Q&AModuleIC34NewVersion

1)Whichamongthefollowingisnotafunctionofinsurance?
I.Riskmitigation
II.Risktransfer
III.Risktracking
IV.Riskreduction

2)Chanceoflossisreferredtoas_________.
I.Luck
II.Risk
III.Badluck
IV.Peril

3)Insurancedeductibleisanexampleof___________.
I.Riskmitigation
II.Riskavoidance
III.Risktransfer
IV.Riskretention

4)Costofriskisdeterminedby________________.
I.Probabilityonly
II.Impactonly
III.Probabilityandimpact
IV.Timingofrisk

5)Howdoesinsurancehelpineasingaccesstocredit?
I.Insurerprovidesfreecredit
II.Bankslendeasilyifanapplicationisbackedbyinsurance
III.Personwhocanpayinsuranceisassumedtobecreditworthy
IV.Regulationsmandateprovisionofcredittotheinsured

6)LloydsCoffeeHouseisregardedastheplacewhereinsurancestartedthewayitis
practicedtoday.Lloydsislocatedin__________.
I.Bangalore
II.Singapore
III.London
IV.Dubai


7)Risktransferthroughriskpoolingiscalled________.
I.Savings
II.Investments
III.Insurance
IV.Transfer

8)Themeasurestoreducechancesofoccurrenceofriskareknownas_____.
I.Riskretention
II.Lossprevention
III.Risktransfer
IV.Riskavoidance

9)Bytransferringrisktoinsurer,itbecomespossible:
I.Toenjoyfromfloods
II.Toenjoyandmakemoneyfrominsurance
III.Toenjoyafireinthefactory
IV.Toenjoypeaceofmindandplanonesbusinessmoreeffectively

10)Originsofmoderninsurancebusinesscanbetracedto________.
I.Bottomry
II.Lloyds
III.Rhodes
IV.MalhotraCommittee

11)Intheinsurancecontextriskretentionindicatesasituationwhere__________.
I.possibilityoflossordamageisnotthere
II.lossproducingeventhasnovalue
III.propertyiscoveredbyinsurance
IV.onedecidestobeartheriskanditseffects


12)Whichofthefollowingstatementistrue?
I.Insuranceprotectstheasset
II.Insurancepreventsitsloss
III.Insurancereducespossibilitiesofloss
IV.Insurancepayswhenthereislossofasset

13)Outof400houses,eachvaluedatRs.20,000,onanaverage4housesgetburntevery
yearresultinginacombinedlossofRs.80,000.Whatshouldbetheannualcontributionof
eachhouseownertomakegoodthisloss?
I.Rs.100/
II.Rs.200/
III.Rs.80/
IV.Rs.400/

14)Whichofthefollowingstatementsistrue?
I.Insuranceisamethodofsharingthelossesofafewbythemany
II.Insuranceisamethodoftransferringtheriskofanindividualtoanotherindividual
III.Insuranceisamethodofsharingthelossesofmanybyafew
IV.Insuranceisamethodoftransferringthegainsofafewtothemany

15)Beforeacceptanceofarisk,theinsurerarrangesasurveyandinspectionoftheproperty.
Why?
I.Toassesstheriskforratingpurposes
II.Tofindouthowtheinsuredpurchasedtheproperty
III.Tofindoutwhetherotherinsurershavealsoinspectedtheproperty
IV.Tofindoutwhetherneighbouringpropertyalsocanbeinsured

16)Whichoneofthefollowingdoesnotrepresentaninsurablerisk?
I.Fire
II.Stolengoods
III.Burglary
IV.Lossofgoodsduetoshipcapsizing

17)Whichamongthefollowingcannotbeanelementinavalidinsurancecontract?
I.Offerandacceptance
II.Coercion
III.Consideration
IV.Legality

18)Mr.Pintocontractedpneumoniaasaresultoflyingonwetgroundafterahorseriding
accident.ThepneumoniaresultedindeathofMr.Pinto.Whatistheproximatecauseofthe
death?
I.Pneumonia
II.Horse
III.Horseridingaccident
IV.Badluck

19)Moralhazardmeans:
I.Dishonestyorcharacterdefectsinanindividual
II.Honestyandvaluesinanindividual
III.Riskofreligiousbeliefs
IV.Hazardofthepropertytobeinsured

20)Riskindicates:
I.Fearofunknown
II.Chanceofloss
III.Disturbancesatpublicplace
IV.Hazard

21)______________meansspreadingonesinvestmentindifferentkindsofassets.
I.Pooling
II.Diversification
III.Gambling
IV.Dynamicrisk

22)_____________isnotanexampleofanasset.
I.House
II.Sunlight
III.Plantandmachinery
IV.Motorcar

23)______________isnotanexampleofrisk.
I.Damagetocarduetoaccident
II.Damageofcargoduetorainwater
III.Damagetocartyreduetowearandtear
IV.Damagetopropertyduetofire

24)Earthquakeisanexampleof:
I.Catastrophicrisk
II.Dynamicrisk
III.Marginalrisk
IV.Speculativerisk

25)Selectthemostappropriatelogicalequivalenceforthestatement.
Statement:Insurancecannotprotectanassetfromlossordamage.
I.True
II.False
III.Partiallytrue
IV.Notnecessarilytrue

26)__________________meanstransferofallrightsandremedies,withrespecttothe
subjectmatterofinsurance,frominsuredtoinsurer.
I.Contribution
II.Subrogation
III.Legalhazard
IV.Riskpooling

27)Anexampleofafactwhichneednotbedisclosedunlessaskedforis______________by
theinsurer.
I.Ageoftheinsured
II.Presenceoffireextinguisher
III.Heartailment
IV.Otherinsurancedetails

28)________________isawrongstatementmadeduringnegotiationofacontract.
I.Misrepresentation
II.Contribution
III.Offer
IV.Representation

29)Whichamongthefollowingisnotanessentialcomponentofthesalesprocess?
I.Goodwill
II.Buyer
III.Seller
IV.Product/Service

30)Whichamongthefollowingactivitiescanbeclassifiedaspromotion?
I.Productdevelopment
II.Qualitycontrol
III.Productadvertisement
IV.Productbenchmarking

31)WhichamongthefollowingstatementsbestdescribesaTestimonial?
I.Anendorsementfromasatisfiedcustomer
II.Testresultforaproductinabenchmarkingtest
III.Listofteststhataproductmustpass
IV.Moneyrequiredtotestaproduct

32)GeneralinsurancecouldhelpinachievingallofthefollowingobjectivesEXCEPT:
I.Protectionagainstlosstobusinesspremises
II.Makingwindfallgainsontheoccurrenceofacontingentevent
III.Protectionagainsterrorsandomissions
IV.Protectionagainstpropertylosses

33)Howcaninsurancepenetrationbedetermined?
I.RatioofinsurancepremiumstoGDP.
II.Ratioofinsurancecompaniestothelocalpopulation
III.Ratioofinsurancepremiumtopercapitaincome
IV.Ratioofsubscriberstotheinsurancepoliciesavailable

34)Classificationofcustomersintovariousmarketsegments,havingcommonfeaturesis
knownas_____________.
I.Sales
II.Segmentation
III.Marketing
IV.Prospecting

35)Thekeytosuccessfulclosingliesinhelpingtheprospecttosay________.
I.No
II.Dontknow
III.Yes
IV.Maybe

36)Whichofthefollowingisnotpartofsalesprocess?
I.Prospecting
II.Salesinterview
III.Lossassessment
IV.Closing

37)_______________isnotamongthePsofmarketing.
I.Price
II.Product
III.Protection
IV.Place

38)Insuranceispartof___________industry.
I.Manufacturing
II.Financialservices
III.Consumergoods
IV.Sharemarket

39)Negotiationisaprocess_____________.
I.Towinsomehow
II.Togivediscountstothecustomer
III.Toreachawinwinsituation
IV.Toargueanddefeattheprospect


40)Prospectinginaninsurancesaleis
I.Gatheringthenamesofpeoplewhomaybeinterestedininsurance
II.Preparingalistofallthepersonsinthecity
III.Enlistingallthepolicyholdersofthebranchoffice
IV.Preparinglistofalltheagentsintheneighbourhood

41)Needgapanalysisinvolves,findingaboutprospect:
I.Identifyingtheareaswheretheprospectneedsinsuranceprotection
II.Identifyingpeopletoworkasinsuranceagents
III.Identifyinghowmuchassetsaprospecthas
IV.Indentifyingthepovertyleveloftheprospects

42)Insurancedensityis:
I.Lifeinsurancepremium
II.Ratioofpremiumtoincome
III.Premiumpercapita
IV.Coveragepercapita

43)ColdCallingis:
I.Meetingcustomersinwinter
II.Meetingcustomerswhentheyaresufferingfromcold
III.Meetingpeopleunannounced
IV.Meetingcustomerafterfirewasextinguished

44)Whatistheprimarypurposeofinsuranceregulations?
I.Togeneratefeeincome
II.Protecttheinterestsofpolicyholders
III.Tosettlecustomerdisputes
IV.Tocontrolthemarketshareofprivateinsurers

45)WhichamongthefollowingactivitiesisprohibitedaspertheprovisionsofInsuranceAct,
1938?
I.Keepingasidereservestomeetsolvencyrequirements
II.Usingrebatesasatooltosellinsurancepolicies
III.Prospectingcustomers
IV.Limitingmanagementexpenses

46)Insuranceagentswhoholdlicencetoactasanagentforbothalifeinsurerandageneral
insurerarecalled_______________.
I.Commoninsuranceagents
II.Compositeinsuranceagents
III.Multipleinsuranceagents
IV.Generalinsuranceagents

47)Whichofthebelowintermediaryisnotinvolvedinprocurementofbusiness?
I.Insurancebrokers
II.Individualagents
III.Surveyors
IV.Corporateagents

48)WhatdoesthetermCaveatEmptormean?
I.Buyerbeware
II.Sellerbeware
III.Insurancebuyerbewareofmiselling
IV.Insuranceagentbewareofcustomerrequirement

49)Moralhazardmeans:
I.Dishonestyorcharacterdefectsinanindividual
II.Honestyandvaluesinanindividual
III.Riskofreligiousbeliefs
IV.Hazardofthepropertytobeinsured

50)Insuranceagentrepresentsthe______________.
I.Insurancecompany
II.Subagent
III.Coagent
IV.Broker

51)Licencetoworkasaninsuranceagentisissuedby__________.
I.GeneralInsuranceCorporation(GIC)
II.InsuranceRegulatory&DevelopmentAuthority(IRDA)
III.Bytherespectivelifeinsurancecompany
IV.FinanceMinistry

52)Agentslicenceistoberenewed__________.
I.Everyyear
II.After5years
III.After3years
IV.After15years

53)Identifythestatementwhichisnotcorrect.Insuranceagentshould__________.
I.Indicatethescaleofcommissionifaskedbythecustomer
II.Sharethecommissionbywayofrebate
III.Disclosehislicenceondemand
IV.Indicatethepremiumtobecharged


54)Rs.______________isthefeespayabletotheAuthorityforissue/renewaloflicenceto
ActasanInsuranceAgentorCompositeInsuranceAgent.
I.250
II.150
III.520
IV.100

55)TheAuthoritymayissueduplicatelicenceincaseitis____________.
I.Lost
II.Revoked
III.Suspended
IV.Withdrawn

56)Ifanagentisfoundguiltyofcriminalmisappropriation,thedesignatedpersonwill
_______________.
I.Cancelthelicence
II.Issueaduplicatelicence
III.Renewtheexistinglicence
IV.Takesomefeesfromtheagent

57)Minimumqualificationrequiredforaninsuranceagentis_______pass.
I.Graduate
II.10th
III.PostGraduate
IV.7th

58)________________maydealwithmorethanoneLifeInsuranceCompanyorgeneral
insurancecompanyorboth.
I.Agent
II.Broker
III.Corporateagent
IV.Retailagent

59)Whatisthesignificanceoftheprincipleofcontribution?
I.Itensuresthattheinsuredalsocontributesacertainportionoftheclaimalongwiththe
insurer
II.Itensuresthatalltheinsuredwhoareapartofthepool,contributetotheclaimmadebya
participantofthepool,intheproportionofthepremiumpaidbythem
III.Itensuresthatmultipleinsurerscoveringthesamesubjectmatter;cometogetherand
contributetheclaimamountinproportiontotheirexposuretothesubjectmatter
IV.Itensuresthatthepremiumiscontributedbytheinsuredinequalinstallmentsoverthe
year.

60)Asperguidelines,aninsurancecompanyhastoprocessaninsuranceproposalwithin
__________.
I.7days
II.15days
III.30days
IV.45days

61)Incasethepremiumpaymentismadebycheque,thenwhichofthebelowstatementwill
holdtrue?
I.Theriskmaybeassumedonthedateonwhichthechequeisposted
II.Theriskmaybeassumedonthedateonwhichthechequeisdepositedbytheinsurance
company
III.Theriskmaybeassumedonthedateonwhichthechequeisreceivedbytheinsurance
company
IV.Theriskmaybeassumedonthedateonwhichthechequeisissuedbytheproposer

62)Whichofthebelowstatementistruewithregardstocovernotes?
I.Covernotesarepredominantlyusedinlifeinsurance
II.Covernotesarepredominantlyusedinallclassesofgeneralinsurance
III.Covernotesarepredominantlyusedinhealthinsurance
IV.Covernotesarepredominantlyusedinmarineandmotorclassesofgeneralinsurance

63)Whichofthebelowstatementiscorrectwithregardstoawarranty?
I.Awarrantyisaconditionwhichisimpliedwithoutbeingstatedinthepolicy
II.Awarrantyisaconditionexpresslystatedinthepolicy
III.Awarrantyisaconditionexpresslystatedinthepolicyandcommunicatedtotheinsured
separatelyandnotaspartofthepolicydocument
IV.Ifawarrantyisbreached,theclaimcanstillbepaidifitisnotmaterialtotherisk

64)Ifcertaintermsandconditionsofthepolicyneedtobemodifiedatthetimeofissuance,
itisdonebysettingouttheamendmentsthrough__________.
I.Warranty
II.Endorsement
III.Alteration
IV.Modificationsarenotpossible

65)Whichofthebelowstatementiscorrectwithregardstorenewalnotice?
I.Asperregulationsthereisalegalobligationoninsurerstosendarenewalnoticetoinsured,
30daysbeforetheexpiryofthepolicy
II.Asperregulationsthereisalegalobligationoninsurerstosendarenewalnoticeto
insured,15daysbeforetheexpiryofthepolicy
III.Asperregulationsthereisalegalobligationoninsurerstosendarenewalnoticeto
insured,7daysbeforetheexpiryofthepolicy
IV.Asperregulationsthereisnolegalobligationoninsurerstosendarenewalnoticeto
insuredbeforetheexpiryofthepolicy

66)__________isthemaximumlimitofliabilityofinsurerunderthepolicy
I.Suminsured
II.Premium
III.Surrendervalue
IV.Amountofloss

67)_______________istheconsiderationorpricepaidbyinsuredunderacontract
I.Claimamount
II.Surrendervalue
III.Maturityamount
IV.Premium

68)Adocumentwhichprovidesanevidenceofcontractofinsuranceiscalled________
I.Policy
II.Covernote
III.Endorsement
IV.Certificateofinsurance

69)Thedutyofdisclosurearises
I.Priortoinceptionofthepolicy
II.Afterinceptionofthepolicy
III.Priortoinceptionandcontinuesduringthepolicy
IV.Thereisnosuchduty

70)Materialfact
I.Isthevalueofallmaterialcoveredinapolicy
II.Notimportantforassessingtherisk
III.Isimportantasitinfluencesthedecisionoftheunderwriter
IV.Isnotimportantasithasnobearingonthedecisionoftheunderwriter

71)Fireproposalseekstoknow
I.Processofmanufacture
II.Detailsofmaterialstored
III.Constructionofbuilding
IV.Alltheabove

72)Premiumcannotbereceived
I.Incash
II.Bycheque
III.Bypromissorynote
IV.Bycreditcard

73)ThecertificateofMotorInsurance
I.Isnotmandatory
II.Hastobekeptwithselfalways
III.Hastobekeptinthecaralways
IV.Hastobekeptinthebanklocker

74)Awarranty
I.Isaconditionexpresslystatedinthepolicy
II.Hastobecompliedwith
III.Bothaandb
IV.Noneoftheabove

75)RenewalNoticeforMotorinsuranceisissuedby
I.TheInsuredbeforeexpiryofthepolicy
II.TheInsurerbeforeexpiryofthepolicy
III.TheInsuredafterexpiryofthepolicy
IV.TheInsurerafterexpiryofthepolicy

76)Identifythetwofactorsthataffectinsuranceratemaking.
I.Probabilityandseverityofrisk
II.Sourceandnatureofrisk
III.Sourceandtimingofrisk
IV.Natureandimpactofrisk

77)Whatispurepremium?
I.Premiumsufficientlybigenoughtopayforlossesonly
II.Premiumapplicabletomarginalmembersofthesociety
III.Premiumafterloadingforadministrativecosts
IV.Premiumderivedfromthemostrecentlossexperienceperiod

78)Whatisexpectedofanagentwhenshedetectsamoralhazard?
I.Continuewiththeinsuranceasbefore
II.Reportthesametotheinsurer
III.Askforashareintheclaims
IV.Turnablindeye

79)Suggestaninsuranceschemeforadoctortoprotecthimfromanyclaimsofnegligence
againsthim.
I.Personalaccidentinsurance
II.Liabilityinsurance
III.Marinehullinsurance
IV.Healthinsurance

80)_____________decideswhethertoacceptornottoaccepttherisk.
I.Assured
II.Underwriter
III.Agent
IV.Surveyor

81)_______________isthepriceofagivenunitofinsurance.
I.Rate
II.Premium
III.SumAssured
IV.Bonus

82)___________isthemaximumamountthataninsurancecompanywillindemnifyto
someonewhofilesaclaim.
I.Suminsured
II.Premium
III.Rider
IV.Benefits

83)______________isnotasourceofinformationforunderwriter.
I.Annualaccountsofaproposer
II.Preacceptancerisksurveyoftheasset
III.Proposalform
IV.Registrationcertificateofinsurer

84)Hazardsare:
I.Factorsthatincreasetheimpactoflosses
II.Factorsthatincreasesthefrequencyofloss
III.Factorsthatincreasetheimpactandseverityoflosses
IV.Factorsthatdecreasetheimpactandseverityoflosses

85)Whichofthefollowingistrue?
PhysicalHazards:
I.Arenotimportantforratemaking
II.Cannotbeascertained
III.Canbecalculatedfromthebalancesheet
IV.Canbeascertainedfrominformationgiveninaproposalform

86)Inmotorinsuranceoneofthewarrantiesis:
I.Thevehicleshouldbewasheddaily
II.Thevehicleshouldnotbeusedforspeedtesting
III.Thevehicleshouldnotbeusedforcarryingluggageforpersonaluse
IV.Thevehicleshouldnotberunmorethan200kmperday.
PRACTICEQUESTIONSANDANSWERSCHAPTER6
IC34GENERALINSURANCE169


87)Thepurposeofdeductibleclauseisto:
I.Toavoidclaimpayment
II.Toeliminatepaymentofsmallclaims
III.Toharassthepolicyholder
IV.Toincreasethepremium

88)Installationofsprinklersysteminthepremises:
I.Increasesrisk
II.Decreasestherisk
III.Neitherincreasesnordecreasesrisk
IV.Increasesriskofhooding

89)Insuredsdeclaredvalueinmotorinsuranceincludes:
I.Registration
II.Manufacturerscostprice
III.Manufacturerssellingprice
IV.Arbitrarypricecomponent

90)Whichofthebelowstatementiscorrectwithregardstoanaccident?
I.Anaccidentusuallydenotesasudden,foreseenandanunexpectedevent.
II.Anaccidentusuallydenotesasudden,unforeseenandanexpectedevent.
III.Anaccidentusuallydenotesasudden,foreseenandanexpectedevent.
IV.Anaccidentusuallydenotesasudden,unforeseenandanunexpectedevent.

91)Whichofthebelowwillbetreatedinadaycarecenter?
I.Cancer
II.Cataract
III.Stroke
IV.Heartattack

92)Whichofthebelowstatementiscorrectwithregardstocorporatefrequenttravelers
plan?
I.Itisvalidforonetrip
II.Itisvalidfor6tripsor6monthswhicheverhappensfirst
III.Itisanannualpolicyvalidformultipletripswithalimitonmaximumnumberoftrips
IV.Itisanannualpolicyvalidformultipletripsbutendswiththefirstclaim

93)Whichofthebelowstatementiscorrectwithregardstoahouseholdersinsurance
policy?
I.Anamedperilpolicymaybepurchasedasalessexpensivealternativetoa
comprehensivecoveragepolicythattendstooffercoveragetomostperils.
II.Acomprehensivepolicythattendstooffercoveragetomostperils;maybepurchasedasa
lessexpensivealternativetoanamedperilpolicy.
III.Anamedperilpolicyorcomprehensivepolicycomesatthesameprice.
IV.Withregardstoahouseholderspolicy,onlyanamedperilpolicycanbeboughtand
comprehensivepoliciesarenotavailable.

94)Undertheshopkeeperpolicy,theinsuredmayoptforanadditionalFixedplateglassand
sanitaryfittingscover.Thiswillcoveraccidentallossofdamagetowhichofthefollowing?
I.Fixedplateglass
II.Sanitaryfittings
III.Neonsigns
IV.Alloftheabove

95)Motorinsuranceshouldbetakeninwhosename?
I.InthenameofthevehicleownerwhosenameisregisteredwithRegionalTransport
Authority
II.Ifthepersonwhowillbedrivingthevehicleisdifferentfromtheowner,theninthename
ofthepersonwhowillbedrivingthevehicle,subjecttoapprovalfromRegionalTransport
Authority
III.Inthenameofanyfamilymemberofthevehicleowner,includingthevehicleowner,
subjecttoapprovalfromtheRegionalTransportAuthority
IV.Ifthepersonwhowillbedrivingthevehicleisdifferentfromtheowner,thenprimary
policyshouldbeinthenameofthevehicleownerandaddoncoverinthenameofthe
personwhowillbedrivingthevehicle.

96)ThefollowingisnotcoveredinPersonalAccident
I.Death
II.Suicide
III.Permanentdisability
IV.Lossofonehand

97)Personalaccidentcoverisonly
I.Whilsttravellingabroad
II.WhilsttravellinginIndia
III.FortravellingbothinIndiaandabroad
IV.WhilsttravellinginIndiaandneighboringcountries

98)Healthinsuranceusuallycovers
I.Prehospitalizationtreatment
II.Posthospitalizationtreatment
III.Domiciliarytreatment
IV.Alloftheabove

99)Travelinsurancecovers
I.Delayinbaggage
II.Emergencyhospitalization
III.Lossofcheckedbaggage
IV.Alltheabove

100)ForTravelinsurancethesuminsureddependson
I.Age
II.Numberofdaysoftrip
III.Countriestobevisited
IV.Alltheabove

101)Inhouseholdersinsurance
I.Goldandsilverornamentsarecovered
II.Contentsofonesshopiscovered
III.Carsownedbythefamilyarecovered
IV.Parcelssentbypostarecoveredduringtransit.

102)Householdersinsurancecovers
I.Onlythestructureofthehome
II.OnlytheContentsofthehome
III.Boththestructureandcontents
IV.BothStructureandcontentsonlywheninsuredisnotathome

103)Inshopkeepersinsurance,whichofthefollowingarenotcovered?
I.Machinerybreakdown
II.Maliciousdamage
III.Businessinterruption
IV.Willfuldestructionbyinsured

104)Inshopkeepersinsurancewhichofthefollowingareusuallynotcovered
I.Moneyintill/counteratbusinesspremises
II.Moneyintransitfrombanktobusinesspremises
III.Moneyinsafeatbusinesspremises
IV.Moneycarriedbycustomertobusinesspremises.

105)Shopinsurancecovers
I.Dishonestactsofemployees
II.Dishonestactsofinsured
III.Dishonestactsofcustomers
IV.Dishonestactsofmoneylenders

106)Afirepolicyforcommercialriskscoverstheperilsof________
I.Explosion
II.Implosion
III.Bothoftheabove
IV.Noneoftheabove

107)Abusinessinterruptioninsurancepolicycanbetakenonlyinconjugationwith
____________.
I.Standardfireandspecialperilspolicy
II.Standardfireandmarinepolicy
III.Standardandspecialperilspolicy
IV.StandardEngineeringandmarinepolicy

108)Thepremiumforburglarypolicydependson______________.
I.Natureofinsuredpolicy
II.Moralhazardoftheinsuredhimself
III.Constructionandlocationofthepremises
IV.Alloftheabove


109)Whichofthebelowiscoveredunderamoneyinsurancepolicy?
I.Shortageduetoerrororomission
II.Lossofcashfromonespremisesduetoburglary
III.Lossofmoneythathasbeenentrustedtootherthanauthorizedperson
IV.Riotstrikeandterrorism

110)Fidelityguaranteeinsuranceindemnifies________________.
I.Employersagainstthefinanciallosssufferedbythemduetofraudordishonestyoftheir
employees
II.employeesagainstthefinanciallosssufferedbythemduetofraudordishonestyoftheir
employer
III.Employeesandemployersagainstthefinanciallosssufferedbythemduetofraudor
dishonestyofthirdparty
IV.Shareholdersagainstthefinanciallosssufferedbythemduetofraudordishonestyofthe
companymanagement

111)Whichofthebelowcanbecoveredunderabankersindemnityinsurancepolicy?
I.Moneysecuritieslostordamagedwhilstwithinthepremisesduetofire
II.Forgeryoralterationofcheques
III.Dishonestyofemployeeswithreferencetomoney
IV.Alloftheabove

112)IncaseofaJewelersBlockPolicy,damagetopropertyinsuredwhenitisintransitby
registeredparcelwillbecoveredunder____________.
I.SectionI
II.SectionII
III.SectionIII
IV.SectionIV

113)Delayinstartuppolicyisalsoknownas______________.
I.MachineryLossofProfitscover
II.AdvanceLossofProfitscover
III.ContractorsAllRiskcover
IV.ContractorsPlant&Machinerycover

114)WhichofthefollowingisnotcoveredunderIndustrialAllRisksinsurance?
I.Fireandspecialperilsasperfireinsurancepractice
II.Larceny
III.Machinerybreakdown
IV.Electronicequipment

115)Whichbranchofinsuranceofferscoveragainstwarperils?
I.Marinepolicies
II.Aviationpolicies
III.Bothoftheabove
IV.Noneoftheabove

116)UnderthePublicLiabilityInsuranceAct,1991,howmuchisthecompensationpayable
foractualmedicalexpenses?
I.Rs.6,250
II.Rs,12,500
III.Rs.25,000
IV.Rs.50,000

117)InEngineeringinsuranceCARstandsfor
I.MotorCar
II.ContractorsAllRisks
III.CompanysAllRisks
IV.CompaniesAllRequirements

118)Anemployerinsureshimselffromdishonestactofhisemployeesby_________
I.Employeescompensationpolicy
II.PublicLiabilityInsurancepolicy
III.FidelityGuaranteeInsurancepolicy
IV.Declarationpolicy.

119)_________referstothebodyoftheship.
I.Hull
II.Cargo
III.Piracy
IV.Jettison

120)Policywhichcoverslossordamagetoaircraftis______________.
I.Statutoryliability
II.Propertyinsurance
III.Aviationinsurance
IV.Moneyinsurance

121)FireInsurancePolicydoesnotcoverdamagetopropertyevenasaddoncoverdue
to___________.
I.Floods
II.Earthquake
III.Fire
IV.Bombingduetowar

122)ConsequentialLoss(FirePolicy)covers:
I.Lossofprofitduetodamagetofactory
II.LossofGoodwill
III.Materialwear&tearinmachinery
IV.Lossesduetoforeignexchangefluctuations

123)PremiuminBurglarydependson:
I.Securitymeasures
II.LocationofPremises
III.Natureofproperty
IV.Alloftheabove

124)ContractorsAllRiskPolicyisavariationof:
I.FireInsurance
II.LifeInsurance
III.EngineeringInsurance
IV.MarineInsurance

125)EmployeesCompensationPolicyisatypeof
I.LiabilityInsurance
II.FireInsurance
III.MarineCargoInsurance
IV.EngineeringInsurance

126)MoneyInsurancePolicycovers:
I.Cashinhand
II.MoneyinvestedinMutualFund
III.MoneylyinginSavingBank
IV.Moneydepositedwithpostoffice.

127)Whichofthefollowingactivitieswouldnotbecategorisedunderprofessional
settlementofclaims?
I.Seekinginformationrelatingtothecauseoftheloss
II.Approachingtheclaimwithaprejudice
III.Ascertainingwhetherthelosswasaresultofaninsuredperil
IV.Quantifyingtheamountpayableundertheclaim

128)Rajisinvolvedinacaraccident.Hiscarisinsuredunderamotorinsurancepolicy.Which
amongthefollowingisthemostappropriatethingforRajtodo?
I.Notifytheinsurerofthelossassoonasreasonablypossible
II.Notifytheinsureratthetimeofinsurancerenewal
III.Damagethecarfurthersoastoreceiveabiggercompensation
IV.Ignorethedamage

129)Compareclaimsinvestigationandclaimsassessment.
I.Bothclaimsinvestigationandassessmentarethesamething
II.Investigationtriestodeterminethevalidityoftheclaimwhereasassessmentismore
concernedwiththecauseandextentoftheloss
III.Assessmenttriestodeterminethevalidityoftheclaimwhereasinvestigationismore
concernedwiththecauseandextentoftheloss
IV.Investigationisdonebeforetheclaimispaidandassessmentisdoneaftertheclaimis
paid

130)Whoisthelicensingauthorityforsurveyors?
I.SurveyorAssociationofIndia
II.SurveyorRegulatoryandDevelopmentAuthority
III.InsuranceRegulatoryandDevelopmentAuthority
IV.GovernmentofIndia

131)Whichamongthefollowingdocumentsismostlikelytoberequestedwhileexamininga
cyclonedamageclaim?
I.Coronersreport
II.ReportfromFireBrigade
III.Policereport
IV.ReportfromMeteorologicalDepartment

132)Underwhichprinciplecantheinsurerassumetherightsoftheinsuredinorderto
recoverfromathirdpartythelosspaidunderapolicy?
I.Contribution
II.Discharge
III.Subrogation
IV.Indemnity

133)Iftheinsurerdecidesthatacertainlossisnotpayablebecauseitisnotcoveredunder
thepolicythenwhodecidesonsuchmatters?
I.Insurersdecisionisfinal
II.Umpire
III.Arbitrator
IV.CourtofLaw

134)Intimationoflossistobemade:
I.attheexacttimeoftheloss
II.after15days
III.assoonasreasonablypossible
IV.anytimeaftertheloss

135)Investigationoflossisdoneby:
I.unlicensedsurveyor
II.licensedandqualifiedsurveyor
III.insuredsrepresentative
IV.anypersonwithadegreeinengineering

136)Forpersonalaccidentclaims,reportof________isnecessary.
I.Surveyor
II.Doctor
III.Police
IV.Coroner

137)Independentsurveyorsarerequiredforclaimsabove_______aspertheInsuranceAct.
I.Rs.40,000
II.Rs.15,000
III.Rs.20,000
IV.Rs.25,000

138)Claimsassessedoutsidethecountryincaseoftravelinsurancepolicesareassessedby:
I.Indiansurveyors
II.Localsurveyorsinthecountryofloss
III.Insurersownemployees
IV.Claimssettlingagentsnamedinthepolicy

139)Incaseofafireclaim,areportfromthefirebrigade:
I.isnotrequired
II.isoptionalfortheinsured
III.isnecessary
IV.ispartofthepolicereport

140)WhatisTAT?
I.TimeandTurn
II.TillaTime
III.TimeandTide
IV.TurnaroundTime

141)Onpaymentofloss,salvagebelongsto:
I.Surveyors
II.Insured
III.Insurer
IV.Localauthorities

142)Arbitrationisaclaimsettlementprocessdone______________.
I.inthecourtoflaw
II.byagroupofsurveyors
III.byarbitrator(s)chosenbythepartiesinvolved
IV.arbitrarilybytheinsurancecompanysemployees

143)Insurersunderrightofsubrogationareallowedtorecoverthelosspaidfrom:
I.Shippingcompaniesonly
II.Railwaysandroadcarriersonly
III.AirlinesandPortTrustsonly
IV.Shippingcompaniesandrailwayandroadcarriersandairlinesandporttrusts

144)Whatismeantbycustomerlifetimevalue?
I.Sumofcostsincurredwhileservicingthecustomeroverhislifetime
II.Rankgiventocustomerbasedonbusinessgenerated
III.Sumofeconomicbenefitsthatcanbeachievedbybuildingalongtermrelationshipwith
thecustomer
IV.Maximuminsurancethatcanbeattributedtothecustomer


145)Identifythescenariowhereadebateontheneedforinsuranceisnotrequired.
I.Propertyinsurance
II.Businessliabilityinsurance
III.Motorinsuranceforthirdpartyliability
IV.Fireinsurance

146)AspertheConsumerProtectionAct,1986,whocannotbeclassifiedasaconsumer?
I.Hiresgoods/servicesforpersonaluse
II.Apersonwhobuysgoodsforresalepurpose
III.Buysgoodsandservicesforaconsiderationandusesthem
IV.Usestheservicesofanotherforaconsideration

147)Whatdoesnotgoontomakeahealthyrelationship?
I.Attraction
II.Trust
III.Communication
IV.Scepticism

148)Whichamongthefollowingisnotanelementofactivelistening?
I.Payinggoodattention
II.Beingextremelyjudgemental
III.Empatheticlistening
IV.Respondingappropriately

149)Whichamongthefollowingisnotacharacteristicofethicalbehaviour?
I.Makingadequatedisclosurestoenabletheclientstomakeaninformeddecision
II.Maintainingconfidentialityofclientsbusinessandpersonalinformation
III.Placingselfinterestaheadofclientsinterests
IV.Placingclientsinterestaheadofselfinterest

150)_____________isnotatangiblegood.
I.House
II.Insurance
III.MobilePhone
IV.Apairofjeans

151)_______________isnotanindicatorofservicequality.
I.Cleverness
II.Reliability
III.Empathy
IV.Responsiveness

152)InIndia_______________insuranceismandatory.
I.Motorthirdpartyliability
II.Fireinsuranceforhouses
III.Travelinsurancefordomestictravel
IV.Personalaccident

153)Oneofthemethodsofreducinginsurancecostofaninsuredis__________
I.Reinsurance
II.Deductible
III.Coinsurance
IV.Rebate

154)AcustomerhavingcomplaintregardinghisinsurancepolicycanapproachIRDAthrough
I.IGMS
II.DistrictConsumerForum
III.Ombudsman
IV.IGMSorDistrictConsumerForumorOmbudsman

155)ConsumerProtectionActdealswith:
I.Complaintagainstinsurancecompanies
II.Complaintagainstshopkeepers
III.Complaintagainstbrand
IV.Complaintagainstinsurancecompanies,brandandshopkeepers

156)___________hasjurisdictiontoentertainmatterswherevalueofgoodsorservicesand
thecompensationclaimisupto20lakhs
I.HighCourt
II.DistrictForum
III.StateCommission
IV.NationalCommission

157)Incustomerrelationshipthefirstimpressioniscreated:
I.Bybeingconfident
II.Bybeingontime
III.Byshowinginterest
IV.Bybeingontime,showinginterestandbeingconfident

158)Selectthecorrectstatement:
I.Ethicalbehaviourisimpossiblewhilesellinginsurance
II.Ethicalbehaviourisnotnecessaryforinsuranceagents
III.Ethicalbehaviourhelpsindevelopingtrustbetweentheagentandtheinsurer
IV.Ethicalbehaviourisexpectedfromthetopmanagementonly

159)ActiveListeninginvolves:
I.Payingattentiontothespeaker
II.Givinganoccasionalnodandsmile
III.Providingfeedback
IV.Payingattentiontothespeaker,givinganoccasionalnodandsmileandproviding
feedback

160)Whichamongthefollowingarethetwobasicqualitiesthatmakeagoodsalesperson?
I.Empathyandegodrive
II.Prejudiceandloathing
III.Prideandhonesty
IV.Scepticismandperseverance

161)WhichamongthefollowingisthemostlikelytocontaintheIRDAstipulated50hours
trainingtohelpprospectscleartheIRDAexamination?
I.Processtraining
II.Producttraining
III.Prerecruitmenttraining
IV.Salestraining

162)____________isarepresentativeoftheinsurancecompanyandisgovernedbythe
principalagentrelationship.
I.Insuranceagent
II.Broker
III.Banks
IV.Underwriter

163)________________iscollaborationbetweenbanksandinsurerstodistributeinsurance
products.
I.Bancassurance
II.Agent
III.Broker
IV.Insurancecompany

164)_____________determineswhethertheproposalshouldbeadmitted,whetherriskcan
beaccepted.
I.Agent
II.Insurer
III.Underwriter
IV.Insured

165)Brokerrepresents:
I.Oneinsurancecompany
II.Multipleinsurancecompanies
III.InsuranceRegulatoryandDevelopmentAuthority
IV.Customer

166)_________________cannotbecomecorporateagent.
I.Acooperativesociety
II.Anindividual
III.Abank
IV.Abroker

167)Insurancebrokersarelicensedby:
I.InsuranceRegulatory&DevelopmentAuthority
II.ReserveBankofIndia
III.SecurityExchangeBoardofIndia
IV.GovernmentofIndia

168)Thefollowingisnotabenefitofinsuranceagency.
I.Nolimitonincomefromcommission
II.Fixedsalaryincome
III.Freedomtodecideworkinghours
IV.Socialprestige

169)Followingisrequiredininsuranceagencycareerforachievingsuccess:
I.Willtoexcel
II.Empathytowardscustomer
III.Truthfulness
IV.Willtoexcel,empathytowardscustomerandtruthfulness

170)Followingisnotaninsuranceintermediary:
I.Corporateagent
II.Sharebroker
III.Insurancebroker
IV.Insuranceagent

171)Anagentcanearnupto:
I.20,000permonth
II.Rs.10,00,000permonth
III.Rs.1Croreperyear
IV.Unlimitedamountbasedonherefforts

EndofQ&AModuleAlltheBest