GI Material

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IC-34 – SP Certification

Mock Tests

MOCK TEST 1

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1: Out of 400 houses, each valued at Rs.20,000, 4 houses get burnt

every year on an average resulting in a loss of Rs.80,000. What

should be the annual contribution of each house owner to make good

this loss

a. Rs.100/-

b. Rs.200/-

c. Rs.80/-

d. Rs.400/-

Ans: Rs 200

2: Which of the following statements is true?

1: Insurance prevents the losses from happening

2 : Insurance spreads the losses amongst the insureds

a.Only statement 1

b.Only statement 2

c.Both statements

d.Neither of the statements

Ans:Only statement 2

4

5

3: Which of the following is NOT the correct reason

a. to decide about acceptance

b. to fix the rate of premium

c. to fix the sum insured

d. to fix terms and conditions of cover

Ans:to fix the sum insured

6

4: If there is no insurable interest the insurance contract becomes

a. unenforceable in a court of law

b. illegal

c. void

d. voidable

Ans:Void

7

5: Insurable interest is NOT always required at the time of taking the policy

a. fire insurance

b. marine hull insurance

c. marine cargo insurance

d. burglary insurance

Ans:Marine Cargo Insurance

8

6: Consent of insurers is NOT required for the assignment of

a. marine hull policies

b. marine cargo policies

c. fire policies

d. burglary policies

Ans:Marine Cargo Policies

9

7: Agreed value policies are issued for

a. marine cargo

b. marine hull

c. marine cargo and hull

d. fire insurance on high valued machinery

Ans:Marine Cargo and Hull

10

8: Subrogation condition does not appear in

a. fire policy

b. marine cargo policy

c. burglary policy

d. baggage policy

Ans:Marine Cargo Policy

11

9: Which of the following does NOT affect the amount of loss payable under the

policy

a. breach of utmost good faith

b. salvage

c. pro-rata average

d. ‘excess’ clause

Ans:Breach of utmost good faith

12

10: Insurance contracts are NOT gambling transactions because

a. they are based on insurable interest

b. the policy is stamped

c. full premium is paid

d. all material facts are disclosed

Ans:they are based on insurable interest

13

11: When there is fraudulent breach of utmost good faith the insurance contract

becomes

a. unenforceable in a court of law

b. illegal

c. void

d. voidable

Ans:Void

14

12: Which of the following statements is true or false

1: No claim can be paid under an illegal policy

2: Claim can be paid, at the option of the insurer under a void policy

a. 1 is true

b. 2 is true

c. both 1 and 2 are true

d. both are false

Ans :1 is true

15

13: If there is a non-disclosure of a material fact due to oversight, the insurance

contract becomes

a. void

b. voidable

c. illegal

d. invalid

Ans:voidable

16

14: The principle of utmost good faith requires the proposer to disclose material

facts

a. which he knows

b. which he ought to know

c. which he knows and ought to know

d. none of the above

Ans:which he knows and ought to know

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15: Which of the following statements is true

1: The proposer need not disclose facts which he considers as not material

2: Facts which are of common knowledge need not be disclosed

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans:2 is true

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16: Transfer of rights and liabilities of an insured to another person who has

insurable interest is known as

a. consideration

b. subrogation

c. assignment

d. endorsement

Ans:assignment

19

17: Which of the following principles prevents an insured from making a profit out

of his loss

a. proximate cause

b. pro-rata average

c. indemnity

d. insurable interest

Ans:indemnity

20

18: In which of the following insurances the principle of indemnity is modified

a. public liability

b. fidelity guarantee

c. marine cargo

d. baggage insurance

Ans:marine cargo

21

19: An insured cannot recover more than his actual loss because of

a. under-insurance

b. excess clause

c. principle of indemnity

d. franchise clause

Ans:principle of indemnity

22

20: Which of the following is NOT a contract of indemnity in the strict sense

a. mediclaim insurance

b. personal accident insurance

c. fidelity guarantee

d. burglary insurance

Ans:personal accident insurance

23

21: The principle of indemnity is applied through deduction

a. for under insurance

b. for depreciation

c. under franchise clause

d. under excess clause

Ans:for depreciation

24

22: When there are several policies on the same subject-matter, each insurer pays

only a proportion of the loss. This is known as

a. pro-rata average

b. franchise

c. contribution

d. subrogation

Ans:contribution

25

23: How much is the amount of claim payable, if sum insured is Rs.2 lakhs, the

‘excess’ limit is Rs.20,000/- and the loss is Rs.25,000.

a. Rs.2,000

b. Rs.25,000

c. Rs.15,000

d. Rs.5000

Ans: Rs.5000

26

24: What is the amount of claim payable if the loss is Rs.8000/- under a policy with

a sum insured of Rs.1 lakh and excess limit is Rs.10,000/-

a. nil

b. Rs.10,000

c. Rs.8000

d. Rs.2000

Ans:nil

27

25: A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of

Rs.10,000/- . What is the amount payable if the loss is Rs.15,000/-

a. Rs.15,000/-

b. Rs.5,000

c. Rs.25,000/-

d. Nil

Ans:Rs.15,000/-

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26: A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of

Rs.10,000/-. What is the amount of claim payable if the loss is Rs.5,000/-

a. Rs.10,000

b. Rs.15,000

c. Rs.5,000

d. Nil

Ans:Nil

MOCK TEST 2

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1: In which of the following clauses of the ‘scheduled’ form of policy, the parties to

the contract are mentioned

a. signature clause

b. operative clause

c. recital clause

d. warranties clause

Ans:recital clause

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2: In which of the following clauses of the ‘scheduled’ form of policy references is

made to the sum insured or limit of liability.

a. recital clause

b. operative clause

c. signature clause

d. warranties clause

Ans:operative clause

32

3: If a warranty is breached the policy becomes

a. void

b. voidable

c. invalid

d. unenforceable in a court of law

Ans:voidable

33

4: Certificates of insurance are issued in

a. marine hull insurance

b. marine cargo insurance

c. engineering insurance

d. workmen’s compensation insurance

Ans:marine cargo insurance

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5: Renewal notice is issued because

a. it is required under the insurance act

b. of IRDA regulations

c. it is a healthy business practice

d. it is provided by policy conditions

Ans:it is a healthy business practice

MOCK TEST 3

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36

1: Which of the following is paid out of ‘pure premium

a. losses

b. agency commission

c. expenses of management

d. unexpected heavy losses

Ans:losses

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2: To arrive at final rate by loading the pure rate which of the following is NOT taken

into account

a. past losses

b. unexpected heavy losses in the future

c. margin for expenses of management

d. margin for profits

Ans:past losses

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3: After withdrawal if tariffs w.e.f. 1.1.2007,issurers cannot charge their own rates

for which of the following classes of insurance.

a. fire insurance

b. engineering insurance

c. motor third party insurance

d. workmen’s compensation insurance

Ans:motor third party insurance

39


1: Insurers charge for motor third party policies rates of premium fixed by

IRDA

2: Insurers can charge higher rates based on their own past loss experience

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

40

5: Under IRDA guidelines which of the following policies fall under exposure rated

products

a. earthquake risk

b. policies with a sum insured of Rs.2500 crores or more at one location for

material damage

c. policies with a sum insured of Rs.2500 crores or more at one location for

combined material damage and business interruption

d. liability insurance(Rs.100 crores or more per event)

Ans: earthquake risk

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MOCK TEST 4

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1: As per the insurance act,1938(as amended) an insurer has to obtain a

report from a licensed surveyor if the loss equals or exceeds

a.Rs.15,000

b.Rs.20,000

c.Rs.25,000

d.Rs.50,000

Ans: 20,000

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2: As per general insurance business(nationalization) amendment act

2002,general insurance corporation of India shall carry on

a.reinsurance business only

b.overseas reinsurance business only

c.aviation insurance business only

d.administration of motor third party insurance pool only

Ans: reinsurance business only

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3: An insurance agent whose licence has been cancelled by the designated

person cannot apply for fresh license unless a period of ----- years has elapsed

from the date of such cancellation

a.3 years

b.4 years

c.5 years

d.6 years

Ans :5 years

45

4:Which of the following is not a function of a direct broker as per IRDA regulations

a.advise clients on appropriate cover and terms

b.submit insurers premium quotation to client

c.pay premium to insurers on behalf of client

d.assist in negotiation of claims

Ans: pay premium to insurers on behalf of client

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1: code of conduct does NOT apply to insurance brokers

2: code of conduct does NOT apply to surveyors and loss assessors

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: both are false

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6: Under IRDA regulations it is the duty of an insurer to furnish to the insured free

of charge a copy of the proposal form. Within -------days of the acceptance of a

proposal

a.7 days

b.15 days

c.30 days

d.45 days

Ans : 30 days

48

7: As per IRDA regulations a surveyors has to be appointed within ------- hours/days

of receipt of claim intimation from the insured

a.24 hours

b.72 hours

c.7 days

d.15 days

Ans: 72 hours

49

8: As per IRDA regulations surveyors shall submit the survey report to the

insurer within -----days of his appointment

a.15 days

b.30 days

c.45 days

d.60 days

Ans: 30 days

50

9: Insurer shall, within a period of ----- days of receipt of survey report, offer a

settlement of claim to the insured

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans : 30 days

51

10: Rejection of claim by the insurer shall be communicated to the insured

within a period of ----- days from the receipt of the survey report

a.15 days

b.30 days

c.45 days

d.60 days

Ans: 30 days

52

11: On acceptance of offer of settlement by the insured, insurer shall make the

payment within -----days from the date of acceptance of offer

a.7 days

b. 10 days

c.15 days

d.30 days

Ans: 7 days

53

12: An insurer shall respond within ----- days of receipt of communication from

policyholders in matters of servicing under the policy

a.3 days

b.7 days

c.10 days

d.15 days

Ans: 10 days

54

13: As per IRDA regulations, the remuneration to the micro-insurance agent for

non-life insurance business shall not exceed -----% of premium

a. 5

b. 10

c. 15

d. 20

Ans: 15

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14: A district forum under the consumer protection act can entertain a complaint

where the compensation claimed is less than Rs.----- lakhs

a.10 lakhs

b.20 lakhs

c.30 lakhs

d.50 lakhs

Ans: 20 lakhs

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15: The national commission under consumer protection act can entertain a

complaint where the compensation claimed exceeds Rs.----

a.25 lakhs

b.50 lakhs

c.75 lakhs

d.1 crore

Ans: 1 crore

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16: An appeal against the order of the national commission can be made within

a period of ----- days from the date of order

a.30 days

b.45 days

c.60 days

d.90 days

Ans: 30 days

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MOCK TEST 5

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1: Which of the following is not insured under standard fire & special perils policy

a.goods in factories

b.goods in open

c.goods in transit by rail/road

d.goods in godowns

Ans: goods in transit by rail/road

60

2: The terms ‘fire’ under the fire policy means

a.natural heating

b.burning by order of public authority

c.spontaneous combustion

d.accidental ignition

Ans: accidental ignition

61

3: Which of the following meanings of aircraft damage is NOT correct

a.damage by aircraft

b.damage by other aerial devices

c.damage by pressure waves

d.damage by other space devices

Ans: damage by pressure waves

62

4:Terrorism cover for industrial risks is subject to a deduction of

a.0.5% of total sum insured

b.1.0% of total sum insured

c.2.0% of total sum insured

d.3.0% of total sum insured

Ans: 0.5% of total sum insured

63

5: Which of the following is NOT impact damage covered under standard fire

and special perils. Visible physical damage by direct contact with

a.any road vehicle

b.any rail vehicle

c.insured’s own forklift on the premises

d.any animal

Ans: insured’s own forklift on the premises

64

6: Which of the following is NOT covered under standard fire and special perils

policy

a.cyclone

b.hurricane

c.earthquake

d.flood

Ans: earthquake

65

7: The deductible for perils other than act of god perils under standard fire and

special perils policy is

a.Rs.5,000/- for each and every loss

b.Rs.10,000/- for each and every loss

c.Rs.15,000/- for each and every loss

d.Rs.20,000/- for each and every loss

Ans: Rs.10,000/- for each and every loss

66

8: The standard fire and special perils policy automatically covers works of art

for an amount not exceeding

a.Rs.5,000/-

b.Rs.10,000/-

c.Rs.20,000/-

d.Rs.25,000/-

Ans: Rs.10,000/-

67


1: All disputes regarding claim under the fire policy are to be referred to a

civil court.

2: disputes regarding the amount of claim payable are to be referred to

arbitration

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

68

10: The maximum limit of cover under architects ‘fees’ add-on cover is -----% of

the adjusted loss

a. 2.5%

b. 5.0%

c. 7.5%

d. 10.0%

Ans: 7.5%

69

11: The sum insured under debris removal add-on cover cannot exceed -----%

of the total sum insured under the fire policy

a. 5%

b. 10%

c. 15%

d. 20%

Ans: 10%

70

12: Which of the following is covered under fire policy at extra premium

a.impact damage

b.bush fire

c.forest fire

d.subsidence

Ans: forest fire

71

13: According to policy condition the fire policy ceases cover if the building insured

becomes unoccupied for more than

a.15 days

b.30 days

c.45 days

d.60 days

Ans: 30 days

72

14: Under fire policy pro-rata average applies when there is

a.double insurance

b.over insurance

c.under insurance

d.subrogation

Ans: under insurance

73

15: If liability for a claim under the fire policy is disclaimed by the insurer, the insured

has to file a suit in a court of law within ----- months of the date of disclaimer

a.6 months

b.12 months

c.24 months

d.36 months

Ans: 12 months

74

16: Which of the following perils can be an ‘add-on’ cover at extra premium under

the standard fire and special perils policy

a.flood

b.explosion

c.earthquake

d.cyclone

Ans: earthquake

75

17: Debris removal expenses are covered upto ------% of the claim amount under

standard fire and special perils policy

a. 1 %

b. 2%

c. 3%

d. 4%

Ans: 1%

76

18: Architect’s fees are covered upto -------% of the claim amount under standard

fire and special perils policy

a. 1 %

b. 2%

c. 3%

d. 4%

Ans: 3%

77


As per fire policy condition on the happening of a loss

1: the insurers have a right to take possession of the premises where the

loss has occurred

2: the insured can abandon the damaged property to the insurers

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

78

20: Under fire policy sum insured is Rs.1,00,000/- , loss is Rs.60,000/- , value of

property at the time of proposal Rs.1,50,000/- value of property at the time of loss

Rs.2,00,000/- .

What is the amount of loss payable

a.Rs.40,000/-

b.Rs.30,000/-

c.Nil

d.Rs.60,000/-

Ans: Rs.30,000/-

79

21: Which of the following is NOT covered under spoilage material damage

extension

a.loss of stock in process

b.loss of stock in godowns

c.damage to machinery

d.damage to containers and equipment

Ans: loss of stock in godowns

80

22: Escalation clause added to the fire policy allows automatic regular increase not

exceeding ------% in sum insured throughout the period of the policy

a. 5%

b. 10%

c. 25%

d. 50%

Ans: 25%

81

23: Which of the statements is true or false under fire insurance

1: escalcation clause applies to buildings and machinery only

2: escalcation clause applies to fluctuating stocks

a. statement 1 is true

b. statement 2 is true

c. both statements are true

d. both statements are false

Ans: statement 1 is true

82

24: The maximum retention of premium under fire declaration policy is ------%

of the annual premium

a. 10%

b. 25%

c. 50%

d. 75%

Ans: 50%

83

25: Sum insured(provisional) under fire declaration policy is Rs.100,00,000/- Rate

of premium is Re.1.00 per mile. Average sum insured is Rs.50,00,000/-

The refund premium is

a. Rs.5000/-

b. Rs.6,000/-

c. Rs.10,000/-

d. nil

Ans: Rs.5000/-

84

26: Under which of the following circumstances market value only is payable

under fire reinstatement value policy

a.insured is unwilling to reinstate

b.heavy under insurance

c.breach of warranty

d.breach of utmost good faith

Ans: insured is unwilling to reinstate

85

27: Which of the following is correct in relation to fire reinstatement value policy

1: depreciation applies to claims

2: pro-rata average applies

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

86

28: Which of the following statements is correct

Fire reinstatement value policy is granted on

1: Buildings and machinery only

2: Stocks only

a. Statement 1 is correct

b. Statement 2 is correct

c. Both statements are not correct

d. Both statements are correct

Ans: Statement 1 is correct

87

29: Of the following which is an optional cover under industrial all risks policy

a.machinery breakdown policy

b.electronic equipment policy

c.business interruption(machinery breakdown)

d.business interruption( fire and special perils)

Ans: business interruption(machinery breakdown)

88

30: Gross profit, in the context of consequential loss(fire) policy means:

a.Turnover minus variable and standing charges

b.Net profit and cost of production

c.Net profit and standing charges

d.Net profit and variable charges

Ans: Net profit and standing charges

89

31: Turnover is Rs.10 lacs. Cost of production Rs.7 lacs. Fixed overheads

Rs.2 lacs. Calculate the net profit for consequential loss(fire) policy

a. 1 lac

b. 3 lacs

c. 5 lacs

d. 8 lacs

Ans: 1 lac

90


1: The sum insured under consequential loss(fire) policy should be equal

to gross profits of the indemnity period selected.

2: The sum insured should be equal to the net profits of the indemnity

period selected.

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

91

33: Annual gross profit is Rs.1,20,000/-. Calculate the sum insured under

consequential loss(fire) policy for a period of 9 months

a.Rs.60,000/-

b.Rs.90,000/-

c.Rs.1,20,000/-

d.Rs.1,80,000/-

Ans: Rs.1,20,000/-

92

MOCK TEST 6

93

1:Which of the following is NOT covered under institute cargo clauses©

a.standing of vessel

b.washing overboard

c.collision of vessel

d.jettison

Ans: washing overboard

94

2: Malicious damage is automatically covered under

a.ICC(A) clauses

b.ICC(B) clauses

c.ICC© clauses

d.Not covered under any of the above

Ans: ICC(A) clauses

95

3: Which of the following exclusios does NOT appear under ICC(A) clause

a.inadequate packing

b.inherent vice

c.malicious damage

d.loss by delay

Ans: malicious damage

96


1: The duration of cover for strikes, riot and civil commotion applies during

the entire voyage on a warehouse to warehouse basis

2: The duration of cover for strike, riot and civil commotion applies only

when the goods are waterborne and not on land

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

97

5: Under institute cargo clause(AIR) the period of cover after unloading of cargo

from the aircraft at the final place of discharge is limited to -----days

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans: 30 days

98

6: Under inland transit(rail/road) clause B on payment of extra premium

1: war risks can be covered

2: strike,riots and civil commotion risks can be covered

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

99

7: Under inland transit(rail/road) clause B & A, the duration of cover terminates

after expiry of ------days after arrival of the railway wagon at the final

destination railway station

a. 3 days

b. 7 days

c. 10 days

d. 15 days

Ans: 7 days

100

8: The basis of valuation adopted under marine open cover is the prime cost

of goods, costs of freight and insurance plus ----% to cover profits

a. 5%

b. 10%

c. 15%

d. 20%

Ans: 10%

101

9: Which of the following risks covered under institute cargo clause(B) are not

covered under institute cargo clauses(C)

a.standing of vessel

b.collision of vessel

c.sea-water damage

d.explosion

Ans: sea-water damage

102

10: Which of the following risk is automatically covered under institute cargo

clauses(A) without extra premium

a.inherent vice

b.country damage

c.war and kindred risks

d.strikes,riots and civil commotion

Ans: country damage

103

11: Which of the following perils CANNOT be added by extra premium to

institute cargo clauses(B)

a.fresh water damage

b.rain water damage

c.inherent vice

d.country damage

Ans: inherent vice

104

12: The clause in open cover which limits the liability of insurers at any one time

or place before the shipment is known as

a.declaration clause

b.basis of valuation clause

c.location clause

d.limit per bottom clause

Ans: location clause

105

13: When badly damaged goods are abandoned because the cost of

reconditioning exceeds the value of goods after reconditioning, the loss is settled

as

a.salvage loss

b.actual total loss

c.constructive total loss

d.general average loss

Ans: constructive total loss

106

14: Which of the following is NOT required under rail transit claims

a.invoice

b.bill of lading

c.original policy

d.non-delivery certificate

Ans: bill of lading

107

MOCK TEST 7

108

1: Which of the following does NOT fall under ‘miscellaneous’ classification of

motor vehicles

a. ambulance

b. mobile dispensaries

c. motorized rickshaws

d. cinema, film recording vans

Ans: motorized rickshaws

109

2: Under the motor vehicles act, the limit of liability for damage to third party

is Rs.

a.Rs.10,000/-

b.Rs.6,000/-

c.Rs.20,000/-

d.Rs.25,000/-

Ans: Rs.6,000/-

110


Liability under workmen’s compensation act is to be compulsory insured

is respect of

1: workers carried in a goods vehicle

2: workers carried in a public service vehicle

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

111

4: Under the motor vehicles act, the amount of compensation for death on the

basis of no-fault liability is Rs.------

a. Rs.25,000/-

b. Rs.50,000/-

c. Rs.1,00,000/-

d. Rs.2,00,000/-

Ans: Rs.50,000/-

112

5: Under the motor vehicles act, the fixed compensation for death in ‘hit and run’

motor accident is Rs.-----

a. Rs.12,500/-

b. Rs.25,000/-

c. Rs.50,000/-

d. Rs.1,00,000/-

Ans: Rs.25,000/-

113

6: Liability only motor policy covers liability for damage to

a.property of third party

b.property belonging to insured

c.property held in trust by the insured

d.property in the custody of the insured

Ans : property of third party

114

7: Under personal accident cove for owner-driver the capital sum insured for

two-wheelers is

a. Rs.25,000/-

b. Rs.50,000/-

c. Rs.1,00,000/-

d. Rs.2,00,000/-

Ans: Rs.1,00,000/-

115

8: Under personal accident cover for owner-driver the capital sum insured for

private cars is

a. Rs.50,000/-

b. Rs.1,00,000/-

c. Rs.2,00,000/-

d. Rs.3,00,000/-

Ans: Rs.2,00,000/-

116

9: Under personal accident cover for owner-driver the capital sum insured for

commercial vehicles is

a. Rs.50,000/-

b. Rs.1,00,000/-

c. Rs.2,00,000/-

d. Rs.3,00,000/-

Ans: Rs.2,00,000/-

117

10: In the event of death of sole insured under a motor policy the policy will

remain valid for a period of ------months from the date of death of the insured or

until the expiry of the policy(whichever is earlier)

a. 3 months

b. 6 months

c. 9 months

d. 12 months

Ans: 3 months

118

11: Applications from legal heirs of the deceased insured for transfer of policy to

their name should be accompanied by documents. Which of the following is NOT

required

a.death certificate

b.post-mortem report

c.proof of title to the vehicle

d.original policy

Ans: post-mortem report

119

12: Which of the following is NOT covered under private car package policy

a.earthquake

b.lightning

c.loss of accessories unless the vehicle is stolen at the same time

d.landside

Ans: loss of accessories unless the vehicle is stolen at the same time

120

13: The maximum towing charges of a private car payable is restricted to

a. Rs.750/-

b. Rs.1000/-

c. Rs.1500/-

d. Rs.2000 /-

Ans: Rs.1500/-

121

14: Under private car package policy constructive total loss arises if the cost of

repairs of the damaged vehicle exceeds-------%

a. 75%

b. 80%

c. 90%

d. 100%

Ans: 75%

122


1: rates of premium for motor third party risks are fixed by the IRDA

2: rates of premium for motor ‘own damage’ risks are fixed by the tariff

advisory committee

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

123

16: Which of the following is NOT a rating factor for private cars (own

damage)

a.insured’s declared value of vehicle

b.cubic capacity

c.passenger capacity

d.geographical zone

Ans: passenger capacity

124

17: Under motor package policy which of the following does NOT attract

additional premium

a.personal accident cover for owner-driver

b.electronic fittings

c.use of CNG fuel

d. fibre glass fuel tanks

Ans: personal accident cover for owner-driver

125

18: Which of the following is NOT eligible for discount in ‘own damage’

premium(private car package policy)

a.vintage cars

b. brand new cars

c.membership of automobile association

d.anti-theft devices approved by automobile research association of India

Ans: brand new cars

126

19: Which of the following is NOT taken into consideration for fixing rates of

premium for buses(package policy)

a.age of vehicle

b.licensed passenger capacity

c.insured declared value of vehicle

d.geographical area

Ans: insured declared value of vehicle

127

20: Which of the following documents is NOT required for processing private car

‘own damage’ claims

a.driving license

b.registration certificate book

c.fitness certificate

d.final bill from repairs

Ans: fitness certificate

128

21:Out of the following documents for ‘own damage’ motor claims, select one

which is additionally required for commercial vehicle(goods carrier) claims

a.registration certificate book

b.permit

c.driving license

d.police report

Ans: permit

129

22: Which of the following does NOT attract additional premium under motor

policies

a.CNG/LPG fuel kit

b.Anti-theft devices

c.Fibre glass fuel tanks

d.Electronic items fitted to the vehicles but not included in manufacturer’s price

Ans: Anti-theft devices

130


Motor third party premium shall be shared among all the general insurers

writing motor insurance business in proportion to gross direct premium in

1: motor insurance business

2: all classes of general insurance business

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

131

24: The administrator of motor third party insurance is

a.IRDA

b.GIC

c.General insurance council

d.Motor accident claims tribunal

Ans: GIC

132


1:motor third party (injury claims) are adjudicated by motor accident claims

tribunal

2: motor third party(properly damage claims) are adjudicated by civil courts

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

133

MOCK TEST 8

134

1:For which of the following, full capital sum insured is NOT payable under

personal accident policy

a.Permanent total disablement

b.Permanent partial disablement

c.Loss of two limbs

d.Loss of one limb and one eye

Ans: Permanent partial disablement

135

2: Which of the following contingencies is NOT covered under personal accident

insurance

a.temporary total disablement

b.temporary partial disablement

c.permanent total disablement

d.permanent partial disablement

Ans: temporary partial disablement

136

3: Which of the following is NOT considered as permanent total disablement

a.loss of both eyes

b.loss of hearing in both ears

c.paralysis

d.loss of one limb and one eye

Ans: loss of hearing in both ears

137

4: The amount of weekly payment for temporary total disablement under

personal accident insurance is restricted to

a. Rs.1000/-

b. Rs.2000/-

c. Rs.3000/-

d. Rs.5000/-

Ans: Rs.3000/-

138

5: Which of the following additional benefits under personal accident insurance

attracts extra premium

a.medical expenses

b.expenses for carriage of dead body’

c.children’s education fund

d.cumulative bonus

Ans: medical expenses

139

6: Which of the following is NOT excluded under personal accident insurance

a.service in the armed forces

b.air travel in standard type of aircraft

c.suicide

d.attempted suicide

Ans: air travel in standard type of aircraft

140

7: Which of the following is true in relation to personal accident insurance

1: the cover is on a 24-hour basis

2: the geographical area of cover is India

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans:1 is true

141

8: Which of the following occupations does NOT fall under risk group I for rating

purposes(personal accident)

a.accountants

b.veterinary doctors

c.lawyers

d.bankers

Ans: veterinary doctors

142

9: which of the following occupations does NOT fall under group II for rating

purposes(personal accident)

a.3lorry drivers

b.motor mechanics

c.consulting architects

d.paid drivers of motor cars

Ans: consulting architects

143

10:Which of the following statements is true

1: no medical examination is required for fresh cover for personal accident

insurance

2: medical examination is required for renewal of personal accident

insurance

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

144

11: Under group P.A policy which of the following is true

1: cumulative bonus does not apply

2: children’s education grant is available

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

145

12: Group P.A cover is arranged to cover only accidents to employees arising

out of and in the course of employement reduced premium equivalent to ------

% of the appropriate is charged

a. 50%

b. 60%

c. 75%

d. 80%

Ans: 75%

146

13: Bonus(discount) and malus(loading of premium) applies under P.A insurance

under

a.individual policies

b.group policies

c.both individual and group policies

d.neither individual nor group policies

Ans: group policies

147

14: If group P.A policy cover is required when the employees is not at work

and/or not on official duty i.e ‘off-duty’ cover, the reduced premium of -----% of

the normal premium is charged

a. 40%

b. 50%

c. 60%

d. 75%

Ans: 50%

148

MOCK TEST 9

149

1: Relevant medical expenses incurred during upto ----- days prior to hospitalization

are treated as part of the claim

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans: 30 days

150

2: Which of the following diseases is excluded under domiciliary hospitalization

benefit

a. tonsillitis

b. sinusitis

c. cataract

d. hemia

Ans: tonsillitis

151

3: Which of the following diseases is excluded during the first year of operation

of mediclaim policy

a. Bronchitis

b. Diabetes

c. hemia

d. chronic nephritis

Ans: hemia

152

4: Under mediclaim policy any disease contracted by the insured during the first ----

- days from the commencement of policy is excluded

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans: 30 days

153

5: Which of the following diseases is NOT excluded during the first year of operation

of mediclaim policy

a. epilepsy

b. cataract

c. hemia

d. piles

Ans: epilepsy

154

6: Under mediclaim policy, which of the following is NOT covered

a.chemotherapy

b.radiotherapy

c.naturopathy

d.cost of pacemaker

Ans: naturopathy

155

7: Subject to no claim, cost of medical checkup once in every ----- underwriting

years is payable under mediclaim policy

a. 2 years

b. 3 years

c. 4 years

d. 5 years

Ans: 4 years

156

8: The sum insured under mediclaim policy is increased by 5% for each claim

free year of insurance subject to a maximum accumulation of ----- Years

a. 3 years

b. 5 years

c. 10 years

d. 15 years

Ans: 10 years

157

9:Which of the following is true under group mediclaim policy

1: cumulative bonus is not available

2: health check-up expenses are payable

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

158

10: Which of the following is NOT available under group mediclaim policy

a.no claim bonus

b.group discount

c.cumulative bonus

d.maternity extension

Ans: cumulative bonus

159

11: A waiting period of ----- months is applicable for payment of a maternity claim

a. 8 months

b. 9 months

c. 10 months

d. 12 months

Ans: 9 months

160

12: Claim under maternity extension in respect of any one insured person is

payable only for

a.first child

b.first two children

c.first three children

d.first four children

Ans: first two children

161

13: which of the following is NOT payable under maternity benefit extension

a.pre-natal expenses prior to hospitalization

b.caesarean section

c.miscarriage due to accident

d.abortion due to accident

Ans: pre-natal expenses prior to hospitalization

162


1: bonus/malus clause applies to individual mediclaim policy

2: bonus/malus clause applies to individual mediclaim policy

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

163

15: In relation to cancer patients aid association policy which of the following is true

1: The premium is payable to CPAA as part of the membership fee

2: claims are paid by CPAA

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

164

16: No claim is payable under CPAA policy if the insured contracts cancer within

a period of -----days from the date of becoming a member of CPAA

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans: 30 days

165

17: The sum insured under CPAA cancer policy, is increased by ----% for each

completed year of policy in force prior to claim

a. 5%

b. 10%

c. 15%

d. 20%

Ans: 5%

166

18: Which of the following is true

Differences as to the claim or quantum thereof are to be referred to

1: arbitration as per policy conditions

2: committee set up by CPAA and the insurance company

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

167

19: Under critical illness policy which of the following is NOT specified as critical

illness

a.cancer

b.paralysis

c.tuberculosis

d.parkinson’s disease

Ans: tuberculosis

168

20:Claim under the critical illness policy is payable if during the policy period the

insured is found to have contracted a critical illness and survives such critical

illness for at least----days from the date of its discovery

a. 15 days

b. 30 days

c. 45 days

d. 60 days

Ans: 30 days

169

21: Any critical illness discovered or discoverable within -------days of the inception

date of the policy is not covered under this policy

a. 30 days

b. 45 days

c. 60 days

d. 90 days

Ans: 90 days

170

22: Under overseas medical policy, extension of the period of insurance is

automatic, for the period not exceeding----- days and without extra, if due to delay

of public transport services beyond the control of insured

a. 7 days

b. 15 days

c. 21 days

d. 30 days

Ans: 7 days

171

23: Which of the following is NOT paid upto the full limit of cover under the

overseas medical policy

a.physician services

b.hospital services

c.dental services for immediate relief of dental pain only

d. local emergency medical transportation

Ans: dental services for immediate relief of dental pain only

172

24: Under personal accident section of overseas medical policy which of the

following is not covered

a.death

b.permanent total disablement

c.permanent partial disablement

d.loss of eyes or limbs

Ans: permanent partial disablement

173

25: Under overseas medical policy, emergency purchases of replacement items

is paid if there is delay or more than -----hours in delivery of baggage at the

destination of outbound flight from India

a. 6 hours

b. 12 hours

c. 18 hours

d. 24 hours

Ans: 12 hours

174

26: Under which of the following sections of overseas medical policy, deductible

does not apply

a.medical expenses

b.personal accident

c.personal liability

d.loss of passport

Ans: personal accident

175

27: Under corporate frequent travel annual policy the duration of any one trip not

to exceed ----- days

a. 30 days

b. 45 days

c. 60 days

d. 90 days

Ans: 60 days

176

28: Under corporate group overseas medical policy employees above -----

years of age have to submit the prescribed medical reports

a. 55 years

b. 60 years

c. 65 years

d. 70 years

Ans: 60 years

177

29: Which of the following persons are NOT eligible for overseas employment

and study policy

a.students prosecuting studies

b.students doing research

c.construction workers temporary posted abroad

d.software engineers temporary posted abroad

Ans: construction workers temporary posted abroad

178

MOCK TEST 10

179

1:The amount of relies payable under public liability insurance act, 1991 for

fatal accident is

a. Rs.10,000/-

b. Rs.12,500/-

c. Rs.25,000/-

d. Rs.50,000/-

Ans: Rs.25,000/-

180

2: The amount of relief payable under public liability insurance act, 1991 for

permanent total disability is

a. Rs.12,500/-

b. Rs.25,000/-

c. Rs.50,000/-

d. Rs.1,00,000/-

Ans: Rs.25,000/-

181

3: Under public liability insurance act, 1991 a company handling hazardous

substance has to insure for an amount not less than the amount ----- of the

company

a.market value of assets

b.market value of stocks

c.paid-up capital

d.turnover of hazardous substances

Ans: paid-up capital

182

4: The maximum liability of the insurer under public liability insurance act 1991

to pay relief to several claimants arising out of one accident shall not exceed----

-

a.Rs.2.50 crores

b.Rs.5.00 crores

c.Rs.7.50 crores

d.Rs.10.00 crores

Ans: Rs.5.00 crores

183

5:Which of the following liabilities is NOT excluded under insurance policy under

public liability insurance act, 1991

a.arising out of willful non-compliance of statutory provision

b.damage to property leased by the insured

c.damage to property of third party

d.fines and penalties

Ans: damage to property of third party

184

6: Which of the following is taken into account to fix rates of premium for the

policy under public liability insurance act , 1991

a.limit of indemnity , any one accident

b.limit of indemnity, any one year

c.limit of indemnity, any one year and turnover

d.limit of indemnity, any one accident and turnover

Ans: limit of indemnity, any one accident and turnover

185

7: Which of the following exclusions of industrial risks public liability policy can

be covered under a separate policy

a.liability for pollution

b.liability of collaboration who has a technical collaboration with the insured

c.liability for injuries to employees

d.liability arising out of earthquake

Ans: liability for injuries to employees

186

8: Under industrial risks public liability policy the compulsory excess of a

specified percentage is applied on the limit of indemnity

1: any one accident

2: any one year

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

187

9: Which of the following is NOT relevant in fixing rates of premium under

industrial risks public liability policy

a.risk group

b.type of construction of risk

c.ratio of limits of indemnity-AOA to AOY

d.turnover

Ans: type of construction of risk

188

10: Which of the following risks falls under group IV for rating purposes under

industrial risks public liability policy

a.distilleries

b.match factories

c.breweries

d.biscuit factories

Ans: match factories

189

11: Which of the following exclusions does NOT apply under products liability

policy

a.pollution

b.costs of repair of a defective product

c.costs of recall of any product

d.product guarantee

Ans: pollution

190

12: which of the following products is charged the highest rate of premium

under products liability policy

a.motor vehicles

b.motor vehicle tyres

c.alcoholic beverages

d.pharmaceutical products

Ans: motor vehicle tyres

191

13: For which of the following professional indemnities ‘per capita’ premium in

addition to basic rate is NOT provided

a.medical establishments

b.doctors

c.chartered accountants

d.solicitors

Ans: doctors

192

14: Which of the following does NOT appear in the indemnity clause of workmen’s

compensation insurance

a.employees state insurance act

b.workmen’s compensation act

c.fatal accidents act

d.common law

Ans: employees state insurance act

193


1: compulsory excess is applicable to doctors professional indemnities

2: compulsory excess is applicable to professional indemnities for medical

establishments

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 2 is true

194

16: Which of the following extensions is NOT granted under workmen’s

compensation policy

a.specified diseases in the W.C.act

b.medical expenses

c.technical collaboration

d.contractor’s workmen

Ans: technical collaboration

MOCK TEST 11

195

196

1: Which of the following project does NOT fall under contractor’s all risk policy

a. installation of machinery

b. buildings

c. tunnels

d. bridges

Ans:installation of machinery

197

2: Which of the following is NOT covered under boiler and pressure plant policy

a. damage to boiler

b. damage to surrounding property of insured

c. damage by fire

d. damage to third party property

Ans:damage by fire

198

MOCK TEST 12

199

1: Which of the following requirements does NOT apply for granting cash-in- safe

insurance

a. the safe is ‘burglar-proof’

b. the safe is brand new

c. the safe is of approved make

d. the safe is approved design

Ans:the safe is brand new

200

2: Which of the following risks is NOT covered at extra premium under burglary

( business) premises policy

a. strike

b. riot

c. breakage of plate glass

d. terrorism

Ans:breakage of plate glass

201

3: Which of the following losses caused by burglars is NOT payable under

burglary ( business premises) policy

a. damage to external doors by fire

b. damage to goods which were not stolen

c. damage to furniture

d. theft of cash safe through original key obtained by threats of violence

Ans:damage to external doors by fire

202

4: Which of the following is covered under baggage insurance policy

a. traveling saleman’s samples

b. traveling dealer’s stocks

c. accompanied baggage

d. unaccompanied baggage

Ans:accompanied baggage

203

5: Which of the following policies are NOT granted in burglary ( business

premises) policy

a. first loss policy

b. reinstatement value policy

c. declaration policy

d. floating policy

Ans:reinstatement value policy

204

6: Under money insurance which of these statements is correct. Estimated amount

of cash in transit during the policy period

1: is the maximum amount payable for any one loss

2: is the amount on which the premium is collected

a. 1 is correct

b. 2 is correct

c. both are correct

d. both are incorrect

Ans: 2 is correct

205

7: Which of the following risks does NOT require additional premium under money

in transit policy

a.riot

b.strike

c.robbery

d.terrorism

Ans:robbery

206

8:Which of the following can be covered under money-in-transit policy at extra

premium

1: dishonesty of persons carrying the cash

2: loss of wages on premises during payment to employees

a.1 only

b. 2 only

c. both can be covered

d. neither can be covered

Ans: both can be covered

207

9: Under fidelity guarantees, the customary time limit for discovery of loss is

not later than ----- months after the resignation of the dishonest employee

a 6

b. 12

c. 18

d. 24

Ans:12

208

10: which of the following fidelity guarantee policies is usually granted to

large reputable firms to cover their entire staff

a. floating policy

b. collective policy

c. blanket policy

d. positions policy

Ans:blanket policy

209

11: Under which of the following fidelity guarantee policies individual amount of

guarantee is NOT specified

a. collective policy

b. floating policy

c. positions policy

d. blanket policy

Ans:floating policy

210

12: Under which of the following fidelity guarantee policies, ‘per capita’

additional premium is charged

a. collective

b. floating

c. positions

d. blanket

Ans: floating

211

13: Which of the following is NOT covered under neon sign insurance

policy

a. theft

b. lightning

c. mechanical breakdown

d. external explosion

Ans:mechanical breakdown

212

14: which of the following covers in ‘householders’ package insurance is NOT

included in shopkeepers package insurance

a. personal baggage

b. television

c. fixed plate glass

d. legal liability to third parties

Ans: television

213

15: Which of the following covers in shopkeepers package insurance is not

included in householders package insurance

a. fixed plate glass

b. neon sign

c. pedal cycles

d. legal liability to employees

Ans:neon sign

214

16: Which of the following are NOT covered under bankers blanket policies

a. trading losses

b. payment of raised cheque

c. dishonesty of the employee of the bank with respect to loss of money

d. loss of securities by fire

Ans:trading losses

215

17: Which of the following are NOT covered under bankers blanket policies

a. fraud of insured’s employees in respect of goods hypothecated to

the insured

b. payment of forged cheques

c. loss due to faulty computer programming

d. loss of securities by burglary

Ans: loss due to faulty computer programming

216

18: Under jewelers block policy which of the following property is covered

against specified risks only not on ‘all risks’ basis

a. on premises

b. in transit by air freight

c. in transit by angadia

d. in the custody of brokers

Ans:on premises

217

MOCK TEST 13

218

1: Under cattle policy, the claim is not payable for death due to disease

occurring within ------ days of the commencement of the risk

a.7 days

b.15 days

c. 21 days

d. 30 days

Ans:15 days

219

2: Which of the following is true in relation to sheep and goat insurance

1: indemnity is provided on the basis of sum insured or market value

whichever is less

2: salvage value is deducted from claim amount payable

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans: 1 is true

220

3: For which of the following features, no discount is granted for premium rates

for poultry insurances

a. farms in rural areas

b. farms having resident veterinary doctor

c. farms having dead bird disposal system

d. farms having standard layout

Ans:farms in rural areas

221

4: For which of the following crops horticulture policy is NOT available

a. grapes

b. oranges

c. papaya

d. bananas

Ans: papaya

222

5: Under agricultural pump set policy which of the following risks is covered at

extra premium

a. mechanical breakdown

b. electrical breakdown

c. flood

d. burglary

Ans: flood

223

6: Under IRDA regulations every insurer shall underwrite business in the rural

sector to the extent of at least -----% of the total gross premium in the first

financial year

a. 1 %

b. 2 %

c. 3%

d. 4%

Ans:2%

224

MOCK TEST 14

225

1: which of the following is true as per the arbitration condition in fire and most

miscellaneous policies

1:All differences in respect of a claim are to be referred to arbitration

2: differences regarding amount of claim only to be paid are to be referred to

arbitration

a. 1 is true

b. 2 is true

c. both are true

d. both are false

Ans:2 is true

Important Terms

1) Losses

2) Papaya

3) Coffee

4) Robbery

5) Pollution

6) Assignment

7) ICC(A)

8) Malicious Damage

9) Rs. 5 Crore

10) Contribution

11) 1500 (towing charge)

12) Motor Constructive Total Loss =75%

13) Match Factory

14) Earthquake

15) Veterinary Doctors

16) Tonsillitis

17) Epilepsy

18) First two children

19) Tuberculosis

20) Motor vehicle tyres

21) Television

22) Neon sign

23) Marine cargo insurance

24) Marine cargo and hull

25) Civil Court = False statements

26) Architects 'fees' = 3% and 7.5%

27) Debris removal = 1% and 10%

28) Act of god perils = Rs.10,000/- for

each and every loss

29) Forklift on the premises

30) No – fault liability = Rs. 50,000

31) Hit and run motor accident = 25,000

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