IC 34 Question Bank_Answer Paper

7/25/2019 IC 34 Question Bank_Answer Paper

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Question Bank

IC 34

msrivas


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CHAPTER 1

INTRODUCTION TO INSURANCE

1.

Which among the following is not a function of insurance?I. Risk mitigationII. Risk transferIII. Risk trackingIV. Risk reduction

The correct option is III.Risk tracking is not a function of insurance.

2.

Chance of loss is referred to as _________.I. uckII. RiskIII. !ad luckIV. "eril

The correct option is II.Chance of loss is referred to as risk.

#.

Insurance deducti$le is an e%ample of ___________.I. Risk mitigationII. Risk a&oidanceIII. Risk transferIV. Risk retention

The correct option is IV.Insurance deducti$le is an e%ample of risk retention.

'. Cost of risk is determined $( ________________.I. "ro$a$ilit( onl(II. Impact onl(III. "ro$a$ilit( and impactIV. Timing of risk

The correct option is III."ro$a$ilit( and impact of the risk determine the cost of risk.

).

*ow does insurance help in easing access to credit?

I. Insurer pro&ides free creditII. !anks lend easil( if an application is $acked $( insuranceIII. "erson who can pa( insurance is assumed to $e creditworth(IV. Regulations mandate pro&ision of credit to the insured

The correct option is II.!anks lend easil( if an application is $acked $( insurance.


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+. lo(ds Coffee *ouse is regarded as the place where insurance started the wa( it ispractised toda(. lo(ds is located in __________.I. !angaloreII. ,ingaporeIII. ondonIV. -u$ai

The correct option is III.lo(ds is located in ondon.

. Risk transfer through risk pooling is called________.I. ,a&ingsII. In&estmentsIII. InsuranceIV. Transfer

The correct option is III.Risk transfer through risk pooling is called insurance.

/.

The measures to reduce chances of occurrence of risk are known as _____.I. Risk retentionII. oss pre&entionIII. Risk transferIV. Risk a&oidance

The correct option is II.oss pre&ention measures reduce the chance of occurrence of risk.

0.

!( transferring risk to insurer it $ecomes possi$leI. To en3o( from floods

II. To en3o( and make mone( from insuranceIII. To en3o( a fire in the factor(

IV. To en3o( peace of mind and plan ones $usiness more effecti&el(

The correct option is IV.Insurance pro&ides peace of mind and helps one plan his $usiness effecti&el(.

14.5rigins of modern insurance $usiness can $e traced to________.I. !ottomr(II. lo(dsIII. RhodesIV. 6alhotra Committee

The correct option is II.5rigins of modern insurance can $e chased to lo(ds.

11.In the insurance conte%t 7risk retentionindicates a situation where__________.I. possi$ilit( of loss or damage is not thereII. loss producing e&ent has no &alueIII. propert( is co&ered $( insurance


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IV. one decides to $ear the risk and its effects

The correct option is IV.When one decides to $ear the conse8uence of a risk he is said to ha&e retained risk.

12.

Which of the following statement is true?

I. Insurance protects the assetII. Insurance pre&ents its lossIII. Insurance reduces possi$ilities of lossIV. Insurance pa(s when there is loss of asset

The correct option is IV.Insurance compensates for the loss of an asset.

1#.

5ut of '44 houses each &alued at Rs.24 444 on an a&erage ' houses get $urnt e&er( (earresulting in a com$ined loss of Rs./4 444. What should $e the annual contri$ution of eachhouse owner to make good this loss?I. Rs.1449:

II. Rs.2449:III. Rs./49:IV. Rs.'449:

The correct option is II.;ach house owner needs to contri$ute Rs 244.

1'.

Which of the following statements is true?

I. Insurance is a method of sharing the losses of a 7few$( the 7man(

II. Insurance is a method of transferring the risk of an indi&idual to another indi&idual

III. Insurance is a method of sharing the losses of 7man($( a few

IV. Insurance is a method of transferring the gains of a few to the man(

The correct option is I.Insurance is a method of sharing the losses of a few $( the man(.

1).

!efore acceptance of a risk the insurer arranges a sur&e( and inspection of the propert(.Wh(?I. To assess the risk for rating purposesII. To find out how the insured purchased the propert(III. To find out whether other insurers ha&e also inspected the propert(IV. To find out whether neigh$ouring propert( also can $e insured

The correct option is I.!efore acceptance of the risk an insurer conducts an in&estigation in order to assess the riskfor rating purpose.


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CHAPTER 2

PRINCIPLES OF INSURANCE

1.

Which one of the following does not represent an insura$le risk?I.


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+. ______________ means spreading ones in&estment in different kinds of assets.I. "oolingII. -i&ersificationIII. >am$lingIV. -(namic risk

The correct option is II.-i&ersification means spreading ones in&estment in different kinds of assets.

.

_____________ is not an e%ample of an asset.I. *ouseII. ,unlightIII. "lant and machiner(IV. 6otor car

The correct option is II.,unlight cannot $e classified as asset as it fails the test of scarcit( and ownership.

/.

______________ is not an e%ample of risk.I. -amage to car due to accidentII. -amage of cargo due to rain waterIII. -amage to car t(re due to wear and tearIV. -amage to propert( due to fire

The correct option is III.-amage as a result of wear and tear cannot $e treated as risk.

0.

;arth8uake is an e%ample ofI. Catastrophic riskII. -(namic riskIII. 6arginal riskIV. ,peculati&e risk

The correct option is I.;arth8uake is an e%ample of catastrophic risk.

14.,elect the most appropriate logical e8ui&alence for the statement.,tatement Insurance cannot protect an asset from loss or damage.I. TrueII.


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III. egal ha=ardIV. Risk pooling

The correct option is II.,u$rogation means transfer of all rights and remedies with respect to the su$3ect matter ofinsurance from insured to insurer.

12.@n e%ample of a fact which need not $e disclosed unless asked for is ______________ $(the insurer.I. @ge of the insuredII. "resence of fire e%tinguisherIII. *eart ailmentIV. 5ther insurance details

The correct option is II."resence of fire e%tinguisher need not $e disclosed while $u(ing insurance unless asked for.

1#.

________________ is a wrong statement made during negotiation of a contract.

I. 6isrepresentationII. Contri$utionIII. 5fferIV. Representation

The correct option is I.6isrepresentation is a wrong statement made during negotiation of a contract.


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CHAPTER 3

MARKETING AND SELLING INSURANCE

1. Which among the following is not an essential component of the sales process?I. >oodwill

II. !u(erIII. ,ellerIV. "roduct 9 ,er&ice

The correct option is I.>oodwill is not an essential component of the sales process.

2. Which among the following acti&ities can $e classified as promotion?I. "roduct de&elopmentII. Aualit( controlIII. "roduct ad&ertisementIV. "roduct $enchmarking

The correct option is III."roduct ad&ertisement is a means of promotion.

#.

Which among the following statements $est descri$es a BTestimonial?I. @n endorsement from a satisfied customerII. Test result for a product in a $enchmarking testIII. ist of tests that a product must passIV. 6one( re8uired to test a product

The correct option is I.@ testimonial is an endorsement from a satisfied customer.

'.

>eneral insurance could help in achie&ing all of the following o$3ecti&es ;DC;"TI. "rotection against loss to $usiness premisesII. 6aking windfall gains on the occurrence of a contingent e&entIII. "rotection against errors and omissionsIV. "rotection against propert( losses

The correct option is II.>eneral insurance cannot $e used to make windfall gains on the occurrence of a contingente&ent.

).

*ow can insurance penetration $e determined?

I. Ratio of insurance premiums to >-".II. Ratio of insurance companies to the local populationIII. Ratio of insurance premium to per capita incomeIV. Ratio of su$scri$ers to the insurance policies a&aila$le

The correct option is I.Insurance penetration is the ratio of insurance premiums to >-".+.

Classification of customers into &arious market segments ha&ing common features isknown as _____________.


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I. ,alesII. ,egmentationIII. 6arketingIV. "rospecting

The correct option is II.

Classification of customers into &arious market segments ha&ing common features is knownas segmentation.

.

The ke( to successful closing lies in helping the prospect to sa( ________.I. o

II. -ont knowIII. EesIV. 6a($e

The correct option is III.The ke( to successful closing lies in helping the prospect to sa( BEes.

/.

Which of the following is not part of sales process?I. "rospectingII. ,ales inter&iewIII. oss assessmentIV. Closing

The correct option is III.oss assessment is not a part of the sales process.

0. _______________ is not among the "s of marketing.I. "riceII. "roductIII. "rotectionIV. "lace

The correct option is III.

"rotection is not among one of the "s of marketing.

14.

Insurance is part of ___________ industr(.I. 6anufacturingII.


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The correct option is III.egotiation is a process to reach at a win:win situation.

12.

"rospecting in an insurance sale is

I. >athering the names of people who ma( $e interested in insuranceII. "reparing a list of all the persons in the cit(III. ;nlisting all the polic(holders of the $ranch officeIV. "reparing list of all the agents in the neigh$ourhood

The correct option is I."rospecting in an insurance sale is gathering the names of people who ma( $e interested ininsurance.

1#.

eed:gap anal(sis in&ol&es finding a$out prospectI. Identif(ing the areas where the prospect needs insurance protectionII. Identif(ing people to work as insurance agents

III. Identif(ing how much assets a prospect hasIV. Indentif(ing the po&ert( le&el of the prospects

The correct option is I.eed:gap anal(sis in&ol&es finding a$out prospect and identif(ing the areas where theprospect needs insurance protection.

1'.

Insurance densit( isI. ife insurance premiumII. Ratio of premium to incomeIII. "remium per capitaIV. Co&erage per capita

The correct option is III.Insurance densit( is premium per capita.

1).

Cold Calling isI. 6eeting customers in winterII. 6eeting customers when the( are suffering from coldIII. 6eeting people unannouncedIV. 6eeting customer after fire was e%tinguished

The correct option is III.Cold calling in&ol&es meeting people unannounced.


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CHAPTER 4

LEGAL AND REGULATORYASPECTS OF INSURANCE AGENCY

1. What is the primar( purpose of insurance regulations?I. To generate fee income

II. "rotect the interests of polic(holdersIII. To settle customer disputesIV. To control the market share of pri&ate insurers

The correct option is II.The primar( purpose of insurance regulations is to protect the interests of polic(holders.

2.

Which among the following acti&ities is prohi$ited as per the pro&isions of Insurance @ct10#/?I. Feeping aside reser&es to meet sol&enc( re8uirementsII. Gsing re$ates as a tool to sell insurance policiesIII. "rospecting customers

IV. imiting management e%penses

The correct option is II.Gsing re$ates as a tool to sell insurance policies is prohi$ited under Insurance @ct 10#/.

#.

Insurance agents who hold licence to act as an agent for $oth a life insurer and a generalinsurer are called _______________.I. Common insurance agentsII. Composite insurance agentsIII. 6ultiple insurance agentsIV. >eneral insurance agents

The correct option is II.Insurance agents who hold licence to act as an agent for $oth a life insurer and a generalinsurer are called composite insurance agents.

'. Which of the $elow intermediar( is not in&ol&ed in procurement of $usiness?I. Insurance $rokersII. Indi&idual agentsIII. ,ur&e(orsIV. Corporate agents

The correct option is III.,ur&e(ors are not in&ol&ed in procurement of insurance $usiness.

). What does the term BCa&eat ;mptor mean?I. !u(er $ewareII. ,eller $ewareIII. Insurance $u(er $eware of misellingIV. Insurance agent $eware of customer re8uirement

The correct option is I.The principle of BCa&eat ;mptor implies $u(er $eware.


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+.

6oral ha=ard meansI. -ishonest( or character defects in an indi&idualII. *onest( and &alues in an indi&idualIII. Risk of religious $eliefsIV. *a=ard of the propert( to $e insured

The correct option is I.

.

Insurance agent represents the ______________.I. Insurance compan(II. ,u$:agentIII. Co:agentIV. !roker

The correct option is I.Insurance agent represents the insurance compan(.

/.

icence to work as an insurance agent is issued $( __________.I. >eneral Insurance Corporation H>ICII. Insurance Regulator( J -e&elopment @uthorit( HIR-@III. !( the respecti&e life insurance compan(IV.


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IV. 144

The correct option is I.Rs. 2)4 is the fees pa(a$le to the @uthorit( for issue9 renewal of licence to act as aninsurance agent or composite insurance agent

12.

The @uthorit( ma( issue duplicate licence in case it is ____________.I. ostII. Re&okedIII. ,uspendedIV. Withdrawn

The correct option is I.The @uthorit( ma( issue duplicate licence in case it is lost.

1#.

If an agent is found guilt( of criminal misappropriation the designated person will_______________.I. Cancel the licence

II. Issue a duplicate licenceIII. Renew the e%isting licenceIV. Take some fees from the agent

The correct option is I.If an agent is found guilt( of criminal misappropriation the designated person will cancel thelicense.

1'.6inimum 8ualification re8uired for an insurance agent is _______ pass.I. >raduateII. 14thIII. "ost:>raduate

IV. th

The correct option is II.6inimum 8ualification re8uired for an insurance agent is 14th pass.

1).

________________ ma( deal with more than one ife Insurance Compan( or generalinsurance compan( or $oth.I. @gentII. !rokerIII. Corporate agentIV. Retail agent

The correct option is II.@n insurance $roker ma( deal with more than one life insurance compan( or generalinsurance compan( or $oth.


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CHAPTER 5

DOCUMENTATION

1. What is the significance of the principle of contri$ution?I. It ensures that the insured also contri$utes a certain portion of the claim along with the

insurerII. It ensures that all the insured who are a part of the pool contri$ute to the claim made$( a participant of the pool in the proportion of the premium paid $( themIII. It ensures that multiple insurers co&ering the same su$3ect matterK come together andcontri$ute the claim amount in proportion to their e%posure to the su$3ect matterIV. It ensures that the premium is contri$uted $( the insured in e8ual installments o&erthe (ear.

The correct option is III.The principle of contri$ution ensures that multiple insurers co&ering the same su$3ect matterKcome together and contri$ute the claim amount in proportion to their e%posure to the su$3ectmatter

2.

@s per guidelines an insurance compan( has to process an insurance proposal within__________.I. da(sII. 1) da(sIII. #4 da(sIV. ') da(s

The correct option is II.@s per guidelines an insurance compan( has to process an insurance proposal within 1) da(s.

#.

In case the premium pa(ment is made $( che8ue then which of the $elow statement will

hold true?I. The risk ma( $e assumed on the date on which the che8ue is postedII. The risk ma( $e assumed on the date on which the che8ue is deposited $( theinsurance compan(III. The risk ma( $e assumed on the date on which the che8ue is recei&ed $( the insurancecompan(IV. The risk ma( $e assumed on the date on which the che8ue is issued $( the proposer

The correct option is I.In case the premium pa(ment is made $( che8ue then the risk ma( $e assumed on the dateon which the che8ue is posted.

'.

Which of the $elow statement is true with regards to co&er notes?I. Co&er notes are predominantl( used in life insuranceII. Co&er notes are predominantl( used in all classes of general insuranceIII. Co&er notes are predominantl( used in health insuranceIV. Co&er notes are predominantl( used in marine and motor classes of general insurance

The correct option answer is IV.Co&er notes are predominantl( used in marine and motor classes of general insurance.). Which of the $elow statement is correct with regards to a warrant(?


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I. @ warrant( is a condition which is implied without $eing stated in the polic(II. @ warrant( is a condition e%pressl( stated in the polic(III. @ warrant( is a condition e%pressl( stated in the polic( and communicated to theinsured separatel( and not as part of the polic( documentIV. If a warrant( is $reached the claim can still $e paid if it is not material to the risk

The correct option is II.@ warrant( is a condition e%pressl( stated in the polic(.

+.

If certain terms and conditions of the polic( need to $e modified at the time of issuanceit is done $( setting out the amendments through __________.I. Warrant(II. ;ndorsementIII. @lterationIV. 6odifications are not possi$le

The correct option is II.If certain terms and conditions of the polic( need to $e modified at the time of issuance it is

done $( setting out the amendments through endorsement.

.

Which of the $elow statement is correct with regards to renewal notice?I. @s per regulations there is a legal o$ligation on insurers to send a renewal notice toinsured #4 da(s $efore the e%pir( of the polic(II. @s per regulations there is a legal o$ligation on insurers to send a renewal notice toinsured 1) da(s $efore the e%pir( of the polic(III. @s per regulations there is a legal o$ligation on insurers to send a renewal notice toinsured da(s $efore the e%pir( of the polic(IV. @s per regulations there is no legal o$ligation on insurers to send a renewal notice toinsured $efore the e%pir( of the polic(

The correct option is IV.@s per regulations there is no legal o$ligation on insurers to send a renewal notice to insured$efore the e%pir( of the polic(.

/.

__________ is the ma%imum limit of lia$ilit( of insurer under the polic(I. ,um insuredII. "remiumIII. ,urrender &alueIV. @mount of loss

The correct option is I.,um insured is the ma%imum limit of lia$ilit( of insurer under the polic(.

0.

_______________ is the consideration or price paid $( insured under a contractI. Claim amountII. ,urrender &alueIII. 6aturit( amountIV. "remium

The correct option is IV."remium is the consideration or price paid $( insured under a contract.


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14.

@ document which pro&ides an e&idence of contract of insurance is called________I. "olic(II. Co&er noteIII. ;ndorsementIV. Certificate of insurance

The correct option is I.@ document which pro&ides an e&idence of contract of insurance is called polic(.

11.The dut( of disclosure arisesI. "rior to inception of the polic(II. @fter inception of the polic(III. "rior to inception and continues during the polic(IV. There is no such dut(

The correct option is III.The dut( of disclosure arises prior to the inception and continues e&en during the polic(

12.

6aterial factI. Is the &alue of all material co&ered in a polic(II. ot important for assessing the riskIII. Is important as it influences the decision of the underwriterIV. Is not important as it has no $earing on the decision of the underwriter

The correct option is III.6aterial fact is important as it influences the decision of the underwriter.

1#.


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III. *as to $e kept in the car alwa(sIV. *as to $e kept in the $ank locker

The correct option is III.The certificate of 6otor Insurance has to $e kept in car alwa(s.

1+.

@ warrant(I. Is a condition e%pressl( stated in the polic(II. *as to $e complied withIII. !oth a and $IV. one of the a$o&e

The correct option is III@ warrant( is a condition e%pressl( stated in a polic( and has to $e complied with.

1.

Renewal otice for 6otor insurance is issued $(I. The Insured $efore e%pir( of the polic(II. The Insurer $efore e%pir( of the polic(

III. The Insured after e%pir( of the polic(IV. The Insurer after e%pir( of the polic(

The correct option is II.Renewal otice for 6otor insurance is issued $( the insurer $efore e%pir( of the polic(


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CHAPTER 6

THEORY AND PRACTICE OF PREMIUM RATING

1. Identif( the two factors that affect insurance ratemaking.I. "ro$a$ilit( and se&erit( of risk

II. ,ource and nature of riskIII. ,ource and timing of riskIV. ature and impact of risk

The correct option is I."ro$a$ilit( and se&erit( of risk affect insurance ratemaking.

2. What is pure premium?I. "remium sufficientl( $ig enough to pa( for losses onl(II. "remium applica$le to marginal mem$ers of the societ(III. "remium after loading for administrati&e costsIV. "remium deri&ed from the most recent loss e%perience period

The correct option is I."ure premium is sufficient enough to pa( for losses howe&er it does not account foradministrati&e e%penses or profit.

#. What is e%pected of an agent when she detects a moral ha=ard?I. Continue with the insurance as $eforeII. Report the same to the insurerIII. @sk for a share in the claimsIV. Turn a $lind e(e


@n insurance agent should report to the insurer an( detection of moral ha=ard.

'.

,uggest an insurance scheme for a doctor to protect him from an( claims of negligenceagainst him.I. "ersonal accident insuranceII. ia$ilit( insuranceIII. 6arine hull insuranceIV. *ealth insurance

The correct option is II.ia$ilit( insurance can insure the doctor against claims of negligence.

).

_____________ decides whether to accept or not to accept the risk.I. @ssuredII. GnderwriterIII. @gentIV. ,ur&e(or

The correct option is II.Gnderwriter decides whether to accept or not to accept the risk.+.

_______________ is the price of a gi&en unit of insurance.


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I. RateII. "remiumIII. ,um @ssuredIV. !onus


Rate is the price of a gi&en unit of insurance.

.

___________ is the ma%imum amount that an insurance compan( will indemnif( tosomeone who files a claim.I. ,um insuredII. "remiumIII. RiderIV. !enefits

The correct option is I.,um insured is the ma%imum amount that an insurance compan( will indemnif( to someonewho files a claim.

/.

______________ is not a source of information for underwriter.I. @nnual accounts of a proposerII. "re:acceptance risk sur&e( of the assetIII. "roposal formIV. Registration certificate of insurer

The correct option is IV.Registration certificate of insurer is not a source of information for underwriter.

0.

*a=ards areI.


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III. The &ehicle should not $e used for carr(ing luggage for personal useIV. The &ehicle should not $e run more than 244 km per da(.

The correct option is II.In motor insurance one of the warranties is that &ehicle should not $e used for speed testing.

12.The purpose of deducti$le clause is toI. To a&oid claim pa(mentII. To eliminate pa(ment of small claimsIII. To harass the polic(holderIV. To increase the premium

The correct option is II.The purpose of deducti$le clause is to eliminate small claims.

1#.Installation of sprinkler s(stem in the premisesI. Increases risk

II. -ecreases the riskIII. either increases nor decreases riskIV. Increases risk of hooding

The correct option is II.Installation of sprinkler s(stem in the premises decreases the risk of fire.

1'.Insureds declared &alue in motor insurance includesI. Registration

II. 6anufacturers cost price

III. 6anufacturers selling price

IV. @r$itrar( price component


Insureds declared &alue in motor insurance includes manufacturers selling price.


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CHAPTER 7

PERSONAL AND RETAIL INSURANCE

1. Which of the $elow statement is correct with regards to an accident?I. @n accident usuall( denotes a sudden foreseen and an une%pected e&ent.

II. @n accident usuall( denotes a sudden unforeseen and an e%pected e&ent.III. @n accident usuall( denotes a sudden foreseen and an e%pected e&ent.IV. @n accident usuall( denotes a sudden unforeseen and an une%pected e&ent.

The correct option is IV.@n accident usuall( denotes a sudden unforeseen and an une%pected e&ent.

2. Which of the $elow will $e treated in a da( care center?I. CancerII. CataractIII. ,trokeIV. *eart attack

The correct option is II.Cataract will $e treated in a da( care centre.

#.

Which of the $elow statement is correct with regards to corporate fre8uent tra&elersplan?I. It is &alid for one tripII. It is &alid for + trips or + months whiche&er happens firstIII. It is an annual polic( &alid for multiple trips with a limit on ma%imum num$er of tripsIV. It is an annual polic( &alid for multiple trips $ut ends with the first claim


Corporate fre8uent tra&eler plan is an annual polic( &alid for multiple trips with a limit onma%imum num$er of trips.

'.

Which of the $elow statement is correct with regards to a householders insurance polic(?

I. @ named peril polic( ma( $e purchased as a less e%pensi&e alternati&e to acomprehensi&e co&erage polic( that tends to offer co&erage to most perils.II. @ comprehensi&e polic( that tends to offer co&erage to most perilsK ma( $e purchasedas a less e%pensi&e alternati&e to a named peril polic(.III. @ named peril polic( or comprehensi&e polic( comes at the same price.

IV. With regards to a householders polic( onl( a named peril polic( can $e $ought andcomprehensi&e policies are not a&aila$le.

The correct option is I.@ named peril polic( ma( $e purchased as a less e%pensi&e alternati&e to a comprehensi&eco&erage polic( that tends to offer co&erage to most perils.

). Gnder the shopkeeper polic( the insured ma( opt for an additional 7


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II. ,anitar( fittingsIII. eon signsIV. @ll of the a$o&e

The correct option is IV.Gnder the shopkeeper polic( the insured ma( opt for an additional 7


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*ealth insurance co&ers all of the a$o&e pre:hospitalisation treatment post:hospitalisationtreatment domiciliar( treatment.

14.

Tra&el insurance co&ersI. -ela( in $aggageII. ;mergenc( hospitali=ation

III. oss of checked $aggageIV. @ll the a$o&e

The correct option is IV.Tra&el insurance co&ers all of the a$o&e dela( in $aggage emergenc( hospitalisation and lossof checked $aggage.

11.


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1).In shop keepers insurance which of the following are usuall( not co&eredI. 6one( in till9counter at $usiness premisesII. 6one( in transit from $ank to $usiness premisesIII. 6one( in safe at $usiness premisesIV. 6one( carried $( customer to $usiness premises.

The correct option is IV.In shopkeepers insurance mone( carried $( customer to $usiness premises is usuall( notco&ered.

1+.,hop insurance co&ersI. -ishonest acts of emplo(eesII. -ishonest acts of insuredIII. -ishonest acts of customersIV. -ishonest acts of mone( lenders

The correct option is I.,hop insurance co&ers dishonest act of emplo(ees.


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CHAPTER 8

COMMERCIAL INSURANCE

1.

@ fire polic( for commercial risks co&ers the perils of ________I. ;%plosion

II. ImplosionIII. !oth of the a$o&eIV. one of the a$o&e



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III. ;mplo(ees and emplo(ers against the financial loss suffered $( them due to fraud ordishonest( of third part(IV. ,hareholders against the financial loss suffered $( them due to fraud or dishonest( ofthe compan( management


@ fidelit( guarantee insurance polic( indemnifies emplo(ers against the financial loss suffered$( them due to fraud or dishonest( of their emplo(ees.

+.

Which of the $elow can $e co&ered under a $ankers indemnit( insurance polic(?I. 6one( securities lost or damaged whilst within the premises due to fireII.


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14.Which $ranch of insurance offers co&er against war perils?I. 6arine policiesII. @&iation policiesIII. !oth of the a$o&eIV. one of the a$o&e

The correct option is III.6arine and a&iation is the onl( $ranch of insurance that offer co&er against war perils.

11.

Gnder the "u$lic ia$ilit( Insurance @ct 1001 how much is the compensation pa(a$le foractual medical e%penses?I. Rs. +2)4II. Rs 12)44III. Rs. 2)444IV. Rs. )4444

The correct option is II.Gnder the "u$lic ia$ilit( Insurance @ct 1001 the compensation pa(a$le for actual medical

e%penses is Rs. 12)44.

12.

In ;ngineering insurance C@R stands forI. 6otor CarII. Contractors @ll Risks

III. Compan(s @ll RisksIV. Companies @ll Re8uirements

The correct option is II.In ;ngineering insurance C@R stands for Contractors @ll Risks.

1#.@n emplo(er insures himself from dishonest act of his emplo(ees $( _________I. ;mplo(ees compensation polic(II. "u$lic ia$ilit( Insurance polic(III. uarantee Insurance polic(IV. -eclaration polic(.

The correct option is III.@n emplo(er insures himself from dishonest act of his emplo(ees $( uaranteeInsurance polic(.

1'._________ refers to the $od( of the ship.I. *ullII. CargoIII. "irac(IV. Lettison

The correct option is I.*ull refers to the $od( of the ship.

1).

"olic( which co&ers loss or damage to aircraft is ______________.


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I. ,tatutor( lia$ilit(II. "ropert( insuranceIII. @&iation insuranceIV. 6one( insurance


"olic( which co&ers loss or damage to aircraft is a&iation insurance.

1+.


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IV. ;ngineering Insurance


;mplo(ees Compensation "olic( is a t(pe of ia$ilit( Insurance.

21.6one( Insurance "olic( co&ers

I. Cash in handII. 6one( in&ested in 6utual


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CHAPTER 9

CLAIMS PROCEDURE

1. Which of the following acti&ities would not $e categorised under professional settlementof claims?

I. ,eeking information relating to the cause of the lossII. @pproaching the claim with a pre3udiceIII. @scertaining whether the loss was a result of an insured perilIV. Auantif(ing the amount pa(a$le under the claim

The correct option is II."rofessional settlement of claims does not in&ol&e approaching a claim with pre3udice.

2.

Ra3 is in&ol&ed in a car accident. *is car is insured under a motor insurance polic(. Whichamong the following is the most appropriate thing for Ra3 to do?I. otif( the insurer of the loss as soon as reasona$l( possi$leII. otif( the insurer at the time of insurance renewal

III. -amage the car further so as to recei&e a $igger compensationIV. Ignore the damage

The correct option is I.@ claim needs to $e notified as soon as reasona$l( possi$le.

#.

Compare claims in&estigation and claims assessment.I. !oth claims in&estigation and assessment are the same thingII. In&estigation tries to determine the &alidit( of the claim whereas assessment is moreconcerned with the cause and e%tent of the lossIII. @ssessment tries to determine the &alidit( of the claim whereas in&estigation is moreconcerned with the cause and e%tent of the loss

IV. In&estigation is done $efore the claim is paid and assessment is done after the claim ispaid

The correct option is II.In&estigation tries to determine the &alidit( of the claim whereas assessment is moreconcerned with the cause and e%tent of the loss.

'.

Who is the licensing authorit( for sur&e(ors?I. ,ur&e(or @ssociation of IndiaII. ,ur&e(or Regulator( and -e&elopment @uthorit(III. Insurance Regulator( and -e&elopment @uthorit(IV. >o&ernment of India

The correct option is III.IR-@ is the licensing authorit( for sur&e(ors.

).

Which among the following documents is most likel( to $e re8uested while e%amining ac(clone damage claim?

I. Coroners reportII. Report from


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IV. Report from 6eteorological -epartment

The correct option is IV.Report from 6eteorological -epartment is most likel( to $e re8uested while e%amining ac(clone damage claim.

+.

Gnder which principle can the insurer assume the rights of the insured in order to reco&erfrom a third part( the loss paid under a polic(?I. Contri$utionII. -ischargeIII. ,u$rogationIV. Indemnit(

The correct option is III.Gnder the principle of su$rogation the insurer can assume the rights of the insured in order toreco&er from a third part( the loss paid under a polic(.

.

If the insurer decides that a certain loss is not pa(a$le $ecause it is not co&ered under the

polic( then who decides on such matters?I. Insurers decision is finalII. GmpireIII. @r$itratorIV. Court of aw

The correct option is IV.If the insurer decides that a certain loss is not pa(a$le $ecause it is not co&ered under thepolic( then such matters will $e decided in the Court of aw.

/.

Intimation of loss is to $e madeI. at the e%act time of the lossII. after 1) da(sIII. as soon as reasona$l( possi$leIV. an( time after the loss

The correct option is III.Intimation of loss is to $e made as soon as reasona$l( possi$le.

0. In&estigation of loss is done $(I. unlicensed sur&e(orII. licensed and 8ualified sur&e(or

III. insureds representati&e

IV. an( person with a degree in engineering

The correct option is II.In&estigation of loss is done $( licensed and 8ualified sur&e(or.

14.


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IV. Coroner



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1+.

@r$itration is a claim settlement process done ______________.I. in the court of lawII. $( a group of sur&e(orsIII. $( ar$itratorHs chosen $( the parties in&ol&ed

IV. ar$itraril( $( the insurance compan(s emplo(ees

The correct option is III.@r$itration is a claim settlement process done $( ar$itratorHs chosen $( the parties in&ol&ed.

1.

Insurers under right of su$rogation are allowed to reco&er the loss paid fromI. ,hipping companies onl(II. Railwa(s and road carriers onl(III. @irlines and "ort Trusts onl(IV. ,hipping companies and railwa( and road carriers and airlines and port trusts

The correct option is IV.Insurers under right of su$rogation are allowed to reco&er the loss paid from shipping

companies and railwa( and road carriers and airlines and port trusts.


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CHAPTER 10

CUSTOMER SERVICE

1. What is meant $( customer lifetime &alue?I. ,um of costs incurred while ser&icing the customer o&er his lifetime

II. Rank gi&en to customer $ased on $usiness generatedIII. ,um of economic $enefits that can $e achie&ed $( $uilding a long term relationshipwith the customerIV. 6a%imum insurance that can $e attri$uted to the customer

The correct option is III.,um of economic $enefits that can $e achie&ed $( $uilding a long term relationship with thecustomer is referred to as customer lifetime &alue.

2.

Identif( the scenario where a de$ate on the need for insurance is not re8uired.I. "ropert( insuranceII. !usiness lia$ilit( insurance

III. 6otor insurance for third part( lia$ilit(IV.


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The correct option is II.!eing e%tremel( 3udgemental is not an element of acti&e listening.

+.

Which among the following is not a characteristic of ethical $eha&iour?I. 6aking ade8uate disclosures to ena$le the clients to make an informed decision

II. 6aintaining confidentialit( of clients $usiness and personal information

III. "lacing self:interest ahead of clients interests

IV. "lacing clients interest ahead of self interest


"lacing self:interest ahead of clients interests is not ethical $eha&iour.

.

_____________ is not a tangi$le good.I. *ouseII. InsuranceIII. 6o$ile "honeIV. @ pair of 3eans

The correct option is II.Insurance is not a tangi$le good.

/.

_______________ is not an indicator of ser&ice 8ualit(.I. Cle&ernessII. Relia$ilit(III. ;mpath(IV. Responsi&eness

The correct option is I.Cle&erness is not an indicator of ser&ice 8ualit(.

0. In India _______________ insurance is mandator(.I. 6otor third part( lia$ilit(II.


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I. I>6,II. -istrict Consumer 6, or -istrict Consumer 6,.

12.

Consumer "rotection @ct deals withI. Complaint against insurance companiesII. Complaint against shopkeepersIII. Complaint against $randIV. Complaint against insurance companies $rand and shopkeepers

The correct option is IV.Consumer "rotection @ct deals with complaint against insurance companies shopkeepers and$rands.

1#.

___________ has 3urisdiction to entertain matters where &alue of goods or ser&ices andthe compensation claim is up to 24 lakhsI. *igh CourtII. -istrict


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II. >i&ing an occasional nod and smileIII. "ro&iding feed$ackIV. "a(ing attention to the speaker gi&ing an occasional nod and smile and pro&idingfeed$ack

The correct option is IV.

@cti&e istening in&ol&es pa(ing attention to the speaker gi&ing an occasional nod and smileand pro&iding feed$ack.


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CHAPTER 11

INSURANCE CAREER PROSPECTS

1. Which among the following are the two $asic 8ualities that make a good sales person?I. ;mpath( and ego dri&e

II. "re3udice and loathingIII. "ride and honest(

IV. ,cepticism and perse&erance

The correct option is I.;mpath( and ego dri&e are the two $asic 8ualities that make a good sales person.

2.

Which among the following is the most likel( to contain the IR-@ stipulated )4 hourstraining to help prospects clear the IR-@ e%amination?I. "rocess trainingII. "roduct trainingIII. "re:recruitment training

IV. ,ales training

The correct option is III."re:recruitment training is the most likel( to contain the IR-@ stipulated )4 hours training tohelp prospects clear the IR-@ e%amination.

#.

____________ is a representati&e of the insurance compan( and is go&erned $( theprincipal agent relationship.I. Insurance agentII. !rokerIII. !anksIV. Gnderwriter

The correct option is I.Insurance agent is a representati&e of the insurance compan( and is go&erned $( the principalagent relationship.

'. _________________ is colla$oration $etween $anks and insurers to distri$ute insuranceproducts.I. !ancassuranceII. @gentIII. !rokerIV. Insurance compan(

The correct option is I.!ancassurance is colla$oration $etween $anks and insurers to distri$ute insurance products.

). _____________ determines whether the proposal should $e admitted whether risk can $eaccepted.I. @gentII. InsurerIII. Gnderwriter


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IV. Insured

The correct option is III.Gnderwriter determines whether the proposal should $e admitted whether risk can $eaccepted.

+.

!roker representsI. 5ne insurance compan(II. 6ultiple insurance companiesIII. Insurance Regulator( and -e&elopment @uthorit(IV. Customer

The correct option is II.@n insurance $roker can represent multiple insurance companies.

.

_________________ cannot $ecome corporate agent.I. @ co:operati&e societ(II. @n indi&idual

III. @ $ankIV. @ $roker

The correct option is II.@n indi&idual cannot $ecome a corporate agent.

/.

Insurance $rokers are licensed $(I. Insurance Regulator( J -e&elopment @uthorit(II. Reser&e !ank of IndiaIII. ,ecurit( ;%change !oard of IndiaIV. >o&ernment of India

The correct option is I.Insurance !rokers are licensed $( the Insurance Regulator( J -e&elopment @uthorit(.

0.

The following is not a $enefit of insurance agenc(.I. o limit on income from commissionII.


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Will to e%cel empath( towards customer and truthfulness is re8uired for a successfulinsurance agenc( career.

11.

Documents

IC 34 Question Bank_Answer Paper