IC11 PRACTICE OF GENERAL INSURANCE EXAM - 05
| Q1.__ is the procedure of assessing, accepting, and pricing risks, applying policy conditions, and managing exposures. |
| Risk Assessment |
| Investment |
| Risk Evaluation |
| Underwriting |
| Hedging |
| Q2.____ , a social peril, is included in the Standard Fire Insurance policy. |
| Explosion / implosion |
| Riot |
| AOG perils |
| Hurricane |
| Aircraft damage |
| Q3.Foreign Direct Investment (FDI) in insurance was hiked to ___ % in the Union Budget of 2015. |
| 41% |
| 43.50% |
| 45% |
| 47.50% |
| 49% |
| Q4.A cotton processing plant wants to have insurance. The insurance company issued a fire policy that covered damages against fire except for __ . |
| Lightning strike |
| Explosion / Implosion |
| Spontaneous combustion |
| Malicious damage |
| None of the above |
| Q 5.Spoilage Material Damage' cover relates to ____ and ___, including the cost of removal of debris. |
| Loss of stock, Temporary removal |
| Temporary removal, Loss of rent |
| Loss of stock in process, Startup expenses |
| Temporary removal, Damage to the machine |
| Loss of stock, Damage to the machine |
| Q6.The maximum amount that an insurer wishes to keep on any risk is known as __. |
| Retention |
| Capacity |
| Maximum Limit |
| Ceding Amount |
| Re-insurance |
| Q7.Which insurance will cover the contingent losses of - Own property damage, Gate money, and advertising revenues, Own property damage, etc. |
| Films / Entertainment |
| St and ard Fire and amp; LOP |
| Standard Fire burglary & Liability |
| Standard Fire and Liability |
| Event Cancellation |
| Q8.An insurer accepts two proposals - one of a private carrier and the other of a public carrier. Both the vehicles are 11 years old. What kind of coverage will be offered for these? |
| Act only, Comprehensive |
| Comprehensive, Act only |
| Both Act only |
| Both Comprehensive |
| Cannot ensure such vehicles |
| Q9.The key issue under 'Subrogation' is __. |
| Establishing fault and getting the other party to accept liability |
| To locate the party which is a fault |
| To ascertain whether the third party is insured |
| To take over the insured's legal rights |
| None of the above |
| Q10.For some reason, the insurers do not want to renew a policy. Which notice has to be given to the policyholder? |
| Cancellation notice |
| Public notice |
| Expired notice |
| Prior notice |
| Actual notice |