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CHAPTER 1 INTRODUCTION TO INSURANCE 1. Which among the following is not a function of insurance? I. Risk mitigation II. Risk transfer III. Risk tracking IV. Risk reduction The correct option is III. Risk tracking is not a function of insurance. 2. Chance of loss is referred to as _________. I. uck II. Risk III. !ad luck IV. "eril The correct option is II. Chance of loss is referred to as risk. #. Insurance deducti$le is an e%ample of ___________. I. Risk mitigation II. Risk a&oidance III. Risk transfer IV. Risk retention The correct option is IV. Insurance deducti$le is an e%ample of risk retention. '. Cost of risk is determined $( ________________. ________________. I. "ro$a$ilit( onl( II. Impact onl( III. "ro$a$ilit( and impact IV. Timing of risk The correct option is III. "ro$a$ilit( and impact of the risk determine the cost of risk. ). *ow does insurance help in easing access to credit? I. Insurer pro&ides free credit II. !anks lend easil( if an application is $acked $( insurance III. "erson who can pa( insurance is assumed to $e creditworth( IV. Regulations mandate pro&ision of credit to the insured The correct option is II. !anks lend easil( if an application is $acked $( insurance.
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CHAPTER 1 INTRODUCTION TO INSURANCE 1. Which among the following is not a function of insurance? I. Risk mitigation II. Risk transfer III. Risk tracking IV. Risk reduction The correct option is III. Risk tracking is not a function of insurance. 2. Chance of loss is referred to as _________. I. uck II. Risk III. !ad luck IV. "eril The correct option is II. Chance of loss is referred to as risk. #. Insurance deducti$le is an e%ample of ___________. I. Risk mitigation II. Risk a&oidance III. Risk transfer IV. Risk retention The correct option is IV. Insurance deducti$le is an e%ample of risk retention. '. Cost of risk is determined $( ________________. ________________. I. "ro$a$ilit( onl( II. Impact onl( III. "ro$a$ilit( and impact IV. Timing of risk The correct option is III. "ro$a$ilit( and impact of the risk determine the cost of risk. ). *ow does insurance help in easing access to credit? I. Insurer pro&ides free credit II. !anks lend easil( if an application is $acked $( insurance III. "erson who can pa( insurance is assumed to $e creditworth( IV. Regulations mandate pro&ision of credit to the insured The correct option is II. !anks lend easil( if an application is $acked $( insurance.
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+. lo(ds Coffee *ouse is regarded as the place where insurance started the wa( it is practised toda(. lo(ds is located in __________. __________. I. !angalore II. ,ingapore III. ondon IV. -u$ai The correct option is III. lo(ds is located in ondon. . Risk transfer through risk pooling is called________. c alled________. I. ,a&ings II. In&estments III. Insurance IV. Transfer The correct option is III. Risk transfer through risk pooling is called insurance. /. The measures to reduce chances of occurrence of risk are known as _____. I. Risk retention II. oss pre&ention III. Risk transfer IV. Risk a&oidance The correct option is II. oss pre&ention measures reduce the chance of occurrence of risk. 0. !( transferring risk to insurer it $ecomes possi$le I. To en3o( from floods II. To en3o( and make mone( from insurance III. To en3o( a fire in the factor( IV. To en3o( peace of mind and plan one s $usiness more effecti&el( ‟
The correct option is IV. Insurance pro&ides peace of mind and helps one plan his $usiness effecti&el(. 14. 5rigins of modern insurance $usiness can $e traced to________. I. !ottomr( II. lo(ds III. Rhodes IV. 6alhotra Committee The correct option is II. 5rigins of modern insurance can $e chased to lo(ds. 11. In the insurance conte%t 7risk retention indicates a situation where__________. I. possi$ilit( of loss or damage is not there II. loss producing e&ent has no &alue III. propert( is co&ered $( insurance ‟
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IV. one decides to $ear the risk and its effects The correct option is IV. When one decides to $ear the conse8uence of a risk he is said to ha&e retained risk. 12. Which of the following statement is true? I. Insurance protects the asset II. Insurance pre&ents its loss III. Insurance reduces possi$ilities of loss IV. Insurance pa(s when there is loss of asset The correct option is IV. Insurance compensates for the loss of an asset. 1#. 5ut of '44 houses each &alued at Rs.24 444 on an a&erage ' houses get $urnt e&er( (ear resulting in a com$ined loss of Rs./4 444. What should $e the annual contri$ution of each house owner to make good this loss? I. Rs.1449: II. Rs.2449: III. Rs./49: IV. Rs.'449: The correct option is II. ;ach house owner needs to contri$ute Rs 244. 1'. Which of the following statements is true? I. Insurance is a method of sharing the losses of a 7few $( the 7man( II. Insurance is a method of transferring the risk of an indi&idual to another indi&idual III. Insurance is a method of sharing the losses of 7man( $( a few IV. Insurance is a method of transferring the gains of a few to the man( ‟
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The correct option is I. Insurance is a method of sharing the losses of a few $( the man(. 1). !efore acceptance of a risk the insurer arranges a sur&e( and inspection of the propert(. Wh(? I. To assess the risk for rating purposes II. To find out how the insured purchased the propert( III. To find out whether other insurers ha&e also inspected the propert( IV. To find out whether neigh$ouring propert( also can $e insured The correct option is I. !efore acceptance of the risk an insurer conducts an in&estigation in order to assess the risk for rating purpose.
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CHAPTER 2 PRINCIPLES OF INSURANCE 1. Which one of the following does not represent an insura$le risk? I.
'. 6oral ha=ard means I. -ishonest( or character defects in an indi&idual II. *onest( and &alues in an indi&idual III. Risk of religious $eliefs IV. *a=ard of the propert( to $e insured The correct option is I. 6oral ha=ard means dishonest( or character defects in an indi&idual. ). Risk indicates I.
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+. ______________ means spreading one s in&estment in different kinds of assets. I. "ooling II. -i&ersification III. >am$ling IV. -(namic risk ‟
The correct option is II. -i&ersification means spreading one s in&estment in different kinds of assets. ‟
. _____________ is not an e%ample of an asset. I. *ouse II. ,unlight III. "lant and machiner( IV. 6otor car The correct option is II. ,unlight cannot $e classified as asset as it fails the test of scarcit( and ownership. /. ______________ is not an e%ample of risk. I. -amage to car due to accident II. -amage of cargo due to rain water III. -amage to car t(re due to wear and tear IV. -amage to propert( due to fire The correct option is III. -amage as a result of wear and tear cannot $e treated as risk. 0. ;arth8uake is an e%ample of I. Catastrophic risk II. -(namic risk III. 6arginal risk IV. ,peculati&e risk The correct option is I. ;arth8uake is an e%ample of catastrophic risk. 14. ,elect the most appropriate logical e8ui&alence for the statement. ,tatement Insurance cannot protect an asset from loss or damage. I. True II.
III. egal ha=ard IV. Risk pooling The correct option is II. ,u$rogation means transfer of all rights and remedies with respect to the su$3ect matter of insurance from insured to insurer. 12. @n e%ample of a fact which need not $e disclosed unless asked for is ______________ $( the insurer. I. @ge of the insured II. "resence of fire e%tinguisher III. *eart ailment IV. 5ther insurance details The correct option is II. "resence of fire e%tinguisher need not $e disclosed while $u(ing insurance unless asked for. 1#. ________________ is a wrong statement made during negotiation of a contract. I. 6isrepresentation II. Contri$ution III. 5ffer IV. Representation The correct option is I. 6isrepresentation is a wrong statement made during negotiation of a contract.
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CHAPTER 3 MARKETING AND SELLING INSURANCE 1. Which among the following is not an essential component of the sales process? I. >oodwill II. !u(er III. ,eller IV. "roduct 9 ,er&ice The correct option is I. >oodwill is not an essential component of the sales process. 2. Which among the following acti&ities can $e classified as promotion? I. "roduct de&elopment II. Aualit( control III. "roduct ad&ertisement IV. "roduct $enchmarking The correct option is III. "roduct ad&ertisement is a means of promotion. #. Which among the following statements $est descri$es a BTestimonial? I. @n endorsement from a satisfied customer II. Test result for a product in a $enchmarking test III. ist of tests that a product must pass IV. 6one( re8uired to test a product The correct option is I. @ testimonial is an endorsement from a satisfied customer. '. >eneral insurance could help in achie&ing all of the following o$3ecti&es ;DC;"T I. "rotection against loss to $usiness p remises II. 6aking windfall gains on the occurrence of a contingent e&ent III. "rotection against errors and omissions IV. "rotection against propert( losses The correct option is II. >eneral insurance cannot $e used to make windfall gains on the occurrence of a contingent e&ent. ). *ow can insurance penetration $e determined? I. Ratio of insurance premiums to >-". II. Ratio of insurance companies to the local population III. Ratio of insurance premium to per capita income IV. Ratio of su$scri$ers to the insurance policies a&aila$le The correct option is I. Insurance penetration is the ratio of insurance premiums to >-". +. Classification of customers into &arious market segments ha&ing common features is known as _____________. Page | 8
I. ,ales II. ,egmentation III. 6arketing IV. "rospecting The correct option is II. Classification of customers into &arious market segments ha&ing common features is known as segmentation. . The ke( to successful closing lies in helping the prospect to sa( ________. I. o II. -on t know III. Ees IV. 6a($e ‟
The correct option is III. The ke( to successful closing lies in helping the prospect to sa( BEes. /. Which of the following is not part of sales process? I. "rospecting II. ,ales inter&iew III. oss assessment IV. Closing The correct option is III. oss assessment is not a part of the sales process. 0. _______________ is not among the " s of marketing. I. "rice II. "roduct III. "rotection IV. "lace ‟
The correct option is III. "rotection is not among one of the " s of marketing. ‟
14. Insurance is part of ___________ industr(. I. 6anufacturing II.
The correct option is III. egotiation is a process to reach at a win:win situation.
12. "rospecting in an insurance sale is I. >athering the names of people who ma( $e interested in insurance II. "reparing a list of all the persons in the cit( III. ;nlisting all the polic(holders of the $ranch office IV. "reparing list of all the agents in the neigh$ourhood The correct option is I. "rospecting in an insurance sale is gathering the names of people who ma( $e interested in insurance. 1#. eed:gap anal(sis in&ol&es finding a$out prospect I. Identif(ing the areas where the prospect needs insurance protection II. Identif(ing people to work as insurance agents III. Identif(ing how much assets a prospect has IV. Indentif(ing the po&ert( le&el of the prospects The correct option is I. eed:gap anal(sis in&ol&es finding a$out prospect and identif(ing the areas where the prospect needs insurance protection. 1'. Insurance densit( is I. ife insurance premium II. Ratio of premium to income III. "remium per capita IV. Co&erage per capita The correct option is III. Insurance densit( is premium per capita. 1). Cold Calling is I. 6eeting customers in winter II. 6eeting customers when the( are suffering from cold III. 6eeting people unannounced IV. 6eeting customer after fire was e%tinguished The correct option is III. Cold calling in&ol&es meeting people unannounced.
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CHAPTER 4 LEGAL AND REGULATORYASPECTS OF INSURANCE AGENCY 1. What is the primar( purpose of insurance regulations? I. To generate fee income II. "rotect the interests of polic(holders III. To settle customer disputes IV. To control the market share of pri&ate insurers The correct option is II. The primar( purpose of insurance regulations is to protect the interests of polic(holders. 2. Which among the following acti&ities is prohi$ited as per the pro&isions of Insurance @ct 10#/? I. Feeping aside reser&es to meet sol&enc( re8uirements II. Gsing re$ates as a tool to sell insurance policies III. "rospecting customers IV. imiting management e%penses The correct option is II. Gsing re$ates as a tool to sell insurance policies is prohi$ited under Insurance @ct 10#/. #. Insurance agents who hold licence to act as an agent for $oth a life insurer and a general insurer are called _______________. I. Common insurance agents II. Composite insurance agents III. 6ultiple insurance agents IV. >eneral insurance agents The correct option is II. Insurance agents who hold licence to act as an agent for $oth a life insurer and a general insurer are called composite insurance agents. '. Which of the $elow intermediar( is not in&ol&ed in procurement of $usiness? I. Insurance $rokers II. Indi&idual agents III. ,ur&e(ors IV. Corporate agents The correct option is III. ,ur&e(ors are not in&ol&ed in procurement of insurance $usiness. ). What does the term BCa&eat ;mptor mean? I. !u(er $eware II. ,eller $eware III. Insurance $u(er $eware of miselling IV. Insurance agent $eware of customer re8uirement The correct option is I. The principle of BCa&eat ;mptor implies $u(er $eware. Page | 11
+. 6oral ha=ard means I. -ishonest( or character defects in an indi&idual II. *onest( and &alues in an indi&idual III. Risk of religious $eliefs IV. *a=ard of the propert( to $e insured The correct option is I. . Insurance agent represents the ______________. I. Insurance compan( II. ,u$:agent III. Co:agent IV. !roker The correct option is I. Insurance agent represents the insurance compan(. /. icence to work as an insurance agent is issued $( __________. I. >eneral Insurance Corporation H>IC II. Insurance Regulator( J -e&elopment @uthorit( HIR-@ III. !( the respecti&e life insurance compan( IV.
The correct option is III. @gent s licence is to $e renewed e&er( three (ears. ‟
14. Identif( the statement which is not correct. Insurance agent should __________. I. Indicate the scale of commission if asked $( the customer II. ,hare the commission $( wa( of re$ate III. -isclose his licence on demand IV. Indicate the premium to $e charged The correct option is II. Insurance agent cannot share commission through re$ates. 11. Rs.______________ is the fees pa(a$le to the @uthorit( for issue 9 renewal of licence to @ct as an Insurance @gent or Composite Insurance @gent. I. 2)4 II. 1)4 III. )24 Page | 12
IV. 144 The correct option is I. Rs. 2)4 is the fees pa(a$le to the @uthorit( for issue9 renewal of licence to act as an insurance agent or composite insurance agent 12. The @uthorit( ma( issue duplicate licence in case it is ____________. I. ost II. Re&oked III. ,uspended IV. Withdrawn The correct option is I. The @uthorit( ma( issue duplicate licence in case it is lost. 1#. If an agent is found guilt( of criminal misappropriation the designated person will _______________. I. Cancel the licence II. Issue a duplicate licence III. Renew the e%isting licence IV. Take some fees from the agent The correct option is I. If an agent is found guilt( of criminal misappropriation the designated person will cancel the license. 1'. 6inimum 8ualification re8uired for an insurance agent is _______ pass. I. >raduate II. 14th III. "ost:>raduate IV. th
The correct option is II. 6inimum 8ualification re8uired for an insurance agent is 14th pass. 1). ________________ ma( deal with more than one ife Insurance Compan( or general insurance compan( or $oth. I. @gent II. !roker III. Corporate agent IV. Retail agent The correct option is II. @n insurance $roker ma( deal with more than one life insurance compan( or general insurance compan( or $oth.
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CHAPTER 5 DOCUMENTATION 1. What is the significance of the principle of contri$ution? I. It ensures that the insured also contri$utes a certain portion of the claim along with the insurer II. It ensures that all the insured who are a part of the pool contri$ute to the claim made $( a participant of the pool in the proportion of the premium paid $( them III. It ensures that multiple insurers co&ering the same su$3ect matterK come together and contri$ute the claim amount in proportion to their e%posure to the su$3ect matter IV. It ensures that the premium is contri$uted $( the insured in e8ual installments o&er the (ear. The correct option is III. The principle of contri$ution ensures that multiple insurers co&ering the same su$3ect matterK come together and contri$ute the claim amount in proportion to their e%posure to the su$3ect matter 2. @s per guidelines an insurance compan( has to process an insurance proposal within __________. I. da(s II. 1) da(s III. #4 da(s IV. ') da(s The correct option is II. @s per guidelines an insurance compan( has to process an insurance proposal within 1) da(s. #. In case the premium pa(ment is made $( che8ue then which of the $elow statement will hold true? I. The risk ma( $e assumed on the date on which the che8ue is posted II. The risk ma( $e assumed on the date on which the che8ue is deposited $( the insurance compan( III. The risk ma( $e assumed on the date on which the che8ue is recei&ed $( the insurance compan( IV. The risk ma( $e assumed on the date on which the che8ue is issued $( the proposer The correct option is I. In case the premium pa(ment is made $( che8ue then the risk ma( $e assumed on the date on which the che8ue is posted. '. Which of the $elow statement is true with regards to co&er notes? I. Co&er notes are predominantl( used in life insurance II. Co&er notes are predominantl( used in all classes of general insurance III. Co&er notes are predominantl( used in health insurance IV. Co&er notes are predominantl( used in marine and motor classes of general insurance The correct option answer is IV. Co&er notes are predominantl( used in marine and motor classes of general insurance. ). Which of the $elow statement is correct with regards to a warrant(? Page | 14
I. @ warrant( is a condition which is implied without $eing stated in the polic( II. @ warrant( is a condition e%pressl( stated in the polic( III. @ warrant( is a condition e%pressl( stated in the polic( and communicated to the insured separatel( and not as part of the polic( document IV. If a warrant( is $reached the claim can still $e paid if it is not material to the risk The correct option is II. @ warrant( is a condition e%pressl( stated in the polic(. +. If certain terms and conditions of the polic( need to $e modified at the time of issuance it is done $( setting out the amendments through __________. I. Warrant( II. ;ndorsement III. @lteration IV. 6odifications are not possi$le The correct option is II. If certain terms and conditions of the polic( need to $e modified at the time of issuance it is done $( setting out the amendments through endorsement. . Which of the $elow statement is correct with regards to renewal notice? I. @s per regulations there is a legal o$ligation on insurers to send a renewal notice to insured #4 da(s $efore the e%pir( of the polic( II. @s per regulations there is a legal o$ligation on insurers to send a renewal notice to insured 1) da(s $efore the e%pir( of the polic( III. @s per regulations there is a legal o$ligation on insurers to send a renewal notice to insured da(s $efore the e%pir( of the polic( IV. @s per regulations there is no legal o$ligation on insurers to send a renewal notice to insured $efore the e%pir( of the polic( The correct option is IV. @s per regulations there is no legal o$ligation on insurers to send a renewal notice to insured $efore the e%pir( of the polic(. /. __________ is the ma%imum limit of lia$ilit( of insurer under the polic( I. ,um insured II. "remium III. ,urrender &alue IV. @mount of loss The correct option is I. ,um insured is the ma%imum limit of lia$ilit( of insurer under the polic(. 0. _______________ is the consideration or price paid $( insured under a contract I. Claim amount II. ,urrender &alue III. 6aturit( amount IV. "remium The correct option is IV. "remium is the consideration or price paid $( insured under a contract. Page | 15
14. @ document which pro&ides an e&idence of contract of insurance is called________ I. "olic( II. Co&er note III. ;ndorsement IV. Certificate of insurance The correct option is I. @ document which pro&ides an e&idence of contract of insurance is called polic(. 11. The dut( of disclosure arises I. "rior to inception of the polic( II. @fter inception of the polic( III. "rior to inception and continues during the polic( IV. There is no such dut( The correct option is III. The dut( of disclosure arises prior to the inception and continues e&en during the polic( 12. 6aterial fact I. Is the &alue of all material co&ered in a polic( II. ot important for assessing the risk III. Is important as it influences the decision of the underwriter IV. Is not important as it has no $earing on the decision of the underwriter The correct option is III. 6aterial fact is important as it influences the decision of the underwriter. 1#.
III. *as to $e kept in the car alwa(s IV. *as to $e kept in the $ank locker The correct option is III. The certificate of 6otor Insurance has to $e kept in car alwa(s. 1+. @ warrant( I. Is a condition e%pressl( stated in the polic( II. *as to $e complied with III. !oth a and $ IV. one of the a$o&e The correct option is III @ warrant( is a condition e%pressl( stated in a polic( and has to $e complied with. 1. Renewal otice for 6otor insurance is issued $( I. The Insured $efore e%pir( of the polic( II. The Insurer $efore e%pir( of the polic( III. The Insured after e%pir( of the polic( IV. The Insurer after e%pir( of the polic( The correct option is II. Renewal otice for 6otor insurance is issued $( the insurer $efore e%pir( of the polic(
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CHAPTER 6 THEORY AND PRACTICE OF PREMIUM RATING 1. Identif( the two factors that affect insurance ratemaking. I. "ro$a$ilit( and se&erit( of risk II. ,ource and nature of risk III. ,ource and timing of risk IV. ature and impact of risk The correct option is I. "ro$a$ilit( and se&erit( of risk affect insurance ratemaking. 2. What is pure premium? I. "remium sufficientl( $ig enough to pa( for losses onl( II. "remium applica$le to marginal mem$ers of the societ( III. "remium after loading for administrati&e costs IV. "remium deri&ed from the most recent loss e%perience period The correct option is I. "ure premium is sufficient enough to pa( for losses howe&er it does not account for administrati&e e%penses or profit. #. What is e%pected of an agent when she detects a moral ha=ard? I. Continue with the insurance as $efore II. Report the same to the insurer III. @sk for a share in the claims IV. Turn a $lind e(e The correct option is II. @n insurance agent should report to the insurer an( detection of moral ha=ard. '. ,uggest an insurance scheme for a doctor to protect him from an( claims of negligence against him. I. "ersonal accident insurance II. ia$ilit( insurance III. 6arine hull insurance IV. *ealth insurance The correct option is II. ia$ilit( insurance can insure the doctor against claims of negligence. ). _____________ decides whether to accept or not to accept the risk. I. @ssured II. Gnderwriter III. @gent IV. ,ur&e(or The correct option is II. Gnderwriter decides whether to accept or not to accept the risk. +. _______________ is the price of a gi&en unit of insurance. Page | 18
I. Rate II. "remium III. ,um @ssured IV. !onus The correct option is I. Rate is the price of a gi&en unit of insurance. . ___________ is the ma%imum amount that an insurance c ompan( will indemnif( to someone who files a claim. I. ,um insured II. "remium III. Rider IV. !enefits The correct option is I. ,um insured is the ma%imum amount that an insurance compan( will indemnif( to someone who files a claim. /. ______________ is not a source of information for underwriter. I. @nnual accounts of a proposer II. "re:acceptance risk sur&e( of the asset III. "roposal form IV. Registration certificate of insurer The correct option is IV. Registration certificate of insurer is not a source of information for underwriter. 0. *a=ards are I.
III. The &ehicle should not $e used for carr(ing luggage for personal use IV. The &ehicle should not $e run more than 244 km per da(. The correct option is II. In motor insurance one of the warranties is that &ehicle should not $e used for speed testing.
12. The purpose of deducti$le clause is to I. To a&oid claim pa(ment II. To eliminate pa(ment of small claims III. To harass the polic(holder IV. To increase the premium The correct option is II. The purpose of deducti$le clause is to eliminate small claims. 1#. Installation of sprinkler s(stem in the premises I. Increases risk II. -ecreases the risk III. either increases nor decreases risk IV. Increases risk of hooding The correct option is II. Installation of sprinkler s(stem in the premises decreases the risk of fire. 1'. Insured s declared &alue in motor insurance includes I. Registration II. 6anufacturer s cost price III. 6anufacturer s selling price IV. @r$itrar( price component ‟
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The correct option is III. Insured s declared &alue in motor insurance includes manufacturer s selling price. ‟
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CHAPTER 7 PERSONAL AND RETAIL INSURANCE 1. Which of the $elow statement is correct with regards to an accident? I. @n accident usuall( denotes a sudden foreseen and an une%pected e&ent. II. @n accident usuall( denotes a sudden unforeseen and an e%pected e&ent. III. @n accident usuall( denotes a sudden foreseen and an e%pected e&ent. IV. @n accident usuall( denotes a sudden unforeseen and an une%pected e&ent. The correct option is IV. @n accident usuall( denotes a sudden unforeseen and an une%pected e&ent. 2. Which of the $elow will $e treated in a da( care center? I. Cancer II. Cataract III. ,troke IV. *eart attack The correct option is II. Cataract will $e treated in a da( care centre. #. Which of the $elow statement is correct with regards to corporate fre8uent tra&elers plan? I. It is &alid for one trip II. It is &alid for + trips or + months whiche&er happens first III. It is an annual polic( &alid for multiple trips with a limit on ma%imum num$er of trips IV. It is an annual polic( &alid for multiple trips $ut ends with the first claim The correct option is III. Corporate fre8uent tra&eler plan is an annual polic( &alid for multiple trips with a limit on ma%imum num$er of trips. '. Which of the $elow statement is correct with regards to a householder s insurance polic(? I. @ named peril polic( ma( $e purchased as a less e%pensi&e alternati&e to a comprehensi&e co&erage polic( that tends to offer co&erage to most perils. II. @ comprehensi&e polic( that tends to offer co&erage to most perilsK ma( $e purchased as a less e%pensi&e alternati&e to a named peril polic(. III. @ named peril polic( or comprehensi&e polic( comes at the same price. IV. With regards to a householder s polic( onl( a named peril polic( can $e $ought and comprehensi&e policies are not a&aila$le. ‟
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The correct option is I. @ named peril polic( ma( $e purchased as a less e%pensi&e alternati&e to a comprehensi&e co&erage polic( that tends to offer co&erage to most perils. ). Gnder the shopkeeper polic( the insured ma( opt for an additional 7
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II. ,anitar( fittings III. eon signs IV. @ll of the a$o&e The correct option is IV. Gnder the shopkeeper polic( the insured ma( opt for an additional 7
+. 6otor insurance should $e taken in whose name? I. In the name of the &ehicle owner whose name is registered with Regional Transport @uthorit( II. If the person who will $e dri&ing the &ehicle is different from the owner then in the name of the person who will $e dri&ing the &ehicle su$3ect to appro&al from Regional Transport @uthorit( III. In the name of an( famil( mem$er of the &ehicle owner including the &ehicle owner su$3ect to appro&al from the Regional Transport @uthorit( IV. If the person who will $e dri&ing the &ehicle is different from the owner then primar( polic( should $e in the name of the &ehicle owner and add:on co&er in the name of the person who will $e dri&ing the &ehicle. The correct option is I. 6otor insurance should $e taken in the name of the &ehicle owner whose name is registered with Regional Transport @uthorit( . The following is not co&ered in "ersonal @ccident I. -eath II. ,uicide III. "ermanent disa$ilit( IV. oss of one hand The correct option is II. ,uicide is not co&ered in "ersonal @ccident. /. "ersonal accident co&er is onl( I. Whilst tra&elling a$road II. Whilst tra&elling in India III.
*ealth insurance co&ers all of the a$o&e pre:hospitalisation treatment post:hospitalisation treatment domiciliar( treatment. 14. Tra&el insurance co&ers I. -ela( in $aggage II. ;mergenc( hospitali=ation III. oss of checked $aggage IV. @ll the a$o&e The correct option is IV. Tra&el insurance co&ers all of the a$o&e dela( in $aggage emergenc( hospitalisation and loss of checked $aggage. 11. old and sil&er ornaments are co&ered II. Content s of one s shop is co&ered III. Cars owned $( the famil( are co&ered IV. "arcels sent $( post are co&ered during transit. ‟
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The correct option is I. In householder s insurance gold and sil&er ornaments are co&ered. ‟
1#. *ouseholder s insurance co&ers I. 5nl( the structure of the home II. 5nl( the Contents of the home III. !oth the structure and contents IV. !oth ,tructure and contents onl( when insured is not at home ‟
The correct option is III. *ouseholder s insurance co&ers $oth the structure and contents. ‟
1'. In shop keeper s insurance which of the following are not co&ered? I. 6achiner( $reakdown II. 6alicious damage III. !usiness interruption IV. Willful destruction $( insured ‟
The correct option is IV. In shopkeeper s insurance willful destruction $( insured is not co&ered. ‟
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1). In shop keeper s insurance which of the following are usuall( not co&ered I. 6one( in till9counter at $usiness premises II. 6one( in transit from $ank to $usiness premises III. 6one( in safe at $usiness premises IV. 6one( carried $( customer to $usiness premises. ‟
The correct option is IV. In shopkeeper s insurance mone( carried $( customer to $usiness premises is usuall( not co&ered. ‟
1+. ,hop insurance co&ers I. -ishonest acts of emplo(ees II. -ishonest acts of insured III. -ishonest acts of customers IV. -ishonest acts of mone( lenders The correct option is I. ,hop insurance co&ers dishonest act of emplo(ees.
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CHAPTER 8 COMMERCIAL INSURANCE 1. @ fire polic( for commercial risks co&ers the perils of ________ I. ;%plosion II. Implosion III. !oth of the a$o&e IV. one of the a$o&e The correct option is III.
The correct option is II. oss of cash from one s premises due to $urglar( is co&ered under a mone( insurance polic(. Riot strike and terrorism can $e co&ered as an e%tension $( pa(ing an e%tra premium ‟
).
III. ;mplo(ees and emplo(ers against the financial loss suffered $( them due to fraud or dishonest( of third part( IV. ,hareholders against the financial loss suffered $( them due to fraud or dishonest( of the compan( management The correct option is I. @ fidelit( guarantee insurance polic( indemnifies emplo(ers against the financial loss suffered $( them due to fraud or dishonest( of their emplo(ees. +. Which of the $elow can $e co&ered under a $ankers indemnit( insurance polic(? I. 6one( securities lost or damaged whilst within the premises due to fire II.
. In case of a Leweler s !lock "olic( damage to propert( insured when it is in transit $( registered parcel will $e co&ered under ____________. I. ,ection I II. ,ection II III. ,ection III IV. ,ection IV ‟
The correct option is III. In case of a Leweler s !lock "olic( damage to propert( insured when it is in transit $( registered parcel will $e co&ered under ,ection III. ‟
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-ela( in start:up polic( is also known as ______________. I. 6achiner( oss of "rofits co&er II. @d&ance oss of "rofits co&er III. Contractors @ll Risk co&er IV. Contractors "lant J 6achiner( co&er
The correct option is II. -ela( in start:up polic( is also known as @d&ance oss of "rofit co&er. 0. Which of the following is not co&ered under Industrial @ll Risks insurance? I.
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14. Which $ranch of insurance offers co&er against war perils? I. 6arine policies II. @&iation policies III. !oth of the a$o&e IV. one of the a$o&e The correct option is III. 6arine and a&iation is the onl( $ranch of insurance that offer co&er against war perils. 11. Gnder the "u$lic ia$ilit( Insurance @ct 1001 how much is the compensation pa(a$le for actual medical e%penses? I. Rs. +2)4 II. Rs 12)44 III. Rs. 2)444 IV. Rs. )4444 The correct option is II. Gnder the "u$lic ia$ilit( Insurance @ct 1001 the compensation pa(a$le for actual medical e%penses is Rs. 12)44. 12. In ;ngineering insurance C@R stands for I. 6otor Car II. Contractors @ll Risks III. Compan( s @ll Risks IV. Companies @ll Re8uirements ‟
The correct option is II. In ;ngineering insurance C@R stands for Contractors @ll Risks. 1#. @n emplo(er insures himself from dishonest act of his emplo(ees $( _________ I. ;mplo(ees compensation polic( II. "u$lic ia$ilit( Insurance polic( III. uarantee Insurance polic( IV. -eclaration polic(. The correct option is III. @n emplo(er insures himself from dishonest act of his emplo(ees $( uarantee Insurance polic(. 1'. _________ refers to the $od( of the ship. I. *ull II. Cargo III. "irac( IV. Lettison The correct option is I. *ull refers to the $od( of the ship.
1). "olic( which co&ers loss or damage to aircraft is ______________. Page | 27
I. ,tatutor( lia$ilit( II. "ropert( insurance III. @&iation insurance IV. 6one( insurance The correct option is III. "olic( which co&ers loss or damage to aircraft is a&iation insurance. 1+. oodwill III. 6aterial wear J tear in machiner( IV. osses due to foreign e%change fluctuations The correct option is I. Conse8uential oss H
The correct option is III. Contractor s @ll Risk "olic( is a &ariation of ;ngineering Insurance. ‟
24. ;mplo(ee s Compensation "olic( is a t(pe of I. ia$ilit( Insurance II.
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IV. ;ngineering Insurance The correct option is I. ;mplo(ee s Compensation "olic( is a t(pe of ia$ilit( Insurance. ‟
21. 6one( Insurance "olic( co&ers I. Cash in hand II. 6one( in&ested in 6utual
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CHAPTER 9 CLAIMS PROCEDURE 1. Which of the following acti&ities would not $e categorised under professional settlement of claims? I. ,eeking information relating to the cause of the loss II. @pproaching the claim with a pre3udice III. @scertaining whether the loss was a result of an insured peril IV. Auantif(ing the amount pa(a$le under the claim The correct option is II. "rofessional settlement of claims does not in&ol&e approaching a claim with pre3udice. 2. Ra3 is in&ol&ed in a car accident. *is car is insured under a motor insurance polic(. Which among the following is the most appropriate thing for Ra3 to do? I. otif( the insurer of the loss as soon as reasona$l( possi$le II. otif( the insurer at the time of insurance renewal III. -amage the car further so as to recei&e a $igger compensation IV. Ignore the damage The correct option is I. @ claim needs to $e notified as soon as reasona$l( possi$le. #. Compare claims in&estigation and claims assessment. I. !oth claims in&estigation and assessment are the same thing II. In&estigation tries to determine the &alidit( of the claim whereas assessment is more concerned with the cause and e%tent of the loss III. @ssessment tries to determine the &alidit( of the claim whereas in&estigation is more concerned with the cause and e%tent of the loss IV. In&estigation is done $efore the claim is paid and assessment is done after the claim is paid The correct option is II. In&estigation tries to determine the &alidit( of the claim whereas assessment is more concerned with the cause and e%tent of the loss. '. Who is the licensing authorit( for sur&e(ors? I. ,ur&e(or @ssociation of India II. ,ur&e(or Regulator( and -e&elopment @uthorit( III. Insurance Regulator( and -e&elopment @uthorit( IV. >o&ernment of India The correct option is III. IR-@ is the licensing authorit( for sur&e(ors. ). Which among the following documents is most likel( to $e re8uested while e%amining a c(clone damage claim? I. Coroner s report II. Report from
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IV. Report from 6eteorological -epartment The correct option is IV. Report from 6eteorological -epartment is most likel( to $e re8uested while e%amining a c(clone damage claim. +. Gnder which principle can the insurer assume the rights of the insured in order to reco&er from a third part( the loss paid under a polic(? I. Contri$ution II. -ischarge III. ,u$rogation IV. Indemnit( The correct option is III. Gnder the principle of su$rogation the insurer can assume the rights of the insured in order to reco&er from a third part( the loss paid under a polic(. . If the insurer decides that a certain loss is not pa(a$le $ecause it is not co&ered under the polic( then who decides on such matters? I. Insurer s decision is final II. Gmpire III. @r$itrator IV. Court of aw ‟
The correct option is IV. If the insurer decides that a certain loss is not pa(a$le $ecause it is not co&ered under the polic( then such matters will $e decided in the Court of aw. /. Intimation of loss is to $e made I. at the e%act time of the loss II. after 1) da(s III. as soon as reasona$l( possi$le IV. an( time after the loss The correct option is III. Intimation of loss is to $e made as soon as reasona$l( possi$le. 0. In&estigation of loss is done $( I. unlicensed sur&e(or II. licensed and 8ualified sur&e(or III. insured s representati&e IV. an( person with a degree in engineering ‟
The correct option is II. In&estigation of loss is done $( licensed and 8ualified sur&e(or. 14.
IV. Coroner The correct option is II.
The correct option is IV. Claims assessed outside the countr( in case of tra&el insurance policies are assessed $( claims settling agents named in the polic(. 1#. In case of a fire claim a report from the fire $rigade I. is not re8uired II. is optional for the insured III. is necessar( IV. is part of the police report The correct option is III. In case of a fire claim a report from the fire $rigade is re8uired 1'. What is T@T? I. Time and Turn II. Till a Time III. Time and Tide IV. Turnaround Time The correct option is IV. T@T is turnaround time. 1). 5n pa(ment of loss sal&age $elongs to I. ,ur&e(ors II. Insured III. Insurer IV. ocal authorities The correct option is III. 5n pa(ment of loss sal&age $elongs to insurer. Page | 32
1+. @r$itration is a claim settlement process done ______________. I. in the court of law II. $( a group of sur&e(ors III. $( ar$itratorHs chosen $( the parties in&ol&ed IV. ar$itraril( $( the insurance compan( s emplo(ees ‟
The correct option is III. @r$itration is a claim settlement process done $( ar$itratorHs chosen $( the parties in&ol&ed. 1. Insurers under right of su$rogation are allowed t o reco&er the loss paid from I. ,hipping companies onl( II. Railwa(s and road carriers onl( III. @irlines and "ort Trusts onl( IV. ,hipping companies and railwa( and road carriers and airlines and port trusts The correct option is IV. Insurers under right of su$rogation are allowed to reco&er the loss paid from shipping companies and railwa( and road carriers and airlines and port trusts.
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CHAPTER 10 CUSTOMER SERVICE 1. What is meant $( customer lifetime &alue? I. ,um of costs incurred while ser&icing the customer o&er his lifetime II. Rank gi&en to customer $ased on $usiness generated III. ,um of economic $enefits that can $e achie&ed $( $uilding a long term relationship with the customer IV. 6a%imum insurance that can $e attri$uted to the customer The correct option is III. ,um of economic $enefits that can $e achie&ed $( $uilding a long term relationship with the customer is referred to as customer lifetime &alue. 2. Identif( the scenario where a de$ate on the need for insurance is not re8uired. I. "ropert( insurance II. !usiness lia$ilit( insurance III. 6otor insurance for third part( lia$ilit( IV.
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The correct option is II. !eing e%tremel( 3udgemental is not an element of acti&e listening. +. Which among the following is not a characteristic of ethical $eha&iour? I. 6aking ade8uate disclosures to ena$le the clients to make an informed decision II. 6aintaining confidentialit( of client s $usiness and personal information III. "lacing self:interest ahead of client s interests IV. "lacing client s interest ahead of self interest ‟
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The correct option is III. "lacing self:interest ahead of client s interests is not ethical $eha&iour. ‟
. _____________ is not a tangi$le good. I. *ouse II. Insurance III. 6o$ile "hone IV. @ pair of 3eans The correct option is II. Insurance is not a tangi$le good. /. _______________ is not an indicator of ser&ice 8ualit(. I. Cle&erness II. Relia$ilit( III. ;mpath( IV. Responsi&eness The correct option is I. Cle&erness is not an indicator of ser&ice 8ualit(. 0. In India _______________ insurance is mandator(. I. 6otor third part( lia$ilit( II.
I. I>6, II. -istrict Consumer 6, or -istrict Consumer 6,. 12. Consumer "rotection @ct deals with I. Complaint against insurance companies II. Complaint against shopkeepers III. Complaint against $rand IV. Complaint against insurance companies $rand and shopkeepers The correct option is IV. Consumer "rotection @ct deals with complaint against insurance companies shopkeepers and $rands. 1#. ___________ has 3urisdiction to entertain matters where &alue of goods or ser&ices and the compensation claim is up to 24 lakhs I. *igh Court II. -istrict
II. >i&ing an occasional nod and smile III. "ro&iding feed$ack IV. "a(ing attention to the speaker gi&ing an occasional nod and smile and pro&iding feed$ack The correct option is IV. @cti&e istening in&ol&es pa(ing attention to the speaker gi&ing an occasional nod and smile and pro&iding feed$ack.
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CHAPTER 11 INSURANCE CAREER PROSPECTS 1. Which among the following are the two $asic 8ualities that make a good sales person? I. ;mpath( and ego dri&e II. "re3udice and loathing III. "ride and honest( IV. ,cepticism and perse&erance The correct option is I. ;mpath( and ego dri&e are the two $asic 8ualities that make a good sales person. 2. Which among the following is the most likel( to contain the IR-@ stipulated )4 hours training to help prospects clear the IR-@ e%amination? I. "rocess training II. "roduct training III. "re:recruitment training IV. ,ales training The correct option is III. "re:recruitment training is the most likel( to contain the IR-@ stipulated )4 hours training to help prospects clear the IR-@ e%amination. #. ____________ is a representati&e of the insurance compan( and is go&erned $( the principal agent relationship. I. Insurance agent II. !roker III. !anks IV. Gnderwriter The correct option is I. Insurance agent is a representati&e of the insurance compan( and is go&erned $( the principal agent relationship. '. _________________ is colla$oration $etween $anks and insurers to distri$ute in surance products. I. !ancassurance II. @gent III. !roker IV. Insurance compan( The correct option is I. !ancassurance is colla$oration $etween $anks and insurers to distri$ute insurance products. ). _____________ determines whether the proposal should $e admitted whether risk c an $e accepted. I. @gent II. Insurer III. Gnderwriter Page | 38
IV. Insured The correct option is III. Gnderwriter determines whether the proposal should $e admitted whether risk can $e accepted. +. !roker represents I. 5ne insurance compan( II. 6ultiple insurance companies III. Insurance Regulator( and -e&elopment @uthorit( IV. Customer The correct option is II. @n insurance $roker can represent multiple insurance companies. . _________________ cannot $ecome corporate agent. I. @ co:operati&e societ( II. @n indi&idual III. @ $ank IV. @ $roker The correct option is II. @n indi&idual cannot $ecome a corporate agent. /. Insurance $rokers are licensed $( I. Insurance Regulator( J -e&elopment @uthorit( II. Reser&e !ank of India III. ,ecurit( ;%change !oard of India IV. >o&ernment of India The correct option is I. Insurance !rokers are licensed $( the Insurance Regulator( J -e&elopment @uthorit(. 0. The following is not a $enefit of insurance agenc(. I. o limit on income from commission II.
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