Question 1

Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like:

Accepted Answer

A)  Surveyors, agents, advocates
B)  Commerce, transport,
C)  Consumer fora, industry, intermediaries,
D)  Research bodies, organisations engaged in safety and loss preventionE) B) and C)
F) A) and D)

Question 2

Find out which of the given statements is incorrect

Accepted Answer

A)  Accounts department has to monitor cash flow from subordinate offices
B)  Marketing department has to monitor business inflow
C)  Marketing department has to monitor performance of agents
D)  Actuarial department is responsible for settling death claimsE) A) and D)
F) None of the above

Question 3

As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of:

Accepted Answer

A)  Age and sex
B)  Age and number of dependents
C)  Income and size of family
D)  Age and incomeE) A) and B)
F) A) and C)

Question 4

Principle of utmost good faith is also known as ………..

Accepted Answer

A)  subrogation
B)  causa proxima
C)  insurable interest
D)  uberrima fidesE) C) and D)
F) A) and B)

Question 5

Time Policies relate to:

Accepted Answer

A)  Fire insurance
B)  Hull insurance
C)  Personal Accident insurance
D)  Workmen's Compensation insuranceE) B) and C)
F) All of the above

Question 6

Insurance cannot prevent the occurrence of risk but it provides for the………

Accepted Answer

A)  losses of risk
B)  occurrence of risk
C)  chance of risk
D)  none of theseE) None of the above
F) B) and C) A

Question 7

The document which embodies the contract in insurance is called…………

Accepted Answer

A)  security
B)  policy
C)  certificate
D)  none of theseE) A) and B)
F) B) and D)

Question 8

Which of the following types of insurances is mandatory?

Accepted Answer

A)  Motor Own Damage
B)  Motor Third Party Legal Liability
C)  Personal Accident Insurance
D)  Product LiabilityE) None of the above
F) B) and C)

Question 9

……… principle in insurance means maximum truth.

Accepted Answer

A)  subrogation
B)  causa proxima
C)  insurable interest
D)  uberrima fidesE) A) and D)
F) B) and C)

Question 10

The purpose of ………. Are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.

Accepted Answer

A)  subrogation
B)  causa proxima
C)  indemnity
D)  uberrima fidesE) B) and C)
F) B) and D)

Question 11

Select the expanded form of ALOP used in insurance

Accepted Answer

A)  Advance Loss of Profits insurance
B)  Agreed Loss of Profits insurance
C)  Additional Loss of Profits insurance
D)  Associated Loss of Profits insuranceE) B) and D)
F) None of the above

Question 12

The minimum paid up capital required for a General Insurance Company is Rs. ____

Accepted Answer

A)  25 crores
B)  50 crores
C)  75 crores
D)  100 croresE) A) and B)
F) None of the above

Question 13

In 'Hit and Run' cases, claims are settled from _______

Accepted Answer

A)  Solatium Fund
B)  IRDA's contingency Fund
C)  Insuring Company's reserves
D)  Motor Third Party PoolE) All of the above
F) A) and B)

Question 14

Which of the following terms is dissimilar to the other four options?

Accepted Answer

A)  Post-hospitalisation expenses
B)  Expenses on treatment of pre-existing diseases
C)  Reinstatement value
D)  Funeral expensesE) All of the above
F) C) and D)

Question 15

Which of the following terms matches closest with 'Asbestosis'?

Accepted Answer

A)  Products
B)  Pension
C)  Rough Weather
D)  Workmen's CompensationE) A) and D)
F) None of the above

Question 16

Which of the following covers is dissimilar to the other four options?

Accepted Answer

A)  Loss of Passport
B)  Loss of Profits
C)  Loss of checked in baggage
D)  Delay in receiving checked in baggageE) B) and C)
F) A) and D) B

Question 17

Which of the following statements is incorrect in respect of brokers?

Accepted Answer

A)  Brokers require to undergo training before being licensed
B)  Brokers are appointed by insured to take care of their interests
C)  Brokers have to pass examinations before being licensed
D)  Brokers should be registered companies or firmsE) C) and D)
F) A) and B)

Question 18

Which clause specifies the perils insured in a scheduled form of policy?

Accepted Answer

A)  Preamble Clause
B)  Recital Clause
C)  Operative Clause
D)  Consideration ClauseE) A) and D)
F) B) and C)

Question 19

Select the expanded form of FPA as used in insurance

Accepted Answer

A)  Freight Payable Assured
B)  Free of Particular Average
C)  Fire Perils Added
D)  Fixed Peripherals AddedE) None of the above
F) All of the above B

Question 20

…………….principle means that the insured is not entitled to make a profit on his loss.

Accepted Answer

A)  subrogation
B)  causa proxima
C)  indemnity
D)  uberrima fidesE) A) and B)
F) A) and C)

Exam 3: Insurance Terms and Concepts

Members of the Insurance Advisory Committee are drawn to represent the interests of different groups like:

Correct AnswerverifiedShow Answer

Find out which of the given statements is incorrect

Correct AnswerverifiedShow Answer

As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of:

Correct AnswerverifiedShow Answer

Principle of utmost good faith is also known as ………..

Correct AnswerverifiedShow Answer

Time Policies relate to:

Correct AnswerverifiedShow Answer

Insurance cannot prevent the occurrence of risk but it provides for the………

Correct AnswerverifiedA

The document which embodies the contract in insurance is called…………

Correct AnswerverifiedShow Answer

Which of the following types of insurances is mandatory?

Correct AnswerverifiedShow Answer

……… principle in insurance means maximum truth.

Correct AnswerverifiedShow Answer

The purpose of ………. Are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.

Correct AnswerverifiedShow Answer

Select the expanded form of ALOP used in insurance

Correct AnswerverifiedShow Answer

The minimum paid up capital required for a General Insurance Company is Rs. ____

Correct AnswerverifiedShow Answer

In 'Hit and Run' cases, claims are settled from _______

Correct AnswerverifiedShow Answer

Which of the following terms is dissimilar to the other four options?

Correct AnswerverifiedShow Answer

Which of the following terms matches closest with 'Asbestosis'?

Correct AnswerverifiedShow Answer

Which of the following covers is dissimilar to the other four options?

Correct AnswerverifiedB

Which of the following statements is incorrect in respect of brokers?

Correct AnswerverifiedShow Answer

Which clause specifies the perils insured in a scheduled form of policy?

Correct AnswerverifiedShow Answer

Select the expanded form of FPA as used in insurance

Correct AnswerverifiedB

…………….principle means that the insured is not entitled to make a profit on his loss.

Correct AnswerverifiedShow Answer

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B

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