IC11 PRACTICE OF GENERAL INSURANCE EXAM - 01

Q1.A boiler, which was used by a factory to generate steam for captive use, imploded causing damage to it. There was no other loss than this. Will the fire policy indemnify the loss of the boiler?
 No, as the damage is outside the purview of the fire policy
No, damage of boiler from implosion/explosion is not covered
Yes, damage of boiler from implosion/explosion is covered
No, damage of boiler from implosion/explosion is not covered under a fire policy
 None of the above
 
Q2.A company insured its property assuming for full value as Rs 10,00,000/=. In an event of a claim, it was realized that the original value of the property was Rs 12,50,000/=. The claim amount was Rs 2,00,000/= Will any claim be paid and if yes, what will be the amount
 No claim will be paid due to misrepresentation of fact
 Yes it will be paid, Rs 2,00,000
 Yes it will be paid, Rs 40,000
 Yes it will be paid, Rs 1,60,000
 Yes it will be paid, Rs 1,80,000
 
Q 3.What is the limit of amount deductible under the 0.6% franchise clause when the sum insured is 1000000?
 Rs. 1000000
 Rs. 26000
 Rs. 6000
 Rs. 3000
 Rs. 600
 
Q4.How are the claims costs ideally controlled?
 by improved application of dividend payments
 by improved application of loss management
 by improved application of risks
 by improved application of damage control
 by improved application of underwriting
 
Q5.In which section of the policy document is the location of the property to be insured mentioned?
 Schedule
 Heading
 Preamble
 Conditions
 Operative clause
 
Q6.For what is the Trial Balance used?
 To prepare the Premium Register
 To prepare the cash book
 To prepare the account book
To prepare the Balance she
To prepare the Passbook
 
Q7.The full form of ILU is ____.
 Institute of London Ultrasounds
 Institute of London Unified
 Institute of London Undertakers
 Institute of London Universities
 Institute of London Underwriters
 
Q8.What is not an implied condition of insurance?
 Contribution
 Legality of object
 Insurable interest
 Existence of subject matter
 Utmost good faith
 
Q9.In PA, the coverage for loss of two limbs and two eyes is _ %.
 25
 50
 75
 95
 100
 
Q 10.If a / an ___ issues a Claim Form, it does not constitute an admission of liability on its part.
 Agent
 Insured
 Claimant
 Broker
 Insurer

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