Which among the following is a secondary burden of risk?
(A) Business interruption cost
(B) Goods damaged cost
(C) Setting aside reserves as a provision for meeting potential losses in the future
(D) Hospitalisation costs as a result of heart attack
Which among the following is a method of risk transfer?
(A) Bank FD
(B) Insurance
(C) Equity shares
(D) Real estate
Which among the following scenarios warrants insurance?
(A) The sole bread winner of a family might die untimely
(B) A person may lose his wallet
(C) Stock prices may fall drastically
(D) A house may lose value due to natural wear and tear
Which of the below insurance scheme is run by an insurer and not sponsored by the Government?
(A) Employees State Insurance Corporation
(B) Crop Insurance Scheme
(C) Jan Arogya
(D) All of the above
What is meant by customer lifetime value?
(A) Sum of costs incurred while servicing the customer over his lifetime
(B) Rank given to customer based on business generated
(C) Sum of economic benefits that can be achieved by building a long term relationship with the customer
(D) Maximum insurance that can be attributed to the customer
Identify the scenario where a debate on the need for insurance is not required.
(A) Property insurance
(B) Business liability insurance
(C) Motor insurance for third party liability
(D) Fire insurance
As per the Consumer Protection Act, 1986, who cannot be classified as a consumer?
(A) Hires goods / services for personal use
(B) A person who buys goods for resale purpose
(C) Buys goods and services for a consideration and uses them
(D) Uses the services of another for a consideration
What does not go on to make a healthy relationship?
(A) Attraction
(B) Trust
(C) Communication
(D) Scepticism
Which among the following is not an element of active listening?
(A) Paying good attention
(B) Being extremely judgemental
(C) Empathetic listening
(D) Responding appropriately
Which among the following is not a characteristic of ethical behaviour?
(A) Making adequate disclosures to enable the clients to make an informed decision
(B) Maintaining confidentiality of client‟s business and personal information
(C) Placing self-interest ahead of client‟s interests
(D) Placing client‟s interest ahead of self interest
_____________ is not a tangible good.
(A) House
(B) Insurance
(C) Mobile Phone
(D) A pair of jeans
_______________ is not an indicator of service quality.
(A) Cleverness
(B) Reliability
(C) Empathy
(D) Responsiveness
In India _______________ insurance is mandatory.
(A) Motor third party liability
(B) Fire insurance for houses
(C) Travel insurance for domestic travel
(D) Personal accident
One of the methods of reducing insurance cost of an insured is __________
(A) Reinsurance
(B) Deductible
(C) Co-insurance
(D) Rebate
A customer having complaint regarding his insurance policy can approach IRDA through
(A) IGMS
(B) District Consumer Forum
(C) Ombudsman
(D) IGMS or District Consumer Forum or Ombudsman
Consumer Protection Act deals with:
(A) Complaint against insurance companies
(B) Complaint against shopkeepers
(C) Complaint against brand
(D) Complaint against insurance companies, brand and shopkeepers
___________ has jurisdiction to entertain matters where value of goods or services and the compensation claim is
up to 20 lakhs.
(A) High Court
(B) District Forum
(C) State Commission
(D) National Commission
In customer relationship the first impression is created:
(A) By being confident
(B) By being on time
(C) By showing interest
(D) By being on time, showing interest and being confident
Select the correct statement:
(A) Ethical behaviour is impossible while selling insurance
(B) Ethical behaviour is not necessary for insurance agents
(C) Ethical behaviour helps in developing trust between the agent and the insurer
(D) Ethical behaviour is expected from the top management only
Active Listening involves:
(A) Paying attention to the speaker
(B) Giving an occasional nod and smile
(C) Providing feedback
(D) Paying attention to the speaker, giving an occasional nod and smile and providing feedback
The ______________ has jurisdiction to entertain complaints, where value of the goods or services and the
compensation claimed is up to Rs.20 lakhs.
(A) District Forum
(B) State Commission
(C) Zilla Parishad
(D) National Commission
Expand the term IGMS.
(A) Insurance General Management System
(B) Indian General Management System
(C) Integrated Grievance Management System
(D) Intelligent Grievance Management System
Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between
Rs. 20 lakhs and Rs. 100 lakhs?
(A) District Forum
(B) State Commission
(C) National Commission
(D) Zilla Parishad
Which among the following cannot form the basis for a valid consumer complaint?
(A) Shopkeeper charging a price above the MRP for a product
(B) Shopkeeper not advising the customer on the best product in a category
(C) Allergy warning not provided on a drug bottle
(D) Faulty products
Which of the below will be the most appropriate option for a customer to lodge an insurance policy related
complaint?
(A) Police
(B) Supreme Court
(C) Insurance Ombudsman
(D) District Court
Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance Ombudsman?
(A) Insurance Ombudsman has National jurisdiction
(B) Insurance Ombudsman has State jurisdiction
(C) Insurance Ombudsman has District jurisdiction
(D) Insurance Ombudsman operates only within the specified territorial limits
How is the complaint to be launched with an insurance ombudsman?
(A) The complaint is to be made in writing
(B) The complaint is to be made orally over the phone
(C) The complaint is to be made orally in a face to face manner
(D) The complaint is to be made through newspaper advertisement
What is the time limit for approaching an Insurance Ombudsman?
(A) Within two years of rejection of the complaint by the insurer
(B) Within three years of rejection of the complaint by the insurer
(C) Within one year of rejection of the complaint by the insurer
(D) Within one month of rejection of the complaint by the insurer
Which among the following is not a pre-requisite for launching a complaint with the Ombudsman?
(A) The complaint must be by an individual on a „Personal Lines‟ insurance
(B) The complaint must be lodged within 1 year of the insurer rejecting thecomplaint
(C) Complainant has to approach a consumer forum prior to the Ombudsman
(D) The total relief sought must be within an amount of Rs.20 lakhs.
Are there any fee / charges that need to be paid for lodging the complaint with the Ombudsman?
(A) A fee of Rs 100 needs to be paid
(B) No fee or charges need to be paid
(C) 20% of the relief sought must be paid as fee
(D) 10% of the relief sought must be paid as fee
Can a complaint be launched against a private insurer?
(A) Complaints can be launched against public insurers only
(B) Yes, complaint can be launched against private insurers
(C) Complaint can be launched against private insurers only in the Life Sector
(D) Complaint can be launched against private insurers only in the Non-Life Sector
Which among the following is an example of coercion?
(A) Ramesh signs a contract without having knowledge of the fine print
(B) Ramesh threatens to kill Mahesh if he does not sign the contract
(C) Ramesh uses his professional standing to get Mahesh to sign a contract
(D) Ramesh provides false information to get Mahesh to sign a contract
Which among the following options cannot be insured by Ramesh?
(A) Ramesh‟s house
(B) Ramesh‟s spouse
(C) Ramesh‟s friend
(D) Ramesh‟s parents
Which element of a valid contract deals with premium?
(A) Offer and acceptance
(B) Consideration
(C) Free consent
(D) Capacity of parties to contract
_____________ relates to inaccurate statements, which are made without anyfraudulent intention.
(A) Misrepresentation
(B) Contribution
(C) Offer
(D) Representation
________________ involves pressure applied through criminal means.
(A) Fraud
(B) Undue influence
(C) Coercion
(D) Mistake
Which among the following is true regarding life insurance contracts?
(A) They are verbal contracts not legally enforceable
(B) They are verbal which are legally enforceable
(C) They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
(D) They are similar to wager contracts
Which of the below is not a valid consideration for a contract?
(A) Money
(B) Property
(C) Bribe
(D) Jewellery
Which of the below party is not eligible to enter into a life insurance contract?
(A) Business owner
(B) Minor
(C) House wife
(D) Government employee
Which of the below action showcases the principle of “Uberrima Fides”?
(A) Lying about known medical conditions on an insurance proposal form
(B) Not revealing known material facts on an insurance proposal form
(C) Disclosing known material facts on an insurance proposal form
(D) Paying premium on time
Which of the below is not correct with regards to insurable interest?
(A) Father taking out insurance policy on his son
(B) Spouses taking out insurance on one another
(C) Friends taking out insurance on one another
(D) Employer taking out insurance on employees
When is it essential for insurable interest to be present in case of life insurance?
(A) At the time of taking out insurance
(B) At the time of claim
(C) Insurable interest is not required in case of life insurance
(D) Either at time of policy purchase or at the time of claim
Find out the proximate cause for death in the following scenario?
Ajay falls off a horse and breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the
hospital and dies because ofpneumonia.
(A) Pneumonia
(B) Broken back
(C) Falling off a horse
(D) Surgery
As per guidelines, an insurance company has to process an insurance proposal within __________.
(A) 7 days
(B) 15 days
(C) 30 days
(D) 45 days
In case the premium payment is made by cheque, then which of the below statement will hold true?
(A) The risk may be assumed on the date on which the cheque is posted
(B) The risk may be assumed on the date on which the cheque is deposited by the insurance company
(C) The risk may be assumed on the date on which the cheque is received by the insurance company
(D) The risk may be assumed on the date on which the cheque is issued by the proposer
Which of the below statement is correct with regards to a warranty?
(A) A warranty is a condition which is implied without being stated in the policy
(B) A warranty is a condition expressly stated in the policy
(C) A warranty is a condition expressly stated in the policy and communicated to the insured separately and not as part of
the policy document
(D) If a warranty is breached, the claim can still be paid if it is not material to the risk
If certain terms and conditions of the policy need to be modified at the time of issuance, it is done by setting out the
amendments through __________.
(A) Warranty
(B) Endorsement
(C) Alteration
(D) Modifications are not possible
Which of the below statement is correct with regards to renewal notice?
(A) As per regulations there is a legal obligation on insurers to send a renewalnotice to insured, 30 days before the expiry
of the policy
(B) As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 15 days before the expiry
of the policy
(C) As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 7 days before the expiry
of the policy
(D) As per regulations there is no legal obligation on insurers to send a renewal notice to insured before the expiry of the
policy
Though the duration of cover for pre-hospitalization expenses would vary from insurer to insurer and is defined in
the policy, the most common cover is for________ pre-hospitalization.
(A) Fifteen days
(B) Thirty days
(C) Forty Five days
(D) Sixty days
As per IRDA guidelines, a ________ grace period is allowed for renewal of individual health policies.
(A) Fifteen days
(B) Thirty days
(C) Forty Five days
(D) Sixty days
Which of the below statement is correct with regards to a hospitalization expenses policy?
(A) Only hospitalization expenses are covered
(B) Hospitalization as well as pre and post hospitalization expenses are covered
(C) Hospitalization as well as pre and post hospitalization expenses are covered and a lumpsum amount is paid to the
family members in the event of insured‟s death
(D) Hospitalization expenses are covered from the first year and pre and post hospitalization expenses are covered from
the second year if the first year is claim free.
Identify which of the below statement is correct?
(A) Health insurance deals with morbidity
(B) Health insurance deals with mortality
(C) Health insurance deals with morbidity as well as mortality
(D) Health insurance neither deals with morbidity or mortality
Which of the below statement is correct with regards to cashless service provided in health insurance?
(A) It is an environment friendly go-green initiative started by insurance companies to promote electronic payments so
that circulation of physical cash notes can be reduced and trees can be saved.
(B) Service is provided free of cost to the insured and no cash is to be paid as the payment is made by the Government to
the insurance company under a special scheme
(C) All payments made by insured have to be made only through internet banking or cards as cash is not accepted by the
insurance company
(D) The insured does not pay and the insurance company settles the bill directly with the hospital
Identify the correct full form of PPN with regards to hospitals in health insurance.
(A) Public Preferred Network
(B) Preferred Provider Network
(C) Public Private Network
(D) Provider Preferential Network
Identify which of the below statement is incorrect?
(A) An employer can take a group policy for his employees
(B) A bank can take a group policy for its customers
(C) A shopkeeper can take a group policy for its customers
(D) A group policy taken by the employer for his employees can be extended to include the family members of the
employees
Underwriting is the process of ___________.
(A) Marketing insurance products
(B) Collecting premiums from customers
(C) Risk selection and risk pricing
(D) Selling various insurance products
The principle of utmost good faith in underwriting is required to be followed by ___________.
(A) The insurer
(B) The insured
(C) Both the insurer and the insured
(D) The medical examiners
Insurable interest refers to ____________.
(A) Financial interest of the person in the asset to be insured
(B) The asset which is already insured
(C) Each insurer‟s share of loss when more than one company covers the same loss
(D) The amount of the loss that can be recovered from the insurer
Which of the following statements about medical underwriting is incorrect?
(A) It involves high cost in collecting and assessing medical reports.
(B) Current health status and age are the key factors in medical underwriting for health insurance.
(C) Proposers have to undergo medical and pathological investigations to assess their health risk profile.
(D) Percentage assessment is made on each component of the risk.
In a group health insurance, when all members of a group are covered under a group health insurance policy, the
individuals constituting the group cannot anti-select against the insurer.
In addition to employee-employer groups, insurers have provided group health insurance coverage to varied type of
groups such as: labour unions, trusts and societies, professional associations, clubs and other fraternal organisations.
Which of the following factor does not affect the morbidity of an individual?
(A) Gender
(B) Spouse job
(C) Habits
(D) Residence location
According to the principle of indemnity, the insured is paid for __________.
(A) The actual losses to the extent of the sum insured
(B) The sum insured irrespective of the amount actually spent
(C) A fixed amount agreed between both the parties
(D) The actual losses irrespective of the sum assured
The first and the primary source of information about an applicant, for the underwriter is his ________________.
(A) Age proof documents
(B) Financial documents
(C) Previous medical records
(D) Proposal form
The underwriting process is completed when ___________________.
(A) All the critical information related to the health and personal details of the proposer are collected through the proposal
form
(B) All the medical examinations and tests of the proposer are completed
(C) The received information is carefully assessed and classified into appropriate risk categories
(D) The policy is issued to the proposer after risk selection and pricing.
Which of the following statements about the numerical rating method is incorrect?
(A) Numerical rating method provides greater speed in the handling of a largebusiness with the help of trained personnel.
(B) Analysis of difficult or doubtful cases is not possible on the basis of numerical points without medical referees or
experts.
(C) This method can be used by persons without any specific knowledge of medical science.
(D) It ensures consistency between the decisions of different underwriters.
Who among the following is NOT a stakeholder in insurance claim process?
(A) Insurance company shareholders
(B) Human Resource Department
(C) Regulator
(D) TPA
Which of the following document is maintained at the hospital detailing all treatment done to an in-patient?
(A) Investigation report
(B) Settlement sheet
(C) Case paper
(D) Hospital registration certificate
The amount of provision made for all claims in the books of the insurer based on the status of the claims is known
as ________.
(A) Pooling
(B) Provisioning
(C) Reserving
(D) Investing
Which of the following documents are NOT REQUIRED to be submitted for Permanent Total Disability claim?
(A) Duly completed Personal Accident claim form signed by the claimant.
(B) Attested copy of First Information Report if applicable.
(C) Permanent disability certificate from a civil surgeon or any equivalent competent doctors certifying the disability of
the insured.
(D) Fitness certificate from the treating doctor certifying that the insured is fit to perform his normal duties.
________________ are paid upfront by Assistance Company and later claimed from insurance company.
(A) Bail bond cases
(B) Personal accident claims
(C) Overseas travel insurance claims
(D) Untenable claims
Who among the following is considered as primary stakeholder in insurance claim process?
(A) Customers
(B) Owners
(C) Underwriters
(D) Insurance agents/brokers
Girish Saxena‟s insurance claim was denied by insurance company. In case of a denial, what is the option available
to Girish Saxena, apart from the representation to the insurer?
(A) To approach Government
(B) To approach legal authorities
(C) To approach insurance agent
(D) Nothing could be done in case of case denial
During investigation, of a health insurance claim presented by Rajiv Mehto, insurance company finds that instead
of Rajiv Mehto, his brother Rajesh Mehto had been admitted to hospital for treatment. The policy of Rajiv Mehto
is not a family floater plan. This is an example of ___________fraud.
(A) Impersonation
(B) Fabrication of documents
(C) Exaggeration of expenses
(D) Outpatient treatment converted to in-patient / hospitalization
Under which of the following condition, is domiciliary hospitalization is covered in a health insurance policy?
(A) The condition of the patient is such that he/she can be removed to the Hospital/Nursing Home , but prefer not to
(B) The patient cannot be removed to Hospital/Nursing Home for lack of accommodation therein
(C) The treatment can be carried out only in hospital/Nursing home
(D) Duration of hospitalization is exceeding 24 hours
Which of the following codes capture the procedures performed to treat the illness?
(A) ICD
(B) DCI
(C) CPT (Current Procedure Terminology)
(D) PCT
Which one of the following does not represent an insurable risk?
(A) Fire
(B) Stolen goods
(C) Burglary
(D) Loss of goods due to ship capsizing
Which among the following cannot be an element in a valid insurance contract?
(A) Offer and acceptance
(B) Coercion
(C) Consideration
(D) Legality
Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding accident. The pneumonia
resulted in death of Mr. Pinto. What is the proximate cause of the death?
(A) Pneumonia
(B) Horse
(C) Horse riding accident
(D) Bad luck
Moral hazard means:
(A) Dishonesty or character defects in an individual
(B) Honesty and values in an individual
(C) Risk of religious beliefs
(D) Hazard of the property to be insured
Risk indicates:
(A) Fear of unknown
(B) Chance of loss
(C) Disturbances at public place
(D) Hazard
______________ means spreading one‟s investment in different kinds of assets.
(A) Pooling
(B) Diversification
(C) Gambling
(D) Dynamic risk
_____________ is not an example of an asset.
(A) House
(B) Sunlight
(C) Plant and machinery
(D) Motor car
______________ is not an example of risk.
(A) Damage to car due to accident
(B) Damage of cargo due to rain water
(C) Damage to car tyre due to wear and tear
(D) Damage to property due to fire
Earthquake is an example of:
(A) Catastrophic risk
(B) Dynamic risk
(C) Marginal risk
(D) Speculative risk
Select the most appropriate logical equivalence for the statement.
Statement: Insurance cannot protect an asset from loss or damage.
(A) True
(B) False
(C) Partially true
(D) Not necessarily true
__________________ means transfer of all rights and remedies, with respect to the subject matter of insurance,
from insured to insurer.
(A) Contribution
(B) Subrogation
(C) Legal hazard
(D) Risk pooling
An example of a fact which need not be disclosed unless asked for is ______________ by the insurer.
(A) Age of the insured
(B) Presence of fire extinguisher
(C) Heart ailment
(D) Other insurance details
________________ is a wrong statement made during negotiation of a contract.
(A) Misrepresentation
(B) Contribution
(C) Offer
(D) Representation
What is the significance of the principle of contribution?
(A) It ensures that the insured also contributes a certain portion of the claim along with the insurer
(B) It ensures that all the insured who are a part of the pool, contribute to the claim made by a participant of the pool, in
the proportion of the premium paid by them
(C) It ensures that multiple insurers covering the same subject matter; come together and contribute the claim amount in
proportion to their exposure to the subject matter
(D) It ensures that the premium is contributed by the insured in equal installments over the year.
Which of the below statement is true with regards to cover notes?
(A) Cover notes are predominantly used in life insurance
(B) Cover notes are predominantly used in all classes of general insurance
(C) Cover notes are predominantly used in health insurance
(D) Cover notes are predominantly used in marine and motor classes of general insurance
__________ is the maximum limit of liability of insurer under the policy
(A) Sum insured
(B) Premium
(C) Surrender value
(D) Amount of loss
_______________ is the consideration or price paid by insured under a contract
(A) Claim amount
(B) Surrender value
(C) Maturity amount
(D) Premium
A document which provides an evidence of contract of insurance is called________
(A) Policy
(B) Cover note
(C) Endorsement
(D) Certificate of insurance
The duty of disclosure arises
(A) Prior to inception of the policy
(B) After inception of the policy
(C) Prior to inception and continues during the policy
(D) There is no such duty
Material fact
(A) Is the value of all material covered in a policy
(B) Not important for assessing the risk
(C) Is important as it influences the decision of the underwriter
(D) Is not important as it has no bearing on the decision of the underwriter
Fire proposal seeks to know
(A) Process of manufacture
(B) Details of material stored
(C) Construction of building
(D) All the above
Premium cannot be received
(A) In cash
(B) By cheque
(C) By promissory note
(D) By credit card
The certificate of Motor Insurance
(A) Is not mandatory
(B) Has to be kept with self always
(C) Has to be kept in the car always
(D) Has to be kept in the bank locker
A warranty
(A) Is a condition expressly stated in the policy &
(B) Has to be complied with
(C) Both a and b
(D) None of the above
Renewal Notice for Motor insurance is issued by
(A) The Insured before expiry of the policy
(B) The Insurer before expiry of the policy
(C) The Insured after expiry of the policy
(D) The Insurer after expiry of the policy
Identify the two factors that affect insurance ratemaking.
(A) Probability and severity of risk
(B) Source and nature of risk
(C) Source and timing of risk
(D) Nature and impact of risk
What is expected of an agent when she detects a moral hazard?
(A) Continue with the insurance as before
(B) Report the same to the insurer
(C) Ask for a share in the claims
(D) Turn a blind eye
Suggest an insurance scheme for a doctor to protect him from any claims of
negligence against him.
(A) Personal accident insurance
(B) Liability insurance
(C) Marine hull insurance
(D) Health insurance
_____________ decides whether to accept or not to accept the risk.
(A) Assured
(B) Underwriter
(C) Agent
(D) Surveyor
_______________ is the price of a given unit of insurance.
(A) Rate
(B) Premium
(C) Sum Assured
(D) Bonus
___________ is the maximum amount that an insurance company will indemnify to someone who files a claim.
(A) Sum insured
(B) Premium
(C) Rider
(D) Benefits
______________ is not a source of information for underwriter.
(A) Annual accounts of a proposer
(B) Pre-acceptance risk survey of the asset
(C) Proposal form
(D) Registration certificate of insurer
Hazards are:
(A) Factors that increase the impact of losses
(B) Factors that increases the frequency of loss
(C) Factors that increase the impact and severity of losses
(D) Factors that decrease the impact and severity of losses
Which of the following is true?
Physical Hazards:
(A) Are not important for rate making
(B) Cannot be ascertained
(C) Can be calculated from the balance sheet
(D) Can be ascertained from information given in a proposal form
In motor insurance one of the warranties is:
(A) The vehicle should be washed daily
(B) The vehicle should not be used for speed testing
(C) The vehicle should not be used for carrying luggage for personal use
(D) The vehicle should not be run more than 200 km per day.
The purpose of deductible clause is to:
(A) To avoid claim payment
(B) To eliminate payment of small claims
(C) To harass the policyholder
(D) To increase the premium
Installation of sprinkler system in the premises:
(A) Increases risk
(B) Decreases the risk
(C) Neither increases nor decreases risk
(D) Increases risk of hooding
Insured‟s declared value in motor insurance includes:
(A) Registration
(B) Manufacturer‟s cost price
(C) Manufacturer‟s selling price
(D) Arbitrary price component
Which of the below statement is correct with regards to a householder‟s insurance policy?
(A) A named peril policy may be purchased as a less expensive alternative to a comprehensive coverage policy that tends
to offer coverage to most perils.
(B) A comprehensive policy that tends to offer coverage to most perils; may be purchased as a less expensive alternative
to a named peril policy.
(C) A named peril policy or comprehensive policy comes at the same price.
(D) With regards to a householder‟s policy, only a named peril policy can be bought and comprehensive policies are not
available.
Under the shopkeeper policy, the insured may opt for an additional „Fixed plate glass and sanitary fittings‟ cover.
This will cover accidental loss of damage to which of the following?
(A) Fixed plate glass
(B) Sanitary fittings
(C) Neon signs
(D) All of the above
Motor insurance should be taken in whose name?
(A) In the name of the vehicle owner whose name is registered with Regional Transport Authority
(B) If the person who will be driving the vehicle is different from the owner, then in the name of the person who will be
driving the vehicle, subject to approval from Regional Transport Authority
(C) In the name of any family member of the vehicle owner, including the vehicle owner, subject to approval from the
Regional Transport Authority
(D) If the person who will be driving the vehicle is different from the owner, then primary policy should be in the name of
the vehicle owner and add-on cover in the name of the person who will be driving the vehicle.
In householder‟s insurance
(A) Gold and silver ornaments are covered
(B) Content‟s of one‟s shop is covered
(C) Cars owned by the family are covered
(D) Parcels sent by post are covered during transit.
Householder‟s insurance covers
(A) Only the structure of the home
(B) Only the Contents of the home
(C) Both the structure and contents
(D) Both Structure and contents only when insured is not at home
In shop keeper‟s insurance, which of the following are not covered?
(A) Machinery breakdown
(B) Malicious damage
(C) Business interruption
(D) Willful destruction by insured
In shop keeper‟s insurance which of the following are usually not covered
(A) Money in till/counter at business premises
(B) Money in transit from bank to business premises
(C) Money in safe at business premises
(D) Money carried by customer to business premises.
Shop insurance covers
(A) Dishonest acts of employees
(B) Dishonest acts of insured
(C) Dishonest acts of customers
(D) Dishonest acts of money lenders
A fire policy for commercial risks covers the perils of ________
(A) Explosion
(B) Implosion
(C) Both of the above
(D) None of the above
A business interruption insurance policy can be taken only in conjunction with ____________.
(A) Standard fire and special perils policy
(B) Standard fire and marine policy
(C) Standard and special perils policy
(D) Standard Engineering and marine policy
The premium for burglary policy depends on ______________.
(A) Nature of insured policy
(B) Moral hazard of the insured himself
(C) Construction and location of the premises
(D) All of the above
Which of the below is covered under a money insurance policy?
(A) Shortage due to error or omission
(B) Loss of cash from one‟s premises due to burglary
(C) Loss of money that has been entrusted to other than authorized person
(D) Riot strike and terrorism
Fidelity guarantee insurance indemnifies ________________.
(A) Employers against the financial loss suffered by them due to fraud or dishonesty of their employees
(B) employees against the financial loss suffered by them due to fraud or dishonesty of their employer
(C) Employees and employers against the financial loss suffered by them due tofraud or dishonesty of third party
(D) Shareholders against the financial loss suffered by them due to fraud or dishonesty of the company management
Which of the below can be covered under a bankers indemnity insurance policy?
(A) Money securities lost or damaged whilst within the premises due to fire
(B) Forgery or alteration of cheques
(C) Dishonesty of employees with reference to money
(D) All of the above
In case of a Jeweler‟s Block Policy, damage to property insured when it is in transit by registered parcel will be
covered under ____________.
(A) Section I
(B) Section II
(C) Section III
(D) Section IV
Delay in start-up policy is also known as ______________.
(A) Machinery Loss of Profits cover (MLOP)
(B) Advance Loss of Profits cover (ALOP)
(C) Contractors All Risk cover (C.A.R.)
(D) Contractors Plant & Machinery cover (CPM)
Which of the following is NOT covered under Industrial All Risks insurance?
(A) Fire and special perils as per fire insurance practice
(B) Larceny
(C) Machinery breakdown
(D) Electronic equipment
Which branch of insurance offers cover against war perils?
(A) Marine policies
(B) Aviation policies
(C) Both of the above
(D) None of the above
Under the Public Liability Insurance Act, 1991, how much is the compensation payable for actual medical
expenses?
(A) Rs. 6,250
(B) Rs, 12,500
(C) Rs. 25,000
(D) Rs. 50,000
In Engineering insurance CAR stands for
(A) Motor Car
(B) Contractors All Risks
(C) Company‟s All Risks
(D) Companies All Requirements
An employer insures himself from dishonest act of his employees by _________
(A) Employees compensation policy
(B) Public Liability Insurance policy
(C) Fidelity Guarantee Insurance policy
(D) Declaration policy.
_________ refers to the body of the ship.
(A) Hull
(B) Cargo
(C) Piracy
(D) Jettison
Policy which covers loss or damage to aircraft is ______________.
(A) Statutory liability
(B) Property insurance
(C) Aviation insurance
(D) Money insurance
Fire Insurance Policy DOES NOT COVER damage to property even as add-on cover due to___________.
(A) Floods
(B) Earthquake
(C) Fire
(D) Bombing due to war
Consequential Loss (Fire Policy) covers:
(A) Loss of profit due to damage to factory
(B) Loss of Goodwill
(C) Material wear & tear in machinery
(D) Losses due to foreign exchange fluctuations
Premium in Burglary depends on:
(A) Security measures
(B) Location of Premises
(C) Nature of property
(D) All of the above
Contractor‟s All Risk Policy is a variation of:
(A) Fire Insurance
(B) Life Insurance
(C) Engineering Insurance
(D) Marine Insurance
Employee‟s Compensation Policy is a type of
(A) Liability Insurance
(B) Fire Insurance
(C) Marine Cargo Insurance
(D) Engineering Insurance
Money Insurance Policy covers:
(A) Cash in hand
(B) Money invested in Mutual Fund
(C) Money lying in Saving Bank
(D) Money deposited with post office.
Which of the following activities would not be categorised under professional settlement of claims?
(A) Seeking information relating to the cause of the loss
(B) Approaching the claim with a prejudice
(C) Ascertaining whether the loss was a result of an insured peril
(D) Quantifying the amount payable under the claim
Raj is involved in a car accident. His car is insured under a motor insurance policy. Which among the following is
the most appropriate thing for Raj to do?
(A) Notify the insurer of the loss as soon as reasonably possible
(B) Notify the insurer at the time of insurance renewal
(C) Damage the car further so as to receive a bigger compensation
(D) Ignore the damage
Compare claims investigation and claims assessment.
(A) Both claims investigation and assessment are the same thing
(B) Investigation tries to determine the validity of the claim whereas assessment is more concerned with the cause and
extent of the loss
(C) Investigation is done before the claim is paid and assessment is done after the claim is paid
Who is the licensing authority for surveyors?
(A) Surveyor Association of India
(B) Surveyor Regulatory and Development Authority
(C) Insurance Regulatory and Development Authority of India
(D) Government of India
Which among the following documents is most likely to be requested while examining a cyclone damage claim?
(A) Coroner‟s report
(B) Report from Fire Brigade
(C) Police report
(D) Report from Meteorological Department
Under which principle can the insurer assume the rights of the insured in order to recover from a third party the
loss paid under a policy?
(A) Contribution
(B) Discharge
(C) Subrogation
(D) Indemnity
If the insurer decides that a certain loss is not payable because it is not covered under the policy then who decides
on such matters?
(A) Insurer‟s decision is final
(B) Umpire
(C) Arbitrator
(D) Court of Law
Intimation of loss is to be made:
(A) at the exact time of the loss
(B) after 15 days
(C) as soon as reasonably possible
(D) any time after the loss
Investigation of loss is done by:
(A) unlicensed surveyor
(B) licensed and qualified surveyor
(C) insured‟s representative
(D) any person with a degree in engineering
For personal accident claims, report of________ is necessary.
(A) Surveyor
(B) Doctor
(C) Police
(D) Coroner
Independent surveyors are required for claims equal to or above_______ as per the Insurance Act.
(A) Rs. 40,000
(B) Rs. 15,000
(C) Rs. 20,000
(D) Rs. 25,000
Claims assessed outside the country in case of travel insurance polices are assessed by:
(A) Indian surveyors
(B) Local surveyors in the country of loss
(C) Insurer‟s own employees
(D) Claims settling agents named in the policy
In case of a fire claim, a report from the fire brigade:
(A) is not required
(B) is optional for the insured
(C) is necessary
(D) is part of the police report
On payment of loss, salvage belongs to:
(A) Surveyors
(B) Insured
(C) Insurer
(D) Local authorities
Arbitration is a claim settlement process done ______________.
(A) in the court of law
(B) by a group of surveyors
(C) by arbitrator(s) chosen by the parties involved
(D) arbitrarily by the insurance company‟s employees
Question 10
Insurers under right of subrogation are allowed to recover the loss paid from:
(A) Shipping companies only
(B) Railways and road carriers only
(C) Airlines and Port Trusts only
(D) Shipping companies and railway and road carriers and airlines and port trusts
(A) Business interruption cost
(B) Goods damaged cost
(C) Setting aside reserves as a provision for meeting potential losses in the future
(D) Hospitalisation costs as a result of heart attack
Which among the following is a method of risk transfer?
(A) Bank FD
(B) Insurance
(C) Equity shares
(D) Real estate
Which among the following scenarios warrants insurance?
(A) The sole bread winner of a family might die untimely
(B) A person may lose his wallet
(C) Stock prices may fall drastically
(D) A house may lose value due to natural wear and tear
Which of the below insurance scheme is run by an insurer and not sponsored by the Government?
(A) Employees State Insurance Corporation
(B) Crop Insurance Scheme
(C) Jan Arogya
(D) All of the above
What is meant by customer lifetime value?
(A) Sum of costs incurred while servicing the customer over his lifetime
(B) Rank given to customer based on business generated
(C) Sum of economic benefits that can be achieved by building a long term relationship with the customer
(D) Maximum insurance that can be attributed to the customer
Identify the scenario where a debate on the need for insurance is not required.
(A) Property insurance
(B) Business liability insurance
(C) Motor insurance for third party liability
(D) Fire insurance
As per the Consumer Protection Act, 1986, who cannot be classified as a consumer?
(A) Hires goods / services for personal use
(B) A person who buys goods for resale purpose
(C) Buys goods and services for a consideration and uses them
(D) Uses the services of another for a consideration
What does not go on to make a healthy relationship?
(A) Attraction
(B) Trust
(C) Communication
(D) Scepticism
Which among the following is not an element of active listening?
(A) Paying good attention
(B) Being extremely judgemental
(C) Empathetic listening
(D) Responding appropriately
Which among the following is not a characteristic of ethical behaviour?
(A) Making adequate disclosures to enable the clients to make an informed decision
(B) Maintaining confidentiality of client‟s business and personal information
(C) Placing self-interest ahead of client‟s interests
(D) Placing client‟s interest ahead of self interest
_____________ is not a tangible good.
(A) House
(B) Insurance
(C) Mobile Phone
(D) A pair of jeans
_______________ is not an indicator of service quality.
(A) Cleverness
(B) Reliability
(C) Empathy
(D) Responsiveness
In India _______________ insurance is mandatory.
(A) Motor third party liability
(B) Fire insurance for houses
(C) Travel insurance for domestic travel
(D) Personal accident
One of the methods of reducing insurance cost of an insured is __________
(A) Reinsurance
(B) Deductible
(C) Co-insurance
(D) Rebate
A customer having complaint regarding his insurance policy can approach IRDA through
(A) IGMS
(B) District Consumer Forum
(C) Ombudsman
(D) IGMS or District Consumer Forum or Ombudsman
Consumer Protection Act deals with:
(A) Complaint against insurance companies
(B) Complaint against shopkeepers
(C) Complaint against brand
(D) Complaint against insurance companies, brand and shopkeepers
___________ has jurisdiction to entertain matters where value of goods or services and the compensation claim is
up to 20 lakhs.
(A) High Court
(B) District Forum
(C) State Commission
(D) National Commission
In customer relationship the first impression is created:
(A) By being confident
(B) By being on time
(C) By showing interest
(D) By being on time, showing interest and being confident
Select the correct statement:
(A) Ethical behaviour is impossible while selling insurance
(B) Ethical behaviour is not necessary for insurance agents
(C) Ethical behaviour helps in developing trust between the agent and the insurer
(D) Ethical behaviour is expected from the top management only
Active Listening involves:
(A) Paying attention to the speaker
(B) Giving an occasional nod and smile
(C) Providing feedback
(D) Paying attention to the speaker, giving an occasional nod and smile and providing feedback
The ______________ has jurisdiction to entertain complaints, where value of the goods or services and the
compensation claimed is up to Rs.20 lakhs.
(A) District Forum
(B) State Commission
(C) Zilla Parishad
(D) National Commission
Expand the term IGMS.
(A) Insurance General Management System
(B) Indian General Management System
(C) Integrated Grievance Management System
(D) Intelligent Grievance Management System
Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between
Rs. 20 lakhs and Rs. 100 lakhs?
(A) District Forum
(B) State Commission
(C) National Commission
(D) Zilla Parishad
Which among the following cannot form the basis for a valid consumer complaint?
(A) Shopkeeper charging a price above the MRP for a product
(B) Shopkeeper not advising the customer on the best product in a category
(C) Allergy warning not provided on a drug bottle
(D) Faulty products
Which of the below will be the most appropriate option for a customer to lodge an insurance policy related
complaint?
(A) Police
(B) Supreme Court
(C) Insurance Ombudsman
(D) District Court
Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance Ombudsman?
(A) Insurance Ombudsman has National jurisdiction
(B) Insurance Ombudsman has State jurisdiction
(C) Insurance Ombudsman has District jurisdiction
(D) Insurance Ombudsman operates only within the specified territorial limits
How is the complaint to be launched with an insurance ombudsman?
(A) The complaint is to be made in writing
(B) The complaint is to be made orally over the phone
(C) The complaint is to be made orally in a face to face manner
(D) The complaint is to be made through newspaper advertisement
What is the time limit for approaching an Insurance Ombudsman?
(A) Within two years of rejection of the complaint by the insurer
(B) Within three years of rejection of the complaint by the insurer
(C) Within one year of rejection of the complaint by the insurer
(D) Within one month of rejection of the complaint by the insurer
Which among the following is not a pre-requisite for launching a complaint with the Ombudsman?
(A) The complaint must be by an individual on a „Personal Lines‟ insurance
(B) The complaint must be lodged within 1 year of the insurer rejecting thecomplaint
(C) Complainant has to approach a consumer forum prior to the Ombudsman
(D) The total relief sought must be within an amount of Rs.20 lakhs.
Are there any fee / charges that need to be paid for lodging the complaint with the Ombudsman?
(A) A fee of Rs 100 needs to be paid
(B) No fee or charges need to be paid
(C) 20% of the relief sought must be paid as fee
(D) 10% of the relief sought must be paid as fee
Can a complaint be launched against a private insurer?
(A) Complaints can be launched against public insurers only
(B) Yes, complaint can be launched against private insurers
(C) Complaint can be launched against private insurers only in the Life Sector
(D) Complaint can be launched against private insurers only in the Non-Life Sector
Which among the following is an example of coercion?
(A) Ramesh signs a contract without having knowledge of the fine print
(B) Ramesh threatens to kill Mahesh if he does not sign the contract
(C) Ramesh uses his professional standing to get Mahesh to sign a contract
(D) Ramesh provides false information to get Mahesh to sign a contract
Which among the following options cannot be insured by Ramesh?
(A) Ramesh‟s house
(B) Ramesh‟s spouse
(C) Ramesh‟s friend
(D) Ramesh‟s parents
Which element of a valid contract deals with premium?
(A) Offer and acceptance
(B) Consideration
(C) Free consent
(D) Capacity of parties to contract
_____________ relates to inaccurate statements, which are made without anyfraudulent intention.
(A) Misrepresentation
(B) Contribution
(C) Offer
(D) Representation
________________ involves pressure applied through criminal means.
(A) Fraud
(B) Undue influence
(C) Coercion
(D) Mistake
Which among the following is true regarding life insurance contracts?
(A) They are verbal contracts not legally enforceable
(B) They are verbal which are legally enforceable
(C) They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
(D) They are similar to wager contracts
Which of the below is not a valid consideration for a contract?
(A) Money
(B) Property
(C) Bribe
(D) Jewellery
Which of the below party is not eligible to enter into a life insurance contract?
(A) Business owner
(B) Minor
(C) House wife
(D) Government employee
Which of the below action showcases the principle of “Uberrima Fides”?
(A) Lying about known medical conditions on an insurance proposal form
(B) Not revealing known material facts on an insurance proposal form
(C) Disclosing known material facts on an insurance proposal form
(D) Paying premium on time
Which of the below is not correct with regards to insurable interest?
(A) Father taking out insurance policy on his son
(B) Spouses taking out insurance on one another
(C) Friends taking out insurance on one another
(D) Employer taking out insurance on employees
When is it essential for insurable interest to be present in case of life insurance?
(A) At the time of taking out insurance
(B) At the time of claim
(C) Insurable interest is not required in case of life insurance
(D) Either at time of policy purchase or at the time of claim
Find out the proximate cause for death in the following scenario?
Ajay falls off a horse and breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the
hospital and dies because ofpneumonia.
(A) Pneumonia
(B) Broken back
(C) Falling off a horse
(D) Surgery
As per guidelines, an insurance company has to process an insurance proposal within __________.
(A) 7 days
(B) 15 days
(C) 30 days
(D) 45 days
In case the premium payment is made by cheque, then which of the below statement will hold true?
(A) The risk may be assumed on the date on which the cheque is posted
(B) The risk may be assumed on the date on which the cheque is deposited by the insurance company
(C) The risk may be assumed on the date on which the cheque is received by the insurance company
(D) The risk may be assumed on the date on which the cheque is issued by the proposer
Which of the below statement is correct with regards to a warranty?
(A) A warranty is a condition which is implied without being stated in the policy
(B) A warranty is a condition expressly stated in the policy
(C) A warranty is a condition expressly stated in the policy and communicated to the insured separately and not as part of
the policy document
(D) If a warranty is breached, the claim can still be paid if it is not material to the risk
If certain terms and conditions of the policy need to be modified at the time of issuance, it is done by setting out the
amendments through __________.
(A) Warranty
(B) Endorsement
(C) Alteration
(D) Modifications are not possible
Which of the below statement is correct with regards to renewal notice?
(A) As per regulations there is a legal obligation on insurers to send a renewalnotice to insured, 30 days before the expiry
of the policy
(B) As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 15 days before the expiry
of the policy
(C) As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 7 days before the expiry
of the policy
(D) As per regulations there is no legal obligation on insurers to send a renewal notice to insured before the expiry of the
policy
Though the duration of cover for pre-hospitalization expenses would vary from insurer to insurer and is defined in
the policy, the most common cover is for________ pre-hospitalization.
(A) Fifteen days
(B) Thirty days
(C) Forty Five days
(D) Sixty days
As per IRDA guidelines, a ________ grace period is allowed for renewal of individual health policies.
(A) Fifteen days
(B) Thirty days
(C) Forty Five days
(D) Sixty days
Which of the below statement is correct with regards to a hospitalization expenses policy?
(A) Only hospitalization expenses are covered
(B) Hospitalization as well as pre and post hospitalization expenses are covered
(C) Hospitalization as well as pre and post hospitalization expenses are covered and a lumpsum amount is paid to the
family members in the event of insured‟s death
(D) Hospitalization expenses are covered from the first year and pre and post hospitalization expenses are covered from
the second year if the first year is claim free.
Identify which of the below statement is correct?
(A) Health insurance deals with morbidity
(B) Health insurance deals with mortality
(C) Health insurance deals with morbidity as well as mortality
(D) Health insurance neither deals with morbidity or mortality
Which of the below statement is correct with regards to cashless service provided in health insurance?
(A) It is an environment friendly go-green initiative started by insurance companies to promote electronic payments so
that circulation of physical cash notes can be reduced and trees can be saved.
(B) Service is provided free of cost to the insured and no cash is to be paid as the payment is made by the Government to
the insurance company under a special scheme
(C) All payments made by insured have to be made only through internet banking or cards as cash is not accepted by the
insurance company
(D) The insured does not pay and the insurance company settles the bill directly with the hospital
Identify the correct full form of PPN with regards to hospitals in health insurance.
(A) Public Preferred Network
(B) Preferred Provider Network
(C) Public Private Network
(D) Provider Preferential Network
Identify which of the below statement is incorrect?
(A) An employer can take a group policy for his employees
(B) A bank can take a group policy for its customers
(C) A shopkeeper can take a group policy for its customers
(D) A group policy taken by the employer for his employees can be extended to include the family members of the
employees
Underwriting is the process of ___________.
(A) Marketing insurance products
(B) Collecting premiums from customers
(C) Risk selection and risk pricing
(D) Selling various insurance products
The principle of utmost good faith in underwriting is required to be followed by ___________.
(A) The insurer
(B) The insured
(C) Both the insurer and the insured
(D) The medical examiners
Insurable interest refers to ____________.
(A) Financial interest of the person in the asset to be insured
(B) The asset which is already insured
(C) Each insurer‟s share of loss when more than one company covers the same loss
(D) The amount of the loss that can be recovered from the insurer
Which of the following statements about medical underwriting is incorrect?
(A) It involves high cost in collecting and assessing medical reports.
(B) Current health status and age are the key factors in medical underwriting for health insurance.
(C) Proposers have to undergo medical and pathological investigations to assess their health risk profile.
(D) Percentage assessment is made on each component of the risk.
In a group health insurance, when all members of a group are covered under a group health insurance policy, the
individuals constituting the group cannot anti-select against the insurer.
In addition to employee-employer groups, insurers have provided group health insurance coverage to varied type of
groups such as: labour unions, trusts and societies, professional associations, clubs and other fraternal organisations.
Which of the following factor does not affect the morbidity of an individual?
(A) Gender
(B) Spouse job
(C) Habits
(D) Residence location
According to the principle of indemnity, the insured is paid for __________.
(A) The actual losses to the extent of the sum insured
(B) The sum insured irrespective of the amount actually spent
(C) A fixed amount agreed between both the parties
(D) The actual losses irrespective of the sum assured
The first and the primary source of information about an applicant, for the underwriter is his ________________.
(A) Age proof documents
(B) Financial documents
(C) Previous medical records
(D) Proposal form
The underwriting process is completed when ___________________.
(A) All the critical information related to the health and personal details of the proposer are collected through the proposal
form
(B) All the medical examinations and tests of the proposer are completed
(C) The received information is carefully assessed and classified into appropriate risk categories
(D) The policy is issued to the proposer after risk selection and pricing.
Which of the following statements about the numerical rating method is incorrect?
(A) Numerical rating method provides greater speed in the handling of a largebusiness with the help of trained personnel.
(B) Analysis of difficult or doubtful cases is not possible on the basis of numerical points without medical referees or
experts.
(C) This method can be used by persons without any specific knowledge of medical science.
(D) It ensures consistency between the decisions of different underwriters.
Who among the following is NOT a stakeholder in insurance claim process?
(A) Insurance company shareholders
(B) Human Resource Department
(C) Regulator
(D) TPA
Which of the following document is maintained at the hospital detailing all treatment done to an in-patient?
(A) Investigation report
(B) Settlement sheet
(C) Case paper
(D) Hospital registration certificate
The amount of provision made for all claims in the books of the insurer based on the status of the claims is known
as ________.
(A) Pooling
(B) Provisioning
(C) Reserving
(D) Investing
Which of the following documents are NOT REQUIRED to be submitted for Permanent Total Disability claim?
(A) Duly completed Personal Accident claim form signed by the claimant.
(B) Attested copy of First Information Report if applicable.
(C) Permanent disability certificate from a civil surgeon or any equivalent competent doctors certifying the disability of
the insured.
(D) Fitness certificate from the treating doctor certifying that the insured is fit to perform his normal duties.
________________ are paid upfront by Assistance Company and later claimed from insurance company.
(A) Bail bond cases
(B) Personal accident claims
(C) Overseas travel insurance claims
(D) Untenable claims
Who among the following is considered as primary stakeholder in insurance claim process?
(A) Customers
(B) Owners
(C) Underwriters
(D) Insurance agents/brokers
Girish Saxena‟s insurance claim was denied by insurance company. In case of a denial, what is the option available
to Girish Saxena, apart from the representation to the insurer?
(A) To approach Government
(B) To approach legal authorities
(C) To approach insurance agent
(D) Nothing could be done in case of case denial
During investigation, of a health insurance claim presented by Rajiv Mehto, insurance company finds that instead
of Rajiv Mehto, his brother Rajesh Mehto had been admitted to hospital for treatment. The policy of Rajiv Mehto
is not a family floater plan. This is an example of ___________fraud.
(A) Impersonation
(B) Fabrication of documents
(C) Exaggeration of expenses
(D) Outpatient treatment converted to in-patient / hospitalization
Under which of the following condition, is domiciliary hospitalization is covered in a health insurance policy?
(A) The condition of the patient is such that he/she can be removed to the Hospital/Nursing Home , but prefer not to
(B) The patient cannot be removed to Hospital/Nursing Home for lack of accommodation therein
(C) The treatment can be carried out only in hospital/Nursing home
(D) Duration of hospitalization is exceeding 24 hours
Which of the following codes capture the procedures performed to treat the illness?
(A) ICD
(B) DCI
(C) CPT (Current Procedure Terminology)
(D) PCT
Which one of the following does not represent an insurable risk?
(A) Fire
(B) Stolen goods
(C) Burglary
(D) Loss of goods due to ship capsizing
Which among the following cannot be an element in a valid insurance contract?
(A) Offer and acceptance
(B) Coercion
(C) Consideration
(D) Legality
Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding accident. The pneumonia
resulted in death of Mr. Pinto. What is the proximate cause of the death?
(A) Pneumonia
(B) Horse
(C) Horse riding accident
(D) Bad luck
Moral hazard means:
(A) Dishonesty or character defects in an individual
(B) Honesty and values in an individual
(C) Risk of religious beliefs
(D) Hazard of the property to be insured
Risk indicates:
(A) Fear of unknown
(B) Chance of loss
(C) Disturbances at public place
(D) Hazard
______________ means spreading one‟s investment in different kinds of assets.
(A) Pooling
(B) Diversification
(C) Gambling
(D) Dynamic risk
_____________ is not an example of an asset.
(A) House
(B) Sunlight
(C) Plant and machinery
(D) Motor car
______________ is not an example of risk.
(A) Damage to car due to accident
(B) Damage of cargo due to rain water
(C) Damage to car tyre due to wear and tear
(D) Damage to property due to fire
Earthquake is an example of:
(A) Catastrophic risk
(B) Dynamic risk
(C) Marginal risk
(D) Speculative risk
Select the most appropriate logical equivalence for the statement.
Statement: Insurance cannot protect an asset from loss or damage.
(A) True
(B) False
(C) Partially true
(D) Not necessarily true
__________________ means transfer of all rights and remedies, with respect to the subject matter of insurance,
from insured to insurer.
(A) Contribution
(B) Subrogation
(C) Legal hazard
(D) Risk pooling
An example of a fact which need not be disclosed unless asked for is ______________ by the insurer.
(A) Age of the insured
(B) Presence of fire extinguisher
(C) Heart ailment
(D) Other insurance details
________________ is a wrong statement made during negotiation of a contract.
(A) Misrepresentation
(B) Contribution
(C) Offer
(D) Representation
What is the significance of the principle of contribution?
(A) It ensures that the insured also contributes a certain portion of the claim along with the insurer
(B) It ensures that all the insured who are a part of the pool, contribute to the claim made by a participant of the pool, in
the proportion of the premium paid by them
(C) It ensures that multiple insurers covering the same subject matter; come together and contribute the claim amount in
proportion to their exposure to the subject matter
(D) It ensures that the premium is contributed by the insured in equal installments over the year.
Which of the below statement is true with regards to cover notes?
(A) Cover notes are predominantly used in life insurance
(B) Cover notes are predominantly used in all classes of general insurance
(C) Cover notes are predominantly used in health insurance
(D) Cover notes are predominantly used in marine and motor classes of general insurance
__________ is the maximum limit of liability of insurer under the policy
(A) Sum insured
(B) Premium
(C) Surrender value
(D) Amount of loss
_______________ is the consideration or price paid by insured under a contract
(A) Claim amount
(B) Surrender value
(C) Maturity amount
(D) Premium
A document which provides an evidence of contract of insurance is called________
(A) Policy
(B) Cover note
(C) Endorsement
(D) Certificate of insurance
The duty of disclosure arises
(A) Prior to inception of the policy
(B) After inception of the policy
(C) Prior to inception and continues during the policy
(D) There is no such duty
Material fact
(A) Is the value of all material covered in a policy
(B) Not important for assessing the risk
(C) Is important as it influences the decision of the underwriter
(D) Is not important as it has no bearing on the decision of the underwriter
Fire proposal seeks to know
(A) Process of manufacture
(B) Details of material stored
(C) Construction of building
(D) All the above
Premium cannot be received
(A) In cash
(B) By cheque
(C) By promissory note
(D) By credit card
The certificate of Motor Insurance
(A) Is not mandatory
(B) Has to be kept with self always
(C) Has to be kept in the car always
(D) Has to be kept in the bank locker
A warranty
(A) Is a condition expressly stated in the policy &
(B) Has to be complied with
(C) Both a and b
(D) None of the above
Renewal Notice for Motor insurance is issued by
(A) The Insured before expiry of the policy
(B) The Insurer before expiry of the policy
(C) The Insured after expiry of the policy
(D) The Insurer after expiry of the policy
Identify the two factors that affect insurance ratemaking.
(A) Probability and severity of risk
(B) Source and nature of risk
(C) Source and timing of risk
(D) Nature and impact of risk
What is expected of an agent when she detects a moral hazard?
(A) Continue with the insurance as before
(B) Report the same to the insurer
(C) Ask for a share in the claims
(D) Turn a blind eye
Suggest an insurance scheme for a doctor to protect him from any claims of
negligence against him.
(A) Personal accident insurance
(B) Liability insurance
(C) Marine hull insurance
(D) Health insurance
_____________ decides whether to accept or not to accept the risk.
(A) Assured
(B) Underwriter
(C) Agent
(D) Surveyor
_______________ is the price of a given unit of insurance.
(A) Rate
(B) Premium
(C) Sum Assured
(D) Bonus
___________ is the maximum amount that an insurance company will indemnify to someone who files a claim.
(A) Sum insured
(B) Premium
(C) Rider
(D) Benefits
______________ is not a source of information for underwriter.
(A) Annual accounts of a proposer
(B) Pre-acceptance risk survey of the asset
(C) Proposal form
(D) Registration certificate of insurer
Hazards are:
(A) Factors that increase the impact of losses
(B) Factors that increases the frequency of loss
(C) Factors that increase the impact and severity of losses
(D) Factors that decrease the impact and severity of losses
Which of the following is true?
Physical Hazards:
(A) Are not important for rate making
(B) Cannot be ascertained
(C) Can be calculated from the balance sheet
(D) Can be ascertained from information given in a proposal form
In motor insurance one of the warranties is:
(A) The vehicle should be washed daily
(B) The vehicle should not be used for speed testing
(C) The vehicle should not be used for carrying luggage for personal use
(D) The vehicle should not be run more than 200 km per day.
The purpose of deductible clause is to:
(A) To avoid claim payment
(B) To eliminate payment of small claims
(C) To harass the policyholder
(D) To increase the premium
Installation of sprinkler system in the premises:
(A) Increases risk
(B) Decreases the risk
(C) Neither increases nor decreases risk
(D) Increases risk of hooding
Insured‟s declared value in motor insurance includes:
(A) Registration
(B) Manufacturer‟s cost price
(C) Manufacturer‟s selling price
(D) Arbitrary price component
Which of the below statement is correct with regards to a householder‟s insurance policy?
(A) A named peril policy may be purchased as a less expensive alternative to a comprehensive coverage policy that tends
to offer coverage to most perils.
(B) A comprehensive policy that tends to offer coverage to most perils; may be purchased as a less expensive alternative
to a named peril policy.
(C) A named peril policy or comprehensive policy comes at the same price.
(D) With regards to a householder‟s policy, only a named peril policy can be bought and comprehensive policies are not
available.
Under the shopkeeper policy, the insured may opt for an additional „Fixed plate glass and sanitary fittings‟ cover.
This will cover accidental loss of damage to which of the following?
(A) Fixed plate glass
(B) Sanitary fittings
(C) Neon signs
(D) All of the above
Motor insurance should be taken in whose name?
(A) In the name of the vehicle owner whose name is registered with Regional Transport Authority
(B) If the person who will be driving the vehicle is different from the owner, then in the name of the person who will be
driving the vehicle, subject to approval from Regional Transport Authority
(C) In the name of any family member of the vehicle owner, including the vehicle owner, subject to approval from the
Regional Transport Authority
(D) If the person who will be driving the vehicle is different from the owner, then primary policy should be in the name of
the vehicle owner and add-on cover in the name of the person who will be driving the vehicle.
In householder‟s insurance
(A) Gold and silver ornaments are covered
(B) Content‟s of one‟s shop is covered
(C) Cars owned by the family are covered
(D) Parcels sent by post are covered during transit.
Householder‟s insurance covers
(A) Only the structure of the home
(B) Only the Contents of the home
(C) Both the structure and contents
(D) Both Structure and contents only when insured is not at home
In shop keeper‟s insurance, which of the following are not covered?
(A) Machinery breakdown
(B) Malicious damage
(C) Business interruption
(D) Willful destruction by insured
In shop keeper‟s insurance which of the following are usually not covered
(A) Money in till/counter at business premises
(B) Money in transit from bank to business premises
(C) Money in safe at business premises
(D) Money carried by customer to business premises.
Shop insurance covers
(A) Dishonest acts of employees
(B) Dishonest acts of insured
(C) Dishonest acts of customers
(D) Dishonest acts of money lenders
A fire policy for commercial risks covers the perils of ________
(A) Explosion
(B) Implosion
(C) Both of the above
(D) None of the above
A business interruption insurance policy can be taken only in conjunction with ____________.
(A) Standard fire and special perils policy
(B) Standard fire and marine policy
(C) Standard and special perils policy
(D) Standard Engineering and marine policy
The premium for burglary policy depends on ______________.
(A) Nature of insured policy
(B) Moral hazard of the insured himself
(C) Construction and location of the premises
(D) All of the above
Which of the below is covered under a money insurance policy?
(A) Shortage due to error or omission
(B) Loss of cash from one‟s premises due to burglary
(C) Loss of money that has been entrusted to other than authorized person
(D) Riot strike and terrorism
Fidelity guarantee insurance indemnifies ________________.
(A) Employers against the financial loss suffered by them due to fraud or dishonesty of their employees
(B) employees against the financial loss suffered by them due to fraud or dishonesty of their employer
(C) Employees and employers against the financial loss suffered by them due tofraud or dishonesty of third party
(D) Shareholders against the financial loss suffered by them due to fraud or dishonesty of the company management
Which of the below can be covered under a bankers indemnity insurance policy?
(A) Money securities lost or damaged whilst within the premises due to fire
(B) Forgery or alteration of cheques
(C) Dishonesty of employees with reference to money
(D) All of the above
In case of a Jeweler‟s Block Policy, damage to property insured when it is in transit by registered parcel will be
covered under ____________.
(A) Section I
(B) Section II
(C) Section III
(D) Section IV
Delay in start-up policy is also known as ______________.
(A) Machinery Loss of Profits cover (MLOP)
(B) Advance Loss of Profits cover (ALOP)
(C) Contractors All Risk cover (C.A.R.)
(D) Contractors Plant & Machinery cover (CPM)
Which of the following is NOT covered under Industrial All Risks insurance?
(A) Fire and special perils as per fire insurance practice
(B) Larceny
(C) Machinery breakdown
(D) Electronic equipment
Which branch of insurance offers cover against war perils?
(A) Marine policies
(B) Aviation policies
(C) Both of the above
(D) None of the above
Under the Public Liability Insurance Act, 1991, how much is the compensation payable for actual medical
expenses?
(A) Rs. 6,250
(B) Rs, 12,500
(C) Rs. 25,000
(D) Rs. 50,000
In Engineering insurance CAR stands for
(A) Motor Car
(B) Contractors All Risks
(C) Company‟s All Risks
(D) Companies All Requirements
An employer insures himself from dishonest act of his employees by _________
(A) Employees compensation policy
(B) Public Liability Insurance policy
(C) Fidelity Guarantee Insurance policy
(D) Declaration policy.
_________ refers to the body of the ship.
(A) Hull
(B) Cargo
(C) Piracy
(D) Jettison
Policy which covers loss or damage to aircraft is ______________.
(A) Statutory liability
(B) Property insurance
(C) Aviation insurance
(D) Money insurance
Fire Insurance Policy DOES NOT COVER damage to property even as add-on cover due to___________.
(A) Floods
(B) Earthquake
(C) Fire
(D) Bombing due to war
Consequential Loss (Fire Policy) covers:
(A) Loss of profit due to damage to factory
(B) Loss of Goodwill
(C) Material wear & tear in machinery
(D) Losses due to foreign exchange fluctuations
Premium in Burglary depends on:
(A) Security measures
(B) Location of Premises
(C) Nature of property
(D) All of the above
Contractor‟s All Risk Policy is a variation of:
(A) Fire Insurance
(B) Life Insurance
(C) Engineering Insurance
(D) Marine Insurance
Employee‟s Compensation Policy is a type of
(A) Liability Insurance
(B) Fire Insurance
(C) Marine Cargo Insurance
(D) Engineering Insurance
Money Insurance Policy covers:
(A) Cash in hand
(B) Money invested in Mutual Fund
(C) Money lying in Saving Bank
(D) Money deposited with post office.
Which of the following activities would not be categorised under professional settlement of claims?
(A) Seeking information relating to the cause of the loss
(B) Approaching the claim with a prejudice
(C) Ascertaining whether the loss was a result of an insured peril
(D) Quantifying the amount payable under the claim
Raj is involved in a car accident. His car is insured under a motor insurance policy. Which among the following is
the most appropriate thing for Raj to do?
(A) Notify the insurer of the loss as soon as reasonably possible
(B) Notify the insurer at the time of insurance renewal
(C) Damage the car further so as to receive a bigger compensation
(D) Ignore the damage
Compare claims investigation and claims assessment.
(A) Both claims investigation and assessment are the same thing
(B) Investigation tries to determine the validity of the claim whereas assessment is more concerned with the cause and
extent of the loss
(C) Investigation is done before the claim is paid and assessment is done after the claim is paid
Who is the licensing authority for surveyors?
(A) Surveyor Association of India
(B) Surveyor Regulatory and Development Authority
(C) Insurance Regulatory and Development Authority of India
(D) Government of India
Which among the following documents is most likely to be requested while examining a cyclone damage claim?
(A) Coroner‟s report
(B) Report from Fire Brigade
(C) Police report
(D) Report from Meteorological Department
Under which principle can the insurer assume the rights of the insured in order to recover from a third party the
loss paid under a policy?
(A) Contribution
(B) Discharge
(C) Subrogation
(D) Indemnity
If the insurer decides that a certain loss is not payable because it is not covered under the policy then who decides
on such matters?
(A) Insurer‟s decision is final
(B) Umpire
(C) Arbitrator
(D) Court of Law
Intimation of loss is to be made:
(A) at the exact time of the loss
(B) after 15 days
(C) as soon as reasonably possible
(D) any time after the loss
Investigation of loss is done by:
(A) unlicensed surveyor
(B) licensed and qualified surveyor
(C) insured‟s representative
(D) any person with a degree in engineering
For personal accident claims, report of________ is necessary.
(A) Surveyor
(B) Doctor
(C) Police
(D) Coroner
Independent surveyors are required for claims equal to or above_______ as per the Insurance Act.
(A) Rs. 40,000
(B) Rs. 15,000
(C) Rs. 20,000
(D) Rs. 25,000
Claims assessed outside the country in case of travel insurance polices are assessed by:
(A) Indian surveyors
(B) Local surveyors in the country of loss
(C) Insurer‟s own employees
(D) Claims settling agents named in the policy
In case of a fire claim, a report from the fire brigade:
(A) is not required
(B) is optional for the insured
(C) is necessary
(D) is part of the police report
On payment of loss, salvage belongs to:
(A) Surveyors
(B) Insured
(C) Insurer
(D) Local authorities
Arbitration is a claim settlement process done ______________.
(A) in the court of law
(B) by a group of surveyors
(C) by arbitrator(s) chosen by the parties involved
(D) arbitrarily by the insurance company‟s employees
Question 10
Insurers under right of subrogation are allowed to recover the loss paid from:
(A) Shipping companies only
(B) Railways and road carriers only
(C) Airlines and Port Trusts only
(D) Shipping companies and railway and road carriers and airlines and port trusts
