agent question bank

7/31/2019 Agent Question Bank

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Confidential Future Generali Insurance

CHAPTER 1

1: In the insurance context risk means

a. Possibility of loss or damageb. Loss producing event

c. Property covered by insurance

d. All the above (d)2. Which of the following statements is true

a. insurance protects the assetb. insurance prevents its lossc. insurance reduces possibilities of lossd. insurance pays when there is loss of asset (d)

3. Out of 400 houses, each valued at Rs.20,000, 4 houses get burnt everyyear on an average resulting in a loss of Rs.80,000. What should bethe annual contribution of each house owner to make good this loss

a) Rs.100/- b) Rs.200/- c) Rs.80/- d) Rs.400/- (b)

4.Which of the following statements is true1: Insurance is a method of sharing the losses of a few by many2: Insurance is a method of transferring the risk of an individual to a group of individualsa) only statement 1b) only statement 2c) both statements

d) neither of the statements (C)

5. Which of the following statements is true1: Insurance prevents the losses from happening2: Insurance spreads the losses amongst the insureds

a. Only statement 1b. Only statement 2c. Both statements

d. Neither of the statements (b)

6: To which of the following does the employees state insurance act,1948 apply (d)

a) Employees of central governmentb) Employees of state governmentc) Employees of public sector manufacturing companiesd) Industrial employees as notified by the government

7: Which of the following provide social security

a) Crop insurance scheme(RKBY)b) Janata personal accidentc) Jan arogyad) All the above (d)

8: Which of the following statements is true?1: Insurance provides direct benefits to individuals2: Insurance provides indirect benefits to the community

a) only statement 1b) only statement 2c) both statements

d) neither of the statements (C)

9: Which of the following statements is true?a. Insurance facilities free investment of capital in businessb. Insurance encourages commercial and industrial developmentc. Insurance contributes to national productivity

d. All the three above (d)

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CHAPTER 2

1: Which of the following are requisites of a valid insurance contract1: consideration2: parties of the same mind

3: parties are complement to contracta) 1 b)2 c) 1 and 2 d) all three (d)

2: Which of the following statements is correct according to law?1: The parties to a commercial contract have to observe good faith2: The parties to an insurance contract have to observe utmost good faith

a) 1 is correctb) 2 is correctc) both are correct

d) both are incorrect (C)

3: Which of the following is NOT the correct reason?a) to decide about acceptanceb) to fix the rate of premiumc) to fix the sum insured

d) to fix terms and conditions of cover (C)

4: Which of the following are material facts?The fact that previous insurers

a) had rejected the proposalb) charged extra premiumc) had refused to renew the policy

d) all three a,b,&c (d)

5: Which of the following statements is correctthe duty of disclosure of material facts1: ceases when the policy is issued2: arises again at the time of renewal of the policy

a) 1 is correct

b) 2 is correctc) both are correct

d) both are incorrect (C)

6: Which of the following makes the contract unenforceable in a court of lawa) The proposer has committed non-disclosureb) The proposer has committed mis-representation

c) The proposer has given wrong address property due to a clerical errord) The policy is not stamped as per Indian stamp act (d)

7: Which of the following statements is correct?1: a void contract has no legal validity2: a voidable contract remains a contract until the insurer excerises his option to avoid the contract

a) 1 is correct

b) 2 is correctc) both are incorrectd) both are correct (d)

8: The duty of disclosure of material informationa) applies to insuredb) applies to the agentc) applies to the insurer

d) all three (d)

9: If there is no insurable interest the insurance contract becomesa) unenforceable in a court of lawb) illegal

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c) void

d) voidable (C)

10: Insurable interest is NOT always required at the time of taking the policya) fire insuranceb) marine hull insurancec) marine cargo insurance

d) burglary insurance (C)

11: Consent of insurers is NOT required for the assignment ofa) marine hull policiesb) marine cargo policiesc) fire policies

d) burglary policies (b)

12: The object of the principle of indemnity is toa) pay the full cost of repairsb) pay the full cost of replacementc) pay the cost of reinstatementd) prevent the insured from making any profit out of his loss (d)

13: Agreed value policies are issued for

a) marine cargo

b) marine hullc) marine cargo and hull

d) fire insurance on high valued machinery (C)

14: Sum insured under an insurance policy meansa) it is the agreed value of subject matter insuredb) the amount payable when there is a lossc) the amount on which the premium is calculatedd) the maximum limit of liability under the policy (d)

15: Which of the following can be granted valued policies in fire insurances?a) curiosb) works of artc) obsolete machinery

d) all three (d)

16: Which of the following ensure that the amount of claim payable is less than the actual amount of lossa) pro-rata averageb) excess limitc) salvage

d) all the three above (d)

17: Which of these statements is correct1: subrogation under common law is implied in contracts of indemnity2: subrogation under common law arises only after payment of loss

a) 1 is correctb) 2 is correctc) both are correct

d) both are incorrect (C)18: Subrogation condition does not appear in

a) fire policyb) marine cargo policyc) burglary policy

d) baggage policy (b)

19: Which of the following statements is correct?1: subrogation does not arises in personal accident insurance2: contribution does not arises in personal accident insurance

a) 1 is correctb) 2 is correct

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c) both are correct

d) neither is correct (C)

20: Proximate cause has to be selecteda) when two or more causes operate simultaneouslyb) when two or more causes operate one after anotherc) when insured peril and excluded peril operate togetherd) all three above (d)

21: Which of the following does NOT affect the amount of loss payable under the policy?a) breach of utmost good faithb) salvagec) pro-rata averaged) excess clause (a)

22: Insurance contracts are NOT gambling transactions becausea) they are based on insurable interestb) the policy is stampedc) full premium is paidd) all material facts are disclosed (a)

23: If an insurance policy is not stamped as per indian stamp act,the contract becomesa) illegalb) void

c) voidabled) unenforceable in a court of law (d)

24: When there is fraudulent breach of utmost good faith the insurance contract becomesa) unenforceable in a court of lawb) illegalc) void

d) voidable (C)

25: The contractual duty of utmost good faith appliesa) to motor insurance onlyb) to marine cargo insurance onlyc) to fire insurance only

d) all insurances where proposal form with a declaration clause is used (d)

26: Which of the following documents have to be stamped as per indian stamp act.1: Endorsement on a fire policy increasing the sum insured2: marine open cover for export shipments

a) 1 onlyb) 2 onlyc) both 1 and 2d) neither of the documents (d)

27: Which of the following statements is true or false1: No claim can be paid under an illegal policy2: Claim can be paid, at the option of the insurer under a void policy

a) 1 is trueb) 2 is truec) both 1 and 2 are true

d) both are false (a)

28: If there is a non-disclosure of a material fact due to oversight, the insurance contract becomesa) voidb) voidablec) illegald) invalid (b)

29: The principle of utmost good faith requires the proposer to disclose material factsa) which he knowsb) which he ought to knowc) which he knows and ought to know

d) none of the above (C)

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30: Which of the following statements is true1: The proposer need not disclose facts which he considers as not material2: Facts which are of common knowledge need not be disclosed

a) 1 is trueb) 2 is truec) both are trued) both are false (b)

31: Which of the following is an evidence of insurance contracta) payment of premiumb) acceptance of proposalc) insurers prospectsd) policy of insurance (d)

32: Which of the following statements is true1: In fire insurance insurable interest is required both at the time of taking the policy and at the time of loss

2: In marine hull insurance insurable interest is required both at the time of taking the policy and at the time of lossa) only 1b) only 2c) both are true

d) both are false (C)

33: Transfer of rights and liabilities of an insured to another person who has insurable interest is known as

b) considerationc) subrogationd) assignment

e) endorsement (C)

34: Which of the following principles prevents an insured from making a profit out of his lossa) proximate causeb) pro-rata averagec) indemnity

d) insurable interest (C)

35: The legal right to insure meansa) consideration as per Indian contract actb) competence as per Indian contract act

c) assignmentd) insurable interest (d)

36: In which of the following insurances the principle of indemnity is modifieda) public liabilityb) fidelity guaranteec) marine cargo

d) baggage insurance (C)

37: An insured cannot recover more than his actual loss because ofa) under-insuranceb) excess clausec) principle of indemnity

d) franchise clause (C)

38: In which of the following policies the principle of indemnity is modifieda) fire declaration policyb) fire floating policyc) fire reinstatement policy

d) fire loss of profits policy (C)

39: Which of the following is NOT a contract of indemnity in the strict sensea) mediclaim insuranceb) personal accident insurancec) fidelity guaranteed) burglary insurance (b)

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40: The principle of indemnity arises under thea) Insurance act 1938(as amended)b) IRDA actc) Indian contract actd) Common law (d)

41: Which of the following statement is true1: Marine cargo policies are valued policies

2: Marine hull policies are valued policiesa) 1 is trueb) 2 is truec) both are falsed) both are true (d)

42: The principle of indemnity is applied through deductiona) for under insuranceb) for depreciationc) under franchise claused) under excess clause (b)

43: Under which of the following clauses, the insured has to bear a part of the lossa) pro-rata averageb) franchise clause

c) excess claused) all the above clauses (d)

44: The principle of subrogation applies undera) products liability policyb) fidelity guaranteec) fire policyd) all the above (d)

45: When there are several policies on the same subject-matter, each insurer pays only a proportion of the loss. This isknown as

a) pro-rata averageb) franchisec) contribution

d) subrogation (C)

46: Which of the following statements is true1: Contribution applies only to contracts of indemnity2: Contribution does not apply to personal accident insurance

a) 1 is trueb) 2 is truec) both are true


47: 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 isRs.25,000.

a) Rs.2,000b) Rs.25,000c) Rs.15,000

d) Rs.5000 (d)

48: 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 excesslimit is Rs.10,000/-

a) nilb) Rs.10,000c) Rs.8000d) Rs.2000 (a)

49: 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 ifthe loss is Rs.15,000/-

a) Rs.15,000/-b) Rs.5,000

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c) Rs.25,000/-d) Nil (a)

50: 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 claimpayable if the loss is Rs.5,000/-

a) Rs.10,000b) Rs.15,000c) Rs.5,000d) Nil (d)

CHAPTER 3

1:As per the IRDA regulations in which of the following insurance, written proposal is not necessarya) fire insurance on cargo industrial risksb) Marine cargo insurancec) Compulsory public liabilityd) Fidelity guarantees (b)

2: Which of the following questions is common to all proposal formsa) proposers previous insurance

b) proposers present insurancec) past lossesd) all the above (d)

3: The purpose of the proposal form is to provide fora) material informationb) declaration that the answers are true and accuratec) agreement of the insured that the form shall be the basis of the insurance contractd) all the above three (d)

4: In which of the following clauses of the scheduled form of policy, the parties to the contract are mentioneda) signature clauseb) operative clausec) recital clause

d) warranties clause (C)

5: In which of the following clauses of the scheduled form of policy references is made to the sum insured or limit ofliability.

a) recital clauseb) operative clausec) signature claused) warranties clause (b)

6: If a warranty is breached the policy becomesa) voidb) voidablec) invalidd) unenforceable in a court of law (b)

7: Certificates of insurance are issued ina) marine hull insurance

b) marine cargo insurancec) engineering insuranced) workmens compensation insurance (b)

8: In motor insurance certificates of insurance are issued becausea) make of vehicle is not knownb) year of manufacture is not knownc) seating capacity is not knownd) it is required by the motor vehicle act (d)

9: Which of the following statements is true

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1: Endorsements are issued at the time of issuing the policy as part of the policy2: Endorsements are issued after the policy to record alterations

a) 1 is true b) 2 is true c) both are true d) both are false (C)

10: Renewal notice is issued becausea) it is required under the insurance actb) of IRDA regulationsc) it is a healthy business practice

d) it is provided by policy conditions (C)

CHAPTER 41: Which of the following is paid out of pure premium

a) lossesb) agency commissionc) expenses of managementd) unexpected heavy losses (a)

2: Rate of premium is based ona) degree of hazardb) variations in degree of hazardc) past loss experience

d) all the above (d)

3: To arrive at final rate by loading the pure rate which of the following is NOT taken into accounta) past lossesb) unexpected heavy losses in the futurec) margin for expenses of managementd) margin for profits (a)

4: Final rate of premium is arrived at by loading the pure rate of premium to provide fora) commission to intermediariesb) expenses of managementc) margin for profitd) all the above three (d)

5: After withdrawal if tariffs w.e.f. 1.1.2007,issurers cannot charge their own rates for which of the following classes ofinsurance.

a) fire insuranceb) engineering insurancec) motor third party insurance

d) workmens compensation insurance (C)

6: Which of the following statements is true1: Insurers charge for motor third party policies rates of premium fixed by IRDA2: 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 (a)

7: Under IRDA guidelines which of the following policies does NOT fall under internal tariff rated productsa) Burglary insuranceb) Fidelity insurance

c) Personal accident insuranced) Group health insurance (d)

8: Under IRDA guidelines which of the following policies fall under package or customized productsa) Homeowners comprehensiveb) Shopkeepers comprehensivec) Bankers blanketd) All the above (d)

9: Under IRDA guidelines which of the following policies fall under individual and experience rated productsa) group personal accidentb) group healthc) motor fleets

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10: Under IRDA guidelines which of the following policies fall under exposure rated productsa) earthquake riskb) policies with a sum insured of Rs.2500 crores or more at one location for material damagec) policies with a sum insured of Rs.2500 crores or more at one location for combined material damage and

business interruptiond) liability insurance(Rs.100 crores or more per event) (a)

CHAPTER 51: As per the insurance act,1938(as amended) an insurer has to obtain a report from a licensed surveyor if the lossequals or exceeds

a) Rs.15,000b) Rs.20,000c) Rs.25,000d) Rs.50,000 (b)

2: Which of the following is trueNo insurer shall assume any risk unless and until

a) the premium is received in advanceb) the premium is guaranteed to be paidc) a deposit is made in advance


3: Which of the following are the functions of IRDA1: To regulate the rates of premium offered by insurers2: To regulate investment of funds by insurance companies

a) 1 onlyb) 2 onlyc) both are true

d) neither (C)

4: As per IRDA regulations no commission or brokerage can be paid by insurers exceeding ------% of premium payable inrespect of policy through agents or brokersa) 10% b)15% c)20% d)30% (d)

5: Which of the following are the functions of IRDATo protect the interests of policy holders in matters of

a) settlement of claimb) fair and equitable rates of premiumc) terms and conditions of insuranced) all the above (d)

6: As per general insurance business(nationalization) amendment act 2002,general insurance corporation of India shallcarry on

a) reinsurance business onlyb) overseas reinsurance business onlyc) aviation insurance business onlyd) administration of motor third party insurance pool only (a)

7: Which of the following statements is true under code of conduct for agents1: The agent must disclose his license to the prospect on demand2: The agent must disclose the scales of commission under policies offered for sale, if asked by the prospect

a) only 1b) only 2c) both are true


8: As per the code of conduct, which of the following is trueThe agent must inform promptly the prospect about

1: the acceptance of the proposal by the insurer2: the rejection of the proposal by the insurer

a) 1 is true

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b) 2 is truec) both are true

d) both are false (C)9:As per code of conduct, a corporate agent cannot procure more than -----% of the total premium in his portfolio ofinsurance business from one organization

a) 20% b)30% c)40% d)50% (d)

10: 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 cancellationa) 3 yearsb) 4 yearsc) 5 years

d) 6 years (C)

11: Under IRDA guidelines which of the following is eligible to become a corporate agenta) a banking companyb) a cooperative societyc) a non-government organizationd) all of the above (d)

12: Who among the following is eligible to be nominated corporate insurance executive by a corporate agenta) a partner( in the case of a firm)b) a director( in the case of a company)c) one or more of its officersd) all the above (d)

13: Which of the following statements is true1: code of conduct applies to corporate insurance executives2: code of conduct applies to specified persons of corporate agents

a) 1 is true b) 2 is true c) both are true d) neither is true (C)

14: Which of the following statements is true1: corporate insurance executive has to undergo training and pass the licensing examination2: specified persons have to undergo training and pass the licensing examination


d) neither is true (C)

15: specified persons nominated for soliciting insurance business by a corporate agent can bea) one or more of its partnersb) one or more of its directorsc) one or more of its employeesd) all the above (d)

16: IRDA advertisement regulations apply toa) insurance companiesb) insurance brokersc) insurance agentsd) all the above (d)

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

a) advise clients on appropriate cover and termsb) submit insurers premium quotation to clientc) pay premium to insurers on behalf of client

d) assist in negotiation of claims (C)

18: Which of the following are functions of direct broker as per IRDA regulationsa) to provide advice to client on appropriate coversb) to provide underwriting information to insurersc) to provide insurance consultancy servicesd) all the above (d)

19: Which of the following statements is true1: code of conduct does NOT apply to insurance brokers

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2: code of conduct does NOT apply to surveyors and loss assessorsa) 1 is trueb) 2 is truec) both are trued) both are false (d)

20: As per IRDA regulations which of the following is NOT a function of third party administrationsa) collection of premiumb) collection of claims documents

c) claims scrutiny and processingd) claims payment (a)

21: Third party administators cash less services meana) admission to a specified hospital without admission fees paymentb) admission to a specified hospital without depositsc) discharge from specified hospital without payment of covered expenses of treatmentd) all the above (d)

22: 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 daysb) 15 daysc) 30 days

d) 45 days (C)

23: As per IRDA regulations a surveyors has to be appointed within ------- hours/days of receipt of claim intimation fromthe insured

a) 24 hoursb) 72 hoursc) 7 daysd) 15 days (b)

24: As per IRDA regulations surveyors shall submit the survey report to the insurer within -----days of his appointmenta) 15 daysb) 30 daysc) 45 daysd) 60 days (b)

25: Insurer shall, within a period of ----- days of receipt of survey report, offer a settlement of claim to the insured

a) 15 daysb) 30 daysc) 45 daysd) 60 days (b)

26: Rejection of claim by the insurer shall be communicated to the insured within a period of ----- days from the receiptof the survey report

a) 15 daysb) 30 daysc) 45 daysd) 60 days (b)

27: On acceptance of offer of settlement by the insured, insurer shall make the payment within -----days from the date ofacceptance of offer

a) 7 daysb) 10 daysc) 15 daysd) 30 days (a)

28: An insurer shall respond within ----- days of receipt of communication from policyholders in matters of servicing underthe policy

a) 3 days

b) 7 daysc) 10 days

d) 15 days (C)

29: Micro-insurance product under IRDA regulations means

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a) a health insurance contractb) a personal accident contractc) a livestock insurance contractd) all the above (d)

30: Micro-insurance agent under the IRDA regulations meansa) a non-government organizationb) a self help groupc) a micro-finance group


31: Which of the following statements is true1: a life insurer may offer life micro-insurance product as well as general micro-insurance products2: a general insurer may offer general micro-insurance product as also life micro-insurance products


32: Which of the following statements is true1: A micro-agent shall not distribute any product other than a micro-insurance product

2: A micro-agent shall not work for more than one life insurer and one general insurera) 1 is trueb) 2 is truec) both are true


33: Which of the following are allowed, under the regulations to distribute micro-insurance productsa) individual agentsb) corporate agentsc) brokersd) all the above (d)

34: Which of the following statements is true1: code of conduct regulations apply to micro-insurance agents2: advertisement regulations apply to micro-insurance agents



35: As per IRDA regulations, the remuneration to the micro-insurance agent for non-life insurance business shall notexceed -----% of premiuma) 5 b)10 C)15 d)20 (C)

36: Consumer protection act applies toa) private sectorb) public sectorc) cooperative sectord) all the above (d)

37: A district forum under the consumer protection act can entertain a complaint where the compensation claimed is lessthan Rs.----- lakhs

a) 10 lakhsb) 20 lakhsc) 30 lakhs

d) 50 lakhs (b)

38: The national commission under consumer protection act can entertain a complaint where the compensation claimedexceeds Rs.----

a) 25 lakhsb) 50 lakhsc) 75 lakhsd) 1 crore (d)

39: Which of the following statements is true1: state commission can entertain appeals against the order of the district forum2: national commission can entertain appeals against the order of the state commission

a) 1 is true

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40: An appeal against the order of the national commission can be made within a period of ----- days from the date oforder

a) 30 daysb) 45 daysc) 60 days

d) 90 days (a)

41: Which of the following statements is true1: redressal of public grievances rules apply to life and general insurance2: these rules apply to personal lines insurance only



42: Which of the following complaints cannot be made to the ombudsmana) total repudiation of claim by insurerb) partial repudiation of claim by insurerc) delay in settlement of claimsd) premium rates are high (d)

43: No complaints to the ombudsman shall liea) if the complaint is made later than one year after the insurer had rejected the representationb) if the complaint is pending in any consumer forumc) if the complaint is subject of arbitrationd) all the above (d)

44: Which of the following are grounds for filling a complaint to the ombudsmana) insurer had rejected the complaint

b) complainant had not received any reply to his written representation to the insurer within one month afterreceipt of complaint

c) the complainant is not satisfied with the insurers replyd) all the above (d)

45: Which of the following is true as per the redressal of public grievances rules1: the award should not be more than Rs.20 lakh2: the award should be made within three months from the date of complaint



CHAPTER 61: Which of the following is not insured under standard fire & special perils policy

a) goods in factoriesb) goods in open

c) goods in transit by rail/roadd) goods in godowns (C)

2: The terms fire under the fire policy meansa) natural heatingb) burning by order of public authorityc) spontaneous combustiond) accidental ignition (d)

3: Which of the following are covered in fire insurancea) raw materialsb) semi-finished goodsc) packing materials

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4: Which of the following statements is true1: Explosion is covered under standard fire and special perils policy2: implosion is covered under standard fire and special perils policy



5: Which of the following meanings of aircraft damage is NOT correcta) damage by aircraftb) damage by other aerial devicesc) damage by pressure waves

d) damage by other space devices (C)

6: Which of the following statements is true1: Terrorism is included in riot,strike and malicious damage2: Terrorism is a separate cover at extra premium without riot, strike and malicious damage

a) 1 is trueb) 2 is truec) both are trued) both are false (d)

7:Terrorism cover for industrial risks is subject to a deduction ofa) 0.5% of total sum insuredb) 1.0% of total sum insuredc) 2.0% of total sum insuredd) 3.0% of total sum insured (a)

8: Which of the following is NOT impact damage covered under standard fire and special perils. Visible physical damageby direct contact with

a) any road vehicleb) any rail vehiclec) insureds own forklift on the premises

d) any animal (C)

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

a) cycloneb) hurricanec) earthquake

d) flood (C)

10: Subsidence covered under standard fire and special perils policy meansa) normal crackingb) settlementc) bedding down of new structuresd) subsidence of part of the site on which the property stands (d)

11: The deductible for act of god perils under standard fire and special perils policy isa) 1% of each and every lossb) 3% of each and every loss

c) 4% of each and every lossd) 5% of each and every loss (d)

12: The deductible for perils other than act of god perils under standard fire and special perils policy isa) Rs.5,000/- for each and every lossb) Rs.10,000/- for each and every lossc) Rs.15,000/- for each and every lossd) Rs.20,000/- for each and every loss (b)

13: Which of the following is true under standard fire and special perils policy1: Pollution which itself results from an insured perils is covered2: Insured peril itself results from pollution is covered

a) 1 is trueb) 2 is true

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c) both are true


14: The standard fire and special perils policy automatically covers works of art for an amount not exceedinga) Rs.5,000/-b) Rs.10,000/-c) Rs.20,000/-d) Rs.25,000/- (b)

15: Which of the following statements is true1: 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 trueb) 2 is truec) both are trued) both are false (b)

16: The maximum limit of cover under architects fees add-on cover is -----% of the adjusted lossa) 2.5% b)5.0% c)7.5% d)10.0% (C)

17: The sum insured under debris removal add-on cover cannot exceed -----% of the total sum insured under the firepolicy

a)5% b)10% c)15% d)20% (b)

18: Which of the following is paid under debris removal add-on covera) costs of removal of debrisb) costs of dismantlingc) costs of demolishingd) all the above (d)

19: Which of the following is covered under fire policy at extra premiuma) impact damageb) bush firec) forest fire

d) subsidence (C)

20: According to policy condition the fire policy ceases cover if the building insured becomes unoccupied for more thana) 15 days

b) 30 daysc) 45 daysd) 60 days (b)

21: Under fire policy pro-rata average applies when there isa) double insuranceb) over insurancec) under insurance

d) subrogation (C)

22: Which of the following property is covered under the fire policy if expressly stated in the policya) books of accountb) business booksc) computer system recordsd) all the above (d)

23: 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 lawwithin ----- months of the date of disclaimer

a) 6 monthsb) 12 monthsc) 24 monthsd) 36 months (b)

24: Which of the following is excluded under deterioration of stocks add-on cover to the fire policya) act of governmentb) act of municipal authorityc) rationing ,etc of power supplyd) none of the above (d)

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25: Which of the following perils can be an add-on cover at extra premium under the standard fire and special perilspolicy

a) floodb) explosionc) earthquake

d) cyclone (C)

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

a) floodb) subsidencec) bush fired) forest f ire (d)

27: Debris removal expenses are covered upto ------% of the claim amount under standard fire and special perils policya) 1 % b) 2% c)3% d)4% (a)

28: Architects fees are covered upto -------% of the claim amount under standard fire and special perils policya) 1 % b)2% c)3% d)4% (C)

29: Which of the following statements is true1:Terrorism is an exclusion under the standard fire and special perils policy only2: Terrorism can be covered at extra premium along with riot, strike and malicious damage

a) 1 is true



30: Which of the following statements is trueAs per fire policy condition on the happening of a loss1: the insurers have a right to take possession of the premises where the loss has occurred2: the insured can abandon the damaged property to the insurers

a) 1 is trueb) 2 is truec) both are trued) both are false (a)

31: 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 payablea) Rs.40,000/-b) Rs.30,000/-c) Nild) Rs.60,000/- (b)

32: Which of the following commodities are susceptible to spontaneous combustiona) groundnutsb) copra cakec) dyes and chemicalsd) all the above (d)

33: Under earthquake add-on cover, excess is -----% of each and every claima)2% b)3% c)4% d )5% (d)

34: 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 (b)

35: Escalation clause added to the fire policy allows automatic regular increase not exceeding ------% in sum insured

throughout the period of the policy

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a) 5% b) 10% c) 25% d)50% (C)

36: 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 trued) both statements are false (a)

37: Which of the following is NOT covered under fire floating policy

a) stocks in process blocks

b) stocks in godown

c) stocks in the open

d) stocks in transit (d)

38: Where there is frequent fluctuations in stocks/stock values, which of the following provides suitable cover

a) fire floating policy

b) fire policy with escalation clausec) fire reinstatement value policy

d) fire declaration policy (d)

39: The maximum retention of premium under fire declaration policy is ------% of the annual premium

a) 10% b)25% c)50% d)75% (C)

40: 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 (a)

41:Fire reinstatement value policy is not issued in respect of

a) building b)plant c)machinery d) stock (d)

42: 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 (a)

43: Under which of the following circumstances reinstatement basis of settlement will NOT apply under fire reinstatement

value policy

a) insured fails to intimate to the insurer within 6 months or any extended time to replace the damaged property

b) insured is unable to replace the damaged property

c) insured is unwilling to replace the damaged property

d) all the above three (d)

44: 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 (b)

45: Which of the following statements is correct

Fire reinstatement value policy is granted on

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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 (a)

46: Of the following which is an optional cover under industrial all risks policya) machinery breakdown policy

b) electronic equipment policy

c) business interruption(machinery breakdown)

d) business interruption( fire and special perils) (C)

47: Fire consequential loss policy pays the insured

a) net profit

b) standing charges

c) increased cost of working

d) all the above three (d)

48: The turnover of a business consists of

a) variable charges and standing charges

b) standing charges and net profit

c) variable charges and net profit

d) variable charges, standing charges and net profit (d)

49: 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 (C)


1: The sum insured under consequential loss(fire) policy is to be fixed by the insured

2: The sum insured is to be computed from the insureds accounts


51: Turnover is Rs.20 lacs cost of production Rs.14 lacs. Fixed overheads Rs.4 lacs. Net profit Rs.2 lacs . Calculate the

sum insured for a consequential loss(fire) policy

a) Rs.10 lacs b) Rs.18 lacs c) Rs.2 lacs d) Rs.6 lacs (d)

52: Turnover is Rs.10 lacs. Cost of production Rs.7 lacs. Fixed overheads Rs.2 lacs. Calculate the net profit forconsequential loss(fire) policy

a) 1 lac b) 3 lacs c) 5 lacs d) 8 lacs (a)


1: The indemnity period is to be selected by the insured.

2: The period of indemnity may vary from 3 months to 3 years



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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.


55: Annual amount of gross profit is Rs.1,20,000. Calculate the sum insured under consequential loss (fire) policy for an

indemnity period of 24 months

a) Rs.60,000 b) Rs.90,000 c)Rs.1,20,000 d)Rs.2,40,000 (d)56: Which of the following is NOT a standing charge under consequential loss(fire) policy

a) salaries b) office expenses c) cost of stationery d) cost of raw materials (d)

57: Which of the following are standing charges

a) insurance premiums

b) rent

c) interest on loans from banks


58: 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/- (C)59: Which of the following must occur before a loss under consequential loss(fire) policy becomes payable

a) insured peril must occur

b) property damaged by the insured peril

c) insureds business is interrupted



1: consequential loss(fire) policy must be taken in conjuction with material damage(fire) policy

2: payment of loss under consequential loss(fire) policy is subject to payment of loss under fire material damage policy

a) 1 is true b) 2 is true c)both are true d) both are false (C)

CHAPTER 7

1: which of the following falls under marine cargo insurance

a) export shipments

b) import shipments

c) rail/road consignments


2: Under which of the following the seller arranges cargo insurance for the entire voyage

a) FOB contract b) FOR contract c) C&F contract d) CIF contract (d)

3: which of the following statements is true

1: The seller is responsible for cargo insurance till the goods are placed on board the steamer under FOB sale

contract

2: The buyer is responsible for cargo insurance once the goods are placed on board under C & F contract

a) 1 is true b) 2 is true c) both are true d)both are false (C)


1: For export/import cargo policies,institute cargo clauses(I.C.C) are used

2: For inland transit consignments, local clauses are used


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5: Which of the following is covered under institute cargo clauses(C)

a) fire

b) explosion

c) derailment of land conveyance



1: general average sacrifice is covered under ICC(C)2: jettison is covered under ICC(C)

a)1 is true b) 2 is true c) both are true d) both are false (C)

7:Which of the following is NOT covered under institute cargo clauses(C)

a) standing of vessel

b) washing overboard

c) collision of vessel

d) jettison (b)

8: Which of the following risks are covered under institute cargo clauses(b)

a) washing overboard

b) total loss of package during loadingc) earthquake


9: Which of the following falls under Extraneous risks

a) volcanic eruption

b) lightning

c) earthquake

d) rain water damage (d)

10: Which of the following falls under Extraneous risks

a) fresh water damage

b) breakage

c) leakage


11: Which of the following extraneous risks can be added under ICC(B) clauses on payment of extra premium

a) Heating

b) Sweating

c) Breaking

d) All the above (d)

12: Which of the following statements is true of false

1: ICC(B) & (C) provide specified risks cover

2: ICC(A) provide all risks cover



c) both statements are true

d) both statements are false (C)

13: Malicious damage is automatically covered under

a) ICC(A) clauses

b) ICC(B) clauses

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c) ICC(C) clauses

d) Not covered under any of the above (a)

14: Which of the following risks can be added to ICC(B) clause on payment of extra premium

a) theft b) pilferage c) non-delivery d) all the above (d)

15: 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 (C)

16: Which of the following losses are NOT deemed to be accidental losses

a) ordinary leakage

b) ordinary wear and fear

c) inherent vice


17: Which of the following risks excluded under ICC clauses can be covered on payment of extra premium

a) loss by delayb) loss from insolvency of owners of the vessel

c) loss due to inadequate packing

d) war and kindred perils (d)

18: The cover under the Transit clause of ICC terminates on the expiry of ----- days after discharge from the vessel at the

final port of discharge

a) 15 days b) 30 days c) 45 days d) 60 days (d)


1: The duration of cove for marine risks is for the entire voyage on a warehouse to warehouse basis

2: The duration of cover for war risks is restricted to the time when the goods are waterborne and not on land

a) 1 is true

b) 2 is true

c) both are true



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


21: 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 (b)

22: Under institute cargo clauses(AIR), at extra premium

1: war risks can be covered

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


23: Which of the following is NOT covered under inland transit(rail/road) claluse B

a) fire

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b) lightning

c) breakage of bridges

d) non-delivery (d)

24: 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 (b)25: 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 (b)

26: Normal rates of premium apply for cargo carried in vessels approved by following classification societies

a) lloyds register of shipping

b) American bureau of shipping

c) Indian register of shipping

d) All the above (d)

27: Under which of the following circumstances marine cover note is issued

a) name of steamer not knownb) number and date of railway receipt is not known

c) number of packages involved in transit are not known



1: certificate of insurance under open policy is not stamped

2: certificate of insurance under open cover is stamped

a) 1 is true

b) 2 is true

c) both are true



1: open policies are useful to cover inland consignmentsr

2: open covers are useful to cover export/import shipments


30: 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% (b)

31: For which of the following , special declaration policy is not issued

a)rail despatches

b) road dispatches

c) inland waterways dispatches

d) export/import shipments (d)


1: actual total loss occurs where the subject matter of insurance is entirely destroyed

2: constructive total loss occurs where the cost of repairs of damaged goods exceeds the value of goods after repair


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

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a) standing of vessel

b) collision of vessel

c) sea-water damage

d) explosion (C)

34: 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 (b)

35: 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 (C)

36: The inland transit(rail/road) clause C covers the following risks

a) fire and theft

b) derailment

c) collision

d) fire and lightning (d)

37: Under inland transit(rail/road) clause(C), the insurance ceases

a) after 3 days of arrival of wagon at destination railway station

b) after 7 days of arrival of wagon at destination railway station

c) after 15 days of arrival of wagon at destination railway station

d) on unloading of each package (d)

38: 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 (C)

39: 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 (C)

40: Extra charges in cargo claims refer to

a) landing charges

b) reconditioning charges

c) warehousing charges

d) survey fees (d)

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

a) invoice

b) bill of lading

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c) original policy

d) non-delivery certificate (b)

42: Which of the following expenses does NOT fall under sue and labour charges

a) landing charges

b) warehousing charges

c) reconditioning charges

d) loss surveyors fees (d)43: Which of the following statement is true

1: in cargo losses, the survey fees are paid by the claimant initially

2: survey fees are reimbursed by insurers, if the claim is admitted


44: Which of the following documents is NOT required under particular average claims

a) policy

b) bill of lading

c) survey report

d) general average statement (d)

45: Which of the following documents is NOT required under road transit claimsa) original policy

b) consignment note

c) letter of subrogation(stamped)

d) special power of attorney(stamped) (d)

CHAPTER 8

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 (C)

2: Under motor vehicles act, liability under workmens compensation act towards which of the following is compulsory

insurable

a) paid driver of vehicle

b) conductor(public service vehicle)

c) ticket examiner(public service vehicle)


3: The liabilities which require compulsory insurance under motor vehicles are for death or bodily injury

a) of any third party

b) of any passenger of a public service vehicle

c) damage to any property of a third party


4: 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/-

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d) Rs.25,000/- (b)

5: Under the motor vehicles act the limit of liability for death or bodily injury of a passenger in a public service vehicle is

a) Rs.25,000 b)Rs.50,000 c)Rs.1,00,000 d) unlimited (d)


Liability under workmens compensation act is to be compulsory insured is respect of

1: workers carried in a goods vehicle

2: workers carried in a public service vehiclea) 1 is true b) 2 is true c) both are true d) both are false (a)

7: 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/- (b)

8: 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/- (b)


1: compensation to victims of hit and run motor accident are payable out of solatium fund

2: compensation for victims of motor accident on no-fault basis is awarded by the motor accident claims tribunal


10: Liability only motor policy covers liability for damage toa) 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 (a)

11: Personal accident cover for owner-driver under liability only motor policy applies only if the

a) owner-driver is the registered owner of the insured vehicle

b) owner-driver is the insured named in the policy

c) owner-driver holds an effective license


12: 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/- (C)

13: 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/- (C)

14: 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/- (C)

15: Which of the following statements is true or false

1: Compulsory motor third party insurance covers negligence liability

2: compulsory motor third party insurance covers no-fault liability



c) both statements are false

d) both statements are true (d)

16: Which of these statements is true or false

Compensation from solatium fund is paid for

1: no-fault liability claims

2: hit and run claims

a) both are true b) both are false c) 1 is true d) 2 is true (d)

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17: 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 (a)

18: 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 reportc) proof of title to the vehicle

d) original policy (b)

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

a) self-ignition b)earthquake c)terrorist act d) all are covered (d)

20: Under private car package policy, the rate of depreciation for all parts made of glass is

a) 20% b)30% c)50% d)nil (d)

21: Which of the following exclusions does NOT appear in own damage section of private car package policy

a) mechanical breakdown

b) wear and fear

c) electrical breakdownd) malicious damage (d)

22: The rates of depreciation for replacement of rubber parts under private car package policy is

a)10% b)20% c)30% d)50% (d)

23:Which of the following is covered under private car package policy

a) transit of the insured vehicle by road

b) transit of the insured vehicle by rail

c) transit of the insured vehicle by air


24: 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 (C)

25: Under the private car package policy the towing charges in respect of a damaged vehicle mean

a) cost of protection to the vehicle

b) cost of removal to the nearest repairer

c) cost of re-delivery to the insured

d) all of the above (d)

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

a)Rs.750/- b)Rs.1000/- c)Rs.1500/- d)Rs.2000 (C)


1: The insureds declared value of the vehicle is fixed on the basis of manufacturers listed selling price of the brand and

model of the vehicle at the commencement of insurance

2: The insureds declared value is the sum insured under the policy

a) 1 is true b) 2 is true c)both are true d) both are false (C)

28: Insureds declared value of obsolete vehicles is to be determined by

a) the surveyor

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b) the insured

c) the insurer

d) the insured and insurer (d)


The insured declared value shall be treated as the market value throughout the policy period without any depreciation

for the purpose of

1: actual total loss2: constructive total loss


30: 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% (a)

31: Under private car package policy which of the following exclusions does NOT appear in general exception clauses of

the policy

a) driving without a valid license

b) damage outside geographical area

c) breach of limitations as to use claused) driving under the influence of intoxicating liquor (d)

32: constructive total loss in motor insurance arises when

a) the vehicle is stolen

b) the vehicle is a total wreck

c) the vehicle is beyond repairs

d) the cost of repair exceeds 75% of IDV of vehicle (d)

33: Which of the following is true under private car package policy

1: the liability of insurer for total loss does NOT exceed insured declared value less the value of the wreck

2: the liability for partial losses does NOT exceed costs of repair/replacement less depreciation



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


35: Which of the following is NOT a rating factor for private cars (own damage)

a) insureds declared value of vehicle

b) cubic capacity

c) passenger capacity

d) geographical zone (C)

36: 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 (a)

37: Which of the following is NOT eligible for discount in own damage premium(private car package policy)

a) vintage cars

b) brand new cars

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c) membership of automobile association

d) anti-theft devices approved by automobile research association of India (b)

38: Which of the following attract additional premium under private car package policy

a) electronic items fitted to the vehicle(but not included in the manufacturers price)

b) CNG/LPG kit fitted to the vehicle

c) fibre glass fuel tanks


39: Which of the following is NOT a rating factor for own damage cover for taxies

a) age of vehicle

b) cubic capacity

c) geographical zone

d) insureds declared value of vehicle (d)

40: 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 (C)

41: Deductible under package policies applies to

a) motorized two wheelers

b) private cars

c) goods vehicles

d) all three vehicles (d)

42: In respect of motor third party insurance

1: no commission is payable

2: no brokerage is payable



1: no claim bonus is computed on the own damage premium required for renewal of the policy

2: when there is transfer of interest in the motor policy from one insured to another, the transfer of no claim bonus is not

automatic

a) 1 is true

b) 2 is true

c) both are true


44: 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 (C)

45: Which of the following is collected from the insured by insurers before the payment of total loss

a) registration and taxation books

b) ignition keys

c) blank T.O and T.T.O forms duly signed by the insured

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46: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 (b)47: 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 manufacturers price (b)


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 businessa) 1 is true b) 2 is true c) both are true d) both are false (b)

49: The administrator of motor third party insurance is

a) IRDA

b) GIC

c) General insurance council

d) Motor accident claims tribunal (b)


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


51: Motor no-fault liability claims are decided by

a) lok adalat

b) lok nyayalaya

c) civil court

d) motor accident claims tribunal (d)

52: Which of the following documents is required to support motor no-fault liability third party claims

a) death certificate

b) medical certificate

c) police report

d) all three (d)

CHAPTER 9

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 (b)

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

a) permanent total disablement

b) permanent partial disablement

c) temporary total disablement

d) temporary partial disablement (d)

3: Which of the following contingencies is NOT covered under personal accident insurancea) temporary total disablement

b) temporary partial disablement

c) permanent total disablement

d) permanent partial disablement (b)

4: 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 (b)

5: The amount of weekly payment for temporary total disablement under personal accident insurance is restricted toa) Rs.1000/- b) Rs.2000/- c)Rs.3000/- d)Rs.5000/- (C)

6: Which of the following additional benefits under personal accident insurance attracts extra premium

a) medical expenses

b) expenses for carriage of dead body

c) childrens education fund

d) cumulative bonus (a)

7: 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 (b)

8: Which of the following appear as exclusions under personal accident insurance

a) child birth or pregnancy

b) service in the armed forces

c) accident indirectly caused by insanity


9: 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


10: Which of the following occupations falls under risk group III for rating purposes( personal accident)

a) mining engineers

b) jockeys

c) circus personnel


11: Which of the following occupations does NOT fall under risk group I for rating purposes(personal accident)

a) accountants

b) veterinary doctors

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c) lawyers

d) bankers (b)

12: which of the following occupations does NOT fall under group II for rating purposes(personal accident)

a) lorry drivers

b) motor mechanics

c) consulting architects

d) paid drivers of motor cars (C)13: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



1: personal accident cover is not granted for high sum insured which is disproportionate to monthly salary of the

insured

2: non-earning housewives are granted personal accident cover for capital sums only


15: Which of the following statements is true in the relation to flight coupons on declaration basis

1: flight insurance coupons are issued to individuals

2: flight insurance coupons are issued to companies in respect of their employees who travel by air frequently

a)1 is true b) 2 is true c) both are true d) both are false (C)

16: Which of the following is eligible for group personal accident insurance be granted

a) members of a registered cooperative society

b) employees of a company

c) holders of deposit certificates issued by banks


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

1: cumulative bonus does not apply

2: childrens education grant is available


18: 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% (C)

19: 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 (b)

20: Under which of the following P.A policies long term discount is available

a) individual policies

b) family package policies

c) group policies on government employees

d) group janata personal accident policy (d)

21: 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

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a)40% b)50% c)60% d)75% (b)

CHAPTER 10

1: Which of the following costs are payable under mediclaim policy

a) spectacles b) lenses c)hearing aids d) artificial limbs (d)

2: Which of the following criteria has to be satisfied by a hospital or nursing home to be eligible to provide treatment undermediclaim policy

a) registration with local authorities

b) operation theatre

c) doctors and nursing staff round the clock


3: As per mediclaim policy

1: expenses on hospitalization for a minimum period of 24 hours are admissible

2: this time limit is not applied if the insured is discharged the same day after specific treatment e.g dialysis


4: relevant medical expenses incurred during the period of ------ days after hospitalization are treated as part of the claima) 15 days b)30 days c)45 days d)60 days (d)

5: 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 (b)

6: Which of the following types of specific treatment are exempted from minimum 24 hours stay in a hospital

a) chemotherapy

b) radiotherapy

c) lithotripsy



Domiciliary hospitalization benefit does not include

1: pre-hospitalization treatment

2: post-hospitalization treatment


8: Which of the following diseases is excluded under domiciliary hospitalization benefit

a) tonsillitis b) sinusitis c) cataract d)hemia (a)

9: 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 (C)

10: 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 (b)

11: 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 (a)

12: Which of the following is payable under mediclaim policy if necessitated due to an accident

a) cosmetic treatment

b) aesthetic treatement

c) plastic surgery



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1: dental treatment is excluded unless requiring hospitalization

2: expenses on vitamins and tonics are excluded unless forming part of treatment


14: Treatment for which of the following is excluded under mediclaim policy

a) voluntary termination of pregnancy

b) caesarian section

c) childbirthd) all the above (d)

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

a) chemotherapy

b) radiotherapy

c) naturopathy

d) cost of pacemaker (C)

16: 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 (C)

17: 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 (C)

18: For which of the following diseases, medical certificate from a consulting physician is required to be submitted along

with the proposal form

a) diabetes

b) hypertension

c) coronary insufficiency


19: Mediclaim insurance is available to persons between the ages of------

a) 2 years and 70 years

b) 2 years and 75 years

c) 4 years and 80 years

d) 5 years and 80 years (d)

20: A discount in premium is allowed to a family comprising the insured and -----

a) spouse

b) dependent children

c) dependent parents


21: Which of the following is NOT required in the mediclaim proposal form

a) past diseases and details of treatment

b) average monthly income

c) income tax PAN

d) all the above are required (d)

22: Which of the following is true, in relation to mediclaim proposal form

1: The insured warrants the truth of the statements and agrees that the proposal form shall be the basis of the contract

2: The insured consents to the insurer taking medical information from hospital/medical practitioner who has treated the

insured


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23: Which of the following is not included in the mediclaim proposal form

a) prospectus

b) average monthly income

c) income tax PAN

d) all the above are included (d)


A group mediclaim is available to any group, subject to the following1: the group has a central administration point

2: the prescribed number of persons are covered

a) 1 is true b) 2 is true c ) both are true d) both are false (C)

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

1: cumulative bonus is not available

2: health check-up expenses are payable


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

a) no claim bonus

b) group discountc) cumulative bonus

d) maternity extension (C)

27: Which of the following is covered under maternity benefit extension

a) pre-natal expenses

b) post-natal expenses

c) expenses for voluntary medical termination of pregnancy

d) none is covered (d)

28: 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 (b)

29: Under which of the following claims, the waiting period does not apply

a) normal delivery

b) caesarean section

c) abdominal operation for extra uterine pregnancy

d) applies to all (d)

30: 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 (b)31: Which of the following is true under maternity benefit extension

1: option for maternity benefits has to be exercised at the inception of the policy

2: insured persons with two or more living children are not eligible for this benefit


32: Which of the following is true under maternity benefit extension

1: The benefits are admissible only if expenses are incurred in hospital/ nursing home as in patients

2: pre-natal and post-natal expenses are admissible if admitted in hospital/nursing home for treatment


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33: 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 (a)


1: bonus/malus clause applies to individual mediclaim policy2: bonus/malus clause applies to individual mediclaim policy


35: 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 (a)

36: 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 (b)

37: Which of the following statements is true1: claims under CPAA cancer policy are paid by insurers

2: these claims and documents have to be certified by CPAA


38: 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% (a)

39: 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


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

a) cancer

b) paralysis

c) tuberculosis

d) parkinsons disease (C)

41: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 (b)

42: 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 (d)

43: Overseas medical policy can be granted to Indian resident undertaking bona fide trips for the following purposes

a) business

b) official

c) holiday

d) all the above purposes (d)

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44: Which of the following requisites apply for eligibility for overseas medical policy of foreign nationals working in India

for Indian employers of multi-national organization

a) their salary must be in Indian rupees

b) visit abroad for official purposes

c) visit abroad is undertaken on behalf of employer


45: 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 (a)

46: Which of the following is NOT excluded under overseas medical policy

a) child birth

b) miscarriage

c) abortion

d) cosmetic surgery necessary as a result of a covered accident (d)

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

medical policy

a) physician servicesb) hospital services

c) dental services for immediate relief of dental pain only

d) local emergency medical transportation (C)

48:Under overseas medical policy (loss of checked baggage) for which of the following items claim is NOT paid

a) binoculars b) sun-glasses c)antiques d)all the above (d)

49: 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 (C)

50: 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 (b)

51: Under which of the following circumstances, loss is NOT payable under loss of passport section of overseas medical

policy

a) confiscation by customs

b) detention by police or other authority

c) no official report from the police

d) all the above (d)52: Which of the following are general exclusions (all sections) of overseas medical policy

a) naval,military or airforce operations

b) hazardous sports

c) professional sports events


53: The insurance under overseas medical policy does not operate beyond a period of ---- days continuous

absence(unless specifically agreed by insurers)

a) 60 days b) 90 days c) 120 days d)180 days (d)

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54: The overseas medical policy does NOT provide indemnity for pre-existing medical condition which is defined as

sickness for which the insured person was treated in the preceding-----months prior to travel

a) 3 months b) 6 months c)9 months d)12 months (d)

55: Under which of the following sections of overseas medical policy, deductible does not apply

a) medical expenses

b) personal accident

c) personal liabilityd) loss of passport (b)


Corporate frequent travelers policy is granted to

1: officials of companies registered under the companies act

2: partners of registered firms


57: 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 (C)


1: corporate frequent travelers policy is issued to individuals only2:The cover under this policy is subject to the insured person advising insurers any material change in his health

condition


59:Under corporate group overseas medical policy deposit premium equal to premium of at least ---- days travel under

plan( world-wide travel including USA/Canada)

a) 200 days b)300 days c)400 days d) 500 days (d)

60: 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 (b)

61: 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 (C)

62: Which of the following is NOT covered under overseas employment and study policy

a) medical expenses in India on evacuation

b) loss of checked baggage

c) delayed baggage

d) personal liability (d)

CHAPTER 11

1: Under public liability insurance act 1991, the owner is NOT liable to pay relief in the event of

a) death of any person

b) injury to any person not resulting in death

c) damage to property of any person

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d) injury to a workman within the meaning of workmens compensation act (d)

2: 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/- (C)

3: 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/- (b)

4: Under public liability insurance act, 1991 a company handling hazardous substance has to insure for an amount not

less than the amount ----- of the companya) market value of assets

b) market value of stocks

c) paid-up capital

d) turnover of hazardous substances (C)

5: 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 (b)

6: Under public liability insurance act, 1991 the aggregate liability of the insurer to pay relief in case of more than one

accident during the currency of the policy shall not exceed

a) Rs.5 crores b) Rs.7.5 crores c) Rs.10.00 crores d) Rs.15.00 crores (d)

7: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 (C)

8: 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 (d)

9: Under public liability insurance act, 1991 application for claim for relief must be made to the collector within ---- years of

the occurrence of the accident

a) 1 year b) 2 years c) 3 years d) 5 years (d)

10: which of the following fall under industrial risks for the purpose of public liability insurance

a) exhibitionsb) permanent amusement parks

c) film studios

d) none of the above (d)

11: Which of the following is true in relation to industrial risks public liability policy

1: policy period means the period commencing from effective date and hour and terminating at midnight on the expiry

date as shown in the schedule of the policy

2: period of insurance means the period commencing from the retroactive date and terminating at midnight on the

expiry date as shown in the schedule of the policy

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a) only 1is true b) only 2 is true c) both are true d) both are false (C)

12:Which of the following statements is true .The indemnity clause of industrial risks public liability policy excludes

1: products liability

2: pollution liability


13: Under public liability policy for industrial risks, which of the following CANNOT be covered at extra premium

a) pollutionb) earthquake

c) transportation of hazardous substances

d) fines and penalties (d)

14: 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 (C)

15: Under industrial risks public liability polic

agent question bank

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