IC11 PRACTICE OF GENERAL INSURANCE EXAM - 06
| Q1.A factory building is insured for Rs.50 lakhs and the plant and machinery for Rs.25 lakhs. The actual value should be Rs.100 lakhs for building and Rs.60 lakhs for the plant and machinery. In a fire, the building suffers a loss of Rs. 10 lakhs and the plant and machinery of Rs.20 lakhs. What will the insurer pay? |
| Rs. 14.33 lakhs |
| Rs. 13.33 lakhs |
| Rs. 17.26 lakhs |
| Rs. 30 lakhs |
| Rs. 33.33 lakhs |
| Q2.100 houses require a Sum Insured of Rs.100000 each. Statistically, 2 houses may get destroyed by fire each year. Calculate the pure premium. |
| Rs. 500 |
| Rs. 750 |
| Rs. 1000 |
| Rs. 1500 |
| Rs. 2000 |
| Q3.The reinsurer of the reinsurance co is known as _____. |
| Retrocedent |
| Retrocessionaire |
| Primary reinsurer |
| General reinsurer |
| National reinsurer |
| Q4.What is a 'General average act'? |
| The condition of average applied when there is underinsurance |
| It is the average of premiums paid in declaration policies |
| It is loss caused when any extraordinary sacrifice or expenditure is made |
| It is the average of losses that occur in one financial year |
| It is the average of stocks maintained at various location |
| Q5.Under the 'Erection All Risks (EAR) insurance policy ___. |
| the insurance will cease two weeks after the first test operation |
| the insurance will cease six weeks after the first test operation |
| insurance will continue for one year |
| insurance will cease four weeks after the first test operation |
| None of the above |
| Q6.__ is engaged by the insurer and paid by the reinsurer. |
| Direct broker |
| Composite broker |
| Insurance broker |
| Stockbroker |
| Reinsurance broker |
| Q7.Which of these is NOT an exclusion in Mediclaim policies? |
| Pregnancy, childbirth |
| Pre-existing diseases |
| Surgery for gallbladder |
| Cost of spectacles, contact lenses hearing aids |
| Cataract, hernia |
| Q8.___ policy provides cover for loss of gross profit due to stoppage of production. |
| Consequential Loss policy |
| Loss Recovery policy |
| Long Term policy |
| Reinstatement Value policy |
| Declaration policy |
| Q9.IRDA premium investment guidelines state that investments in Central Government Securities should not be less than ___. |
| 10% |
| 20% |
| 30% |
| 35% |
| No such guidelines |
| Q10.Which of the following is not a part of the fundamentals of a contract? |
| Consent of the parties |
| Offer and Acceptance |
| Written agreement |
| Legality and being capable of performance |
| None of the above |