How to Become an Insurance Agents?

a)Insurer

b)Insured

c)Insurance Agent

d)Insurance Broker

22. Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed –. Choose the Most Appropriate Option.

a) One Year

b)Three Years

c) Five Years

d) Seven Years

3. As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim?

a) Nothing

b) Premium, Paid by the Life-Assured.

c) (2 × Premium), Paid by the Life-Assured.

d) Full Face-Amount of the Policy.

(Section I) COMMON CHAPTER – 1, INTRODUCTION TO INSURANCE

1. Which among the following is the regulator for the insurance industry in India?
A. Insurance Authority of India.
B. Insurance Regulatory & Development Authority.
C. Life Insurance Corporation of India.
D. General Insurance Corporation of India.

2. Which among the following is a secondary burden of risk?
A. Business Interruption Cost.
B. Goods Damaged Cost.
C. Setting reserves as a provision for meeting potential losses in the future.
D. Hospitalization costs as a result of heart attack.

3. Which among the following is a method of risk transfer?
A. Bank FD.
B. Insurance.
C. Equity Shares.
D. Real Estate.

4. Which among the following scenarios warrants insurance?
A. The motor car might met with major accident.
B. A Person may lose his wallet.
C. Stock prices may fall drastically.
D. A house may lose value due to natural wear& tear.

5. Which of the below insurance scheme is run by an insurer & not sponsored by the Government?
A. Employees State Insurance Corporation.
B. Crop Insurance Scheme.
C. Jan Arogya.
D. All the Above.

6. Risk transfer through risk pooling is called

A. Savings.
B. Investments.
C. Insurance.
D. Risk mitigation.

7. The measures to reduce chances of recurrence of risk are known as:-
A. Risk retention.
B. Loss prevention.
C. Risk transfer.
D. Risk avoidable.

8. By transferring risk to insurer, it becomes possible
A. To become careless about one’s assets.
B. To make money from insurance in the event of a loss.
C. To ignore the potential risks facing our assets.
D. To enjoy peace of mind & plan one’s business more effectively.

CHAPTER – 2, CUSTOMER SERVICE

1. In a customer mind, there are two types of feelings and related emotions that arise with each service failure on part of the insurance company. These feelings are
A. Confusion and empathy.
B. Dishonesty and revenge.
C. Ignorance and sympathy
D. Sense of unfairness and hurt ego.

2. Which among the following is not an element of active listening?
A. Paying good attention.
B. Being extremely judgmental.
C. Empathetic listening.
D. Responding appropriately.

3. ……………….is not an indicator of service quality?
A. Cleverness
B. Reliability
C. Empathy
D. Responsiveness

4. In customer relationship the first impression is created……….
A. By being confident
B. By being on time
C. By showing interest
D. All the above

5. 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.

6. ……………….refers to the ability to perform the promised service dependably and accurately.
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy

7. ……………….relate to one’s ability to attract effectively with other workers and customers both at work and outside.
A. Hard Skills
B. Soft Skills
C. Negotiating Skills
D. Questioning Skills

8. Which of the below elements promote trust?
A. Communication assertiveness and being present
B. Politeness, affirmation and communication
C. Attraction, communication and being present
D. Affirmation, assertiveness and attraction.

9. ……………….is reflected in the caring attitude and individualized attention provided to customers.
A. Assurance
B. Empathy
C. Reliability
D. Responsiveness

10. If any advertisement for insurance is considered unfair, if it falls to identify the product insurance, it will be treated unethical behaviour under.
A. Misrepresentation
B. Illustrations
C. Replacement
D. Advice

11. Identify the scenario where a debate on the need of insurance is not required?
A. Property, Insurance
B. Business Liability Insurance
C. Motor Insurance for third party liability
D. Fire Insurance.

CHAPTER – 3, GRIEVANCE REDERESSAL MECHANISM

1. Expand the term IGMS.
A. Insurance general management system.
B. Indian general management system.
C. Integrated grievance management system.
D. Intelligent grievance management system.

2. 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

3. 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. Faculty products

4. 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 Count

5. 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.

6. 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.

7. What is the time limit for approaching the 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 years of rejection of the complaint by the insurer
D. Within one month of rejection of the complaint by the insurer.

8. 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 the complaint
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.

9. 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

10. Can a complaint be launched against a private insurer?
A. Complaint 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 life sector
D. Complaint can be launched against private insurers only in non-life sector.

CHAPTER – 4, REGULATORY ASPECTS OF INSURANCE AGENT

1. Insurance agent represents the
A. Insurance company
B. Sub – Agent
C. Co –Agent
D. Broker

2. License to work as an insurance agent is issued by

A. General Insurance Corporation (GIC)
B. Insurance Regulatory and Development Authority (IRDA)
C. State Bank of India (SBI)
D. Post Office

3. Identify the statement which is not correct. Insurance agent should………….
A. Indicate the scale of commission if asked by the customer.
B. Share the commission by way of rebate.
C. Disclose his licence on demand.
D. Indicate the premium to be charged.

4. The letter of appointment to a person as an insurance agent shall be sent by the insurer within………..days if all requirements have been fulfilled.
A. 7 Days
B. 15 Days
C. 21 Days
D. 30 Days

5. The authority may issue duplicate licence in case it is…….
A. Lost
B. Destroyed
C. Mutilated
D. All the above

6. If an agent is found guilty of criminal misappropriation the designated person will

A. Cancel the licence
B. Issue a duplicate license
C. Renewal the existing licence
D. Take some fees from the agent.

7. Minimum qualification required for insurance agent is ………passed
A. Graduate
B. 10th
C. Post Graduate
D. 7th

CHAPTER – 5, LEGAL PRINCIPLES OF INSURANCE CONTRACT

1. 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.

2. Which element of a valid contract deals with premium?
A. Offer & acceptance
B. Consideration
C. Free consent
D. Capacity of parties to contract

3. Relates to inaccurate statements, which are made without any fraudulent intention.
A. Misrepresentation
B. Contribution
C. Offer
D. Representation

4. Involves pressure applied through criminal means.
A. Fraud
B. Undue influence
C. Coercion
D. Mistake

5. Which of the below is not a valid consideration for a contract?
A. Money
B. Property
C. Bribe
D. Jewellery

6. Which of the below party is not eligible to enter into a insurance contact?
A. Business owner
B. Minor
C. House wife
D. Government employee

7. Which of the below action showcases the principle of “Uberrima Fides”?
A. Lying about known medical conditions in insurance proposal form.
B. Not revealing known material facts in insurance proposal form.
C. Disclosing known material facts in insurance proposal form
D. Paying premium on time.

8. When it is essential for insurable interest to be present in case of marine insurance?
A. At the time of taking out insurance.
B. At the time of claim.
C. It is not required in case of life insurance.
D. Either at the time of policy purchase and at the time of claim.

SECTION II –HEALTH INSURANCE

CHAPTER –6, INTRODUCTION TO HEALTH INSURANCE

1. A health Insurance is designed to handle which of the following risks.

A. Mortality
B. Morbidity
C. Infinity
D. Serendipity

2. IRDAI stands for
A. International Regulatory & Development Authority.
B. Indian Regulatory & Development Authority
C. Insurance Regulatory & Development Authority of India.
D. Income Regulatory & Development Authority.

3. The terms (with regards to health Insurance) TPA refers to
A. The Primary Associates.
B. To Provide Assistance.
C. Third Party Administrator.
D. Third Party Assistance.

4. Primary care can be described as
A. Care provided to patient in an acute setting.
B. Care Provided in Hospitals.
C. First point of contact for people being healthcare.
D. Care Provided by Doctors.

5. Generally which factors determine the health of any individual?
A. No. of healthcare centres available in the city.
B. No of doctors available in the city.
C. Life style of an individual Environmental factors of the place & genetic factors of the family.
D. None of the above.

6. In which Consultative health care the cost of medical treatment is costliest.
A. Primary
B. Secondary
C. Tertiary
D. Every where the cost is the same.

7. In India which healthcare Scheme is floated first?
A. Employees State Insurance Scheme.
B. Central Government health Scheme
C. Commercial health Insurance Scheme.
D. Family floater healthcare Scheme.

8. An Insurance broker represents –
A. Insurance Company
B. Insured (Policyholder)
C. Association of insurance companies
D. Community of people who have already taken insurance.

9. refers to a hospital/healthcare provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility.
A. Day care Centre
B. Network Provider
C. Third party Administrator
D. Domiciliary

10. Health Insurance products are classified into 3 categories. Which is not the classification mentioned in 3 categories.
A. Indemnity cover.
B. Fixed cover
C. Critical Illness cover.
D. Payment of full sum insured cover

11. Which expenses in hospital will not be reimbursed by the insurer?
A. Cost of Organ
B. Intensive care unit
C. Cost of prosthetic devices implanted during surgical procedure.
D. Medicines and drugs expenses.

CHAPTER –7, INSURANCE DOCUMENTATION (HEALTH)

1. 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.

2. 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.

3. 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.

4. If certain terms and conditions of the policy need to be modified at the time of insurance it is done by setting out the amendments through –
A. Warranty
B. Endorsement
C. Alteration
D. Modifications are not possible

5. Which of the below statement is correct with regards to renewal notice
A. As per regulation there is legal obligation on insurers to send a renewal notice to insured, 30 days before the expiry of the policy.
B. As per regulations there is legal obligation on insurer to send a renewal notice to the 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 the insured before the expiry of the policy.

6. The premium related to all riders put together should not exceed of the premium of the main product.
A. 10%
B. 20%
C. 30%
D. 40%

7. Anti Money Laundering Act was passed in
A. 1999
B. 2000
C. 2001
D. 2002

CHAPTER -8, HEALTH INSURANCE PRODUCTS

1. Which of the below group would not be eligible for a group health insurance policy?
A. Employees of a Company.
B. Credit Card holders of an organization.
C. Professional association members
D. Group of unrelated individuals formed for the purpose of availing group health insurance.

2. Who cannot be covered under a family floater policy?
A. Children.
B. Spouse.
C. Parents.
D. Maternal Uncle.

3. As per IRDA regulations issued in Feb 2013, What is the grace period allowed beyond the expiry date of policy for renewal?
A. 15 Days.
B. 30 Days.
C. 45 days.
D. 60 Days.

4. Identify the form of insurance that is depicted in the following Scenario.
Scenario: Patient pays the health provider & is subsequently reimbursed by the health insurance company.
A. Service Benefit.
B. Direct Contracting
C. Indemnity.
D. Casualty.

5. Moral hazard by health insurance companies can result in
A. Community rating.
B. Adverse Selection.
C. Abuse of health insurance.
D. Risk Pooling.

6. is an insured who undergoes treatment after getting admitted in hospital.
A. In Patient
B. Out Patient.
C. Day patient.
D. House patient.

7. which of the following statements is true Domiciliary hospitalization benefit dose not include
1. Pre – hospitalization.
2. Post – Hospitalization.
A. 1 is True.
B. 2 is True.
C. Both are True.
D. Both are false.

8. Relevant medical expenses incurred during upto days to hospitalization are treated as part of the claim.
A. 15 Days.
B. 30 Days.
C. 45 Days.
D. 60 days.

9. Under mediclaim policy which of the following is not covered.
A. Chemotherapy.
B. Radiotherapy.
C. Naturopathy.
D. Cost of pacemaker.

10. Under critical Illness policy which of the following is not specified as critical illness.
A. Cancer.
B. Paralysis.
C. Tuberculosis.
D. Parkinson Diseases.

11. Which of the below statement is correct with regards to a hospitalization expense 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 is claim free.

12. 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. Provide Preferential Network.

13. Subject to no Claim, Cost of medical check up once in every ………… underwriting years is payable under mediclaim policy.
A. 2 Years.
B. 3 Years.
C. 4 Years.
D. D 5 Years.

CHAPTER -9, HEALTH INSURANCE UNDERWRITING

1. Which of the following factor does not affect the morbidity of an individual?
A. Gender
B. Spouse Job
C. Habits
D. Residence Location

2. 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

3. The first and the primary source of information about an applicant, for the underwriter is his ……….
A. Age proof document
B. Financial documents
C. Previous medical records
D. Proposal form

4. 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 selection and pricing.

5. Which of the following statements about the numerical rating method is incorrect?
A. Numerical rating method provides greater speed in the handling of a large business with the help of trained personnel.
B. Analysis of difficult of doubtful cases is not possible on the basis of numerical points without medical referees of experts.
C. This method cab be used by persons without any specific knowledge of medical science.
D. It ensures consistency between the decisions of different underwriters.

6. Underwriter is the process of ……………….
A. Marketing insurance products.
B. Collecting premiums from customers
C. Risk selection and risk pricing
D. Selling various insurance products.

7. 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 insured
D. The medical examiners.

8. 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 loss that can be recovered from the insurer.

9. Which of the following statements about medical underwriting is correct ?
A. It involves high cost in collecting and assessing medical reports.
B. Current health status and age are the key factors.
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.

10. A) In a group health insurance, any of the individual constituting the group could anti – select against the insurer.
B) Group health insurance provides coverage only to employer – employees groups.

A. Statement “A” is true and statement “B” is false.
B. Statement “B” is true and statement “A” is false.
C. Statement “A” and Statement “B” are true.
D. Statement “A” and Statement “B” are false.

CHAPTER -10, HEALTH INSURANCE CLAIMS

1. Who among the following is a first stakeholder in insurance claim process?
A. Regulator
B. TPA
C. Insurance Company Shareholders
D. Policyholder.

2. Which of the following document is maintained at the hospital dealing all treatment done to in patient?
A. Investigation report
B. Settlement sheet
C. Case Paper
D. Hospital registration certificate

3. The amount of provision made for all claims in the books of the insurer based on the status of the claim is known as ………………….
A. Pooling
B. Provisioning
C. Reserving
D. Investing

4. Which of the following documents are not required to be submitted for permanenet disability claims?
A. Duly completed personal accident claim from signed by the claimant.
B. Attested copy of first information report, if available.
C. Permanent disability certificate from a civil surgeon.
D. Fitness certificate from the treating doctor certifying that the insured is fit to perform his normal duties.

5. ………………… are paid up front 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.

6. 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.

7. During investigation, of a health insurance claim presented by Rajiv Mehta, insurance company finds that instead of Rajiv Mehta, his brother Rajesh Mehta had been admitted to hospital for treatment. The policy of Rajiv Mehta is not a family floater plan. This is an example of ………… fraud.
A. Impersonation
B. Fabrication of document
C. Exaggeration of expenses
D. Outpatient treatment converted to in – patient/ hospitalization

8. 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. Nothing will be done

(Section III) GENERAL INSURANCE

CHAPTER – 11, PRINCIPAL OF INSURANCE

1. 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.

2. Which among the following cannot be an element in a valid insurance contract?
A. Offer and acceptance
B. Coercion
C. Consideration
D. Legality

3. Mr. Abhay contracted pneumonia as a result of lying on wet ground after a horse riding accident. The pneumonia resulted in death of Mr. Abhay what is the proximate cause of the death?
A. Pneumonia
B. Horse
C. Horse riding accident
D. Bad Luck

4. Moral Hazard means
A. Dishonesty or character defeats in an individual
B. Honesty and values in an individual
C. Risk of religious beliefs
D. Hazard of the property to be insured

5. Risk indicates
A. Fear of unknown
B. Chance of loss
C. Disturbances at public place
D. Hazard

6. ___________Means spreading ones investment in different kind of hazards
A. Pooling
B. Diversification
C. Gambling
D. Dynamic risk

7. ___________is not an example of an asset
A. House
B. Sun-light
C. Plant and machinery
D. Motor car

8. __________is not example of risk.
A. Damage to car due to accident
B. Damage of cargo due to rain water
C. Damage to car due to wear and tear
D. Damage to property due to fire.

9. Earthquake is an example of _______________
A. Catastrophic risk
B. Dynamic risk
C. Marginal risk
D. Speculative risk

10. Select the most appropriate logical equivalence for the statement insurance cannot protect an asset from loss or damage
A. True
B. Partially True
C. False
D. Not necessarily true

11. _____________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

12. An example of a fact which needs to 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 detail

CHAPTER – 12, DOCUMENTATION

1. 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 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 him/her.
C. It ensured that multiple insurer convening the same subject matter, come together and contribute the claim amount in proportion to their exposure to the subject matter.
D. It ensured that the premium is contributed by the insured in equal installments over the year.

2. 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

3. In case the premium is made by cheque then which of the below statement will hold true?
A. The risk may be assumed on the date on which of the cheque is posted.
B. The risk may be assumed on the date on which of the cheque is deposited by the insurance company.
C. The risk may be assumed on the date on which of the cheque is received by the insurance company.
D. The risk may be assumed on the date on which of the cheque is issued by the proposer.

4. 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.

5. 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.

6. If certain terms and conditions of the policy need to be modified at the time of insurance, it is done by setting out the amendments through

A. Warranty
B. Endorsement
C. Alteration
D. Modifications are not possible

7. 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 renewal notice 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.

8. __________ is the maximum limit of liability of the insurer under the policy
A. Sum assured
B. Premium
C. Surrender value
D. Amount of loss

9. ___________is the consideration of price paid by insured under a contract.
A. Claim amount
B. Surrender value
C. Maturity amount
D. Premium

10. A document which provides an evidence of contract of insurance is called

A. Policy
B. Cover note
C. Endorsement
D. Certificate of insurance

11. The duty of disclosure arises
A. Prior to inception of the policy
B. After inception of the policy
C. Prior to inception and continuous during the policy
D. There is no such duty.

12. 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.

13. Fire proposal seeks to know

A. Process of manufacture
B. Details of material stored
C. Construction of building
D. All the above

14. Premium cannot be received

A. In cash
B. By Cheque
C. By promissory note
D. By Credit card

15. 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 bank locker.

CHAPTER – 13, THEORY AND PRACTICE OF PREMIUM RATING

1. Identify the two factors that affect insurance rate making
A. Probability and severity of risk
B. Source and nature of risk
C. Source and timing risk
D. Nature and impact of risk

2. What is pure premium?
A. Premium sufficiently big enough to pay for losses only.
B. Premium applicable to marginal members of the society.
C. Premium after loading for administrative costs.
D. Premium derived from the most recent loss experience period.

3. What is expected of an agent when he/ she detect 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.

4. Suggest on insurance scheme for a doctor to protect him from any claims of negligence against him.
A. Personal accident scheme
B. Liability insurance
C. Marine hull insurance
D. Health Insurance

5. ______________decides whether to accept or not to accept the risk.
A. Assured
B. Underwriter
C. Agent
D. Surveyor

6. _____________is the price of a given unit of insurance.
A. Rate
B. Premium
C. Sum Assured
D. Bonus

7. ______________is the maximum amount that insurance companies will indemnity to someone who files a claim.
A. Sum Assured
B. Premium
C. Rider
D. Benefits

8. _____________ 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.

9. Hazards are
A. Factors that increase the impact of losses
B. Factors that increase the frequency of loss
C. Factors that increase the impact and severity of losses
D. Factors that decrease the impact and severity of losses.

10. Which of the following is true? Physical hazards.
A. Are not important for rate making
B. Can’t be ascertained.
C. Can be calculated from the balance sheet
D. Can be ascertained from information on given in a proposal form.

11. 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

12. The purpose of deductible clause is to
A. To avoid claim payment
B. To elimination payment of small claims
C. To harass the policyholder
D. To increase the premium

CHAPTER – 14, PERSONAL AND RETAIL INSURANCE

1. 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 or comprehensive policy comes at the same price.
D. With regards to a householder’s policy only a named peril policy can bought and comprehensive policies are not available.

2. Under the shopkeeper’s 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

3. In householder’s insurance
A. Gold and silver ornaments are covered
B. Content’s of ones shop is covered
C. Car owned by the family are covered
D. Parcels sent by post are covered during transit.

4. 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 in not at home.

5. In shopkeeper’s insurance which of the following is not at home.
A. Machinery breakdown
B. Malicious damage
C. Business interruption
D. Willful destruction by insured

6. In shopkeeper’s insurance which of the following is 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.

7. Shop insurance covers

A. Dishonest acts of employees
B. Dishonest acts of insured
C. Dishonest acts customers
D. Dishonest acts of money lenders

8. Which of the following covers in Householder’s package insurance is not included in shopkeeper’s package insurance?
A. Personal Baggage
B. Television
C. Fixed plate glass
D. Legal liability to third parties

CHAPTER – 15, COMMERCIAL INSURANCE

1. A Fire policy for commercial risks covers the perils of __________
A. Explosion
B. Implosion
C. Both of the above
D. None of the above

2. 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

3. The premium for burglary policy depends on
A. Nature of insured policy
B. Moral hazard of the insured himself/herself
C. Construction and location of the premises
D. All of the above

4. 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.

5. Fidelity against 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 to fraud or dishonesty of their party.
D. Shareholders against the financial loss suffered by them due to fraud or dishonesty of the company management.

6. Which of the below can be covered under a banker’s indemnity insurance policy?
A. Money securities lost or damaged whilst within the premises due to fire.
B. Forgery or alternation of cheques.
C. Dishonesty of employees with reference to money
D. All of the above.

7. In case of a jewelers block policy, damage to property insured when it is transit by registered parcel will be
covered under.
A. Section I
B. Section II
C. Section III
D. Section IV

8. Delay in start-up policy is also known as
A. Machinery loss of profits cover
B. Advance loss of profits cover
C. Contractors all risk cover
D. Contractors’ plant and machinery cover.

9. 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

10. 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

11. Under the public liability Insurance Act 1991 how much is the compensation payable for actual medical expenses?
A. Motor car
B. Contractor’s all risks
C. Company’s all risks
D. Companies all requirements

12. In engineering insurance CAR stands for
A. Motor car
B. Contractor’s all risks
C. Company’s all risks
D. Companies all requirements

13. An employer insures himself from dishonest act of his/ her employees by
A. Employee’s compensation policy
B. Public liability insurance policy
C. Fidelity guarantee insurance policy
D. Declaration policy

14. ____________refers to the body of the ship
A. Hull
B. Cargo
C. Piracy
D. Jettison

15. Policy which covers loss or damage to aircraft is__________
A. Statutory liability
B. Property Insurance
C. Statutory liability
D. Money Insurance

16. Fire insurance policy does not cover damage to properly even as add-on cover due to ____________
A. Floods
B. Earthquake
C. Fire
D. Bombing due to war

17. Consequential loss (fire policy) covers.
A. Loss of profit due to damage to factory
B. Loss of goodwill
C. Material wear and tear in machinery
D. Losses due to foreign exchange fluctuations.

18. Premium in Burglary depends as
A. Security measures
B. Location of premises
C. Nature of property
D. All of the above

19. Contractor’s all risks policy is a variation of
A. Fire insurance
B. Life insurance
C. Engineering insurance
D. Marine insurance

CHAPTER – 16, CLAIMS PROCEDURE

1. Which of the following activities would not be categorized under professional settlement of claims?
A. Seeking conformation relating to the cause of the loss
B. Approaching the claim with a prejudice
C. Ascertaining whether the loss was result of an insured peril
D. Quantifying the amount payable under the claim

2. Abhay 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 abhay 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

3. Compare claims investigation and claims assessment
A. Both claims investigation and assessment is 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. Assessment tries to determine the validity of the claim whereas investigation is more concerned with the cause and extent of the loss
D. Investigation is done before the claim is paid and assessment is done after the claim is paid.

4. Who is the licensing author 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.

5. 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

6. Under which principle can the insurer assume the right 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

7. If the insurer decides that a certain loss in 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

8. 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

9. 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

10. For personal accident claim’s report of ____________is necessary.
A. Surveyor
B. Doctor
C. Police
D. Coroner

11. Independent surveyors are required for claims equal to or more Rs. __________as per Insurance Act.
A. Rs. 40000
B. Rs. 15000
C. Rs. 20000
D. Rs. 25000

12. Claims assessed outside the country in case of travel insurance policies are assessed by
A. Indian surveyors
B. Local surveyors in the country of loss
C. Insurers own employees
D. Claims settling agent’s named in the policy.

13. 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

14. What id TAT?
A. Time and turn
B. Till a time
C. Time and tide
D. Turn around time

15. On payment of loss, salvage belongs to
A. Surveyors
B. Insured
C. Insurer
D. Local authorities

16. Arbitration is a claim settlement process done
A. In the court of law
B. By a group of surveyors
C. By arbitrator
D. Chosen by the parties involved

17. Arbitration clause is not appending in
A. Fire insurance
B. Marine insurance
C. Personal accident
D. Motor insurance

SECTION 1-COMMON CHAPTERS 1 to 5 QUESTION ANSWER

1. Which act made it compulsory that premium rates tables and periodical valuation of companies be certified by an actuary?
A. 1912
B. 1938
C. 1972
D. 1956

2. First Non-Life insurance co. is
A. The Oriental
B. Triton
C. Bombay Mutual
D. National Insurance

3. Risk avoidance means

A. Controlling risk by bye-passing a loss situation
B. Managing the impact of risk
C. Taking steps to lower the chance of occurrence of a loss.
D. Reducing the degree of loss

4. Insurance refers to
1) Protection against an event that might happen
2) Protection against an event that will happen
A. 1 is correct
B. 2 is correct
C. 1 & 2 are correct
D. 1 & 2 both are incorrect

5. Which is the method of risk transfer?
A. Insurance
B. Bank fixed deposit
C. Share Investment
D. Postal saving

6. Could one afford to not insure a
A. Motor Car
B. Our Life
C. House
D. Space satellite

7. Which is tangible good?
A. Car
B. Air
C. Sunlight
D. Life

8. Which is correct?
A. Insurance is a king of investment
B. Insurance is nothing but a gamble
C. Insurance is risk transfer of pooling of similar risk.
D. Insurance is nothing but a saving Scheme

9. Identify the correct statement
A. Lloyds is the originator of insurance
B. Modern Insurance is traceable to Bottomry
C. Malhotra committee is the originator of modern insurance.
D. Modern insurance traces to Rhodes

10. Which is incorrect statement out of the following ones?
A. Risk is not an essential element of insurance.
B. Asset is not an essential element of insurance
C. Principal of mutuality is not an essential element of insurance.
D. Subsidy is an essential element of insurance.

11. What is the main objective of IRDA Regulations 2000?
A. Protection of Insurance Company
B. Protection of policyholder and development of orderly growth of insurance business.
C. Protection of insurance intermediaries
D. To earn for the Government.

12. Identify the incorrect statement out of the following ones.
A. An agent today cannot work for more than two non-life insurance company.
B. An agent can work only for one life insurance company as also for only one non-life company
C. An agent today can work for more than one life insurance company
D. Such an agent who works for one life and one non- life insurance company is called corporate agent.

13. State the correct statement.
A. Market value of assets is always taken by the insurer.
B. In periodical valuation of assets and liabilities book value of assets is normally taken by the insurer.
C. Discounted present value of the assets is taken by the insurer.
D. Discounted future value of the assets is taken by the insurer.

14. State the incorrect statement.
A. Code of conduct is optional for a successful agent.
B. Ethical standards may sometimes conflict with drive to do good volume of business.
C. Unethical behaviour brings good volume of business.
D. All the above.

15. Which is incorrect?
A. Ombudsman is appointed by the Central Govt under powers of the Insurance Act 38 and under Redressal of public Grievance Rules 1998.
B. The recommendations of the Ombudsman are always binding on the insured.
C. The Ombudsman can act as a mediator by mutual agreement the insurer and the insured.
D. If mediated, the decision of the Ombudsman is final whether to accept or reject the compliant, for both parties.

16. Which of the incorrect statement out of the following ones?
A. Agent’s report in not always compulsory.
B. Agent’s report should contain details of building location age etc.
C. Agent is a primary underwriting from insurers point of view.
D. Prospect is a legal document.

17. Who will issue licence to an application on his certification as per regulations?
A. Designated person in the insurer’s offices as authorized by the IRDA.
B. An officer of the IRDAI
C. Controller of Insurance Institute in the Ministry of Finance.
D. An official of the Insurance Institute of India.

18. Identify the incorrect statement out of the following ones.
A. There is a bar on appointment of a minor as agent of an insurance company.
B. A person found guilty of fraud or any criminal offence is ineligible for appointment as agent of an insurer.
C. A minor can be appointed agent of a life insurance company.
D. No applicant is exempt from mandatory training before appointment as agent.

19. Which is incorrect statement regarding Ombudsman?
A. Complainant has to approach a consumer forum before moving the Ombudsman.
B. The complaint has to be lodged within one year of the insurer rejecting the compliant.
C. There is no separate financial limit of various for ombudsman just as consumer forum.
D. Ombudsman will not call any witness.

20. State which of the following sentence is correct.
A. There is one Ombudsman for defined territorial limits.
B. There is one Ombudsman for each state in India.
C. There is only one chief Ombudsman for the whole country.
D. Ombudsman has upper financial limit, above Rs. 20 Lakhs.

21. Identify the correct option out of the following.
A. Licence for agency is issued by the Insurance company.
B. Licence for a non-life insurance agency is issued by SEBI.
C. General Insurance agency licence is issued by General Insurance Council.
D. Agency Licence in all cases is issued by the IRDA through the designated person of the Insurer.

22. Insurance is meant to
A. Prevent Specified event
B. Prevent damage to assets from specified events.
C. Compensate the economic losses from specified events.
D. Rebuild the assets lost because of specified event.

23. Insurance compensate losses, in general insurance
A. By replacing the original asset
B. To the full extent of lost income
C. Only to the extent of insured amount
D. Insure that assets never breakdown.

24. Insurance is necessary because
A. Assets depreciate over time & through usage
B. Assets may be damaged by external causes
C. Assets require regular maintenance
D. Guarantee that assets are always productive.

25. Insurance benefits replace
A. All physical losses in full
B. All physical losses partly
C. All monetory losses in full
D. All monetory losses, but only to some extent.

26. The amount of insurance depends on

A. The peril
B. The risk
C. Neither the peril nor the risk
D. Both the peril and the risk

27. Insurance works on the principal of
A. Sharing
B. Probabilities
C. Large numbers
D. All of the above

28. Insurance does not work on the principal of
A. Trust
B. Mutual help
C. Sharing
D. Clarity

29. Insurance works on the principle of
A. Equal contributions
B. Proportional contributions
C. Contributions dependent on affordability
D. At the whim of the individual

30. The insurer being a trustee has to ensure that
A. A suspicious claim is not paid
B. The bogus claim is paid
C. The premium charged is affordable by the individual
D. The life fund earns the minimum interest.

31. An insurer as a trustee is responsible to the
A. The Policy holders
B. The IRDA
C. The Government
D. Neither any of above

32. Insurance is legitimate
A. When an adverse happening is likely
B. When an adverse happening is unlikely
C. When an adverse happening is certain
D. When an adverse happening is daily

33. State which of the following statement is not correct?
1. Insurance provides direct benefits to individuals
2. Insurance provides indirect benefits to the community.
A. Only statement 1
B. Only statement 2
C. Both statements
D. Neither any of statements

34. The principle of utmost good faith is meant to protect the interest of
A. The insurer
B. The community of policyholder
C. The Shareholders
D. The IRDA

35. The responsibility to comply with the principal of utmost good faith rests with
A. The Agent
B. The Proposer
C. The life to be insured
D. The insurer and also the proposer

36. Which of the following risks are insurable?
A. Speculative
B. Economic
C. Sure to happen
D. Not to happen at all

37. Which is true?
A. The function of an agent differs according to the insurer he is working for insurer
B. The function of an agent is the same, whichever he is working for.
C. The commission of an agent is determined by IRDA
D. Minor can be appointed as an agent.

38. The person appointed to attend to grievance of policyholder is called
A. Grievance officer
B. Complaints officer
C. Designated officer
D. Ombudsman

39. ___________is a document issued under the law authorizing a person to act as an insurance agent.
A. Mandate
B. License
C. Appointment
D. Certificate

40. The Ombudsman scheme is basically the _________
A. Rules that regulate, promote, ensure orderly growth of the life and general insurance industry.
B. Redressal of public grievance rules 1998
C. Rules for consumer protection
D. Rules covering income Tax.

41. Insurable interest is_________.
A. Defines in the insurance Act
B. Defined in the contracts Act.
C. Defined by the IRDA
D. Not defined in any written law.

SECTION II HEALTH INSURANCE

CHAPTERS 6 to 10 QUESTION ANSWER

1. Pre-existing illness means any condition ailment or injury, prior to his/ her health policy if it has been diagnosed within …………………hours.
A. 12 Months
B. 24 Months
C. 36 Months
D. 48 Months

2. A typical health insurance policy covers illness after an initial 30 days. But in which case this condition is waived?
A. Cataract
B. Piles
C. Hernia
D. Accident

3. The Co. Pay is applicable in select circumstances in which case it will not be considered?
A. Parent Claims
B. Maternity claims
C. Exceeding a certain amount
D. Heart check up costs

4. Which one of the factors dose not determine the health of any individual?
A. Lifestyle factors
B. Environmental factors
C. Genetic factors
D. Service of an individual doing.

5. Heath care to be effective must be
A. Appropriate to the needs of the people
B. To the extent to one can enjoy the medical aids though it is one’s financially out of limit
C. It is not required since he/she is staying in posh locality
D. His/ her son and daughter are post graduate in medicine degree

6. What is secondary healthcare?
A. A healthcare where the services are offered by the doctors, nurses
B. A healthcare where the services are provided by medical specialists.
C. A healthcare where specialised consultative services are offered
D. None of above

7. Which factor does not affect the nature and extent healthcare system and the requirement at the individual level?
A. Demographic related factors
B. Social trends
C. Life expectancy
D. All the above.

8. Employee’s State Insurance Scheme was introduced by an act passed in
A. 1947
B. 1948
C. 1956
D. 1972

9. Which benefit is not covered under ESI Scheme?
A. Monthly salary to workers, whose salary is less than 15000 p.m.
B. Funeral expense in case death of worker
C. Maternity benefit
D. Disability benefit

10. Who is the intermediary, who is not working for any individual insurance company.
A. Agent
B. Corporate Agent
C. Broker
D. Third Party Administrator

11. Third Party Administrator is funded by –
A. Insurance Companies
B. Own Resources
C. Subsidy from IRDAI
D. Loan From Bank

12. Which is the latest type of intermediary to be governed by IRDAI?
A. Insurance Web Aggregators
B. Insurance Marketing Firms
C. Broker
D. Third Party Administrator

13. In Personal Accident Insurance, in case of happening of an event, the amount payable will be
A. Fixed amount for loss of life or sight due to an accident.
B. Agreed sum insured
C. Total cost incurred for medical aids
D. The Medical cost, assessed by surveyor.

14. Any wrong answer in proposal from the insurer will –
A. Get the correct answer before proposal processing
B. Avoid the contract
C. Proceed with the contract
D. Change extra premium for such wrong answers

15. IRDAI regulation states that all material information in respect of a proposed cover be intimated by barring.
A. An Insurer
B. An Agent
C. Third Party Administrator
D. Prospect

16. The Insurer has to process the proposal within……………..
A. 7 days
B. 15 days
C. 30 days
D. 45 days

17. Issue of prospectus is governed by
A. Contract Act 1872
B. Workmen’s Compensation Act.
C. Insurance Act 1938
D. GIC Act 1972

18. The most important thing published in health insurance prospectus is
A. The minimum and maximum age at entry and expiry of the contract
B. The sum insured affordable
C. A declaration by the proposer that he/she has read the prospectus and agrees to it.
D. Renewal terms of the policy

19. Payment of premium in advance is governed by : –
A. Section 64 AB of Insurance Act 1938
B. Section 64 BB of Insurance Act 1938
C. Section 64 VB of Insurance Act 1938
D. Section 64 CB of Insurance Act 1938

20. A health Insurance policy should contain certain information but one of most important information is …………………………
A. The name & address of the Insured
B. The sum insured under the policy
C. Perils covered and exclusions
D. Details grievance redressal mechanism and address of Ombudsman

21. If a warranty is not fulfilled the policy becomes voidable at the option of ………………
A. The Insured
B. The Agent
C. The Insurer
D. The Third Party Administrator

22. Which can be classified under daycare Surgeries
A. Chemotherapy
B. Heart
C. Knee replacement
D. Organ Transplant

23. The IRDAI guidelines on Standardization define pre-existing provided any ailment or injury had signs & diagnosed and received medical treatment within ……………………hours / months prior to the first policy issued by the insurer.
A. 30days
B. 60days
C. 20 days
D. 48 days

24. What is true regarding Co – Payment?
A. A Co –payment dose not reduce the sum insured
B. A Co –payment reduces the sum insured
C. Insured dose not bear any expenses.
D. Co- Payment is allowed at the mercy of the insurer

25. When Bhavishya Arogya VIMA Yojna Started?
A. 1995
B. 1990
C. 2001
D. 2012

26. The sum insured is restricted in Rashtriya swastha Vima Yojna.
A. Rs. 10000
B. Rs. 20000
C. Rs. 30000
D. Rs. 40000

27. What is the premium for Pradhan Mantri Suraksha per annum per member?
A. Rs 20
B. Rs 30
C. Rs 45
D. Rs 12

28. Pradhan Mantri jan dhan Yojna launched on
A. 28th Aug 2014.
B. 1st Sept 2014
C. 15th Aug 2014
D. 15th Sept 2014

29. Who will not be covered under family floater Scheme?
A. Spouse
B. Child
C. Parents
D. Uncle

30. Which Arogya Yojna is being implemented by insurance company?
A. Universal health
B. Jan Arogya
C. Pradhan Mantri Suraksha
D. Comb- Insurance

31. Which is the correct Statement?
A. Trustees have to be appointed in all group policies.
B. All group policies need approval of income tax dept.
C. Group policies give employees better benefit than legally- required.
D. Group policies are popular because of legal compulsion.

32. To which of the following dose to Employees state Insurance Act 1948 apply?
A. Employees of Central Government
B. Employees of State Government
C. Employees of Public Sector manufacturing companies
D. Industrial employees as notified by the Government.

33. As per mediclaim policy.
1. Expense on hospitalization for a minimum period of 24 hours are admissible.
2 The time limit is not applied if the insured is discharged the same day after specific treatment e.g. Dialysis.
A. 1 is true
B. 2 is true
C. Both are true
D. Both are false

34. Which of the following types of specific treatment is exempted from minimum 24 hours stay in a hospital?
A. Chemotherapy
B. Radiotherapy
C. Lithotripsy
D. All of the Above

35. Which of the following statement is true?
Domiciliary hospitalization benefit dose not include.
1. Pre-hospitalization treatment
2. Post-hospitalization treatment
A. 1 is true
B. 2 is true
C. Both are true
D. Both are false

36. which of the following diseases is excluded during the first year of operation of mediclaim policy?
A. Bronchitis
B. Diabetes
C. Hernia
D. Chronic Nephritis

37. Which of the following is payable under mediclaim policy if necessitated due to an accident?
A. Cosmetic treatment
B. Aesthetic treatment
C. Plastic Surgery
D. All the above

38. For which of the following diseases medical certificate from a consulting physician is required to be submitted along with the proposal form.
A. Diabetes
B. Hypertension
C. Coronary insufficiency
D. All the above

39. A discount in premium is allowed to a family comprising the insured and ……………….
A. Spouse
B. Dependent children
C. Dependant Parents
D. All the above

40. Which of the following statement is true?
A group mediclaim policy is available to any group subject to the following.
1. The group has a central administration point.
2. The prescribed number of persons are covered
A. 1 is true
B. 2 is true
C. Both are true
D. Both are false

41. Which of the following under Group mediclaim policy?
A. No claim bonus
B. Group discount
C. Cumulative bonus
D. Maternity extension.

42. Any critical illness discovered or discoverable within …………days of the inception date of the policy is not covered under the policy.
A. 30 days
B. 45 days
C. 60 days
D. 90 days

43. Overseas medical policy can be granted to Indian resident undertaking bonafied trips for the following purposes.
A. Business
B. Official
C. Holiday
D. All the above purpose

44. Which of the following is not paid upto the full limit of cover under the overseas medical policy?
A. Physician services
B. Hospital Services
C. Dental Services for immediate relief dental pain only
D. Local emergency medical Transportation.

45. Under which of the following section of overseas medical policy deductible dose not apply?
A. Medical Expenses
B. Personal accident
C. Personal Liability
D. Loss of Passport

SECTION III GENERAL INSURANCE

CHAPTERS 11 to 16 QUESTION ANSWER

1. Which of the following statement is true?
A. Insurance protects the asset.
B. Insurance prevents its loss
C. Insurance reduces possibilities of loss.
D. Insurance pays when there is loss of asset.

2. Which of the following statement is false?
A. Insurance is a method of sharing the losses of a few by the many.
B. Insurance is a method of transferring the risk of an individual to a group of individuals.
C. Insurance prevents the losses from happening
D. Insurance spreads the losses amongst the insured’s.

3. Which of the following are not requisites of a valid insurance contract.
A. Subrogation
B. Consideration
C. Parties of the same mind
D. Parties are competent to contract

4. Which of the following is not the correct reason, insurer requires material information?
A. To decide about acceptance
B. To fix the rate of premium
C. To fix the sum insured
D. To fix terms and conditions of cover.

5. Which of the following are not material facts.
A. The fact that provides insurers had rejected the proposal.
B. The fact that provides insures charged extra premium.
C. The fact that previous insures had refused to renew the policy.
D. The fact that the insured observed utmost good faith while filling the proposal form.

6. Which of the following makes the contract unenforceable in a court of law?
A. The proposer has committed non – disclosure
B. The Proposer has committed mis – representation.
C. The Proposer has given wrong address of property due to a clerical error.
D. The policy is not stamped as per Indian stamp Act.

7. If there is no insurable interest the insurance contract becomes
A. Unenforceable in a court of law
B. Illegal
C. Void
D. Voidable

8. Insurance interest is not always required at the time of taking the policy.
A. Fire Insurance
B. Marine Hull Insurance
C. Marine Cargo Insurance
D. Burglary Insurance

9. Consent of insurers is not required for the assignment of
A. Marine hull policies
B. Marine Cargo policies
C. Fire policies
D. Burglary policies

10. The object of the principle of indemnity is to
A. Pay the full cost of repairs
B. Pay the full cost of replacement
C. Pay the cost of reinstatement
D. Prevent the insured from making any profit out of her loss.

11. Agreed value policies are issued for –
A. Marine Cargo
B. Marine hull
C. Marine Cargo and hull
D. Fire insurance on high valued machinery.

12. Sum insured under an insurance policy means –
A. It is the agreed value of the subject matter insured
B. The amount payable when there is loss
C. The amount on which the premium is calculated
D. The maximum limit of liability under the policy

13. Subrogation condition does not appear in
A. Fire Policy
B. Marine Cargo policy
C. Burglary Policy
D. Baggage policy

14. Which of the following does not affect the amount of loss payable under the policy.
A. Breach of the utmost good faith
B. Salvage
C. Pro-rata average
D. “Excess” value

15. Insurance Contract are not gambling transactions because –
A. They are based on insurable interest
B. The policy is stamped
C. Full premium is paid
D. All material facts are disclosed

16. If an insurance policy is not stamped as per Indian stamp Act, the contract becomes
A. Illegal
B. Void
C. Voidable
D. Unenforceable in a court of law

17. When there is fraudulent breach of utmost good faith the insurance contracts becomes
A. Unenforceable in a court of law
B. Illegal
C. Void
D. Voidable

18. The Contractual duty of utmost good faith applies
A. To motor insurance only
B. To marine cargo insurance only
C. To fire insurance only
D. All insurance where proposal form with a declaration clause is used

19. If there is a non-disclosure of a material fact due to oversight, the insurance contract becomes.
A. Void
B. Voidable
C. Illegal
D. Invalid

20. Which of the following is an evidence of insurance contract?
A. Payment of premium
B. Acceptance of proposal
C. Insurers prospects
D. Policy of insurance

21. The transfer of rights and liabilities of an insured to another person who has insurable interest is known as……………….
A. Consideration
B. Subrogation
C. Assignment
D. Endorsement

22. Which of the following principles prevents an insured from making a profit out of his loss?
A. Proximate cause
B. Pro-rata average
C. Indemnity
D. Insurable interest

23. The legal right to insure means
A. Consideration as per Indian contract Act.
B. Competence as per Indian Contract Act.
C. Assignment
D. Insurable Interest

24. In which of the following insurances the principle of indemnity is modified.
A. Public Liability
B. Fidelity Guarantee
C. Marine Cargo
D. Baggage Insurance

25. An insured cannot recover more than his actual loss because of
A. Under Insurance
B. Excess clause
C. Principle of indemnity
D. Franchise clause

26. In which of the following policies the principle of indemnity is modified.
A. Fire Declaration
B. Fire floating policy
C. Fire reinstatement policy
D. Fire loss of profits policy

27. In which insurance contract the subrogation claim does not apply?
A. Life
B. Fire
C. Personal Accident
D. Marine

28. Which of the following is not a contract of indemnity in the strict sense?
A. Mediclaim insurance
B. Personal accident insurance
C. Fidelity guarantee
D. Burglary Insurance

29. The principle of indemnity arises under the …..
A. Insurance Act 1938
B. IRDA Act 1999
C. Indian Contract Act 1872
D. Common Law

30. The principle of indemnity is applied through deduction.
A. For under insurance
B. For depreciation
C. Under franchise clause
D. Under excess clause

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

A. Pro-rata Average
B. Franchise
C. Contribution
D. Subrogation

32. As per IRDA regulation in which of the following insurance written proposal is not necessary?
A. Fire insurance on Cargo industrial risks
B. Marine Cargo insurance
C. Compulsory public liability
D. Fidelity Guarantees

33. In which of the following clauses of the scheduled form of policy the parties to the contract are mentioned.
A. Policy schedule
B. Standard provisions
C. Specific policy provisions
D. Endorsement

34. If a warranty is breached the policy becomes –
A. Void
B. Voidable
C. Invalid
D. Unenforceable in a court of law

35. Certificates of insurance are used in
A. Marine Hull Insurance
B. Marine Cargo Insurance
C. Engineering insurance
D. Workmen’s compensation

36. In Motor insurance certificates of insurance are issued because
A. Make vehicle is not known
B. Year of manufacture is not known
C. Seating capacity is not known
D. Is is required by the Motor Vehicle Act.

37. Renewal notice is issued because –
A. It is required under the insurance act.
B. Of IRDA regulations
C. It is a healthy business practice.
D. It is provided by policy conditions.

38. Which of the following is paid out of ‘Pure Premium’
A. Losses
B. Agency Commission
C. Expenses of management
D. Unexpected heavy losses.

39. After withdrawal of Tariffs wef. 1-1-2007 insurers cannot charge their own rates for which of the following classes of insurance.
A. Fire Insurance
B. Engineering insurance
C. Motor third party insurance
D. Workmen compensation insurance

40. Under IRDA guidelines which of the following policies dose not fall under internal Tariff rated products
A. Burglary insurance
B. Fidelity insurance
C. Personal accident insurance
D. Group health insurance

41. As per the Insurance Act 1938 ( as amended) an insurer has to obtain a report from a Licensed surveyor, if the loss equals or exceeds?
A. Rs 15000
B. Rs 20000
C. Rs 25000
D. Rs 50000

42. An insurance agent whose license has been cancelled by the designated person cannot apply for fresh license unless a period of …………….. years has elapsed from the date of such cancellation.
A. 3 years
B. 4 Years
C. 5 Years
D. 6 Years

43. Which of the following is not a function of a direct broker as per IRDA regulations.
A. Advise clients on appropriate cover and terms.
B. Submit insurers premium quotation to client.
C. Pay premium to insurers on behalf of client
D. Assist in negotiation of claims

44. As per IRDA regulations which of the following is not a function of Third Party Administrator
A. Collection of premium
B. Collection of Claim documents
C. Claims Scrutiny and processing
D. Claims Payment

45. Under IRDA Regulations it is duty of an insurer to furnish to the insured free of charge a copy of completed proposal form, within …………. days of the acceptance of a proposal.
A. 7 days
B. 15 days
C. 30 days
D. 45 days

46. As per IRDA Regulations a Surveyor has to be appointed within …………………. hours/days of receipt of claim intimation from the insured.

A. 24 hours
B. 72 hours
C. 7 days
D. 15 days

47. As per IRDA Regulation, Surveyor shall submit the survey report to the insurer within …………… days of
appointment.
A. 15 days
B. 30 days
C. 45 days
D. 60 days

48. Insurer shall within a period of …………….. days of receipt of survey report, offer a settlelment of claim to the insured.
A. 15 days
B. 30 days
C. 45 days
D. 60 days

49. Rejection of claim by the insurer shall be communicated to the insured within a period of ……………. days from the receipt of the survey report.
A. 15 days
B. 30 days
C. 45 days
D. 60 days

50. On acceptance of offer settlement by the insured insurer shall make the payment within ……………. days from the date acceptance of offer.
A. 7 days
B. 10 days
C. 15 days
D. 30 days

51.Which of the following is not insured under Standard fire and special peril policy?
A. Goods in factories
B. Goods in open
C. Goods in transit by rail/road
D. Goods in godowns

52. The term “Fire” under the fire policy means
A. Natural healing
B. Burning by order of public authority
C. Spontaneous combustion
D. Accidental ignition

53. Which of the following is not covered under standard fire and special perils policy.
A. Cyclone
B. Hurricane
C. Earthquake
D. Flood

54. Which of the following is covered under the policy at extra premium
A. Impact damage
B. Bush Fire
C. Forest Fire
D. Subsidence

55. Under fire policy pro-rata average applies when there is –
A. Double insurance
B. Over Insurance
C. Under Insurance
D. Subrogation

56. Which of the following does not fall under marine cargo insurance
A. Export shipments
B. Import shipments
C. Rail/road consignment
D. The ship’s damages

57. Extra charges in cargo claims refer to
A. Landing charges
B. Reconditioning charges
C. Warehousing charges
D. Survey fees

58. Which of the following does not fall under miscellaneous classification of motor vehicle
A. Ambulance
B. Mobile dispensaries
C. Motorised rickshaws
D. Cinema, film recording vans

59. Under Motor Vehicle Act, the limit of liability for damage to third party is…………
A. Rs. 10000
B. Rs. 6000
C. Rs. 20000
D. Rs. 25000

60. Under Motor Vehicle Act the limit of liability for service vehicle is ………………..
A. Rs 25000
B. Rs 50000
C. Rs 100000
D. Rs Unlimited

61. Liability only under motor policy covers for damage to
A. Property of Third party
B. Property belonging to insured
C. Property held in trust by the insured
D. Property in the custody of the insured

62. Applications from legal heirs of the deceased insured to transfer of policy to their name should be accompanied by documents which of the following not required.
A. Death Certificate
B. Post mortem report
C. Proof of title to the vehicles
D. Original Policy

63. The administrator of motor third party insurance is
A. IRDA
B. General Insurance Companies
C. General Insurance Council
D. Motor Accidental claims Tribunal

64. Under Public Liability Insurance Act 1991, the owner is not liable to pay relief in the event of
A. Death of any person
B. Injury of any person not resulting in death
C. Damage to property of any person
D. Injury to a workman within the meaning of Workmen Compensation Act.

65. The amount of relief payable under public liability Insurance Act 1991for fatal accident is
A. Rs 10000
B. Rs 12500
C. Rs 25000
D. Rs 50000

66. The amount of relief payable under Public Liability Insurance Act 1991for permanent total disability is
A. Rs 12500
B. Rs 25000
C. Rs 50000
D. Rs 100000

67. Which of the following Liabilities is not excluded under insurance policy under public liability insurance Act 1991.
A. Arising out of wilful non-compliance of statuary provision
B. Damage to property leased by the insured.
C. Damage to property of third party
D. Fines and penalties.

68. Under Public Liability Act 1991, application for claim for relief must be made to the collector within ……… years of the occurrence of the accident.
A. 1 year
B. 2 years
C. 3 years
D. 5 years

69. Which of the following exclusions of individual Risks Public Liability Policy can be covered under a separate policy.
A. Liability for pollution
B. Liability of collaborator who has a technical collaboration with the insured.
C. Liability for the injuries to employees
D. Liability arising out of earthquake

70. Which of the following is not covered under Burglary policy?
A. Theft after forcible entry.
B. Damage to insured goods by burglars
C. Damage to premises by burglars
D. Breakage of windows by burglars

71. Which of the following risks is not covered at extra premium under Burglary policy?
A. Strike
B. Riot
C. Breakage of plate glass
D. Terrorism

72. Which of the following losses called by burglars is not payable under Burglary Policy?
A. Damage to external doors by fire
B. Damage to goods which were not stolen
C. Damage to furniture
D. Theft of cash from safe through original key obtained by threats of violence

73. Which of the following Fidelity Guarantee policies are usually granted to large reputable firms to cover their entire staff?
A. Floating Policy
B. Collective Policy
C. Blanket Policy
D. Positions policy

74. Under which of the following Fidelity Guarantee policies individual amount of guarantee is not specified.
A. Collective Policy
B. Floating Policy
C. Positions Policy
D. Blanket Policy

75. Under public liability insurance Act 1991 a company handling hazardous substance has to insure for an amount not less than the amount …………….of the company
A. Market Value of the asset
B. Market Value of the stocks
C. Paid up Capital
D. Turnover of hazardous substances

(SECTION III) CHAPTER 11-16 MISCELLANEOUS QUESTION

1. Which of the following factors does not come under moral hazard?
A. Income
B. Habits
C. Medical History
D. Lifestyle

2. Central repository of Insurance grievances is
A. IRDA
B. IGMS
C. Finance Ministry
D. SEBI

3. Recommendations by the Ombudsman should be made in
A. One month
B. Six months
C. 15 Days
D. One year

4. The awards by Ombudsman should be passed in
A. One Month
B. Three Months
C. Six Months
D. Twelve Months

5. Does ombudsman posses the power of court?
A. Yes
B. No
C. May be
D. In certain cases

6. Which insurance is mandatory?
A. Marine
B. Fire
C. Burglary
D. Third party

7. Most important aspect or the complaint received from the policyholder is
A. The opportunity to demonstrate how much the insurer cares for the customer’s interests.
B. It is a routine matter for the policy holder and hence can be ignored.
C. The office working system need to be improved
D. Only regret and insure the policyholder that the history will not be repeated.

8. “IGMS” has launched by
A. Central government
B. LIC
C. SEBI
D. IRDA

9. Which is the correct statement the procedure for filling a complaint with consumer forum is ___________?
A. The complaint can be filed by the complainant himself/herself or by his/her authorized agent
B. There is no time limit for filing the complaint
C. The minimum fee of Rs. 100 has to be remitted before filing the complaint
D. Minor can also file the complaint.

10. Which is the result of first impression that are derived when a customer comes in touch with the organization?
A. Attraction
B. Communication
C. In thoch
D. Makes the impression good or bad

11. Which is not the element of active listening?
A. Active listening
B. Paying attention
C. Provide feedback
D. Get a message through messenger

12. Where the consumer disputes redressal agencies has not been established.
A. District place
B. State place
C. The Taluka place
D. The higher forum i.e. National forum at a place decided by the Government.

13. Which consumer disputes does not fall under insurance business concerned?
A. Delay in settlement of claims
B. Repudiation of claims
C. Non settlement of claims
D. The cheque issued by a friend has been dishonored, resulting heard losses.

14. Examination body conduction the Agents Pre-recruitment test
A. Insurance Institute of India
B. IRDA
C. SEBI
D. LIC of India

15. A Corporate Agent life may have arrangements with a maximum of ___________life insurers to solicit procure and service their insurance products.
A. One
B. Two
C. Three
D. Four

16. If any agent as an insurance agent in contravention of the provision of Insurance Act, he/she shall be liable to a penalty which may extent to.
A. Rs. 1000
B. Rs. 2000
C. Rs. 5000
D. Rs. 10000

17. An agent should adhere to the code of conducts farmed by
A. LIC
B. The insurer, for whom he/she is working
C. SEBI
D. IRDA

18. The proposer must disclosed of the following material facts in the proposal form
A. He/she had a heart attack
B. He/she is unaware about his/her suttering from high blood pressure
C. He/she as well as insurer is aware about municipal laws about storing of explosives, which he/she did not mention about premises.
D. None of the above.

19. Contract of Adhesion means.
A. In which one of the parties is minor
B. Both parties have signed with same mind
C. Drafted by one the party having greater bargaining advantage
D. The contract which is void since inception

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