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Sample Paper

1. In letter of Credit Transactions, what is taken as collateral security by banks?


a. Letter of credit.
b. Insurance policy.
c. Goods.
d. Vessels used for transportation.

2. Which of the following acts codifies the law relating top marine insurance?
a. Insurance act 1938.
b. IRDA Act, 1999.
c. Institute cargo clauses, 1982.
d. Marine insurance act, 1963.

3. What is the promise by the assured to the underwriter that something shall or shall not be
done or that a certain state of affairs does or does not exist?
a. Indemnity.
b. Contract.
c. Warranty.
d. Subrogation.

4. A. is one which can be brought to an end during the currency of the insurance by the
occurrence of some event other than maritime perils.
a. Defeasible Interest.
b. Contingent Interest.
c. Warranty.
d. Valued Policy.

5. Which one of the below statement is correct?


a. A Contingent Interest is an interest that attaches during the currency of a voyage on the
happening of a contingency.
b.Defeasible Interest means that a seller has an insurable interest in the goods until after
the time the title passes to the buyer.
c. A ship is deemed to be seaworthy when she is reasonably fit in all respects to encounter
the ordinary perils of the seas of the adventure insured.
d. An express warranty is one which is appearing in the policy or which is incorporated
therein by reference.

6. As per Insurance Act 1938, for marine insurance taken in India, when should the proposer
submit premium for his policy to the insurance company?
a. Before commencement of transit.
b. After commencement of transit.
c. At the completion of transit.
d. At the time of loading of goods.
7. Which type of cargo vessels loads at an advertised berth and runs to an advertised schedule
between her home port and her overseas terminus, calling en route at a varying number of
ports according to a particular service in which she is engaged?
a. Cargo Liners.
b. Tramps.
c. Chartered vessels.
d. FOC vessels.

8. In cost & freight policy, the sellers responsibility is up to..


a. The warehouse gate.
b. The FOB point.
c. The ships rails.
d. The delivery of goods to buyers nominated place in buyers country.

9. Which of the following is a temporary document evidencing that insurance has been granted
pending the issue of the policy?
a. Declaration Form.
b. Marine cover note.
c. Standard form of marine policy.
d. Endorsement.

10. In which of the following contracts, will the seller be responsible for the delivery of the
goods to a nominate place?
a. DAP.
b. CIF.
c. CFR.
d. FOB.

11. Ordinary wear & tear of the subject matter insured is covered under which of the following
set of clauses?
a. Insurance under Institute cargo clauses ( A).
b. Insurance under Institute cargo clauses ( B).
c. Insurance under Institute cargo clauses ( C ).
d. Excluded under all the above three clause sets.

12. A marine cargo policy is stamped as per the provisions of which act?
a. The marine insurance act, 1963.
b. The Indian stamp act, 1899.
c. The insurance act, 1938.
d. The IRDA act, 1999.

13. Which of the below policy can also be called an All Risk policy based on the maximum
number of risks covered as compared to other policies?
a. Insurance under Institute cargo clauses( A).
b. Insurance under Institute cargo clauses ( B).
c. Insurance under Institute cargo clauses ( C ).
d. Insurance under Institute cargo clauses ( D).

14. Which of the following takes precedence over typed or impressed wording?
a. Printed wording.
b. Handwriting.
c. Clause printed.
d. Contra Proferentem Rule.

15. The Cargo ISM endorsement is about the safety aspect to be compulsorily compiled with
by, among others, cargo ships of or more.
a. 250 Gross Tonne. ( GT)
b. 500 Gross Tonne. ( GT)
c. 750 Gross Tonne. ( GT)
d. 1000 Gross Tonne. ( GT).

16. For which of the following, insurance cover for Transit Policies of Centrifuged latex to be
used to traders /buyers is offered?
a. Rubbers Estates.
b. Tea crop.
c. Cardamom.
d. Coffee.

17. What is the maximum period of storage for Type I policy under package policy of coffee?
a. 30 days.
b. 60 days.
c. 90 days.
d. 120 days.

18. What is the basis of settlement for package policy of coffee?


a. Market value of coffee insured less un- incurred expenses as per formula prescribed in
the tariff.
b. Future value of coffee insured less incurred expenses as per formula prescribed in the
tariff.
c. Swap value of coffee insured less un-incurred expenses as per formula prescribed in the
tariff.
d. Spot value of coffee insured less incurred expenses as per formula prescribed in the
tariff.

19. Which of the following is incorrect with respect to tea crop insurance policy?
a. Tea crop insurance policy is issued garden wise only.
b. The insurance is against all risks of physical loss or damage to tea subject to specified
exclusions.
c. The insurance attaches from the time the green leaves are sent for processing at the
factory.
d. No cover shall be granted for loss/damage to standing crops or tea bushes or plants
arising out of any peril (other than hail).

20. Which clauses has duration from Tank to Tank and not warehouse to warehouse?
a. Institute Jute Clauses.
b. Claims Adjustment clause.
c. Institute coal clause.
d. Institute bulk oil clauses.

21. Which of the following is not a policy, but is an agreement, whereby the insurer undertakes
to insure all shipments declared by the assured?
a. Specific policy.
b. Open cover.
c. Exports incentive insurance.
d. Multi transit policy.

22. .is the period of 12 months , is issued to cover goods belonging to the assured or
held in trust by the assured , not under contract of sale or purchase, and which are in transit by
rail or road from specified depots/ processing units to other specified depots/ processing units.
a. A specific policy.
b. An open policy.
c. An annual policy.
d. A multi transit policy.

23. Which of the below statement is correct?


a. Institute cargo clauses A, B & C exclude loss, damage and expenses due to war and strikes
from scope of the cover.
b. War & strikes clauses covers loss or damage to the cargo along with expenses arising out
of war or strikes etc.
c. When war & strikes cover are taken as add-ons Institute War clauses and Institute
Strikes Clauses are attached to the policy.
d. In the event of port strike or war, nearby ship may have to be diverted or voyage may be
terminated extra expenses will then be incurred by the insured for onward carriage of cargo.

24. What is the notice period for cancellation of open cover for marine risk?
a. 15 days.
b. 30 days.
c. 40 days.
d. 48 days.
25. In Increased value insurance, the rate of premium shall be how much percent of the
normal rate applicable to CIF insurance?
a. 75%
b. 25%
c. 100%
d. 50%

26. Which of the following statement is correct with regards to measure of indemnity for actual
total loss?
a. Measure of indemnity for actual total loss is the sum insured less any proceeds of sale which
are due to the insurers.
b. Measure of indemnity for actual total loss is the insured value under the policy.
c. The indemnity for actual total loss is not conditioned by the relative insured value of the
subject matter the charges are payable in full.
d. The measure of indemnity for actual total loss is the insured value of the part totally lost.

27. Who adjusts and settles the marine claims arising and payable outside India?
a. The insurance company on behalf of the insured.
b. The insured himself.
c. Claim settling agents.
d. Insurance brokers.

28. Which one of the following is partial loss or partial damage caused fortuitously by a peril
insured against and thus does not include damage voluntarily incurred, such as General
Average Damage?
a. Particular Average.
b. General Average (GA) Loss.
c. Actual Total Loss.
d. Constructive total loss.

29. What is the limit for initiating legal action against ocean carriers in the event of loss or
damage to goods?
a. Within one year after delivery of goods or the date when the goods should have been
delivered.
b. Two years after delivery of goods or the date when the goods should have been delivered.
c. Three years after delivery of goods or the date when the goods should have been delivered.
d. Five years after delivery of goods or the date when the goods should have been delivered.

30. Which one of the following act governs the liability of road transporters?
a. Major ports trusts act, 1963.
b. Carriage by road act, 2007.
c. Carriers act, 1865.
d. Multimodal transportation of goods act, 1993.
31. Which of the following is true regarding life insurance contracts?
a. They are verbal contracts & legally enforceable.
b. They are verbal contracts & not legally enforceable.
c. They are gambling contracts.
d. They are as per requirements of Indian Contract act, 1872.

32. Which of the following is also called as bond funds?


a. Equity funds.
b. Debt Funds.
c. Money market funds.
d. Balance funds.

33. What does bid price mean?


a. Difference between the buying and selling rates of foreign currencies.
b. NAV used at the time of entry.
c. NAV used at the time of exit.
d. The difference between NAV price at the entry and exit time.

34. Which of the following charges is a premium for death cover?


a. Risk cover charges.
b. Accident Benefit charges.
c. Surrender charges.
d. Fund switching charges.

35. Which of the following is not referred to in the IRDA guidelines?


a. Limits on SA and top-up conditions.
b. Surrender benefits.
c. Partial withdrawals.
d. Naming of products.

36. Which of the following is not true in the case of Annuities?


a. Annuities provide financial assistance to people in their old age.
b. Annuities are similar to Life Insurance
c. Annuities are similar to Pensions.
d. Annuities generally do not need underwriting.

37. When does an insurer generally stop paying annuity?


a. On completion of the term.
b. When the money deposited in an annuitants account is zero.
c. Upon the death of the annuitant or his spouse (if joint life annuity) or other options, as
per the choice exercised by the annuitant.
d. When the annuitant instructs the insurer to stop payment.
38. In what type of annuity does the payment start after the lapse of a specified period?
a. Immediate annuity.
b. Deferred annuity.
c. Life annuity.
d. Joint Annuity.

39. What is the term used to refer the raising or net or pure premium for various reasons?
a. Risk premium.
b. Office premium.
c. Loadings.
d. Bonus.

40. Which among the following is one of the reasons for level premium?
a. Difficulty in administering the annual changes in a continuing contract.
b. Unexpected contingencies and fluctuations.
c. Expenses, bonus with controllable factors.
d. If the mode of payment is yearly, the probability of default in the subsequent renewal
premium, to complete the year, does not arise.

41. What is the mail purpose of the Valuation process?


a. To periodically check the validity of the assumptions to make sure that the business is
on sound lines.
b. Rise in the net premium.
c. Evaluation of the bonus.
d. Measuring measurements of the expenses.

42. Which is the method in which the amount of bonus declared will be added to the SA?
a. Simple Reversionary Bonus.
b. Compound bonus.
c. Interim Bonus.
d. Bonus loadings.

43. Operative clause and Proviso belong to which part of the policy document?
a. Policy Preamble.
b. Policy schedule.
c. Attestation.
d. Conditions and Privileges.

44. In which part of the policy document will you find the details about sum assured and mode
of premium payment of the policy?
a. Policy Preamble.
b. Policy schedule.
c. Attestation.
d. Conditions and Privileges.
45. What is alteration?
a. The change suggested by the IRDA regulation.
b. The change suggested by the insurer.
c. The change suggested by the insured.
d. The change suggested by the district magistrate.

46. Who bears the cost of issuing a duplicate policy?


a. The insurer.
b. The policyholder.
c. The insurance agent.
d. No cost is required.

47. Which of the following does not depend on age?


a. Claim settlement.
b. Risk assessment.
c. Date of premium payment.
d. Premium.

48. What kind of payments involves more administrative work?


a. Yearly.
b. Half- yearly.
c. Quarterly.
d. Monthly.

49. What is a good option for non-forfeiture, form a clients perspective?


a. Surrender Value.
b. Notional Credit.
c. Level premium.
d. Days of grace.

50. Which of the following is true in case of revival?


a. Insurer gets the further expected revenues.
b. Life assured Loses the insurance risk cover.
c. Agent receives future earnings.
d. Policyholder gets a fresh policy.

51. What is the SA taken into account when determining whether the policy can be revived
under a non-medical scheme or a medical scheme?
a. The total sum at risk under the lapsed policy, as on date of revival.
b. Surrender value.
c. Premium.
d. Interest on arrears.
52. In the process of assignment, what gets transferred from the assignor to the assignee?
a. The rights and title.
b. The rights and interest.
c. The rights, title and interest.
d. The title only.

53. Which among the following is the feature of absolute assignment?


a. Assignment mat be made with or without consideration.
b. The rights, title and assignment on the policy is controlled by the assignor.
c. The assignor loses all his rights, title and interest on the policy.
d. Consent of the assignee is not essential, since it is automatic.

54. What is surrender value?


a. The sum assured payable on the maturity date.
b. The amount payable after maturity date.
c. The amount payable on foreclosing the policy.
d. The amount payable on the policy as cash value when policyholder desires to surrender
the policy.

55. What does foreclosure mean?


a. Adjusting the principal loan and outstanding loan interest on the date of maturity.
b. Writing off or closure of the policy before its actual date of maturity.
c. Advising the policyholder to surrender the policy after 3 yrs premium has been paid.
d. Requesting the policyholder to pay the arrears of loan interest, even if premium has been
regularly paid by him.

56. Which of the following will affect a persons insurability negatively?


a. Jogging.
b. Taking drugs.
c. Laziness.
d. Delay in taking decisions.

57. Which of the following is a part of the IRDA regulations?


a. The insurer should ask for all the requirements in case of death claim at one time and
not in piece-meal and within reasonable time frame.
b. The insurer has to pay additional sum equal to the SA in installments over a specified
period of years say 10 years.
c. The insurer should waive future premiums.
d. In case of death claim within 1 year of commencement of risk , no investigations to be
done by the insurer to justify and ascertain the validity of the claim payment.
58. Which of the following is a kind of Permanent Disability Benefit?
a. Waiving of future premiums and paying of additional sum equal to the SA, in
installments over a period of specified no. of years.
b. Paying double accidental benefit.
c. Additional SA payment spread over 1 year.
d. Payment of half of the SA immediately to the claimant.

59. Which of the following are denial conditions for an accident benefit or a disability benefit?
a. Death or injury caused by outward, violent and visible means.
b. Death caused solely, directly and independently by accident.
c. Death occurred within 120 days or such other period as stipulated in the policy.
d. Death caused by intentional self-injury, attempted suicide, insanity, immorality or
while under the influence of intoxicating liquor, drugs or narcotic substances.

60. As per the Indian Evidence Act, presumption of death is considered in case a person is
missing and has not been heard or seen, for how many years?
a. 2 years.
b. 7 years.
c. 5 years.
d. Immediately on being reported as missing.

61. What is the term used for policy document which covers the members under a group
policy?
a. Group Policy.
b. Social Security Policy.
c. Master Policy.
d. Social Policy.

62. Which group scheme is renewable every year?


a. Social Insurance Schemes.
b. Group Term Insurance.
c. Group Superannuation Scheme.
d. Group Leave Encashment Scheme.

63. Which among the following is related to the amount of gratuity in Group Gratuity Schemes?
a. The year of service and the last salary drawn.
b. The year of service.
c. The parties involved.
d. The amount of insurance.
64. The best Method of managing a pension fund by an employer is by using the help of:
a. Insurance company who will manage the fund.
b. Fund managed by the trust.
c. Fund managed by the private bank.
d. Fund managed by a taxation expert.

65. Which scheme is offered by LIC to select employer-employee groups like government
bodies, public sector corporations and reputed companies in the private sector?
a. Method of funding.
b. Group-Savings Linked Insurance.
c. Employees deposit linked insurance scheme.
d. Group term insurance cover.

66. Which of the following is not covered under the scope of liability insurance?
a. Directors and Officers liability.
b. Contractual Liability.
c. Employers Liability.
d. Professional indemnity.

67. In which of the following instances, The Public Liability Act, 1991 provides for immediate
relief to the affected victims?
a. Road Accidents.
b. Accidents involving hazardous substances.
c. Errors or omissions committed by medical practitioners.
d. Natural calamities.

68. Which term means the transfer of rights and remedies of the insured to the insurer who has
indemnified the insured in respect of the loss?
a. Surrender.
b. Subrogation.
c. Utmost good faith.
d. Liability insurance.

69. In respect which one of the following options, the liability insurance provides indemnity to
the insured?
a. Legal liability.
b. Financial liability.
c. Creditors liability.
d. Business Loss.

70. What was the result of passing of the MV act 1939?


a. Development of the Workmens Compensation act was partially affected.
b. Increase in public awareness of legal rights and remedies, public interest litigation and
judicial activism occurred.
c. A significant effect on the origin and growth of employers liability insurance and public
liability insurance respectively took place.
d. Emphasis on the need for protection of public liability risks in other areas of economic
activities was observed.

71. Which of the below statement is correct with regards to coverage provided under the
Compulsory Public Liability Insurance Policy?
a. Risks related to war and nuclear risks are covered at standard rates.
b. Risks related to war and nuclear risks are covered with extra premium.
c. Risks related to war and nuclear risks are covered under riders.
d. Risks related to war and nuclear risks are excluded.

72. Under the provision of the Employees Compensation Act, 2009, how much is the minimum
amount payable on the death of an employee while performing his duties?
a. Rs. 1,00,000
b. Rs. 1,20,000.
c. Rs. 1,40,000.
d. Rs. 1,60,000.

73. Which of the below is correct with regards to the premium calculation under the Employers
Liability Insurance Policy?
a. The premium rates are to be calculated based on the age of the employees.
b. The premium rates are to be calculated on the total number of employees.
c. The premium rates are to be calculated on the total earnings of the employees.
d. The premium rates are to be calculated based on the health status of the employees.

74. With regards to Compulsory Public Liability Insurance Policy, one of the conditions of the
policy allows the insured to cancel the policy with.written notice to the insurer.
a. 25 days.
b. 30 days.
c. 35 days.
d. 15 days.

75. Which of the following risks is not specified as exclusion under a public liability policy?
a. Transportation of hazardous substances.
b. Damage to premises tenanted by the insured.
c. Third party liability arising out of motor vehicles.
d. Contractual Liability.

76. Pollution cover does not provide coverage for:


a. Death caused by pollution due to a sudden unexpected happening.
b. Payment for cleaning-up pollution caused by accident.
c. Injuries caused due to gradual pollution occurring on a 24 hour basis.
d. Damage of tangible property due to unintended happening caused by pollution.
77. An injured party who is not a party to the contract may have a claim against the seller. The
claim will have to be based on which of the following?
a. Guarantee given by the seller.
b. Negligence.
c. Breach of condition.
d. Breach of warranty.

78. In case of products liability insurance, the insured should not be:
a. A Manufacturer.
b. A wholesaler.
c. A retailer.
d. A customer.

79.. is defined as a series of two or more claims arising from one specific
common cause which is attributable:
a. Product Liability.
B.Indemnity Limits.
C.Operative Clause.
d. Claims Series Event.

80. In India, CGL product is known by which of the following names?


a. Combined general liability and common general liability policy.
b. Combined general liability only.
c. Common general liability only.
d. Calculated general liability.

81. Under CGL policy, medical expenses for bodily injury caused by accident within the covered
territory and within the policy period, have to report to insurers:
a. Immediately.
b. Within one year of the accident.
c. Within one month of the accident.
d. Within three years of the accident.

82. Which of the following is not a factor used for assessing the risk exposure for calculating
the premium under CGL policies?
a. Number of years of operations.
b. Limit of liability.
c. Retroactive date
d. Age of employees.

83. The company may have to indemnify its directors and officers for any litigation are respect
of the latters breach of duty etc, in the conduct of the companys affairs provided that:
a. Such obligation is permitted by the shareholders.
b. Such obligation is permitted by the board of directors.
c. Such obligation is expressly mentioned in the Companys articles of association.
d. Such obligation is not permitted initially but later ratified by the directors.

84. Which of the following are not the extensions of the directors & officers policy?
a. Pollution defence cost extension.
b. Outside directorship.
c. Insured vs. Uninsured cover.
d. Kidnap response cover.

85. Professionals are liable on the basis of the principle of liability for the
negligence of their employees arising in the course of their employment.
a. Indemnity.
b. Vicarious.
c. Equal.
d. Contractual.

86. All of the following claims for doctors and medical establishments are specially excluded
under professional liability policy coverage, except:
a. Professional services rendered after the retroactive data.
b. Third party public liability.
c. Acts committed in violation of law.
d. Services rendered under the influence of intoxicants.

87. The premium rates of professional liability policy for an individual are charged on the basis
of
a. Annual fees/ turnover.
b. Annual indemnity limit.
c. Number of clients.
d. Number of years of experience.

88. Errors and omission liability policies are primarily on:


a. Claims negotiated basis.
b. Claims made basis.
c. Both of the above.
d. Claims rejected basis.

89. In the case of cybercrime liability, the policy coverage is on lines of which of the following?
a. Public liability policy.
b. Professional liability policy.
c. Errors and omission policy.
d. Liability policy.
90. Fire policies are issued based on the wordings:
a. Of the standard fire and special perils prescribed by the All India Fire Tariff.
b. As per international practice.
c. As devised by individual insurers in India.
d. As prescribed by reinsurers.

91. When the cause of loss is more than one, the proximate cause is one that
a. Is the first cause which gives rise to a claim.
b. Is the last cause which gives rise to a claim.
c. Is the most active, direct and efficient cause which gives rise to a claim.
d. None of the above.

92. Loss due to smoke damage is covered under a fire policy


a. Whether or not it is accompanied by fire.
b. Only if accompanied by fire.
c. Only if it is due to water used to extinguish the fire.
d. If accompanied by fire or due to water used to extinguish the fire.

93. The principle of utmost good faith in relation to fire insurance means that
a. The proposer has to answer the questions in the proposal form truthfully and to the best
of his knowledge.
b. The proposer has to disclose all material facts pertaining to the risk at the time of making
the proposal.
c. The proposer has to disclose all material facts pertaining to the risk at the time of
making the proposal as well as inform the insurer of any material change throughout the
currency of the policy and also safeguard his property at all times.
d. None of the above.

94. The fire policy is a


a. Named Perils Policy.
b. All Risk policy.
c. Agreed Value Policy.
d. All of the above.

95. If the policy is cancelled at the instance of insured


a. Pro-rata refund for the unexpired period is paid.
b. Refund on short period basis is paid.
c. Full refund is allowed.
d. No refund is allowed.

96. Reinstatement value policies can be issued


a. For buildings only.
b. For machinery only.
c. For stocks only.
d. For buildings, machinery, furniture and fixtures.

97. The floater policy is issued.


a. When the insured has one location but the value of stocks fluctuates.
b. When the insured has many locations within the country and he cannot specify the
location- wise value of stocks at any given time.
c. When the insureds property is spread all over the world.
d. None of the above.

98. In case of a Fire Declaration Policy, The Sum Insured is Rs. 1 crore and rate of premium is Rs
1 per mile , monthly declaration are Rs.60 Lakh for 3 months , Rs 65 Lakhs for 4 months and Rs
80 Lakhs for 5 months. The provisional premium and refund premium will be.
a. Rs 10,000 and Rs 4000.
b. Rs 10,000 and Rs 3000.
c. Rs 1000 and Rs 700.
d. Rs 1000 and Rs 600.

99. Which of the following is a type of reinsurance contract?


a. Facilitative reinsurance.
b. Entreaty reinsurance.
c. Facultative reinsurance.
d. Treated reinsurance.

100. Which of the following is correct with respect to facultative reinsurance?


a. Ceding insurer does not have the option to cede in facultative reinsurance.
b. Ceding insurer has the option to cede in a facultative reinsurance.
c. Reinsurer does not have the option to accept facultative reinsurance.
d. Reinsurer does not have the option to decline risk of insurance company.

101. ABC is a reinsurance company. It gets into a contract with another reinsurance company:
XYZ Reinsurance Co ltd. Between two reinsurance companies are known as:
a. Facultative reinsurance.
b. Treaty reinsurance.
c. Retrocession.
d. Facultative Obligatory reinsurance.

102. The evidence of the insurance contract between the insured and the insurer
a. The Proposal form
b. The Policy Document
c. The Premium Receipt
d. The Endorsement

103. A complaint lodged in insurance on Ombudsman. How much time it will take to given the
Recommendation?
a. 15 days
b. 30 days
c. 20 days
d. 10 days.

104. Morale hazard in Insurance means


a. The presence of people with hazardous occupations in the site covered the insurance
b. The acts of insured that results in the increase in the probability of loss because of an
indifferent attitude towards losses and out of dishonesty.
c. The acts of insured that result in the increase in the probability if loss from dishonest
tendency on the part of the insure
d. The increase in the probability of loss that has nothing to do with acts of the insured
but purely due to extraneous circumstance

105. Which of the following sections of the Insurance Act specifies the terms of indisputability
of the life insurance policy?
a. Sec.38
b. Sec.39
c. Sec.45
d. Sec.41

106.. The ombudsmans powers are restricted to insurance contracts of value not exceeding?
a. 50 lakhs
b. 30 lakhs
c. 25 lakhs
d. 20 lakhs

107. Which of the following is not basic principal?


a. Offer
b. Utmost Good Faith
c. Indemnity
d. Insurable Interest.

108. Contribution in general insurance means


a. The right of insurance company to reject a claim that has been made
b. The causes that have contributed to the insured loss not covered by the insurance
contract
c. The right of insurance company to call others who are liable to the insured to share the
cost of indemnity.
d. None of the above.

109. The purpose of creating the institution of insurance ombudsman was to


a. Reduce the gaps created by direct marketing system
b. Create a central repository of industry-wide insurance grievance data
c. Resolve insured customers grievance quickly, in a cost-effective, impartial and
efficient manner
d. Resolve the complaints of brokers against insurers.

110. Onus of proof is on whom if the claim is denied.


a. Insured
b. Insurer
c. Broker
d. Arbitrator.

111. State which is true:


a. The doctrine of the Proximate Cause is governed by the Principle that the immediate
cause, not there mote or distant one should be regarded as the proximate cause
b. The expression 'immediate' in (a) above must be the cause nearest to the loss in point
of time
c. A loss of profit or a loss of rent caused to the insured as a result of fire or any other
insured peril is also recoverable the fire policy.
d. None of these.

112. Caveat-Emptor is
a. Disclose at the time of renewal
b. Selection of cushioning material
c. Buying things as suggested by salesman
d. Full disclosure nothing hidden.

113. The functions of the insurance ombudsman include:


a. Conciliation and making awards
b. Counseling
c. Repudiation of claim
d. Evaluating claim settlement.
114. A peril in insurance parlance means

a. The risk that cannot be covered


b. The loss from the event considered risk
c. The cause of loss
d. The pain suffered by the insured due to the loss.

115. The term "Pure Risk" is used to describe a situation


a. where there can be a loss or no loss
b. where there can be loss or gain
c. where there can be pain or in convenience
d. where there can be speculative gain or loss.

116. Moral hazard in insurance refers to

a. The presence of people with hazardous occupations in the site covered the insurance
b. The acts of insured that results in the increase in the probability of loss because of an
indifferent
Attitude towards losses and not out of dishonest
c. The acts of insured that result in the increase in the probability of loss from dishonest
tendency on the part of the insure
d. The increase in the probability of loss that has nothing to do with acts of the insured but
purely due to extraneous circumstance.

117. The important legal; doctrine that stipulates that person seeking insurance should have
financial
Interest in the subject matter of insurance is called
a. Principle of Utmost Good Faith
b. Principle of Subrogation
c. Principle of Insurable Interest
d. Principle of Indemnity.

118. Dynamic risks are those risks


a. That prevails in situations involving continuous movement of men material
b. That result from changes in the economy or external environment
c. That result in increased losses due to the movement of the perple from one place to
another
d. That remains constant irrespective of what happens to the economy.

119. Indemnity principle aims at


a. Placing the insured at a financial position better than what prevailed before the insured
event
b. Placing the insured at the same financial position that existed before the insured event
c. Placing the insured at a slightly lesser financial position than that prevailed before the
event
d. Placing the insured at the same financial level that prevailed immediately after the
insured event

120. Which of the following statements is not true on respect of the Insurance Ombudsman?
a. The Ombudsmans office will entertain only complaints relating to claims
b. A policyholder can approach the Insurance Ombudsman only if it is dissatisfied with the
action
Taken by the Insurance Company
c. An award must be passed by the Ombudsman within 3 months from the date of
receiving complaint with full details
d. The ombudsmans power is restricted to insurance contracts of value not exceeding Rs.
20 Lakhs.

121 .If ombudsmen make a recommendation and is accepted by complainant then it would be
a. Binding on the insurer
b. Binding on court of law
c. Binding on IRDA
d. Binding by insured.

122. Co-insurance refers to


a. Sharing of insurance of a risk by 2 or more insurers
b. Covering more than one risk under the same insurance contract concurrently
c. The insurance cover than an insurance company gets from other bigger insurer
d. Insuring the same risk (like flood or earthquake) faced by more than one person under a
single contract.

123. Which is the 2nd stage in Money Laundering?


a. Layering
b. Placement
c. Integration
d. Amalgamation.

124. The maximum brokerage permissible to a broker for General Insurance Business as per
IRDA
(Brokers) Regulations 2002 is
a.10% of premium that is compulsory under any statue, 12.5% on other tariff business
and 17.5%on other non-tariff products
b.10% in Fire Insurance, 12.5% on Marine Insurance and 17.5% on Misc insurance
c.30%
d.15%.
125. The pricing of an XOL cover would depend upon
a. Sum insured
b. Integrity of the direct insurer
c. Premium charged by direct insurer
d. Expected size distribution of claims.

126. State which is true: A cover note must be


a. Temporary
b. Permanent
c. Mandatory in all classes of Insurance
d. In a pre - printed form of the insurance company.

127. What is the limit of admitting claim for payment without a report on loss for surveyor or
loss assessor?
a. Rs. 5000
b. Rs. 20000
c. Rs. 25000
d. Rs. 50000.

128. Retrocession refers to


a. Cancellation of reinsurance
b. Insurance of insurance
c. Insurance of reinsurance
d. None of the above.

129. As per IRDA regulations for brokers, an insurance broker


a. Can carry on any other business in addition to broking
b. Cannot carry on any other business in addition to insurance broking
c. Can carry on the business as specified in the regulations
d. Can carry on any business after prior approval from the IRDA.

130. Uberrima fide is ________


a. Buyer beware
b. Utmost good faith
c. Material facts
d. Insurable interest.

131. Which of the following statements are not correct in respect of licensing of Brokers by
IRDA?
a. The licence fee payable along with the application is Rs. 250/-
b. The applicant for licence must be at least a graduate of recognized university
c. The applicant for licence on the rate of commission payable to the brokers
d. The applicant for licence needs to pass the pre-recruitment examination.
132. Licensed survey report is not required in case assessment of loss is
a. Up to 20000/-
b. More than 20000/-
c. None
d. Both a & b.

133. The capital requirement of a reinsurance broker is(383)


a. 50 lacs
b. 150 lacs
c. 200 lacs
d. 250 lacs.

134. A person can lodge a complaint against the insurer with the IRDA Grievance Redressal cell
by sending email to:
a. grievance@irda.gov.in
b. insurance@insurancecouncil.org
c. complaints@irda.gov.in
d. policy@irda.org.

135. Equity capital required for broking license


a. Direct broking Rs. 50 Lacs
b. Reinsurance broking Rs. 200 Lacs
c. Composite broking Rs. 250 Lacs
d. All of the above.

136. As per Broking regulation I. R. D. A. has specified the remuneration on reinsurance


business
a. A minimum of 7.5 %
b. A maximum of 7.5 %
c. Equal to 7.5 %
d. None of the above.

137. What is the registration fee of the direct broker?


a. 50 lakh
b. 75 thousand
c. 2 crore
d. 25 thousand.

138. Which of the following information has to be furnished to the policyholder along with the
policy
Document as per IRDA Regulations?
a. Name and address of the broker
b. Address of the registered office of the insurer
c. Address of the IRDA
d. Address of the Ombudsmans office in the region.

139. For getting license renewed, a broker needs to have completed practical training for
a. 100 hours
b. 75 hours
c. 50 hours
d. 25 hours.

140. The educational qualification required by principal officer to become a broker is


a. Fellow of I. I. I
b. C. A.
c. Associate of I. I. I. and C. A.
d. Associate of I. I. I. or its equivalent or any other professional --- from an institute
recognized by Govt. in finance, law engineering or business management.

141. A duplicate licence may be issued by IRDA to replace a licence lost, destroyed or mutilated
on
payment of a fee of
a. Rs. 50
b. Rs. 100
c. Rs. 125
d. Rs. 150.

142. The term Money Laundering refers to the process of


a. Carrying money from office to bank
b. Turning dirty or illegal money into claim or legal money
c. Keeping the cash or gold or silver bars in the bank lockers
d. Buying articles using credit card.

143. As per IRDA regulation the minimum qualification to be a broker is


a. Graduate
b. Diploma broker in engineering
c. Matriculate
d. All the above.

144. IRDA Regulations require brokers to maintain books of A/c, records etc:
a. 10 years
b. Claim cases pending before courts till the time the matter is decided
c. For reinsurance till natural expiry
d. All are correct.
145. Adverse selection of risk
a. Increases cost of insurance
b. Increase in premium due to high risk
c. May not be accepted for insurance
d. This is the way insurance decision is done.

146. Speculative Risks Are


a. Generally Not Insured
b. Are Insurable
c. Insured under Fire Insurance
d. Insured under Marine Insurance.

147. Marine insurance act provides;


a. Agreed value policies
b. Transfer by assignment
c. Only A
d. A & B.

148. What does hit and run accident mean?


a. Where after accident vehicle is caught and burnt down
b. Where after accident vehicles ran away and could not be caught
c. Where after accident vehicles identity cannot be ascertained in spite of reasonable
effort
d. Where after accident driver left the vehicle on the road and flew away.

149. Following features are essential for the contract


a. Offer & Acceptance
b. Capital warranties
c. Implied and express warranties
d. Equitable warranties.

150. In case of a fire policy where the risk is not rated as per tariff, what rate will have to be
Charged?
a.3%
b.2.5%
c.5%
d. Wait for TACs advices.

151 .The Standard Fire and Special perils policy covers work of art for an amount not exceeding;
a. Rs. 10000
b. Rs. 20000
c. Rs. 15000
d. Rs. 5000.
152. The consequential loss fire insurance policy covers.
a. Turnover
b. Net Profit
c. Gross Profit
d. Standing Charges.

153. In fire insurance it is possible to increase the sum insured during the currency of the policy
by collecting additional premium on;
a. on short period skill
b. on pro-rata basis
c. on Average Sum Insured basis
d. on annual sum insured basis.

154. Fire insurance policy can be issued for a period less than 12 months in respect of which
Property?
a. Industrial Risk
b. Stock in go down
c. Dwellings
d. Stock stored in open.

155.In fire insurance Insurable Interest must exist;


a. At the time of taking the policy
b. At the time of loss
c. During the policy period
d. All the above period.

156. Which of the following is not covered under heath insurance policies?
a. Room, boarding expenses in the hospital/ nursing home.
b. Nursing expenses.
c. Cosmetic surgery for beautification purpose.
d. Surgeon, Anesthesia, medical Practitioner, Consultants, Specialist fees.

157. The Term Medical Practitioner does not include.


a. Physician.
b. Specialist.
c. Surgeon.
d. Nurse.

158. Which of the following is not a condition in a Mediclaim policy?


a. All notices under the policy shall be in writing.
b. Final claim with supported documents should be submitted to the company /TPA
within 30 days from the date of completion of treatment.
c. Differences regarding the amount of claim cant be referred to arbitration.
d. No liability under the policy if claim is fraudulent or supported by fraudulent means.

159. The health insurance policy popularly known as Mediclaim insurance has
a. Standard policy wording as per market agreement used by all companies.
b. Standard policy wordings as governed by IRDA.
c. Policy wordings as per similar policy used by Lloydss of London.
d. Evolved from the policy issued by PSUs which is generally used with variations.

160. Common exceptions under the health policies are:


a. Pre-existing diseases.
b. Change of life (menopause).
c. Naturopathy.
d. All the above but some products introduced by a few companies cover them also.

161. What steps is most likely taken in case of adverse claim ratio for a group health policy?
a. All the claims beyond a certain value are rejected.
b. Loading is applied to renewal premium.
c. Policy is discontinued with immediate effects.
d. Discounts are offered.

162. Choose the correct statement.


a. RSBY is a life insurance policy launched by the govt. of India.
b. RSBY have been launched by the Ministry of labour and Employment, Government of
India, to provide health insurance coverage to BPL families.
c. Pre-existing diseases are not covered under RSBY.
d. Transport allowance is not provided.

163. In the case of Hospital Daily Cash Policy, which of the following statement is not true?
a. It provides a fixed sum to the insured person for each day of hospitalization.
b. The number of days of daily cash allowed may be linked to the disease for which claim is
made.
c. An upper limit is provided on the daily cash payout per illness.
d. It is offered only as a standalone policy.

164. In the case of Top-up covers, which of the following statement is not true?
a. A top-up cover is also known as a high deductible policy.
b. The policy complements a basic health cover for a low sum insured.
c. The Top up cover comes at a comparatively higher premium than a regular policy.
d. Top- up covers are available on individual basis and family basis.

165. Some of the new development in medical insurance includes:


a. Coverage for AYUSH treatment.
b. Reinstatement of Sum Insured after settlement of claim.
c. Critical Illness cover.
d. All the above.

166. Under which of the following circumstances will a claim not be payable under the Videsh
Yatra Mitra Policy?
a. If insured is travelling against the advice of physician.
b. If insured is on waiting list for specified medical treatment.
c. If insured is travelling for the purpose of obtaining medical treatment.
d. All the above.

167. Which of the following are not covered under the Videsh Yatra Mitra Policy?
a. Medical Expenses and Repatriation.
b. Personal Accident.
c. Medical Treatment in India.
d. Loss of checked baggage.

168. The parties to Videsh Yatra Mitra Policy expressly agree the laws of.. Shall
govern the validity, construction, interpretation and effect of the policy.
a. Republic Of India.
b. Republic of China.
c. The visiting Country.
d. United Nations.

169. Choose the incorrect option. Re- compensation benefit is available under Employment and
Study policy is provided the insured person is unable to continue completion of his studies due
to:
a. First occurrence of a covered injury or covered sickness.
b. Evacuation from the country as a result of permanent total disablement.
c. Poor performance in studies.
d. Loss of entire sight of either or both eyes.

170. Which one of the following incidents are not deemed as equivalent to permanent total
disablement?
a. Loss of sight of both eyes.
b. The actual loss by physical separation of the two entire hands or two entire feet or one
entire hand and one entire foot.
c. Loss of sight of one eye and such loss of one entire hand/foot.
d. Loss of a finger.

171. What is not true regarding Janta Personal Accident Insurance?


a. It was specifically designed to cater to the needs of the economically weaker section of
the society.
b. The policy covers only death and permanent total disablement.
c. Medical expenses extension is generally allowed under this policy.
d. The clientele targeted can avail of the benefits of lower rates due to group discounts.

172. Open cover policy is taken for Export/import.


a. False.
b. Partially False.
c. True.
d. Sometimes.

173. Pure Endowment plan provides:


a. Only Accidental benefits.
b. Only disability benefits.
c. Only survival benefits.
d. Only money-back benefits.

174. A Life policy under which a percentage of Sum Assured is paid on survival every fixed
interval is called:
a. Double Endowment Policy.
b. Term Assurance Policy.
c. Money Back Policy.
d. Whole Life Policy.

175. In EEI, what does Section 2: External data media indemnify the insured against?
a. Faulty operation.
b. Mechanical breakdowns.
c. Fire and Lighting.
d. Reproducing lost data or information.

176. Increased cost of working (ICOW) is subject to which one of the following?
a. Time Excess.
b. Indemnification.
c. Maintenance warranty.
d. Material damage.

177. Deterioration of Stocks Insurance (other than potatoes) cover applies to loss or damage by
deterioration of the contents of the cold store caused by which of the following factor?
a. Rise in temperature.
b. Fall in temperature.
c. Rise or fall in temperature.
d. Constant temperature.

178. It is a condition precedent under the Deterioration Policy that a claim should be admitted
under which of the following policies?
a. Civil Engineering Completed Risks Insurance Policy.
b. Fire Insurance Policy.
c. Machinery Insurance Policy.
d. Marine Insurance Policy.

179. Which of the following is exclusion to the CECR Policy?


a. Vandalism of individual persons.
b. Frost, avalanche, ice, snow.
c. Consequential loss or damage of any kind.
d. Earthquake, volcanic activity, tsunami.

180. What is the minimum period for which a factory has to carry on trouble- free commercial
production before it can become eligible for MLOP cover?
a. Six months.
b. One Year.
c. Three years.
d. Five Years.

181. In MLOP cover. The turnover during the twelve months immediately before the date of
damage is referred to as:
a. Gross profit.
b. Annual turnover.
c. Standard turnover.
d. Net turnover.

182. Which of the following needs to be deducted from the Standard Turnover to arrive at the
reduction in turnover?
a. Gross profit.
b. Annual turnover.
c. Standard turnover.
d. Actual turnover.

183. The Turnover/ output during the twelve months immediately before the date of the
damage which corresponds with the indemnity period is referred to as.
a. Gross profit.
b. Annual turnover.
c. Standard turnover.
d. Actual turnover.

184. As per the practice followed in India in MLOP, how is the premium on the declared sum
insured collected by the insurance company?
a. Annual premium of equal installments based on sum insured is collected on monthly or
quarterly basis.
b. Annual premium of unequal installments based on sum insured is collected on monthly
or quarterly basis.
c. Full annual premium on the declared sum insured is collected at the inception of the
policy period.
d. Half of the annual premium on the declared sum insured is collected at the inception of
the policy period.

185. Which of the following type of machinery is normally acceptable as good risks for
insurance purpose?
a. Driving machinery.
b. Process machinery.
c. Electrical machinery.
d. Lifting equipment.

186. Machinery insurance is also known as ..


a. All risk insurance.
b. Machinery breakdown insurance.
c. Industrial all risk insurance.
d. Equipment insurance.

187. In machinery insurance policy, the coverage provided is not in respect of:
a. Electrical breakdown.
b. Machinery breakdown.
c. Accidental damage by extraneous causes.
d. Act of god.

188. Which of the following should not be included in the proposal form?
a. Working pressure and maximum load on safety valve.
b. Description, makers name, makers no, capacity and year of make.
c. How the boiler is fired.
d. Market value of the boiler.

189. Which of the following is not a valid policy condition?


a. Any alteration of fuel used for plant must be notified to the company and additional
premium paid if required.
b. The insured shall comply with manufacturers instructions and all statutory and
municipal regulations.
c. The pressure or load on the safety valves of the plant insured can exceed the maximum
specified in the schedule.
d. The company has a right to inspect the insured plant.

190. Which of the following risks are not insured in ALOP insurance policies?
a. Occurrence related to natural perils.
b. Incidents occurring due to inherent defects.
c. Accidents due to human failure.
d. Speculative or trade risks.

191. Who among the following can be beneficiaries under ALOP policies?
a. The principal of the project.
b. Contractor.
c. Sub- contractors.
d. Suppliers.

192. Who among the following can be accepted as additional insured in ALOP policies?
a. Contractors.
b. Project financiers.
c. Suppliers.
d. Engineers.

193. is the period within the period of delay for which loss is borne by the
insured.
a. Period of indemnity.
b. Commercial operational period.
c. Testing period.
d. Time Excess.

194. What is the main objective of CPM insurance?


a. To protect the constructional tools and equipment against all construction damage.
b. To protect the plant and machinery against all wear and tear.
c. To protect the constructional tools and equipment against all external damage.
d. To protect the under construction structure against all natural perils.

195. Which of the following statement is not true?


a. Reinsurance allows the insurer to insure much larger risks than the company can bear on
its own account.
b. Reinsurance allows the insurer to make mistakes in direct underwriting which it
recovers from reinsurance.
c. Reinsurance affords protection against losses especially large and catastrophic losses.
d. Reinsurance allows the insurer to achieve financial stability in results.

196. That portion of a risk which a ceding insurer keeps for itself according to its capacity is
called:
a. Cession.
b. Retention.
c. Retrocession.
d. Ultimate Net Loss.

197. Proportional treaties include which of the following?


a. Excess of loss and Quota Share Treaties.
b. Excess of loss and Surplus Treaties.
c. Surplus and Quota Share Treaties.
d. Facultative Obligatory and Excess of Loss treaties.

198. Which clause permits the insured and the reinsurer to interact directly with each other
under certain circumstances?
a. Follow the Fortunes Clause.
b. Cut through Clause.
c. Set off Clause.
d. Downgrade Clause.

199. Minimum and Deposit Premium is paid by the reinsured?


a. To provisionally cover risks under Quota Share Treaties.
b. To finally pay off surplus treaties this may go on indefinitely.
c. To cover risks under excess of loss reinsurance subject to adjustment at end of the
year.
d. To keep held covered reinsurance risks which spill over to the next year.

200. The code of conduct for all brokers deals with which areas?
a. Client relationships.
b. Sales practices.
c. Furnishing of information.
d. All the above and more.

201. For a broker promoted by a corporate house having an insurance company within the
group ,as per IRDA regulation, not more thanpercent of the premium shall emanate
from any one client in a financial year while in other cases it is . percent.
a. 10 and 20.
b. 25 and 50.
c. 30 and 50.
d. 410 and 80.

202. Contributory Negligence arises in the following case:


a. The owner of the vehicle has been responsible for the accident.
b. The driver of the vehicle has been responsible for the accident.
c. The injured person has also been responsible for the accident.
d. The insurance company has been negligent in handling the claim.
203. Examples of special damage do not include
a. Medical, surgical and hospitalization expenses.
b. Loss of salary and income.
c. Pain and suffering.
d. Funeral expenses.

204. The concept of insurance involves a transfer of


A. liability.
B. needs.
C. ownership.
D. risk.

205. Rakesh recently bought a health insurance policy and a personal accident policy. What
main section(s) of the insurance market do these products normally fall into?
A. Life insurance in both cases.
B. Life insurance for health and non-life insurance for personal accident.
C. Non-life insurance in both cases.
D. Non-life insurance for health and life insurance for personal accident.

206. The main role of an underwriter in a non-life insurance company is normally to


A. assess the acceptability of particular risks.
B. certify a loss when claims are submitted.
C. design the structure of the products to be offered.
D. negotiate with the industry regulator.

207. Akshat is a relatively cautious person. In insurance terms, this will normally increase the
likelihood that he will
A. be considered an above average insurance risk.
B. be considered a below average insurance risk.
C. require insurance cover.
D. require reinsurance cover.

208. How are perils and hazards normally distinguished under term insurance policies?
A. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities
which influence the risk of dying.
B. Perils are risks that policyholders will die before a specified date and hazards are factors
which could influence that risk.
C. Perils are factors which affect the risk being insured and hazards are the size of the risk being
insured.
D. Perils are factors which could influence an insured event occurring and hazards are the
actual events which will trigger a payout.

209. In insurance terms, the risk of suffering a disability is best described as what type of risk?
A. Financial.
B. Fundamental.
C. Homogenous.
D. Speculative.

210. For a household insurance policy, insurable interest need only exist at outset and at what
other point?
A. The date the cancellation period expires.
B. The date a claim occurs.
C. The date the policy document is received.
D. The termination date.

211. Rahul is employed by Sunny. In respect of this employment, Rahul automatically has
insurable interest in Sunnys life up to what limit, if any?
A. Rahuls monthly salary.
B. Rahuls pension fund value.
C. Sunnys annual profit.
D. There is no limit.

212. Arun started a 20-year term insurance policy. Once established, when, if at all, is the
insurer next entitled to ask him for proof of continuing good health?
A. At no point.
B. After the end of the first 12 months.
C. At the point when he changes occupation or retires.
D. When a lapsed policy is revived.

213. The concept of indemnity is based on the key principle that policyholders should be
prevented from
A. insuring existing losses.
B. making false insurance claims.
C. paying excessively for insurance cover.
D. profiting from insurance.

214. Once an absolute assignment is effected under a life insurance policy, who will be the
titleholder(s) of this policy?
A. The assignor in all cases.
B. The assignee in all cases.
C. Either the assignor or assignee depending on the type of policy involved.
D. The assignor and assignee jointly.

215. How long is the free look-in period under a term insurance policy from the date of receipt
of the policy document?
A. 5 days.
B. 10 days.
C. 15 days.
D. 20 days.

216. A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was
accepted by the customer on day 10. Consequently the insurer can only decline this risk if the
A. customer submits a second quotation request.
B. insurer increases its underlying premium rates.
C. market place experiences a significant downturn.
D. material facts change.

217. A policy document for a money-back policy includes the statement the proposal and
declaration signed by the proposer form the basis of the contract. In which main section of the
policy document will this normally appear?
A. Attestation.
B. Operative clause.
C. Preamble.
D. Terms and conditions.

218. A life insurance policy can only be made paid up if what particular policy feature exists?
A. Indexing contribution.
B. Nomination facility.
C. Rider benefits.
D. Savings element.

219. The main reason why a life insurance proposal form often asks for the proposers height is
to enable a reasonable comparison with the proposers
A. age.
B. gender.
C. occupation.
D. weight.

220. Where annually increasing flexible premiums operate under a life insurance policy, what
rate of increase will generally apply?
A. 2.5%
B. 3.0%
C. 5.0%
D. 7.5%

221. The amount paid out by the insurer under a 30-year life insurance policy exceeded the
sum insured plus revisionary bonuses. The excess is likely to result from?
A. charges refunded.
B. a frequency loading.
C. a tax rebate.
D. a terminal bonus.

222. What normally happens to the sum insured under a life insurance policy once the period of
the lien expires?
A. It reduces.
B. It increases.
C. It is temporarily suspended.
D. It is replaced by a newly-underwritten sum insured.

223. The main protection need of a 19-year-old is most likely to be


A. self-protection.
B. home loan protection.
C. protection of dependants.
D. protection of childrens future.

224. Raunak recently arranged a life insurance policy under which he is classed as the master
policyholder. This addresses his role as
A. a creditor.
B. a debtor.
C. an employee.
D. an employer.

225. The need for investment advice from an insurance agent normally results from what
overriding key factor?
A. Absence of any long-term goals.
B. Inability to prioritise future financial needs.
C. Lack of market knowledge.
D. Shortage of available funds.

226. When undertaking financial planning for individuals without capital, what savings need is
likely to be addressed in every single case?
A. Emergency funds.
B. Funds for childrens savings.
C. Funds for educational costs.
D. House purchase funds.
227. Naveen is addressing his income needs by investing directly in corporate bonds. In what
form will he receive this income?
A. Annuity instalments.
B. Dividend payments.
C. Interest payments.
D. Rental payments.

228. Nikhil is looking for tax-efficient savings methods for his disposable income. He is
considering an equity-linked savings scheme, national savings certificates and an endowment
insurance policy. Premiums for which of these investments are allowed to be deducted from his
taxable income?
A. The national savings certificates only.
B. The equity-linked savings scheme and the national savings certificates only.
C. The national savings certificates and the endowment insurance policy only.
D. The equity-linked savings scheme, the national savings certificates and the endowment
insurance policy.

229. An investor holds a wide range of shares. If the Reserve Bank of India announces a series
of significant interest rate increases, the prices of these shares are most likely to
A. become volatile.
B. decrease.
C. increase.
D. stagnate.

230. The main purpose of the guaranteed insurability rider benefit is to give the policyholder
the right to
A. cancel a health-based exclusion after a symptom-free period.
B. include his parents under the policy.
C. increase cover when a key life event occurs.
D. maintain cover despite a fall in investment value.

231. The changes in healthcare costs over recent years has had what general impact on
healthcare insurance?
A. A fall in average premium levels.
B. A reduction in underwriting requirements.
C. A rise in the need for cover.
D. A strengthening of the insurable interest rules.

232. The general need for a pension policy results from the existence of what key problem?
A. Anticipated fall in income.
B. Lack of employment opportunities.
C. Likely deterioration in health.
D. Uncertainty over investment performance.

233. Yash pays health insurance premiums for himself, his wife and his two children aged 13
and 8. Premiums for which of these individuals will qualify as deductible from Yashas taxable
income?
A. Yash only.
B. Yash and his wife only.
C. Yash, his wife and his oldest child.
D. Yash, his wife and both his children.

234. The sole focus during a clients fact-find session was healthcare requirements and estate
planning. Which main life stage is he most likely to fall into?
A. Young married.
B. Young married with children.
C. Pre-retirement.
D. Retirement.

235. Apart from the salary level, what other key feature of Aloks job is likely to have a major
impact on the level of his pension, life insurance and health insurance needs?
A. Whether the job is office or field-based.
B. The normal retirement age in relation to the job.
C. Whether the job is in the public or private sector.
D. Whether the job is manual or non-manual.

236. In the context of financial planning, how is the difference between real needs and
perceived needs best described?
A. Real needs are financial needs and perceived needs are non-financial needs.
B. Real needs are actual needs and perceived needs are based on a clients thoughts and
desires.
C. Real needs are identified by the insurance agent and perceived needs are identified by the
client.
D. Real needs are needs which satisfy an objective and perceived needs are needs which do not
satisfy an objective.

237. In order to fulfil the know your customer procedures, at what stage in the financial
planning process is the insurance agent most likely to request a copy of the customers
photograph?
A. At the end of the fact-find meeting.
B. At the end of the presentation meeting.
C. As soon as the application is accepted by the insurer.
D. As soon as the insurer is ready to issue the policy document.
238. An agent has recommended an investment product with non-guaranteed benefits. The
benefit illustration passed to his client will therefore use assumed annual growth rates of
A. 5% and 8%
B. 5% and 10%
C. 6% and 8%
D. 6% and 10%

239. The main purpose of including commission details in the documentation to clients is to
increase
A. competitiveness.
B. efficiency.
C. flexibility.
D. transparency.

240. A client has been recommended a low-risk investment product by his insurance agent, but
the client insists the agent arranges for the money to be invested in a higher risk product. What
action should the agent take?
A. Carry out these instructions, but document that this contradicts the recommendation.
B. Conduct a new fact-find.
C. Invest a reduced amount of money in this product.
D. Refuse to act for the client.

241. An insurance agent has advised a client to surrender an existing investment product and
start a new investment product. What key indicator should be used to determine whether this
advice was ethical?
A. The best interests of the client.
B. The difference in potential income and capital growth between the two products.
C. The flexibility of the new product compared to the old one.
D. The views expressed by the client.

242. What key impact will low persistency levels have on insurance policyholders?
A. An enhancement in product choice.
B. An improvement in investment performance.
C. An increase in insurance cover.
D. A reduction in benefits.

243. Raju died 5 years before the end of his 30-year endowment insurance policy. What factor
most likely caused the insurer to investigate the claim using the early death claim procedures?
A. He paid the most recent premium during the period of grace.
B. His cover was originally accepted with a premium loading on medical grounds.
C. His death resulted from a recently acquired sudden illness.
D. The policy had lapsed and was revived shortly before he died.

244. A claim under a term insurance policy is submitted by an individual who has substantially
understated his age. As an alternative to paying out the full claim the insurer is most likely to
take what action?
A. Deduct the underpaid premiums from the sum insured.
B. Make the policy paid up.
C. Pay out the surrender value.
D. Reject the claim on the grounds of misrepresentation.

245. On the maturity of an endowment policy, a reduced sum insured is paid out. What is the
most likely reason for this?
A. The instalments were commuted by the policyholder.
B. The policyholders health seriously deteriorated during the policy term.
C. The policy was made paid up during the policy term.
D. The policy was subject to a lien.

246. What key event is most likely to prevent insurers from ensuring that each insured person
brings a fair premium to the pool for the risk presented?
A. A fraudulent claim.
B. A policy assignment.
C. A steep rise in inflation.
D. A sudden illness.

247. An insurance agent served an insurer continually and exclusively for 20 years, after which
he retired from work. In accordance with Section 44 of the Insurance Act 1938, renewal
commission due to him after the termination of his agency can only be withheld if
A. he ceases to remain a resident of India for tax purposes.
B. he survives beyond the age of 75.
C. there has been a change in regulator.
D. there is fraud involved.

248. Legislation gives which body the power to specify a code of conduct for surveyors and loss
assessors?
A. Institute of Insurance and Risk Management.
B. Insurance Regulatory and Development Authority.
C. Life Insurance Council.
D. Securities and Exchange Board of India.

249. What key legacy has been left by the activities of the Tariff Advisory Committee?
A. A central compensation fund.
B. Customer classification status.
C. Illustrative projection rates.
D. Standard policy wordings.

250. Apart from conducting a comprehensive fact-find, the other main action that an insurance
agent can take at outset to minimise the risk of subsequently receiving a customer complaint is
to
A. ask for referrals.
B. offer commission rebates.
C. provide detailed disclosures.
D. register with the Insurance Ombudsman.

251. An award made by the Insurance Ombudsman will only be binding on the insurer if the
A. complainant accepts this decision.
B. Consumer Forum is involved in the case.
C. insurer signs a disclaimer.
D. value of the award is less than 2 lakhs.

252. A policyholder asked his insurance agent for guidance on submitting a claim for the
maturity benefit under his life insurance policy. Due to pressure of work, the agent declined to
assist. Consequently, this action is deemed to be a breach of the
A. General Insurance Councils guidelines.
B. Insurance Regulatory and Development Authoritys Code of Conduct.
C. Insurance Ombudsmans protocols.
D. Insurance Brokers Association of Indias membership rules.

253. During the process of applying for life insurance, the customer discloses confidentially to
the insurance agent that he had a mild stroke four months ago, however this was NOT
mentioned on the application form. In accordance with the Insurance Regulatory and
Development Authoritys Code of Conduct, how should the insurance agent deal with this
information?
A. Ask the policyholders doctor to send details to the insurer.
B. Notify the insurer of this matter.
C. Refuse to act for the customer in this case.
D. Respect this confidentiality by not discussing it with anyone else.

254. Which of the following perils can be add-on cover under the fire policy at extra premium?
A. Spontaneous Combustion
B. Flood
C. Impact Damage
D. Explosion

255. During a Fire Loss, which of the following losses are not covered under a standard fire
policy?
A. Expenses incurred to move stocks to a safer place.
B. Expenses incurred to demolish a wall which has been burnt and may fall on other property.
C. Expenses incurred to prepare and document the claim.
D. All are covered.

256. In case of Fire Insurance, Insurable interest must exist


A. At the time of loss only
B. At inception of insurance only
C. Both at inception of insurance and at the time of loss
D. No insurable interest is required

257. The insurer collects a reinstatement premium at the time of a claim payment
A. In order to his reinsurers.
B. In order to insure that the insured takes more care of his property in future.
C. In order to ensure that the sum insured is replenished to its full required value for any
future claim.
D. None of the above.

258. Reinstatement value clause provides for payment of claim


A. On a new for Old basis
B. On new basis but after deducting depreciation
C. On old basis but after adding improvement.
D. On new basis but after deducting any improvement.

259. In case of an agreed bank clause, the insurer may issue the claim cheque
A. Only to the bank whose name appears on the policy.
B. Only to the Insured.
C. To the insured, if authorized by the bank to do so and on an undertaking that the insureds
receipt discharges the insurers liability to the bank.
D. Either A or C.
260. In Fire consequential loss insurance, Indemnity period means
A. The period of the policy.
B. The period during which no claim is payable after the fire.
C. The period of disruption of business chosen by the insured for which he wants to insured.
D. The period the insured will have to wait to get his claim settled.

261. Standing Charges can be described as


A. The expenses incurred by the insured to regain loss of goodwill after a fire loss.
B. The expenses incurred in producing the goals which varies corresponding to the volume of
production.
C. The expenses which are fixed and will be incurred irrespective of the volume of business
transacted.
D. Gross profit of the company which should have been earned had fire not occurred.

262. A claim under a fire consequential loss policy will be paid only
A. The insured was in operation for one year at least in the past.
B. There is an underlying material damage policy covering the subject and claim has been
admitted under that policy.
C. The insured runs the business for one more year to ascertain the fall in profit due to the loss.
D. None of the above.

263. Increases cost of working refers to


A. The overtime wages paid to staff to satisfy rush orders after a fire loss.
B. Additional expenditure necessarily and reasonably incurred for the sole purpose of
avoiding or diminishing the reduction in turnover after a fire loss.
C. The increase in cost of raw material due to scarcity in the market.
D. None of the above.

264. Surveyors appointed for assessing Fire CL claims are usually


A. Engineers
B. Architects
C. Chartered Accountants
D. Economists

265. Under which of the following acts does the government provide for inspectors who have
powers to enter any factory and examine the plant and machinery?
A. The Indian Factories act 1948
B. The safety rules of plant and machinery.
C. The Indian boiler act 1923.
D. The Indian mines act 1923.
266. Which of the following is a One Time Policy?
A. Contracts All Risk (CAR) insurance.
B. Boiler and pressure plant insurance (BPP)
C. Electronic equipment insurance (EEI)
D. Deterioration of stocks insurance (DOS)

267. When policies are issued to cover consequential loss, deductibles are expressed in terms
of time viz. no. of days or months etc, they are known as
A. Period excess
B. Schedule excess
C. Period exclusion
D. Time Excess.

268. Which of the following statement is correct?


A. Product and / or process specific machines have standard designs and are commonly found
in all industries.
B. Installation of any new factory always presupposes availability of electrical power.
C. Steam turbine is an example of Machinery and Equipment commonly found in practically
all types of industries and processes.
D. An underwriter may require support from technically qualified people for exposure
assessment tasks in respect of machinery and equipment used in industries.

269. Which of the following is the commonest hazard on construction or erection of a


conventional power plant?
A. Transportation, offsite storage and handling of heavy and/ or odd size project machinery.
B. Mechanical/ electrical breakdowns.
C. Long delay periods after an accident.
D. Third party liability due to leakage and pollution.

270. Which element of a valid contract deals with premium?


A. Offer and Acceptance
B. Consideration
C. Free Consent
D. Capacity to contract.

271. When pressure is applied through criminal means, this is a case of


A. Undue Influence
B. Fraud
C. Coercion
D. Mistake

272. What does ULIP Mean?


A. A plan that provides both life insurance protection and investments.
B. An investment plan that grows with the SENSEX.
C. A plan that provides both non-life insurance and investment.
D. A plan that offers only investment strategies to the policyholders.

273. There is an option to avail a portion of the amount as lump sum at the end of the
deferment period. What is the lump sum amount called?
A. Premium
B. Bonus
C. Commutation
D. Commuted Value

274. Which is the final step in the premium calculation?


A. Find out the tabular column.
B. If applicable, deduct adjustments for large SA.
C. Make Adjustments for mode of payment of premium.
D. Multiply by SA.

275. Which among the following is true of a definition of a policy document?


A. It is the opening paragraph of the policy statement.
B. It is the request for duplicate policy.
C. It is the request for alterations.
D. It is an evidence of the insurance contract.

276. Which of the following defences is not available to an insurance company to avoid paying a
motor claim?
A. Breach of specified conditions in the policy.
B. Non disclosure of material fact by the insured.
C. Negligence of the insured or the driver of the vehicle.
D. Material false representation of a fact.

277. Under Knock for Knock agreement, if two companies are involved, the practice followed is
as under:
A. Each insurance company pays for the OD claim of its own insured.
B. Each insurance company pays for the TP claim of its own insured.
C. Each insurance company pays for both OD and TP claim of its own insured.
D. Each company settles half the total claims involved.

278. Motor third party pool and declined risk pool are applicable to:
A. Third party insurance of private cars.
B. Third party insurance of two wheelers.
C. Third party insurance of commercial vehicles.
D. All of the above.

279. A Survey Conducted by Max Bupa in 2015 finds that the major decision makers in the
purchase of health insurance policies for families are..
A. Children
B. Women
C. Banks
D. Aged People.

280. Swiss Re has recently tied up with the ..State government to provide
crop insurance to farmers, increase awareness about crop insurance to ensure sustainable
living for farmers as well as fast-track settlement of claims.
A. Maharashtra
B. Kerala
C. Karnataka
D. Haryana

281. As per market reports, insurers opening an office in GIFT city would help
A. In India becoming a reinsurance hub.
B. The insurers to be exempt from certain regulations
C. The premium to be maintained in foreign currency account.
D. All of the above.

282. According to the data from General Insurance Council (GIC), the top give general insurance
markets in terms of gross premium are .
A. Gujarat, West Bengal, Karnataka, Goa and New Delhi.
B. Tamil Nadu, Kerala , Gujarat, , Karnataka and Punjab.
C. Maharashtra, Tamil Nadu, Gujarat, Karnataka and New Delhi.
D. Kerala, Maharashtra, Andhra Pradesh, Telengana and Tamil Nadu.
283. As per published reports, term insurance has increasingly gained popularity in India. The
major reason for this trend include..
A. Lack of faith in unit linked plans.
B. The launch of online term plans and new product launches.
C. The high costs of endowment plans.
D. Governmental mandates that more term plans should be sold.

284. Pradhan Mantri Jeevan Jyoti Bima Yojana ( PMJJBY) offers a term life cover of Rs 2 lakh to
all.
A. Saving bank account holders.
B. Aadhar card Holders.
C. Election card Holders.
D. Ration card Holders.

285. Which of the following statements is not true?


A. Reinsurance allows the insurer to insure much larger risks than the company can bear on its
own account.
B. Reinsurance allows the insurer to make mistakes in direct underwriting which it recovers
from reinsurance.
C. Reinsurance affords protection against losses especially large and catastrophic losses.
D. Reinsurance allows the insurer to achieve financial stability in results.

286. That portion of a risk a ceding insurer keeps for itself according to its capacity is called:
A. Cession
B. Retention
C. Retrocession.
D. Ultimate Net Loss.

287. Proportional Treaties include which of the following?


A. Excess of loss and Quota Share Treaties
B. Excess of loss and surplus treaties.
C. Surplus and Quota Share Treaties.
D. Facultative obligatory and excess of loss treaties.

288. Which clause permits the insured and the reinsurer to interact directly with each other
under certain circumstances?
A. Follow the fortune clause.
B. Cut Through Clause.
C. Set off clause.
D. Downgrade clause.

289. Minimum and Deposit Premium is paid by the reinsured


A. To provisionally cover risks under Quota Share treaties.
B. To finally pay off surplus treaties this may go on indefinitely.
C. To cover risk under excess of loss reinsurance subject to adjustment at end of the year.
D. To keep held covered reinsurance risks which spill over to the next year.

290. The code of conduct for all brokers deals with which areas?
A. Client relationships.
B. Sales practices.
C. Furnishing of information.
D. All the above and more.

291. A direct broker should take a professional indemnity insurance policy for three times
remuneration received at the end of every financial year subject to a minimum limit
of.
A. Rs 25 Lakhs.
B. Rs 50 Lakhs.
C. Rs 1 crore.
D. Rs 2.5 crores.

292. A policy, in which payment to the annuitant begins five years after the policy has
commenced, is called ___________annuity.
a. Deferred
b. Certain
c. immediate
d. five year

293.A duplicate policy may be issued when the original has been _______.
a. Mutilated
b. burnt
c. Stolen
d. All the above

294. What right does a consumer have?


a. Right of redressal
b. Right to information
c. right to education
d. all the above

295. What is required to pay the death claim if there is no will, nomination or
Assignment?
a. Probate
b. Birth certificate
c. proof of title
d. Court order

296. When we agree to pay a claim, it is called _____________.


a. Admission
b. Payment
c. submission
d. consideration

297. The reduction in the tabular premium for mode or sum assured is called
a. Concession
b. incentive
c. Rebate
d. reduction

298. Terminal Bonus is payable on _____________.


a. Maturity
b. surrender
c. revival
d. foreclosure

299. _______________ is the process of deciding on a proposal for insurance.


a. Decision
b. acceptance
c. underwriting
d. Consideration

300. In case of Moral Hazard _______________


a. Proposal is declined
b. Extra premium is charged
c. Sum assured is reduced
d. lien is imposed

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