general insurance commercial - questions

7/29/2019 General Insurance Commercial - Questions

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Part I: Questions on Basic Concepts

Introduction

1. Which among the following statements is / are not correct?

a. Lack of awareness is the main factor which hinders the growth of

insurance business in India.

b. The General Insurance Business (Nationalization) Act was passed in the

Year 1972.

c. Commercial general insurance business as per the available statistics

is expected to grow more than personal lines of business.

d. Reinsurance Corporation of India was the first reinsurance company set

up in the country.

e. The General Insurance Corporation of India has four subsidiaries.

2. Identify the correct statements with regard to the Indian insurance market.

a. India is among the top 5 in the World Insurance Market

b. Indias contribution to the world insurance market is 0.35%

c. India is among the top 3 in the Global Insurance Market

d. India is the major contributor in the World Insurance Market

e. Both (b) and (c) above.

Fire Insurance

3. The value of a property insured by A and B, in the proportion of 3:2, is Rs.

1,50,000. The amount payable by each insurer, in the event of 70 percent loss

by fire, as per the principle of contribution is respectively

a. 1,05,000 and 0

b. 90,000 and 60,000

c. 75,000 and 75,000

d. 63,000 and 42,000

e. 52,500 and 52,500.


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4. Which of the following statement/s is/are correct?

a. Premium can be paid in installments.

b. No policy can be issued at a premium less than Rs. 25.

c. The insurance policy can be canceled at the option of the insurer or the

insured.

d. It is permissible to issue a policy covering only certain portions of a

building.

e. The short period rate applicable for a period not exceeding 7 months is

70 percent of the annual rate.

5. The condition/s which is/are not required to avail discount for fire extinguishing

appliances are

a. The installation of the equipment is maintained in an efficient working

order

b. Annual maintenance contract is in force

c. Fire extinguishing appliances should be manufactured by an approved

manufacturer

d. The appliance should be erected and tested as per the relevant

regulations of the Tariff Advisory Committee

e. A certification from Loss Prevention Association or Tariff Advisory

Committee accredited professionals or agencies confirming the

satisfactory compliance of the requirements.

6. The factors that led to the standardization of fire policy are

a. Inadequacy of the individual underwriters in terms of capital

b. Lack of competition

c. Dishonesty or incompetence of the local agent

d. Both (a) and (c) above

e. All of (a), (b) and (c) above.


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7. The insurer has the right to proceed against the third party once he has

indemnified the assured for his loss. This is explained by the principle of

a. Subrogation

b. Contribution

c. Indemnity

d. Insurable interest

e. Utmost good faith.

8. Which among the following is a condition under statutory reinstatement in Fire

Insurance?

a. The insurer is liable to reinstate the premises, but only to the extent of

the sum payable under the policy.

b. The insurers liability arises only where the insurer would otherwise be

liable to the assured under the policy and where he has no defense

against the assured.

c. The insurer, having received a valid notice, must reinstate the building

or pay the money directly to the assured on receipt of some security

for the assureds promise to reinstate.

d. An insurer who refuses to reinstate may be restrained by injunction, in

favor of third party, from making payment to the assured.

e. All of the above.

9. Which among the following is not a feature of alteration clause in an

insurance policy?

a. The insurer will be discharged from liability unless the alterations arenotified to the insurers and their acceptance obtained by an

endorsement on the policy.

b. The clause provides that in the event of any alteration the insurance

will cease to attach the particular property affected.

c. Alterations reduce the risk of loss or damage by insured perils.


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d. The insurers are discharged from liability if the building insured or

containing the insured property remains unoccupied for a period of

more than 30 days.

e. If the interest in the property insured passes from the insured either by

will or operation of law, the insurer is discharged by his liability.

10. Enumerate the benefit/s of Industrial All Risks Policy from the following.

a. The policy covers all risks including petrochemical risks having sum

insured of Rs. 10 crore and above.

b. Premium is charged only for flood and cyclone and earthquake perils.

All other special perils under the fire portfolio are in built covers and no

additional premium charged.

c. Loss of profits for special perils under fire (except storm, tempest,

flood, inundation and earthquake) is optional with extra premium.

d. The Industrial All Risks Policy is a policy with warranties.

e. Under the policy, fire loss of profits is optional whereas machinery loss

of profits is built-in.

11. Which among the following is/are an originating fire hazard?

a. Smoking.

b. Friction.

c. Overheated materials.

d. Combustion sparks.


12. Which is not a hazardous good as mentioned under All India Fire Tariff?

a. Celluloid goods.

b. Hemp.

c. Nitro-cellulose plastics.


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d. Furniture made of steel.

e. Vegetable fibers of any kind including Rayon Fiber.

13. The different interests of two or more persons are insured under a singlepolicy as per the concept of

a. Composite insurance

b. Contribution

c. Distribution

d. Alteration

e. Joint coinsurance.

Motor Insurance

14. The Motor Vehicle Act prevailing today was introduced in the year

a. 1938

b. 1939

c. 1988

d. 1989

e. 1998.

15. The declarations in the proposal form follow the principle of

a. Utmost good faith

b. Insurable interest

c. Indemnity

d. Subrogation

e. Contribution.

16. Act only policy does not cover

a. Death of a third party


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b. Own damage to vehicles

c. Damage of property of third parties

d. Body injury to third party

e. Death or injury to paid drivers.

17. The details included in a certificate of motor insurance are

a. Name of the policy holder

b. Effective date of commencement

c. Date of expiry

d. Limitations to the use of the vehicle


18. Which factor is not considered for underwriting a motor policy?

a. The type of the vehicle.

b. Market value of the vehicle.

c. Purpose for which the vehicle is used.

d. Geographical area of use.

e. The previous claims experiences.

19. Identify the correct statement

a. Agreed value policy considers the current market value of the vehicle.

b. Agreed value policy can be issued only for vintage cars.

c. The agreed value policy pays a specified sum as the value of the

vehicle insured except in the event of total loss.

d. Agreed value policy may or may not consider the current market value

of the vehicle.



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20. Which among the following is not an essential document to be submitted for

settlement of motor claims?

a. Duly filled claim form.

b. Purchase invoice of the vehicle.

c. FIR/Final Investigation Report as per the requirements.

d. No Objection Certificate in case of finance.

e. Registration Certificate and Driving License.

21. Scrutiny or the preliminary verification under motor claims does not include

verifying whether

a. The vehicle is covered under the policy

b. The policy is in force on the date of occurrence of the loss or damage

c. The damage of vehicle is caused by a peril insured by the policy

d. Notice of loss has been received in time

e. Investigation by an independent expert.

22. Which automobile major entered into an alliance with the Allianz group to

foray into non-life insurance sector?

a. Bajaj Auto.

b. Kinetic Engineering.

c. Escorts Yamaha.

d. Hero Honda Motors Ltd.

e. TVS Group.

23. One among the following is not included in a certificate of motor insurance.

Identify it.

a. Date of purchase of the vehicle.


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b. Registration mark of the vehicle.

c. Name of the policyholder.

d. Effective date of commencement.

e. Date of expiry.

24. Short period rates are not applicable if the period of insurance exceeds

a. Eight months

b. Six months

c. Five months

d. Four months

e. None of the above.

25. The basis of premium calculation for private cars is/are

a. Cubic capacity

b. Insureds declared of value

c. Zone of operation

d. All of the above


26. Choose the correct statement/s from the following with regard to motor

insurance.

i. Policy Form A is specified to cover damage loss in addition to act liability

ii. Policy Form B is specified to cover act liability

iii. IRDA formulated the India Motor Tariffs.

a. Only (i) above

b. Only (ii) above

c. Only (iii) above


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d. None of the above


Aviation Insurance

27. Identify the advantages of aviation insurance from the following.

a. Better spread of risk

b. Services of experts in the area of rating and underwriting

c. Qualified loss adjustment services

d. Both (a) and (b) above


28. Which of the following factors regarding leading underwriters in aviation

industry is incorrect?

a. Receive a fee from other underwriters because of additional work and

responsibilities.

b. Sufficient experience and expertise in the aviation industry.

c. Not responsible for claim settlements.

d. To set the insurance coverage terms and agree upon a policy wordingon behalf of the market.

e. Set premiums which they require for their personal participation.

29. Under which insuring agreement, do the insurers agree to indemnify all

damages for the loss of use of the aircraft caused by grounding, resulting from

an occurrence taking place in the policy period.

a. Body injury and property damage

b. Grounding

c. Reimbursement of insureds expenses

d. Defense and settlements



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30. Noise, pollution and other perils exclusion clause is not applicable to which

class of business?

a. Satellite liability.

b. Product liability.

c. Aircraft manufacturers liability.

d. Aircraft third party liability.

e. Airport operators liability.

31. The factors that need to be considered for claims settlement under aviation

insurance are

a. Whether the aircraft was insured under the policy

b. Whether the accident occurred during the currency of the policy

c. Whether the pilot has acquired the necessary licensing requirements

d. Whether the accident has occurred within the geographical limits of

the policy


32. IATA stands for

a. Indian Air Transport Organization

b. International Air Traffic Authority

c. Indian Aviation Training Authority

d. International Air Transport Association

e. International Air Transport Administration.

33. The major factor/s which makes up the price of the aircraft are

a. Cost of labor


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b. Cost of materials

c. The overheads

d. The cost of design and testing


Engineering Insurance

34. The engineering insurance business in India was initiated by

a. New India Assurance Co.

b. General Insurance Corporation

c. National Insurance Co.

d. Bajaj-Allianz

e. Oriental Insurance Co.

35. Which of the following types of engineering insurance coverage is not a

construction phase policy?

a. Contractors All Risk Insurance.

b. Marine cum Erection Insurance.

c. Contract Works Insurance.

d. Advance Loss of Profits Insurance.

e. Contractors Plant and Machinery Insurance.

36. Which comprehensive insurance policy was designed to cover any sort of

contingency that arises at the time the materials are unloaded at the

construction site and mainly is concerned with erection of equipments and

structures?

a. Erection All Risks Policy.

b. Contractors All Risks Policy.

c. Civil Engineering Completed Risks Policy.


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d. Electronic Equipment Insurance Policy.

e. Contractors Plant and Machinery Insurance.

37. Which of the following is not covered under the Electronic Equipment

Insurance Policy?

a. Computers.

b. Electronic Scoreboards.

c. Dish Antenna.

d. Laptop.

e. Both (c) and (d) above.

38. In Erection All Risks policy discount in premium is allowed if the value

exceeds

a. Rs.200 crore

b. Rs.100 crore

c. Rs.150 crore

d. Rs.300 crore


39. Which of the following is/are false about the rating process in Contractors All

Risks insurance policy?

a. An equitable premium can be arrived at by applying 50% of the sum

insured.

b. Actual premium required to be paid can also be calculated by taking

the average of declarations made, usually monthly, of the actual value

at risk.


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c. Usually the rate charged for plant and equipment will be higher

compared to construction rating.

d. In almost all cases of CAR Policy per-acceptance risk inspection is

conducted.


40. Which of the following is/are true regarding the Underwriting process of the

CAR policy?

a. If the work involves the construction of roads, the territory on which

the road is constructed is considered.

b. For tall buildings the risk selection is based on the foundation of the

building, materials or equipments needed for the construction ofhigher floors, scaffolding used for the work, construction plant to be

used and chances of other hazards.

c. Underwriting on airport work is based on whether the work includes

landside construction or airside work or both.

d. Both (a) and (c) above.


41. Which of the following sentences is/are true in case of Marine cum Erection

Policy?

a. The first part of the marine cum erection policy is the coverage for

transit risks to take care of the interest during the transit from the

various suppliers warehouses to the site of erection.

b. The second part of the policy is the storage cum erection coverage to

take care of the interest during storage, erection, testing and

commissioning.

c. The duration of the cover starts from the time the equipments move

from the manufacturers or suppliers place within or outside India.

d. Both (a) and (b) above.



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42. Which of the following is excluded under combinations All Risk Insurance?

a. Fire explosion or lightening.

b. Electrical or mechanical breakdown.

c. Terrorism.

d. Collapse.


43. Which of the following risks are not covered under the Contractors Plant and

Machinery insurance policy?

a. Accidental damages while at work due to faulty handling, dropping or

falling, collision and impact.

b. Wear and tear or corrosion.

c. Explosion of any boiler or pressure vessel due to internal steam fluid

pressure or internal combustion.



44. Which of the following is/are false regarding the Loss of Profits (Machinery)

Policy?

a. The insurers can quote rates as low as Rs. 1.40 when they underwrite

new proposals in respect of fertilizer risks.

b. Insurers can extend machinery loss of profits cover on DG sets subject

to adequate reinsurance support.

c. With regard to the issuance of policies in the first year of operationsuch proposals will be considered by the TAC on case to case basis and

the rates will be decided by the TAC.


e. Both (a) and (c) above.


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45. Within how many days should the insured inform the insurance company

about the loss failure to which the insurer has no responsibility in case of

Boiler Explosion Insurance?

a. 10

b. 14

c. 15

d. 20

e. 30.

46. Deterioration of goods insurance is mainly applicable to

a. Perishable goods

b. Industrial goods

c. Fast moving goods

d. Electronic goods


47. What is the minimum premium per policy in Deterioration of Stocks

Insurance?

a. Rs. 1,500.

b. 60% of the premium calculated on the basis of the capacity of the

refrigeration plant.

c. Either (a) or (b) whichever is higher.

d. Rs. 2,000 per policy.

e. Either (b) or (d) whichever is higher.

48. What is the rate of discount allowed in the premium of the Electronic

Equipment Insurance if the property is already insured under a fire policy?


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a. 5%

b. 10%

c. 12%

d. 15%

e. No discount.

49. Which of the following classes of engineering insurance stipulates that the

property must be insured at its replacement value?

a. The civil engineering completed risks insurance policy.

b. The Contractors All Risks Policy.

c. Erection All Risks Policy.

d. Marine cum Erection Policy.


Marine Insurance

50. If the same property is insured under more than one policy, the insured

cannot recover more than his loss. He can recover only a ratable portion of

loss under each policy. Which of the following principles asserts the above

statement?

a. The principle of utmost good faith.

b. The principle of contribution.

c. The principle of proximate clause.

d. The principle of indemnity.


51. Which of the following is not included in the implied warranty?

a. Legality.

b. Fitness against perils of the port.

c. Neutrality.


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d. Seaworthiness of ship in voyage policy.

e. Change of voyage.

52. Which of the following losses are specifically excluded in the marine policy?

a. Any loss attributable to the willful misconduct of the assured.

b. Any loss proximately caused by delay, including a delay caused by a

peril insured against.

c. Ordinary wear and tear, leakage or breakage.

d. Loss due to inherent vice or nature of the subject matter insured.


53. When the insured is deprived of the possession of the subject matter insured

due to a peril insured against and it is unlikely that he can recover it, it is a

case of

a. Actual total loss

b. General average

c. Particular average

d. Constructive total loss


54. As defined by transit clause of ICC, the duration of the marine insurance

cover commences from the time cargo leaves the warehouse at the specified

place and continues during the ordinary course of transit and terminates on

a. Delivery to the consignees or other final warehouse at the destination

named

b. Delivery to any intermediate warehouse used by the insured for the

purposes of storage or distribution

c. The expiry of 60 days after discharge from the vessel at the final port

of discharge


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d. Either (a), (b) or (c) above whichever shall first occur

e. On expiry of 10 days after discharge from the vessel at the final port of

discharge

55. Inland Transit (Rail/Road) Clause covers the risks of

a. Fire

b. Lightning

c. Breakage of bridges, collision with or by carrying vehicle

d. Only (a) and (b) above


56. Which of the following is /are true about the insurable interest?

a. A creditor cannot insure the life of his debtor to the extent of his loan.

b. Administrators and executors appointed by a court of law to take care

of a property may also insure the property.

c. The only relationship recognized by law for the insurance purpose is

the one between a father and son.

d. A debtor can insure the life of his creditor to the extent of loan amount.

e. The relationship between the husband and wife is not recognized for

insurance purpose.

57. Which of the following is/are true?

a. The Trip or the single (special) policy is undertaken to cover a single

shipment of goods.

b. The Open Cargo policy provides insurance to all the shipments on the

basis of Route, Time or the class of approved vessel.

c. In case of blanket policy the amount of premium varies depending

upon the amount of cargo actually covered.


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c. Reasonably necessary in order to comply with an express warranty or

an implied warranty

d. Due to all the above three cases

e. Not due to any of the above cases.

61. Which of the following conditions can attract higher premium in a marine

insurance policy?

a. Hazardous and fragile goods.

b. Shipments by old and substandard vessel or a vessel of poor

classification is used for the movement of cargo.

c. The wider cover.

d. Bad loss experience of the insured.


62. Which of the following is not one of the different types of Marine Insurance

policies issued by Insurance Companies?

a. Specific policy.

b. Special declaration policy.

c. Annual policy.

d. Inland policy.


63. Which of the following come under the list of documents required for any

claim in respect of damages covered under Marine policy?

a. Bill of lading / lorry receipt / airway bill.

b. Repair bills / replacement invoices.

c. Letter of credit.



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Liability Insurance

64. Which of the following does not come under the civil wrongs?

a. Negligence.

b. Nuisance.

c. Trespassing.

d. Defamation.


65. Which of the following is not one type of liability policies?

a. Public Industrial Liability.

b. Product Liability.

c. Directors and Officers Liability.

d. Golfers and Sportsmen Liability.

e. Health Liability.

66. The Public Industrial Liability policy covers which of the following risks?

a. Pollution risks.

b. Transportation risks.

c. Technical collaborators liability.

d. All of (a), (b) and (c) above.

e. None o f the above.

67. How many claims per year are admitted under the Public Liability policy?

a. Three.

b. Two.


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c. Four.

d. One.

e. Five.

68. What is a claim filed in a good time?

a. A claim arising during the policy period but reported 90 days after the

expiry or cancelation of the policy.

b. A claim arising after the policy period but reported 30 days after the


c. A claim arising during the policy period but reported 45 days after the


d. A claim arising during the policy period but not reported.

e. A claim not reported to the insurance company.

69. The Act governing the liability regarding the accidental death or body injury

or occupational diseases sustained by workmen in the course of job duties is

a. The Workmens Compensation Act, 1923

b. The Workmens Compensation Act, 1833

c. The Consumer Protection Act, 1986

d. The Public Liability Insurance Act of 1991

e. The Personal Injuries (Accident) Act.

70. A doctor, during the course of treating a patient caused death because of his

carelessness. This liability is covered under which policy?

a. Directors and Officers Liability.

b. Professional Indemnity Insurance policy.

c. Golfers and Sportsmen policy.

d. Product Liability policy.


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71. Which of the following can cause liability?

a. A Tort.

b. A Contract.

c. A Statute.

d. An order or notification.

e. All of (a), (b) and (c) above.

72. Which policy covers the liability caused when a person dies after consuming aproduct (food / drink)?

a. Public Liability Act policy.

b. Employers Liability.

c. Product Liability Insurance Policy.

d. Public Liability Insurance.


73. What is Compulsory Excess under Public Liability Insurance Policy?

a. 25% of any-one-accident indemnity subject to a minimum of a Rs. 1

lakh.

b. 10% of any-one-accident indemnity subject to a minimum of a Rs. 1

lakh.

c. 20% of any-one-accident indemnity subject to a minimum of a Rs. 1

lakh.

d. No compulsory excess.


74. What is the period of cover for the Professional Indemnity policies?


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a. One year.

b. Two years.

c. 6 months.

d. Depending on the professionals interest.

e. 2 months.

Miscellaneous Insurance

75. Which of the following is not correct regarding Bankers Blanket policy?

a. It provides indemnity for any direct loss of money and securities of the

insured bank.

b. It is governed under Tariff regulations.

c. Dishonest or criminal act of employees is covered.

d. It provides indemnity in case of forgery or alteration.

e. Premium is based on sum insured and the no. of employees of the

bank.

76. Which of the following statement/s is/are correct?

a. Television insurance policy does not cover equipments used for privatepurposes.

b. For rating purposes, plate glass policy considers whether the glass is

plain or ornamental.

c. Neon sign policy does not cover damages due to riot, strike or any

malicious act.

d. Sports insurance indemnifies loss or damages to sports equipments

only.

e. Transit insurance excludes damage to goods due to collision and overturning if the carriage vehicle.

77. Identify the wrong statement among the following

a. Transit insurance policy is most suitable for persons who are highly

mobile.


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b. Transit insurance policy covers any type of goods as long as they are

undergoing inland transit.

c. All Risks Policy commences at the time of loading the goods but is

not extended till delivery at the destination.

d. The claims arising from partial losses under transit insurance are paid

on the basis of proportionate insured value.

e. Road risks policy includes not only transit by roads but also covers

transit by rail and air.

Risk Assessment, Underwriting and rate Making

78. Which of the following is not one of the three major steps in the risk

management process?

a. Risk Assessment.

b. Risk Analysis.

c. Risk Control.

d. Underwriting.


79. What general requirements should be met for a risk to be considered as an

insurable risk?

a. The peril insured against must not be under the control of the insured.

b. Losses must be calculable and the cost of insurance must be

economically feasible.

c. The peril must be unlikely to affect all insured simultaneously.

d. The possible loss must be financially serious to the insured.


80. Which one of the following relationships is not correct?

a. Pure Premium = Loss incurred/Number of units of exposure.


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b. Expected expense ratio = (Expenses + Underwriting profits +

contingencies)/Premium amount.

c. Expected Loss Ratio = 1 Expense ratio.

d. Gross premium rate = Pure premium / Expected loss ratio.


81. Which of the following is not an approach of risk management?

a. Avoiding the risk.

b. Reducing the risk.

c. Assuming the risk.

d. Transferring the risk.


82. Which of the following is/are method/s in Rate Making?

a. Schedule rating.

b. Experience rating.

c. Manual rate making.



Loss Prevention and Control

83. By which approach are the physical aspects of the risk environment

controlled?

a. Engineering approach.

b. Human approach.

c. Mechanical approach.




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Claims Management

84. The procedure/s involved in claims management is/are

a. Notification by the insured to the insurer

b. Completion of claim forms

c. Providing evidence of loss

d. Receipt of cheque


85. The process of claim settlement includes

a. Determination of the amount of loss

b. Collection of premium amount payable

c. Explain the decision to relevant parties

d. Both (a) and (c) above

e. Both (a) and (b) above.

86. The sum insured of stock kept in the warehouse of a firm is Rs. 6 lakh, the

actual value being Rs.8 lakh. What is the amount payable by the insurer if

there is a loss of stock due to fire to the extent of Rs.2 lakh?

a. 1,00,000

b. 1,50,000

c. 2,00,000

d. 8,00,000

e. 6,00,000

87. Unless cancelled earlier, for how many years is the license given to a

surveyor valid?

a. 3 years.


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b. 4 years.

c. 5 years.

d. 6 years.


88. According to the subsection 6 of Section 64 UM of the Insurance Amendment

Act, 1968, the companies can employ staff surveyors for claims below a

certain amount. What is that amount?

a. Rs. 30,000

b. Rs. 20,000

c. Rs. 50,000

d. Rs. 25,000


89. According to Chapter VII of the Surveyors regulations laid down by the IRDA,

what is the period of practical training an applicant should have?

a. Not exceeding 12 months.

b. Not exceeding 6 months.

c. Not exceeding 10 months.

d. Not lower than 10 months.

e. None o f the above.

90. Which of the following is not one of the surveyors duties?

a. Conduct inspection, re-inspection, pre-inspection of the insured

property.

b. Investigate and verify the causes and the circumstances of the loss.

c. Advise the insurer and the insured about loss minimization and loss

control.


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d. Point out the aspects, which the policyholders might have overlooked.


91. Which of the following Acts govern the process of alternative disputesettlement in the quantum of claims?

a. Insurance Act, 1938.

b. Arbitration and Conciliation Act, 1996.

c. Insurance (Amendment) Act, 1968.

d. Consumer Protection Act, 1986.


92. Which of the following is/are true regarding the arbitration process?

a. If there is no consensus between the parties on the appointment of the

arbitrator, the court can appoint an arbitrator.

b. Disputes can be settled through the arbitration process only when the

insurer has accepted the liability.

c. Arbitration settles the disputes only in the area of claim amounts.

d. Both (a) and (c) above.


93. What is the interest the insurance company has to pay on the claim amount

in case of delay in the settlement of the claim?

a. 7%

b. 8%

c. 9%

d. 10%

e. 5%


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94. Burglary claims below a certain amount are generally settled by the insurer

on the basis of the completed claim form and copy of the FIR. What is the

amont?

a. Rs. 2,000

b. Rs. 2,500

c. Rs. 3,000

d. Rs. 10,000

e. Rs. 1,000.

Legal Framework and Documentation

95. The insurer promises to indemnify the insured if a stated event happens andthe insured in turn promises to pay the premium. The falls under which

essential requirement of a valid contract?

a. Legality of the object.

b. Free consent.

c. Capacity of the parties.

d. Offer and acceptance.

e. Consideration.

96. The General Insurance Business Nationalization Act was passed in the year

a. 1971

b. 1972

c. 1872

d. 1973

e. 1873.

97. The central government can direct the controller or any other authorized

person to examine the affairs of any insurer and submit a report. This follows

which provision of the Insurance Act, 1938?


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a. Registration.

b. Accounts and returns.

c. Powers of investigation.

d. Investments.

e. Prohibition of rebates.

98. The maximum permissible limit of foreign equity participation in an insurance

company as stipulated by IRDA is

a. 74%

b. 50%

c. 25%

d. 26%

e. 76%

99. The minimum paid-up equity capital for conducting life and general insurance

business in India is fixed at

a. Rs. 1,000 crore

b. Rs. 10 crore

c. Rs. 100 crore

d. Rs. 1 crore

e. Rs. 20 crore

100. The minimum solvency margin to be maintained by the private insurance

companies which foray into general insurance is

a. Rs. 500 crore

b. Rs. 50 crore

c. Rs. 100 crore


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d. Rs. 5 crore

e. Rs. 10 crore

101. The committee formed to study insurance sector reforms is

a. Narasimha Committee

b. Chellaiah Committee

c. Malhotra Committee

d. Bajaj Committee

e. Mukherjee Committee.

102. Identify the type of complaint/s which is/are not heard by the ombudsman?

a. Disputes arising between two insurance companies.

b. Any total or partial repudiation of claims by the insurer.

c. Any dispute with regard to premium paid or payable in terms of the

policy.

d. Any dispute on the legal construction of the policies in so far as such

disputes relate to claims.

e. Delay in settlement of claims.

103. Which policy is mandatory under Motor Insurance?

a. Act only policy.

b. Package policy.

c. Act only and Package policy.

d. Both policies but only for two wheelers.

e. No policy is mandatory.


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104. Which forum / commission set-up under the Consumer Protection Act

entertains those cases where goods or value of goods or services and the

compensation claimed is less than Rs. 5 lakh?

a. National Commission.

b. District Forum.

c. State Commission.


e. Both (a) and (c) above.

105. The important document/s involved under all the insurance policies is/are

a. Proposal Forms

b. Cover Notes

c. Policy Forms

d. Certificate of Insurance


106. Which of the following is not present in a proposal form?

a. Proposers name and address.

b. Occupation or business.

c. Details of the risk covered.

d. Details of the present insurance policy.

e. Past claims experience.

107. Which among the following is not included in a cover note?

a. Name and address of the insured.

b. Validity of the cover note.

c. Past claims experience.


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d. Details of the risk covered.

e. Rate and premium.

108. Who controls and regulates the rates, terms and conditions that may beoffered by insurers in respect of general insurance business relating to fire,

marine, motor, engineering and workmens compensation?

a. General Insurance Corporation of India.

b. Central Government.

c. Jointly by Central Government and State Governments/UT.

d. Insurance Regulatory and Development Authority.

e. Tariff Advisory Committee.

109. The ombudsman is not empowered to award any compensation in excess of

the actual amount of losses suffered by the complainant by an insured peril,

subject to a limit of

a. Rs. 10 lakh.

b. Rs. 20 lakh.

c. Rs. 15 lakh.

d. Rs. 25 lakh.

e. Rs. 50 lakh.

110. Listed below are some of the provisions of the IRDA Act. Identify the

provision which is formulated aiming at the economic development of the

country.

a. Policyholders fund to be invested within india.

b. Foreign equity capped at 26%

c. Single company cannot carry on both life and non-life insurance

business.


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d. Minimum capital fixed at Rs. 100 crore for both life and non-life

insurance business.

e. Private insurers to maintain a minimum solvency margin of Rs. 50

crore for life insurance business.

Marketing and Servicing

111. Which of the following is not a unique characteristic of services?

a. Inseparability.

b. Perishability.

c. Intangibility.

d. Variability.

e. Quality.

112. Who among the following do not required Marine Cargo Insurance?

a. Exporters and importers.

b. Companies having large movements of goods to foreign countries.

c. Banks.

d. All of the above.

e. Educational institutions.

113. Identify the regulation stipulated by IRDA for insurance sales agents.

a. 100 days of training and a pass in the examination conducted by the

Insurance Institute of India

b. 100 hours of training and a pass in the examination conducted by the


c. 100 days of training and a pass in the examination conducted by the

Institute of Certified Risk and Investment Management.

d. 10 hours of training and a pass in the examination conducted by the



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e. 10 hours of training and a pass in the examination conducted by the

Institute of Certified Risk and Investment Management.

114. Insurance is a service in which the delivery of service is inextricably tied to

one particular service provider for which they are paid. This explains the

characteristic of

a. Inseparability.

b. Perishability.

c. Intangibility.

d. Variability.


115. Which among the following is not an assumption in the marketing of

insurance services?

a. Every organization is a service.

b. Customer changes his requirements constantly.

c. Customer satisfaction is the primary purpose.

d. Services can be delivered without the presence of the customer.


116. Buyers in the insurance market do not include

a. Individuals

b. Partnerships

c. Corporates

d. Societies


117. The usual mode of operation existing in the Indian insurance market is


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a. Agents of insurance companies approach the buyers

b. Buyers approach insurance companies if any policy is mandatory

c. Buyers approach insurance companies for all types of policies



118. What do you think will be an appropriate strategy that can be adopted by

the new entrants to widen customer base?

a. Low premium.

b. Additional features compared to existing policies.

c. Aggressive marketing to improve awareness.

d. Premium pricing.

e. Wider coverage.

119. An insurance company developed an innovative product and attained

leadership in that market. This is an example of

a. Market creation.

b. Market sharing.

c. Market development.

d. Market identification.


120. What is the role of the claims management cell that ensures that the benefit

of the insurance exceeds the cost of insurance known as?

a. Strategic role.


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b. Cost monitoring role.

c. Managerial role.

d. Customer service role.

e. Marketing role.

121. Which role of claims management cell ensures that customer expectations

are met in terms of speed and efficiency?

a. Strategic role.

b. Cost monitoring role.

c. Managerial role.

d. Customer service role.

e. Marketing role.

122. What is the minimum net worth that banks should have to foray into the

insurance marketing on a risk participation basis as prescribed by IRDA?

a. 500 crore

b. 1,000 crore

c. 200 crore

d. 300 crore


123. What is the minimum capital adequacy ratio that banks should have to foray

into the insurance marketing on a risk participation basis as prescribed by

IRDA?

a. 20%

b. 10%

c. 5%

d. 8%


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124. What are catastrophe bonds?

a. One class of securities which allow the reinsurers into the capitalmarkets.

b. One type of surety bond.

c. One type of fidelity guarantee bond.

d. One class of insurance that provides cover against the catastrophes.


125. Which of the following categories are not covered under the shopkeepers

policy?

a. Restaurants.

b. Jewelry shops.

c. Confectioneries and sweet shops.



general insurance commercial - questions

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