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IC-34 SP Certification Mock Tests

MOCK TEST 1

1: Out of 400 houses, each valued at Rs.20,000, 4 houses get burnt every year on an average resulting in a loss of Rs.80,000. What should be the annual contribution of each house owner to make good this loss

a. b. c. d.

Rs.100/Rs.200/Rs.80/Rs.400/-

Ans: Rs 200

2: Which of the following statements is true?

1: Insurance prevents the losses from happening 2 : Insurance spreads the losses amongst the insureds a.Only statement 1 b.Only statement 2 c.Both statements d.Neither of the statements

Ans:Only statement 2

3: Which of the following is NOT the correct reason a. b. c. d. to decide about acceptance to fix the rate of premium to fix the sum insured to fix terms and conditions of cover

Ans:to fix the sum insured

4: If there is no insurable interest the insurance contract becomes a. b. c. d. unenforceable in a court of law illegal void voidable

Ans:Void

5: Insurable interest is NOT always required at the time of taking the policy a. b. c. d. fire insurance marine hull insurance marine cargo insurance burglary insurance

Ans:Marine Cargo Insurance

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

a. b. c. d.

marine hull policies marine cargo policies fire policies burglary policies

Ans:Marine Cargo Policies

7: Agreed value policies are issued for

a. b. c. d.

marine cargo marine hull marine cargo and hull fire insurance on high valued machinery

Ans:Marine Cargo and Hull

8: Subrogation condition does not appear in

a. b. c. d.

fire policy marine cargo policy burglary policy baggage policy

Ans:Marine Cargo Policy

10

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

a. b. c. d.

breach of utmost good faith salvage pro-rata average excess clause

Ans:Breach of utmost good faith

11

10: Insurance contracts are NOT gambling transactions because a. b. c. d. they are based on insurable interest the policy is stamped full premium is paid all material facts are disclosed

Ans:they are based on insurable interest

12

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

a. b. c. d.

unenforceable in a court of law illegal void voidable

Ans:Void

13

12: Which of the following statements is true or false 1: No claim can be paid under an illegal policy 2: Claim can be paid, at the option of the insurer under a void policy a. b. c. d. 1 is true 2 is true both 1 and 2 are true both are false

Ans :1 is true

14

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

a. b. c. d.

void voidable illegal invalid

Ans:voidable

15

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

a. b. c. d.

which he knows which he ought to know which he knows and ought to know none of the above

Ans:which he knows and ought to know

16

15: Which of the following statements is true

1: The proposer need not disclose facts which he considers as not material 2: Facts which are of common knowledge need not be disclosed a. b. c. d. 1 is true 2 is true both are true both are false

Ans:2 is true

17

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

a. b. c. d.

consideration subrogation assignment endorsement

Ans:assignment

18

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

a. b. c. d.

proximate cause pro-rata average indemnity insurable interest

Ans:indemnity

19

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

a. b. c. d.

public liability fidelity guarantee marine cargo baggage insurance

Ans:marine cargo

20

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

a. b. c. d.

under-insurance excess clause principle of indemnity franchise clause

Ans:principle of indemnity

21

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

a. b. c. d.

mediclaim insurance personal accident insurance fidelity guarantee burglary insurance

Ans:personal accident insurance

22

21: The principle of indemnity is applied through deduction

a. b. c. d.

for under insurance for depreciation under franchise clause under excess clause

Ans:for depreciation

23

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

a. b. c. d.

pro-rata average franchise contribution subrogation

Ans:contribution

24

23: How much is the amount of claim payable, if sum insured is Rs.2 lakhs, the excess limit is Rs.20,000/- and the loss is Rs.25,000.

a. b. c. d.

Rs.2,000 Rs.25,000 Rs.15,000 Rs.5000

Ans: Rs.5000

25

24: What is the amount of claim payable if the loss is Rs.8000/- under a policy with a sum insured of Rs.1 lakh and excess limit is Rs.10,000/-

a. b. c. d.

nil Rs.10,000 Rs.8000 Rs.2000

Ans:nil

26

25: A policy with a sum insured of Rs.1 lakh is subject to a franchise limit of Rs.10,000/- . What is the amount payable if the loss is Rs.15,000/-

a. b. c. d.

Rs.15,000/Rs.5,000 Rs.25,000/Nil

Ans:Rs.15,000/-

27

26: A policy with a sum insured of Rs.1 lakh is subject to a franchise limit of Rs.10,000/-. What is the amount of claim payable if the loss is Rs.5,000/-

a. b. c. d.

Rs.10,000 Rs.15,000 Rs.5,000 Nil

Ans:Nil

28

MOCK TEST 2

29

1: In which of the following clauses of the scheduled form of policy, the parties to the contract are mentioned

a. b. c. d.

signature clause operative clause recital clause warranties clause

Ans:recital clause

30

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

a. b. c. d.

recital clause operative clause signature clause warranties clause

Ans:operative clause

31

3: If a warranty is breached the policy becomes

a. b. c. d.

void voidable invalid unenforceable in a court of law

Ans:voidable

32

4: Certificates of insurance are issued in

a. b. c. d.

marine hull insurance marine cargo insurance engineering insurance workmens compensation insurance

Ans:marine cargo insurance

33

5: Renewal notice is issued because

a. b. c. d.

it is required under the insurance act of IRDA regulations it is a healthy business practice it is provided by policy conditions

Ans:it is a healthy business practice

34

MOCK TEST 3

35

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

a. b. c. d.

losses agency commission expenses of management unexpected heavy losses

Ans:losses

36

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

a. b. c. d.

past losses unexpected heavy losses in the future margin for expenses of management margin for profits

Ans:past losses

37

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

a. b. c. d.

fire insurance engineering insurance motor third party insurance workmens compensation insurance

Ans:motor third party insurance

38

4: Which of the following statements is true

1: Insurers charge for motor third party policies rates of premium fixed by IRDA 2: Insurers can charge higher rates based on their own past loss experience

a. 1 is true b. 2 is true c. both are true d. both are false

Ans: 1 is true

39

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

a. earthquake risk b. policies with a sum insured of Rs.2500 crores or more at one location for material damage c. policies with a sum insured of Rs.2500 crores or more at one location for combined material damage and business interruption d. liability insurance(Rs.100 crores or more per event)

Ans: earthquake risk

40

MOCK TEST 4

41

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

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

Ans: 20,000

42

2: As per general insurance business(nationalization) amendment act 2002,general insurance corporation of India shall carry on

a.reinsurance business only b.overseas reinsurance business only c.aviation insurance business only d.administration of motor third party insurance pool only

Ans: reinsurance business only

43

3: An insurance agent whose licence has been cancelled by the designated person cannot apply for fresh license unless a period of ----- years has elapsed from the date of such cancellation

a.3 years b.4 years c.5 years d.6 years

Ans :5 years

44

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

a.advise clients on appropriate cover and terms b.submit insurers premium quotation to client c.pay premium to insurers on behalf of client d.assist in negotiation of claims

Ans: pay premium to insurers on behalf of client

45

5: Which of the following statements is true 1: code of conduct does NOT apply to insurance brokers 2: code of conduct does NOT apply to surveyors and loss assessors a. b. c. d. 1 is true 2 is true both are true both are false

Ans: both are false

46

6: Under IRDA regulations it is the duty of an insurer to furnish to the insured free of charge a copy of the proposal form. Within -------days of the acceptance of a proposal

a.7 days b.15 days c.30 days d.45 days

Ans : 30 days

47

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

a.24 hours b.72 hours c.7 days d.15 days

Ans: 72 hours

48

8: As per IRDA regulations surveyors shall submit the survey report to the insurer within -----days of his appointment

a.15 days b.30 days c.45 days d.60 days

Ans: 30 days

49

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

a. b. c. d.

15 days 30 days 45 days 60 days

Ans : 30 days

50

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

a.15 days b.30 days c.45 days d.60 days

Ans: 30 days

51

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

a.7 days b. 10 days c.15 days d.30 days

Ans: 7 days

52

12: An insurer shall respond within ----- days of receipt of communication from policyholders in matters of servicing under the policy

a.3 days b.7 days c.10 days d.15 days

Ans: 10 days

53

13: As per IRDA regulations, the remuneration to the micro-insurance agent for non-life insurance business shall not exceed -----% of premium

a. b. c. d.

5 10 15 20

Ans: 15

54

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

a.10 lakhs b.20 lakhs c.30 lakhs d.50 lakhs

Ans: 20 lakhs

55

15: The national commission under consumer protection act can entertain a complaint where the compensation claimed exceeds Rs.----

a.25 lakhs b.50 lakhs c.75 lakhs d.1 crore

Ans: 1 crore

56

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

a.30 days b.45 days c.60 days d.90 days

Ans: 30 days

57

MOCK TEST 5

58

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

a.goods in factories b.goods in open c.goods in transit by rail/road d.goods in godowns

Ans: goods in transit by rail/road

59

2: The terms fire under the fire policy means

a.natural heating b.burning by order of public authority c.spontaneous combustion d.accidental ignition

Ans: accidental ignition

60

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

a.damage by aircraft b.damage by other aerial devices c.damage by pressure waves d.damage by other space devices

Ans: damage by pressure waves

61

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

a.0.5% of total sum insured b.1.0% of total sum insured c.2.0% of total sum insured d.3.0% of total sum insured

Ans: 0.5% of total sum insured

62

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

a.any road vehicle b.any rail vehicle c.insureds own forklift on the premises d.any animal

Ans: insureds own forklift on the premises

63

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

a.cyclone b.hurricane c.earthquake d.flood

Ans: earthquake

64

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

a.Rs.5,000/- for each and every loss b.Rs.10,000/- for each and every loss c.Rs.15,000/- for each and every loss d.Rs.20,000/- for each and every loss

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

65

8: The standard fire and special perils policy automatically covers works of art for an amount not exceeding

a.Rs.5,000/b.Rs.10,000/c.Rs.20,000/d.Rs.25,000/-

Ans: Rs.10,000/-

66

9: Which of the following statements is true 1: All disputes regarding claim under the fire policy are to be referred to a civil court. 2: disputes regarding the amount of claim payable are to be referred to arbitration a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

67

10: The maximum limit of cover under architects fees add-on cover is -----% of the adjusted loss

a. b. c. d.

2.5% 5.0% 7.5% 10.0%

Ans: 7.5%

68

11: The sum insured under debris removal add-on cover cannot exceed -----% of the total sum insured under the fire policy

a. b. c. d.

5% 10% 15% 20%

Ans: 10%

69

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

a.impact damage b.bush fire c.forest fire d.subsidence

Ans: forest fire

70

13: According to policy condition the fire policy ceases cover if the building insured becomes unoccupied for more than

a.15 days b.30 days c.45 days d.60 days

Ans: 30 days

71

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

a.double insurance b.over insurance c.under insurance d.subrogation

Ans: under insurance

72

15: If liability for a claim under the fire policy is disclaimed by the insurer, the insured has to file a suit in a court of law within ----- months of the date of disclaimer

a.6 months b.12 months c.24 months d.36 months

Ans: 12 months

73

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

a.flood b.explosion c.earthquake d.cyclone

Ans: earthquake

74

17: Debris removal expenses are covered upto ------% of the claim amount under standard fire and special perils policy

a. b. c. d.

1% 2% 3% 4%

Ans: 1%

75

18: Architects fees are covered upto -------% of the claim amount under standard fire and special perils policy

a. b. c. d.

1% 2% 3% 4%

Ans: 3%

76

19: Which of the following statements is true

As per fire policy condition on the happening of a loss


1: the insurers have a right to take possession of the premises where the loss has occurred 2: the insured can abandon the damaged property to the insurers a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

77

20: Under fire policy sum insured is Rs.1,00,000/- , loss is Rs.60,000/- , value of property at the time of proposal Rs.1,50,000/- value of property at the time of loss Rs.2,00,000/- . What is the amount of loss payable

a.Rs.40,000/b.Rs.30,000/c.Nil d.Rs.60,000/-

Ans: Rs.30,000/-

78

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

a.loss of stock in process b.loss of stock in godowns c.damage to machinery d.damage to containers and equipment

Ans: loss of stock in godowns

79

22: Escalation clause added to the fire policy allows automatic regular increase not exceeding ------% in sum insured throughout the period of the policy

a. b. c. d.

5% 10% 25% 50%

Ans: 25%

80

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


1: escalcation clause applies to buildings and machinery only 2: escalcation clause applies to fluctuating stocks

a. b. c. d.

statement 1 is true statement 2 is true both statements are true both statements are false

Ans: statement 1 is true

81

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

a. b. c. d.

10% 25% 50% 75%

Ans: 50%

82

25: Sum insured(provisional) under fire declaration policy is Rs.100,00,000/- Rate of premium is Re.1.00 per mile. Average sum insured is Rs.50,00,000/The refund premium is a. Rs.5000/b. Rs.6,000/c. Rs.10,000/d. nil

Ans: Rs.5000/-

83

26: Under which of the following circumstances market value only is payable under fire reinstatement value policy

a.insured is unwilling to reinstate b.heavy under insurance c.breach of warranty d.breach of utmost good faith

Ans: insured is unwilling to reinstate

84

27: Which of the following is correct in relation to fire reinstatement value policy
1: depreciation applies to claims 2: pro-rata average applies

a. b. c. d.

1 is true 2 is true both are true both are false

Ans: 2 is true

85

28: Which of the following statements is correct Fire reinstatement value policy is granted on 1: Buildings and machinery only 2: Stocks only a. b. c. d. Statement 1 is correct Statement 2 is correct Both statements are not correct Both statements are correct

Ans: Statement 1 is correct

86

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

a.machinery breakdown policy b.electronic equipment policy c.business interruption(machinery breakdown) d.business interruption( fire and special perils)

Ans: business interruption(machinery breakdown)

87

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

a.Turnover minus variable and standing charges b.Net profit and cost of production c.Net profit and standing charges d.Net profit and variable charges

Ans: Net profit and standing charges

88

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

a. b. c. d.

1 lac 3 lacs 5 lacs 8 lacs

Ans: 1 lac

89

32: Which of the following statements is true

1: The sum insured under consequential loss(fire) policy should be equal to gross profits of the indemnity period selected. 2: The sum insured should be equal to the net profits of the indemnity period selected.
a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

90

33: Annual gross profit is Rs.1,20,000/-. Calculate the sum insured under consequential loss(fire) policy for a period of 9 months

a.Rs.60,000/b.Rs.90,000/c.Rs.1,20,000/d.Rs.1,80,000/-

Ans: Rs.1,20,000/-

91

MOCK TEST 6

92

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

a.standing of vessel b.washing overboard c.collision of vessel d.jettison

Ans: washing overboard

93

2: Malicious damage is automatically covered under

a.ICC(A) clauses b.ICC(B) clauses c.ICC clauses d.Not covered under any of the above

Ans: ICC(A) clauses

94

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

a.inadequate packing b.inherent vice c.malicious damage d.loss by delay

Ans: malicious damage

95

4: Which of the following statements is true


1: The duration of cover for strikes, riot and civil commotion applies during the entire voyage on a warehouse to warehouse basis 2: The duration of cover for strike, riot and civil commotion applies only when the goods are waterborne and not on land a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

96

5: Under institute cargo clause(AIR) the period of cover after unloading of cargo from the aircraft at the final place of discharge is limited to -----days

a. b. c. d.

15 days 30 days 45 days 60 days

Ans: 30 days

97

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


1: war risks can be covered 2: strike,riots and civil commotion risks can be covered a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

98

7: Under inland transit(rail/road) clause B & A, the duration of cover terminates after expiry of ------days after arrival of the railway wagon at the final destination railway station

a. b. c. d.

3 days 7 days 10 days 15 days

Ans: 7 days

99

8: The basis of valuation adopted under marine open cover is the prime cost of goods, costs of freight and insurance plus ----% to cover profits

a. b. c. d.

5% 10% 15% 20%

Ans: 10%

100

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

a.standing of vessel b.collision of vessel c.sea-water damage d.explosion

Ans: sea-water damage

101

10: Which of the following risk is automatically covered under institute cargo clauses(A) without extra premium

a.inherent vice b.country damage c.war and kindred risks d.strikes,riots and civil commotion

Ans: country damage

102

11: Which of the following perils CANNOT be added by extra premium to institute cargo clauses(B)

a.fresh water damage b.rain water damage c.inherent vice d.country damage

Ans: inherent vice

103

12: The clause in open cover which limits the liability of insurers at any one time or place before the shipment is known as

a.declaration clause b.basis of valuation clause c.location clause d.limit per bottom clause

Ans: location clause

104

13: When badly damaged goods are abandoned because the cost of reconditioning exceeds the value of goods after reconditioning, the loss is settled as

a.salvage loss b.actual total loss c.constructive total loss d.general average loss

Ans: constructive total loss

105

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

a.invoice b.bill of lading c.original policy d.non-delivery certificate

Ans: bill of lading

106

MOCK TEST 7

107

1: Which of the following does NOT fall under miscellaneous classification of motor vehicles

a. b. c. d.

ambulance mobile dispensaries motorized rickshaws cinema, film recording vans

Ans: motorized rickshaws

108

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

a.Rs.10,000/b.Rs.6,000/c.Rs.20,000/d.Rs.25,000/-

Ans: Rs.6,000/-

109

3: Which of the following statements is true Liability under workmens compensation act is to be compulsory insured is respect of

1: workers carried in a goods vehicle 2: workers carried in a public service vehicle


a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

110

4: Under the motor vehicles act, the amount of compensation for death on the basis of no-fault liability is Rs.------

a. b. c. d.

Rs.25,000/Rs.50,000/Rs.1,00,000/Rs.2,00,000/-

Ans: Rs.50,000/-

111

5: Under the motor vehicles act, the fixed compensation for death in hit and run motor accident is Rs.-----

a. b. c. d.

Rs.12,500/Rs.25,000/Rs.50,000/Rs.1,00,000/-

Ans: Rs.25,000/-

112

6: Liability only motor policy covers liability for damage to

a.property of third party b.property belonging to insured c.property held in trust by the insured d.property in the custody of the insured

Ans : property of third party

113

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

a. b. c. d.

Rs.25,000/Rs.50,000/Rs.1,00,000/Rs.2,00,000/-

Ans: Rs.1,00,000/-

114

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

a. b. c. d.

Rs.50,000/Rs.1,00,000/Rs.2,00,000/Rs.3,00,000/-

Ans: Rs.2,00,000/-

115

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

a. b. c. d.

Rs.50,000/Rs.1,00,000/Rs.2,00,000/Rs.3,00,000/-

Ans: Rs.2,00,000/-

116

10: In the event of death of sole insured under a motor policy the policy will remain valid for a period of ------months from the date of death of the insured or until the expiry of the policy(whichever is earlier)

a. b. c. d.

3 months 6 months 9 months 12 months

Ans: 3 months

117

11: Applications from legal heirs of the deceased insured for transfer of policy to their name should be accompanied by documents. Which of the following is NOT required

a.death certificate b.post-mortem report c.proof of title to the vehicle d.original policy

Ans: post-mortem report

118

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

a.earthquake b.lightning c.loss of accessories unless the vehicle is stolen at the same time d.landside

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

119

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

a. b. c. d.

Rs.750/Rs.1000/Rs.1500/Rs.2000 /-

Ans: Rs.1500/-

120

14: Under private car package policy constructive total loss arises if the cost of repairs of the damaged vehicle exceeds-------%

a. b. c. d.

75% 80% 90% 100%

Ans: 75%

121

15: Which of the following statements is true 1: rates of premium for motor third party risks are fixed by the IRDA 2: rates of premium for motor own damage risks are fixed by the tariff advisory committee a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

122

16: Which of the following is NOT a rating factor for private cars (own damage) a.insureds declared value of vehicle b.cubic capacity c.passenger capacity d.geographical zone

Ans: passenger capacity

123

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

a.personal accident cover for owner-driver b.electronic fittings c.use of CNG fuel d. fibre glass fuel tanks

Ans: personal accident cover for owner-driver

124

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

a.vintage cars b. brand new cars c.membership of automobile association d.anti-theft devices approved by automobile research association of India

Ans: brand new cars

125

19: Which of the following is NOT taken into consideration for fixing rates of premium for buses(package policy)

a.age of vehicle b.licensed passenger capacity c.insured declared value of vehicle d.geographical area

Ans: insured declared value of vehicle

126

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

a.driving license b.registration certificate book c.fitness certificate d.final bill from repairs

Ans: fitness certificate

127

21:Out of the following documents for own damage motor claims, select one which is additionally required for commercial vehicle(goods carrier) claims

a.registration certificate book b.permit c.driving license d.police report

Ans: permit

128

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

a.CNG/LPG fuel kit b.Anti-theft devices c.Fibre glass fuel tanks d.Electronic items fitted to the vehicles but not included in manufacturers price

Ans: Anti-theft devices

129

23: Which of the following statements is true Motor third party premium shall be shared among all the general insurers writing motor insurance business in proportion to gross direct premium in

1: motor insurance business 2: all classes of general insurance business


a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

130

24: The administrator of motor third party insurance is

a.IRDA b.GIC c.General insurance council d.Motor accident claims tribunal

Ans: GIC

131

25: Which of the following statements is true 1:motor third party (injury claims) are adjudicated by motor accident claims tribunal 2: motor third party(properly damage claims) are adjudicated by civil courts a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

132

MOCK TEST 8

133

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

a.Permanent total disablement b.Permanent partial disablement c.Loss of two limbs d.Loss of one limb and one eye

Ans: Permanent partial disablement

134

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

a.temporary total disablement b.temporary partial disablement c.permanent total disablement d.permanent partial disablement

Ans: temporary partial disablement

135

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

a.loss of both eyes b.loss of hearing in both ears c.paralysis d.loss of one limb and one eye

Ans: loss of hearing in both ears

136

4: The amount of weekly payment for temporary total disablement under personal accident insurance is restricted to

a. b. c. d.

Rs.1000/Rs.2000/Rs.3000/Rs.5000/-

Ans: Rs.3000/-

137

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

a.medical expenses b.expenses for carriage of dead body c.childrens education fund d.cumulative bonus

Ans: medical expenses

138

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

a.service in the armed forces b.air travel in standard type of aircraft c.suicide d.attempted suicide

Ans: air travel in standard type of aircraft

139

7: Which of the following is true in relation to personal accident insurance 1: the cover is on a 24-hour basis 2: the geographical area of cover is India a. b. c. d. 1 is true 2 is true both are true both are false

Ans:1 is true

140

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

a.accountants b.veterinary doctors c.lawyers d.bankers

Ans: veterinary doctors

141

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

a.3lorry drivers b.motor mechanics c.consulting architects d.paid drivers of motor cars

Ans: consulting architects

142

10:Which of the following statements is true 1: no medical examination is required for fresh cover for personal accident insurance 2: medical examination is required for renewal of personal accident insurance a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

143

11: Under group P.A policy which of the following is true 1: cumulative bonus does not apply 2: childrens education grant is available a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

144

12: Group P.A cover is arranged to cover only accidents to employees arising out of and in the course of employement reduced premium equivalent to -----% of the appropriate is charged

a. b. c. d.

50% 60% 75% 80%

Ans: 75%

145

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

a.individual policies b.group policies c.both individual and group policies d.neither individual nor group policies

Ans: group policies

146

14: If group P.A policy cover is required when the employees is not at work and/or not on official duty i.e off-duty cover, the reduced premium of -----% of the normal premium is charged

a. b. c. d.

40% 50% 60% 75%

Ans: 50%

147

MOCK TEST 9

148

1: Relevant medical expenses incurred during upto ----- days prior to hospitalization are treated as part of the claim

a. b. c. d.

15 days 30 days 45 days 60 days

Ans: 30 days

149

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

a. b. c. d.

tonsillitis sinusitis cataract hemia

Ans: tonsillitis

150

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

a. b. c. d.

Bronchitis Diabetes hemia chronic nephritis

Ans: hemia

151

4: Under mediclaim policy any disease contracted by the insured during the first ---- days from the commencement of policy is excluded

a. b. c. d.

15 days 30 days 45 days 60 days

Ans: 30 days

152

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

a. b. c. d.

epilepsy cataract hemia piles

Ans: epilepsy

153

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

a.chemotherapy b.radiotherapy c.naturopathy d.cost of pacemaker

Ans: naturopathy

154

7: Subject to no claim, cost of medical checkup once in every ----- underwriting years is payable under mediclaim policy

a. b. c. d.

2 years 3 years 4 years 5 years

Ans: 4 years

155

8: The sum insured under mediclaim policy is increased by 5% for each claim free year of insurance subject to a maximum accumulation of ----- Years

a. b. c. d.

3 years 5 years 10 years 15 years

Ans: 10 years

156

9:Which of the following is true under group mediclaim policy 1: cumulative bonus is not available 2: health check-up expenses are payable

a. b. c. d.

1 is true 2 is true both are true both are false

Ans: 1 is true

157

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

a.no claim bonus b.group discount c.cumulative bonus d.maternity extension

Ans: cumulative bonus

158

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

a. b. c. d.

8 months 9 months 10 months 12 months

Ans: 9 months

159

12: Claim under maternity extension in respect of any one insured person is payable only for a.first child b.first two children c.first three children d.first four children

Ans: first two children

160

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

a.pre-natal expenses prior to hospitalization b.caesarean section c.miscarriage due to accident d.abortion due to accident

Ans: pre-natal expenses prior to hospitalization

161

14: Which of the following statements is true 1: bonus/malus clause applies to individual mediclaim policy 2: bonus/malus clause applies to individual mediclaim policy a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

162

15: In relation to cancer patients aid association policy which of the following is true 1: The premium is payable to CPAA as part of the membership fee 2: claims are paid by CPAA

a. b. c. d.

1 is true 2 is true both are true both are false

Ans: 1 is true

163

16: No claim is payable under CPAA policy if the insured contracts cancer within a period of -----days from the date of becoming a member of CPAA

a. b. c. d.

15 days 30 days 45 days 60 days

Ans: 30 days

164

17: The sum insured under CPAA cancer policy, is increased by ----% for each completed year of policy in force prior to claim

a. b. c. d.

5% 10% 15% 20%

Ans: 5%

165

18: Which of the following is true Differences as to the claim or quantum thereof are to be referred to 1: arbitration as per policy conditions 2: committee set up by CPAA and the insurance company a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

166

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

a.cancer b.paralysis c.tuberculosis d.parkinsons disease

Ans: tuberculosis

167

20:Claim under the critical illness policy is payable if during the policy period the insured is found to have contracted a critical illness and survives such critical illness for at least----days from the date of its discovery

a. b. c. d.

15 days 30 days 45 days 60 days

Ans: 30 days

168

21: Any critical illness discovered or discoverable within -------days of the inception date of the policy is not covered under this policy

a. b. c. d.

30 days 45 days 60 days 90 days

Ans: 90 days

169

22: Under overseas medical policy, extension of the period of insurance is automatic, for the period not exceeding----- days and without extra, if due to delay of public transport services beyond the control of insured

a. b. c. d.

7 days 15 days 21 days 30 days

Ans: 7 days

170

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

a.physician services b.hospital services c.dental services for immediate relief of dental pain only d. local emergency medical transportation

Ans: dental services for immediate relief of dental pain only

171

24: Under personal accident section of overseas medical policy which of the following is not covered

a.death b.permanent total disablement c.permanent partial disablement d.loss of eyes or limbs

Ans: permanent partial disablement

172

25: Under overseas medical policy, emergency purchases of replacement items is paid if there is delay or more than -----hours in delivery of baggage at the destination of outbound flight from India

a. b. c. d.

6 hours 12 hours 18 hours 24 hours

Ans: 12 hours

173

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

a.medical expenses b.personal accident c.personal liability d.loss of passport

Ans: personal accident

174

27: Under corporate frequent travel annual policy the duration of any one trip not to exceed ----- days

a. b. c. d.

30 days 45 days 60 days 90 days

Ans: 60 days

175

28: Under corporate group overseas medical policy employees above ----years of age have to submit the prescribed medical reports

a. b. c. d.

55 years 60 years 65 years 70 years

Ans: 60 years

176

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

a.students prosecuting studies b.students doing research c.construction workers temporary posted abroad d.software engineers temporary posted abroad

Ans: construction workers temporary posted abroad

177

MOCK TEST 10

178

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

a. b. c. d.

Rs.10,000/Rs.12,500/Rs.25,000/Rs.50,000/-

Ans: Rs.25,000/-

179

2: The amount of relief payable under public liability insurance act, 1991 for permanent total disability is

a. b. c. d.

Rs.12,500/Rs.25,000/Rs.50,000/Rs.1,00,000/-

Ans: Rs.25,000/-

180

3: Under public liability insurance act, 1991 a company handling hazardous substance has to insure for an amount not less than the amount ----- of the company

a.market value of assets b.market value of stocks c.paid-up capital d.turnover of hazardous substances

Ans: paid-up capital

181

4: The maximum liability of the insurer under public liability insurance act 1991 to pay relief to several claimants arising out of one accident shall not exceed----

a.Rs.2.50 crores b.Rs.5.00 crores c.Rs.7.50 crores d.Rs.10.00 crores

Ans: Rs.5.00 crores

182

5:Which of the following liabilities is NOT excluded under insurance policy under public liability insurance act, 1991

a.arising out of willful non-compliance of statutory provision b.damage to property leased by the insured c.damage to property of third party d.fines and penalties

Ans: damage to property of third party

183

6: Which of the following is taken into account to fix rates of premium for the policy under public liability insurance act , 1991

a.limit of indemnity , any one accident b.limit of indemnity, any one year c.limit of indemnity, any one year and turnover d.limit of indemnity, any one accident and turnover

Ans: limit of indemnity, any one accident and turnover

184

7: Which of the following exclusions of industrial risks public liability policy can be covered under a separate policy

a.liability for pollution b.liability of collaboration who has a technical collaboration with the insured c.liability for injuries to employees d.liability arising out of earthquake

Ans: liability for injuries to employees

185

8: Under industrial risks public liability policy the compulsory excess of a specified percentage is applied on the limit of indemnity 1: any one accident 2: any one year a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

186

9: Which of the following is NOT relevant in fixing rates of premium under industrial risks public liability policy

a.risk group b.type of construction of risk c.ratio of limits of indemnity-AOA to AOY d.turnover

Ans: type of construction of risk

187

10: Which of the following risks falls under group IV for rating purposes under industrial risks public liability policy

a.distilleries b.match factories c.breweries d.biscuit factories

Ans: match factories

188

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

a.pollution b.costs of repair of a defective product c.costs of recall of any product d.product guarantee

Ans: pollution

189

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

a.motor vehicles b.motor vehicle tyres c.alcoholic beverages d.pharmaceutical products

Ans: motor vehicle tyres

190

13: For which of the following professional indemnities per capita premium in addition to basic rate is NOT provided

a.medical establishments b.doctors c.chartered accountants d.solicitors

Ans: doctors

191

14: Which of the following does NOT appear in the indemnity clause of workmens compensation insurance

a.employees state insurance act b.workmens compensation act c.fatal accidents act d.common law

Ans: employees state insurance act

192

15: Which of the following statements is true 1: compulsory excess is applicable to doctors professional indemnities 2: compulsory excess is applicable to professional indemnities for medical establishments a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 2 is true

193

16: Which of the following extensions is NOT granted under workmens compensation policy

a.specified diseases in the W.C.act b.medical expenses c.technical collaboration d.contractors workmen

Ans: technical collaboration

194

MOCK TEST 11

195

1: Which of the following project does NOT fall under contractors all risk policy

a. b. c. d.

installation of machinery buildings tunnels bridges

Ans:installation of machinery

196

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

a. b. c. d.

damage to boiler damage to surrounding property of insured damage by fire damage to third party property

Ans:damage by fire

197

MOCK TEST 12

198

1: Which of the following requirements does NOT apply for granting cash-in- safe insurance the safe is burglar-proof the safe is brand new the safe is of approved make the safe is approved design

a. b. c. d.

Ans:the safe is brand new

199

2: Which of the following risks is NOT covered at extra premium under burglary ( business) premises policy

a. b. c. d.

strike riot breakage of plate glass terrorism

Ans:breakage of plate glass

200

3: Which of the following losses caused by burglars is NOT payable under burglary ( business premises) policy

a. b. c. d.

damage to external doors by fire damage to goods which were not stolen damage to furniture theft of cash safe through original key obtained by threats of violence

Ans:damage to external doors by fire

201

4: Which of the following is covered under baggage insurance policy traveling salemans samples traveling dealers stocks accompanied baggage unaccompanied baggage

a. b. c. d.

Ans:accompanied baggage

202

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

a. b. c. d.

first loss policy reinstatement value policy declaration policy floating policy

Ans:reinstatement value policy

203

6: Under money insurance which of these statements is correct. Estimated amount of cash in transit during the policy period 1: is the maximum amount payable for any one loss 2: is the amount on which the premium is collected a. 1 is correct b. 2 is correct c. both are correct d. both are incorrect

Ans: 2 is correct

204

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

a.riot b.strike c.robbery d.terrorism

Ans:robbery

205

8:Which of the following can be covered under money-in-transit policy at extra premium 1: dishonesty of persons carrying the cash 2: loss of wages on premises during payment to employees a.1 only b. 2 only c. both can be covered d. neither can be covered

Ans: both can be covered

206

9: Under fidelity guarantees, the customary time limit for discovery of loss is not later than ----- months after the resignation of the dishonest employee

a 6 b. 12 c. 18 d. 24

Ans:12

207

10: which of the following fidelity guarantee policies is usually granted to large reputable firms to cover their entire staff

a. b. c. d.

floating policy collective policy blanket policy positions policy

Ans:blanket policy

208

11: Under which of the following fidelity guarantee policies individual amount of guarantee is NOT specified

a. b. c. d.

collective policy floating policy positions policy blanket policy

Ans:floating policy

209

12: Under which of the following fidelity guarantee policies, per capita additional premium is charged

a. b. c. d.

collective floating positions blanket

Ans: floating

210

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

a. b. c. d.

theft lightning mechanical breakdown external explosion

Ans:mechanical breakdown

211

14: which of the following covers in householders package insurance is NOT included in shopkeepers package insurance

a. b. c. d.

personal baggage television fixed plate glass legal liability to third parties

Ans: television

212

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

a. b. c. d.

fixed plate glass neon sign pedal cycles legal liability to employees

Ans:neon sign

213

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

a. b. c. d.

trading losses payment of raised cheque dishonesty of the employee of the bank with respect to loss of money loss of securities by fire

Ans:trading losses

214

17: Which of the following are NOT covered under bankers blanket policies a. fraud of insureds employees in respect of goods hypothecated to the insured b. payment of forged cheques c. loss due to faulty computer programming d. loss of securities by burglary

Ans: loss due to faulty computer programming

215

18: Under jewelers block policy which of the following property is covered against specified risks only not on all risks basis

a. b. c. d.

on premises in transit by air freight in transit by angadia in the custody of brokers

Ans:on premises

216

MOCK TEST 13

217

1: Under cattle policy, the claim is not payable for death due to disease occurring within ------ days of the commencement of the risk

a.7 days b.15 days c. 21 days d. 30 days

Ans:15 days

218

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

1: indemnity is provided on the basis of sum insured or market value whichever is less 2: salvage value is deducted from claim amount payable
a. b. c. d. 1 is true 2 is true both are true both are false

Ans: 1 is true

219

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

a. b. c. d.

farms in rural areas farms having resident veterinary doctor farms having dead bird disposal system farms having standard layout

Ans:farms in rural areas

220

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

a. b. c. d.

grapes oranges papaya bananas

Ans: papaya

221

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

a. b. c. d.

mechanical breakdown electrical breakdown flood burglary

Ans: flood

222

6: Under IRDA regulations every insurer shall underwrite business in the rural sector to the extent of at least -----% of the total gross premium in the first financial year

a. b. c. d.

1% 2% 3% 4%

Ans:2%

223

MOCK TEST 14

224

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

1:All differences in respect of a claim are to be referred to arbitration 2: differences regarding amount of claim only to be paid are to be referred to arbitration a. b. c. d. 1 is true 2 is true both are true both are false

Ans:2 is true

225

Important Terms
1) Losses 2) Papaya 3) Coffee 4) Robbery 5) Pollution 6) Assignment 7) ICC(A) 8) Malicious Damage 9) Rs. 5 Crore 10) Contribution 11) 1500 (towing charge) 12) Motor Constructive Total Loss =75% 13) Match Factory 14) Earthquake 15) Veterinary Doctors 16) Tonsillitis 17) Epilepsy
18) First two children 19) Tuberculosis 20) Motor vehicle tyres 21) Television 22) Neon sign 23) Marine cargo insurance 24) Marine cargo and hull 25) Civil Court = False statements 26) Architects 'fees' = 3% and 7.5% 27) Debris removal = 1% and 10% 28) Act of god perils = Rs.10,000/- for each and every loss 29) Forklift on the premises 30) No fault liability = Rs. 50,000 31) Hit and run motor accident = 25,000