do insurance arrangements increase the capacity of those affected by adverse situations? |
| It helps to get some steadiness and stability |
| It helps overcome fears of instability |
| It helps businesses in managing receivables and transferring bad debts |
| It helps to cope with the losses and incidental problems |
| It helps to gain a better financial position than before |