Master Mock Test Paper

1. Which of the following is a secondary burden of risk?

a) Business Interruption Cost.
b) Goods Damaged Cost.
c) Setting asides reserves as a provision for meeting potential losses in future.
d) Hospitalization costs as a result of heart Attack.

2. Who bears the investment risk in case of ULIP’s?

a) Insurer.
b) Insured.
c) State.
d) IRDA.

3. Which of the below cannot be categorized under risks?

a) Dying too young.
b) Dying too early.
c) Natural wear and tear.
d) Living with disability.

4. Insurance Ombudsman can settle the dispute where amount involved is less then Lakh?
a) 10 Lakh
b) 15 Lakhs
c) 20 Lakhs
d) 25 Lakhs.

5. All of the following is true regarding ULIP’s except?

a) Unit holder can choose between different kinds of funds.
b) Life insurer provided guarantee for unit values.
c) Units may be purchased by payment of a single premium or via regular premium payments.
d) ULIP policy structure is transparent with regards to the insurance expenses component.

6. 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 a organization.
c) Professional Association members.
d) Group of unrelated individuals formed for the purpose of availing group health insurance.

7. What does a policy lapse mean?

a) Policyholder completes premium payment for a policy.
b) Policyholder discontinues premium payment for a policy.
c) Policy attains maturity.
d) Policy is withdrawn from the market.

8. Which among the following would you recommend in order to seek protection against unforeseen events?
a) Insurance
b) Shares
c) Debentures
d) Transactional Products like bank FDs.
9. Which of the below statement is correct with regards to grace period of an insurance policy?
a) The standard length of the grace period is one month.
b) The standard length of the grace period is one 30 days.
c) The standard length of the grace period is one month or 30 days.
d) The standard length of the grace period is one month or 31 days.

10. The..........the premium paid by you towards your life insurance, the........will be the compensation paid to the beneficiary in
the event of your death?
a) Higher, Higher
b) Lower, Higher
c) Higher, Lower
d) Faster, slower.

11. In decreasing- term insurance, the premiums paid........over time.

a) Increase
b) Decrease
c) Remain constant
d) Are returned

12. Which among the following cannot be termed as an asset?

a) Car
b) Human Life.
c) Air.
d) House.

13. What is the time limit for approaching an Insurance Ombudsman?

a) Within two years of rejection of the complaint by the insurer.
b) Within three years of rejection of the complaint by the insurer.
c) Within one years of rejection of the complaint by the insurer.
d) Within one month of rejection of the complaint by the insurer.

14. When is a policy deemed to be lapsed?

a) If the premiums are not paid on due date.
b) If the premiums are not paid before the due date.
c) If the premiums has not been paid even during days of grace.
d) If the policy is surrendered.

15. The.................has jurisdiction to entertain complaints, where value of the goods or services and the compensation claimed
is up to Rs 20 lakhs?
a) District forum
b) State commission.
c) Zilla parishad
d) National Commission.

16. In case the policy holder is not satisfied with the policy, he / she can return the policy within the free- look period i.e within
of receiving the policy document.
a) 60 days.
b) 45 days.
c) 30 days.
d) 15 days.
17. 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) Zilla parishad
d) National Commission.

18. The key to successful closing lies in helping the prospect to say
a) No
b) Don’t know.
c) Yes
d) Maybe.

19. .....................Is Reflected in the caring attitude and individualized attention provided to customers?
a) Assurance.
b) Empathy
c) Reliability.
d) Responsiveness.

20. Prospecting in an insurance sale is?

a) Gathering the names of the people who may be interested in insurance.
b) Preparing a list of all the persons in the city.
c) Enlisting all the policyholders of the branch office.
d) Preparing list of all the agents in the neighborhood.

21. Which among the following is a method of risk transfer?

a) Bank FD
b) Insurance
c) Equity Shares.
d) Real Estate.

22. The term TPA refers to?

a) The Primary associate.
b) To provide assistance.
c) Third party administrator.
d) Third Party Assistance.

23. Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to
use for underwriting. Choose the correct option.
a) Judgment Method.
b) Numerical Method.
c) Any of the above method since an illness like diabetes does not play a major role in the underwriting process.
d) Neither of the above method as diabetes cases is rejected outright.

24. Which of the following is not a pre- requisite for launching a complaint with the ombudsman?
a) The complaint must be by an individual on personal lines insurance.
b) The complaint must be lodged within 1 year of the insurer rejecting the complaint.
c) The complaint has to approach a consumer forum prior to the ombudsman.
d) The total relief sought must be within an amount of Rs 20 Lakhs.

25. When is the best time to start financial planning?

a) Post Retirement.
b) As soon as one gets his first salary.
c) After marriage.
d) Only after one gets rich.

26. Which of the below statement best describes the concept of claim?
a) A claim is a request that the insurer should make good the promise specified in the contract.
b) A claim is a demand that the insurer should make good the promise specified in the contract.
c) A claim is a demand that the insured should make good the commitment specified in the agreement.
d) A claim is a request that the insured should make good the promise specified in the contract.

27. Which among the following cannot form the basis for a valid consumer complaint?
a) Shopkeeper charging a price above the MRP of a product.
b) Shopkeeper not advising the customer on the best product in a category.
c) Allergy warning not provided on a drug bottle.
d) Faulty products.

28. 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 license on demand.
d) Indicate the premium to be charged.

29. Which of the below is correct with regards to universal life insurance?
Statement 1: It allows policy owners to vary payment.
Statement 2. Policy owner can earn market based rate of return on cash value.
a) I is True.
b) II is true.
c) I & II are true.
d) I & II are false.

30. Are there any fee/ charges that need to be paid for lodging the complaint with the ombudsman?
a) 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.

31. Which among the following scenarios warrants insurance?

a) The sole bread winner of a family might die untimely.
b) A person may lose his wallet.
c) Stock prices may fall drastically.
d) A house may lose value due to natural wear & tear.

32. Which of the below option is correct with regards to a term insurance plan?
a) Term insurance plans come with Life- long renewability option.
b) All term insurance plans come with a built - in disability rider.
c) Term insurance can be bought as a standalone policy as well as rider with another policy.
d) There is no provision in a term insurance plans to convert it into a whole life insurance plan.
33. Expand the term IGMS?
a) Insurance General Management System.
b) Indian General Management System.
c) Integrated Grievance Management System.
d) Intelligent Grievance management System.

34. Money Laundering is the process of bringing …....... Money into an economy by hiding it’s….... Origin so that it appears to be
legally acquired?
a) Illegal, Illegal
b) Legal, legal
c) Illegal, legal
d) Legal, Illegal.

35. Which of the below policy can provide protection to home loan borrowers?
a) Life Insurance.
b) Disability Insurance.
c) Mortgage Redemption Insurance.
d) General Insurance.

36. Who cannot be covered under a family floater policy?

a) Children
b) Spouse
c) Parents- In- Law.
d) Maternal Uncle.

37. 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.

38. Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives & hence
could be charged a lower premium. Under risk classification santosh will be classified under...
a) Standard Lives.
b) Preferred Risks.
c) Substandard Lives.
d) Declined Lives.

39. ............ Relates to one’s ability to interact effectively with other workers and customers both at work & outside.
a) Hard skills.
b) Soft skills.
c) Negotiating skills.
d) Questioning skills.

40. Find out the proximate cause for death in the following scenario? Ajay falls off a horse and breaks his back. He lies there in
a pool of water and contracts pneumonia. He is admitted to the hospital and dies because of pneumonia.
a) Pneumonia
b) Broken back.
c) Falling of a horse.
d) Surgery.
41. As per IRDA norms, an insurance company can provide which of the below non- traditional savings life insurance products
are permitted in India? 1. Unit linked Insurance plans. 2. Variable Insurance plans.
a) I only.
b) II only.
c) Both I & II.
d) Neither I nor II.

42. Which of the below will be the most appropriate option for a customer to lodge an insurance policy related complaint?
a) Police.
b) Supreme court.
c) Insurance Ombudsman.
d) District Court.

43.............. Is the Fees payable to the authority for issue/ renewal of license to act as an insurance agent or composite
insurance agent?
a) 250.
b) 150.
c) 520.
d) 100.

44) Which of the below tips are useful for making a good first impression?
a) Being on time always.
b) Presenting yourself appropriately.
c) Being open, confident & positive.
d) All of the above..

45. From the below given age proof documents, identify the one which is classified as non- standard by insurance companies?
a) School certificate.
b) Identify card in case if defence personnel.
c) Ration card.
d) Certificate of Baptism.

46) Which of the following is not part of sales process?

a) Prospecting.
b) Sales Interview.
c) Loss assessment.
d) Closing..

47) 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.

48) What will happen if the policyholder does not pay the premium by the due date and dies during the grace period?
a) The Insurer will consider the policy void due to nonpayment of premium by the due date and hence reject the claim.
b) The Insurer will pay the claim & waive off the last unpaid premium.
c) The Insurer will pay the claim after deducting the unpaid premium.
d) The Insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2% above the
bank savings interest rate.
49. 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.

50). The Authority may issue duplicate license in case it is?

a) Lost.
b) Destroyed.
c) Mutilated.
d) All of the Above..

51) Which among the following activities is prohibited as per the provisions of Insurance Act, 1938?
a) Keeping aside reserves to meet solvency requirements.
b) Using rebates as a tool to sell insurance policies.
c) Prospection customers.
d) Limiting management expenses..

52) Hazards are:

a) Factors that increase the impact of losses.
b) Factors that increases the frequency of loss.
c) Factors that increases the impact and severity of losses.
d) Factors that decrease the impact and severity of losses.

53) Insurance Agents who hold license to act as an agent for both life insurer and general insurer are called?
a) Common Insurance agents.
b) Composite insurance agents.
c) Multiple Insurance Agents.
d) General Insurance agents..

54) Health Insurance usually covers..

a) Pre Hospitalization Treatment.
b) Post Hospitalization Treatment.
c) Domiciliary Treatment.
d) All of the above.

55) Out of 400 houses, each valued at RS 20,000 , on an average 4 houses get burnt every year resulting in a combined loss
of Rs . 80,000. What should be the annual contribution of each house owner to make good this loss?
a) Rs. 100
b) Rs. 200.
c) Rs. 80.
d) Rs. 400.

56) .................... 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..
57) Insurance ombudsman can settle the dispute where amount involved is less than........lakh?
a) 10 Lakh.
b) 16 Lakhs.
c) 20 Lakhs.
d) 25 lakhs..

58) Which among the following is not a function of Insurance?

a) Risk Mitigation.
b) Risk Transfer.
c) Risk Tracking.
d) Risk Reduction.

59) Which of the below statement is correct with regards to a householders insurance policy?
a) A named peril policy may be purchased as a less expensive alternative to a comprehensive coverage policy that tends
to offer coverage to most perils .
b) A Comprehensive policy that tends to offer coverage to most perils may be purchased as a less expensive alternative to a
named peril policy.
c) A named peril policy or comprehensive policy comes at same price.
d) With regards to a householders policy .Only a named peril policy can be bought and comprehensive policies are not
available..

60) …………………Is the maximum limit of liability of insurer under the policy?
a) Sum assured.
b) Premium.
c) Surrender value.
d) Amount of loss.

61) Under the shopkeeper policy, the insured may opt for an additional fixed plate glass and sanitary fittings cover. This will
cover accidental loss of damage to which of the following?
a) Fixed plate glass.
b) Sanitary fittings.
c) Neon signs.
d) All of the above..

62)......... May deal with more than one life Insurance company or general insurance company or both?
a) Agent.
b) Broker.
c) Corporate Agent.
d) Retail agent.

63) The premium for burglary policy depends on.

a) Nature of Insured Policy.
b) Moral hazard of the insured himself.
c) Construction & location of premises.
d) All of the above.

64) Insurance deductible is an example of..

a) Risk Mitigation.
b) Risk avoidance.
c) Risk Transfer.
d) Risk Retention..

65) Suggest an insurance scheme for a doctor to protect him from any claims of negligence against him?
a) Personnel accident Insurance.
b) Liability Insurance.
c) Marine Hull Insurance.
d) Health Insurance.

66) ………………………. Is not a tangible good.

a) House
b) Insurance.
c) Mobile phone.
d) A Pair of jeans

67) In customer relationship the first impression is created;

a) By being confident
b) By being on time
c) By showing interest
d) By being on time, showing interest and being confident.

68) In insurance, need – gap analysis involves

a) Identifying the areas where the prospect needs insurance protection.
b) Indentifying people to work as insurance agents.
c) Indentifying how much assets a prospect has.
d) Identifying the poverty level of the prospects.

69) Cold calling is………………

a) Meeting customers in winter.
b) Meeting customers when they are suffering from cold.
c) Meeting people unannounced.
d) Meeting customers after fire was extinguished.

70) Which of the below statement is correct?

a) Selling is an art not a science.
b) Selling is a science and not an art.
c) Selling is neither an art nor a science.
d) Selling is both an art and a science.

71) Sum Insured in respect of stocks is fixed in fire insurance on the following basis:
a) Reinstatement value
b) Market value
c) Book value
d) None of the above.

72) In fire insurance it is possible to increase the sum insured during the currency of the policy by collecting additional premium
a) On short period scale.
b) On Pro- rata basis
c) On Average Sum insured Basis.
d) On Annual sum insured basis.
73) The standard fire and special perils policy (without any add on covers) does not cover loss or damage caused by:
a) Flood and inundation.
b) Bush fire.
c) Earthquake
d) Rock slide.

74) Which of the following peril is covered as add on cover in standard fire & allied perils policy:
a) Explosion/ Implosion
b) Bush fire.
c) Cyclone
d) Spontaneous Combustion

75) Escalation Clause is applicable to Fire Insurance Policies issued on:

a) Market value basis only
b) Reinstatement value basis only
c) Market value basis as well as reinstatement value basis
d) Market value basis of stocks only.

76) Contractors all risk policy provided a cover for-

a) All risks specifically included
b) All risks which are not specifically included
c) All risks are excluded
d) All risks which are not specifically excluded.

77) The quantum of loss of materials under marine cum erection policy during the ocean voyage is based on –
a) Cost of replacement
b) Cot of purchase
c) Indemnity value.
d) Declared Value.

78) Advance loss of profit policy connected with project insurance is for-
a) Paying loss of profit in advance
b) Paying standing charges in advance
c) Paying for the quantum of loss incurred due to delay in start up
d) Paying advance to avert loss of profit.

79) Under machinery insurance policies constructive total loss means-

a) Total loss during construction
b) More than total loss.
c) Loss beyond economical repairs.
d) Non- Identifiable total loss.

80) Loss of profits (machinery policy) provided indemnity for-

a) Only loss of net profit
b) Only towards insured standing charges
c) Only towards increased cost of working
d) All of the above.
81) The time limit granted by ICC- A, B or c (sea voyage) after completion of discharge at final port of destination, and without
intermediate storage thereafter, is:
a) 30 days
b) 45 days
c) 60 days
d) Till consignment reaches final warehouse irrespective of time limit.

82) Under a marine cargo policy the assured should have insurable interest in the goods insured only at the time of:
a) Commencement of journey
b) Survey of loss by an insurance surveyor
c) Occurrence of loss
d) Receiving claim money from insurer.

83) An example of a Freely Assignable policy is:

a) Duty Insurance Policy
b) Sellers Interest Contingency Policy
c) C.I.F Policy
d) Special Declaration Policy

84) While commodity is susceptible to country damage;

a) Containerized Cargo
b) Cotton in bales
c) Machinery in crates
d) None

85) The time limit for Insured to lodge monetary claim notice on Road Transporter after a transit loss is;
a) 1 Month from date of occurrence of loss
b) 6 months from commencement of journey
c) 1 month from the date of survey
d) 6 months from the date of knowledge of loss

86) In respect of the following policy, stamp duty is borne by the Insurer:
a) Marine specific Policy
b) Duty Insurance Policy
c) Open Declaration Policy
d) None of the above

87) Which of the following documents is legally enforceable?

a) Marine Declaration form
b) Marine Cover note
c) Marine Open Cover
d) None of the above

88) The Inland Transit Risks clauses ITCs are drafted by:
a) IRDA
b) GIC
c) Tariff Advisory Committee
d) None of the above
89) The peril “Terrorism” is covered under which of these clauses?
a) ICC (A)
b) ICC (B & C)
c) Institute strikes clauses (Cargo)
d) Institute war clauses (Cargo)

90) Expansion of CIF is:

a) Clear Immediately First
b) Claim is Feasible
c) Cost, Insurance & Freight
d) Claim is forgotten

91) Which of the following Principles of Insurance is not strictly applicable to personal accident insurance?
a) Utmost good faith and indemnity
b) Indemnity and contribution
c) Insurable interest and utmost good faith
d) None of the above

92) Under Personal accident Insurance, principle of contribution is applicable in the following type of compensation:
a) Death
b) Permanent total disablement
c) Temporary total disablement
d) None of the above.

93) Burglary insurance covers:

a) Any act of theft/ burglary committed by any person whether he is lawfully or unlawfully on the premises at the time of crime
b) Loss or damage where any member of the insured’s household or his business staff is concerned as a principal of accessory.
c) Theft of property after actual, forcible and violent entry into the premises.
d) None of the above.

94) Which of the following risk is generally covered under a Plate Glass Insurance?
a) Breakage on account of Fire and Earthquake.
b) Breakage of Plate glass when not fixed
c) Actual breakage of glass due to perils not excluded.
d) None of the above.

95) Declaration policy in burglary insurance is issued in respect of commodities where:

a) Fluctuations of value take place very frequently in respect of commodities
b) Value is likely to remain stable throughout the year
c) The subject matter is stock only
d) Both A and C.

96) Domiciliary Hospitalization under mediclaim insurance policy?

a) Medical Treatment provided to the insured patient at home which would necessarily need hospitalization.
b) Patient condition does not permit removal to Hospital/ Nursing Home
c) Lack of accommodation available at hospital/ Nursing Home
d) All of the above
97) Which of the undernoted items is an Add- On- Covers in overseas travel Insurance?
a) Personal Accident
b) Loss of checked in baggage
c) Emergency Cash Advance
d) Loss of Passport

98) Which of the following is not a General condition in Shopkeeper’s insurance policy?
a) Reasonable care
b) Monthly declaration of stock
c) Cancellation Clause
d) Average clause

99) What will be the quantum of settlement in case of total loss of a vintage car insured under Motor Policy?
a) Replacement Value
b) Market Value
c) IDV
d) IDV less Depreciation

100) As per section 4 of Motor Vehicles Act, a motor cycle with engine capacity not exceeding 50 CC may be driven in public
place by a person who has attacked?
a) 18 years of age
b) 21 years of age
c) 16 years of age
d) 15 years of age

101) Load challan is to be submitted in Motor Claims;

a) When a commercial vehicle is stolen
b) When passengers are travelling in a passenger carrying vehicle
c) When vehicle is loaded with goods in a commercial vehicle.
d) None of the above

102) Which of the undernoted documents need not be submitted by the insured for settlement of a motor theft claim to an
insurer?
a) Registration Certificate Book of R.T.O
b) First Information Report of Police
c) Driving license of the person driving the vehicle.
d) Final Investigation Report of the police.

103) In respect of “Hit and Run” cases by vehicles, which would be correct options to be exercised?
a) The victim has no recourse to legal remedies
b) Negligent Motorist is not traced
c) Compensation is to be paid from Solatium Fund.
d) All of the above.

104) Which are the common features which appear in all types of certificates of insurance issues by an insurer?
a) Registration work, number or description of the vehicle;
b) Effective date of commencement and expiry of insurance;
c) Persons entitled to drive and limitation as to us;
d) All of the above.
105) If an insured commercial vehicle, not having a valid fitness, met with accident, what would be the liability of the insurance
company for damages?
a) Insurer liable
b) Insurer not liable
c) Insurer partially liable
d) None of the above

106) Which is not exclusion as per current Motor policies issued in the liberalized insurance market in the country?
a) Mechanical and electrical breakdown
b) Damage to tyres unless the motor car is damaged
c) Burglary housebreaking
d) Consequential loss.

107) In which of the undernoted cases, the driving license is not required for claim settlement?
a) When a vehicle is stolen when parked.
b) When a statutory parked vehicle is damaged
c) Both A & B
d) None of the above.

108) TPND in marine insurance parlance means:

a) Theft, Pilferage and non-delivery
b) Torn, Pilferage and non-delivery.
c) Thrown, Pilferage and non-delivery
d) Tampered, pilferage and non-delivery

109) Under C.I.F contract who arranges the Insurance:

a) Seller
b) Buyer
c) Ship-owner
d) Ship charterer

110) Every open cover must have the following clause attached to it, besides the usual clauses:
a) Institute Jute clause
b) ITC A
c) Terrorism clause
d) Institute classification clause

111) Which of the following statements is not true in case of Public Liability Insurance Act:
a) PLI Act imposes ‘no fault liability’ in respect of handling hazardous substance
b) PLI Act was passed in the year 1991
c) PLI Act deals only with ‘Fault Liability’
d) Both A & B

112) Amount of relief payable under Section 3 of public Liability Act, 1991 in case of Permanent total disability is:
a) Rs 15000
b) Rs 25000
c) Rs 50000
d) Rs 80000
113) Amount payable against damage to property under the public liability insurance act 1991 is restricted up to:
a) Rs 5000
b) Rs 6000
c) Rs 10000
d) Rs 25000

114) Salvage charges are not covered by the following clause:

a) ICC(C)
b) ICC (B)
c) Sellers Interest clause
d) Increased Value Clause

115) Which of the following water related perils is not covered by ICC ( B) ?
a) Entry of sea water in the ship’s hold
b) Entry of river water in container
c) Entry of rain water in place of storage
d) Entry of lake water in lift van

116) This extraneous peril is not covered even on payment of additional premium?
a) Theft
b) Pilferage
c) Short supply
d) Non delivery

117) In Fire Insurance insurable interest should exist:

a) At the time of taking the policy
b) At the time of claim
c) During the currency of the period of insurance
d) All of the above.

118) Act of God perils under fire policy do not mean?

a) Flood
b) Earthquake
c) Forest Fire
d) Cyclone

119) In standard fire & special perils policy the following is not covered?
a) Loss or damage caused by fire
b) Loss or damage caused by riot and strike
c) Loss or damage caused by cyclone
d) Loss or damage due to breakdown of machinery.

120) Fire insurance policies can be issued for a period longer than 12 months in respect of the following properties?
a) Industrial risks
b) Stocks in godown
c) Dwellings
d) Stocks stored in open
121) Fire insurance policy can be extended to cover leakage & Contamination of
a) Oils only
b) Chemicals only
c) Oils & Chemicals only
d) Liquids in tanks only

122) Which is the basic insurance legislation in India?

a) Marine Insurance Act, 1963
b) Motor Vehicle Act, 1938 & 1988
c) Insurance regulatory & development act, 1999
d) Insurance act, 1938

123) When was the first general insurance company established in India?
a) 1906
b) 1845
c) 1850
d) 1870

124) The IRDA has issued license to how many direct general insurance companies so far in the Indian market?
a) 18
b) 19
c) 21
d) 22

125) The risks facing an organization can be divided into:

a) Minor risks
b) Major risks
c) Catastrophic risks
d) All of the above

126) A Risk Manager’s role is that of:

a) Coordinator
b) Educator
c) Activator
d) All of the above

127) The pre- requisite for doctrine of contribution to operate is:

a) Same subject matter
b) Same peril
c) Same interest
d) All of the Above

128) Pure risks means?

a) A risk due to factors internal to the organization.
b) A risk due to extraneous factors
c) A risk with a possibility of loss but no possibility of gain.
d) A risk with a possibility of gain as well as loss.
129) Which of the following involves a speculative risk?
a) Losing of a key employee
b) Purchase of equity shares
c) Possibility of a fire in the factory
d) Possibility of a person falling sick.

130) If a firm decided not to put up a factory in a country with political instability is an example of:
a) Risk reduction
b) Risk avoidance
c) Risk retention
d) Risk Transfer

131) Insurance protection is usually available to cover?

a) Pure risks
b) Static risks
c) Fundamental risks
d) Particular Risks

132) Risk financing refers to?

a) Loan from the market to buy risk reducing equipment
b) Security deposits
c) Solvency margins
d) Arrangement to ensure availability of funds to meet losses.

133) A broker who has been licensed under any one category of brokers and is seeking to apply for a license under another
category, will have to:
a) Wait for a minimum of 1 year
b) Wait for a minimum of 2 year
c) Wait for a minimum of 1 year and complete a specified minimum business under the broking category
d) Wait for a minimum of 2 year and complete a specified minimum business under the broking category

134) The functions of a direct insurance broker as per IRDA (Insurance Brokers) Regulations, 2002 are:
1. Assisting clients in paying premium under section 64VB of Insurance Act, 1938
2. Assisting clients in effecting uninsured loss recoveries.
3. Maintaining proper record of claims.

a) Only 1 & 2 are correct.

b) Only 2 & 3 are correct.
c) Only 1 & 3 are correct.
d) All are correct.

135) According to the Code of Conduct for brokers given in the IRDA (Insurance Brokers) Regulations, 2002 which of the
following is not true:
1. Every broker shall confirm that he shall not/does not accept any remuneration from that client.
2. Every broker shall confirm that he does not employ agents or canvassers to bring business.
3. No broker shall take up recovery assignment or claims consultancy for a policy which has not been serviced through him.

a) Only 1
b) Only 2
c) Only 1 & 3
 d) All
136) According to IRDA (Insurance Brokers) Regulations, 2002 every reinsurance broker shall:
1. Endeavour to see that maximum reinsurance is retained in the country only.
2. Assist his clients in case of commutation of reinsurance contracts placed with him.
3. Only assist in collecting and remitting and shall not himself collect and remit premiums and claims within such time as agreed
upon.

a) Only 1 & 2 are true.

b) Only 2 & 3 are true.
c) Only 1 & 3 are true.
d) Only 2 is true.

137) As per IRDA regulations for brokers, an insurance broker:

a) Can carry on any other business in addition to broking.
b) Cannot carry on any other business in addition to insurance broking.
c) Can carry on the businesses as specified in the regulations.
d) Can carry on any business after prior approval from the IRDA.

138) Which of these accounting statements are not required to be prepared by an insurance broker in the normal course unless
specifically demanded by the regulator:
1. Cash Flow statement.
2. Fund flow statement
3. Revenue account.
4. Statement of solvency margin.
a) 1 & 3 are not required.
b) 2 & 4 are not required.
c) 1 & 4 are not required.
d) 3 & 4 are not required.

139) The difference between an agent and a broker is that:

1. An agent represents an insurance company while a broker represents the clients.
2. An agent received remuneration from insurer while a broker received remuneration from client.
3. An agent is an individual while a broker may be an individual, a partnership firm or a company.
4. An agent can sell the products of only one insurer while a broker can sell the products of many insurers.

a) All are true.

b) Only 1, 2 & 4 are true.
c) Only 2 & 4 are true.
d) Only 3 & 4 are true.

140) Breach of Code of Conduct given in the IRDA (Insurance Brokers) Regulations, 2002 empowers the IRDA to:\
1. Cancel/suspend the license of the broker after giving due notice.
2. Cancel/suspend the license without notice.
3. Forfeit the security deposit.
4. Initiate action under Insurance Act, 1938.
a) Only 1 & 3
b) Only 1 & 4
c) Only 1 & 2
d) Only 2 & 4.
141) IRDA Brokers regulations speak about functions of a direct broker. Find out which of the following functions are included in
the regulation:
1. Obtaining detailed information of the client’s business and risk management philosophy.
2. Maintaining detailed knowledge of available insurance markets, as may be applicable.
3. Assisting clients in paying premium under section 64 VB of Insurance Act, 1938.
a) Only 1.
b) Only 2
c) 1, 2 & 3.
d) 2 & 3

142) Arrange the following steps of the claim procedure in correct sequence:
1. Claim Intimation.
2. Deputation of loss assessor.
3. Checking adequacy of sum insured.
4. Checking whether date of loss lies within the policy period.

a) ABCD
b) ADCB
c) ACDB
d) ADBC

143) Onus of proof of occurrence of loss lies upon:

a) Insurer
b) Insured
c) Broker
d) Arbitrator

144) Marketing process for brokers consists of the following mail headings:
1. Selection of the market position.
2. The presentation of the broker to his clients and potential client
3. The selling process
4. Delivery
5. After sales service.

a) Only 1, 2 & 4
b) Only 2, 3 & 4.
c) All 1 to 5.
d) Only 1, 2, 3, 4.

145) A peril in insurance parlance means:

a) The risk that cannot be covered.
b) The loss from the event considered risky.
c) The cause of loss.
d) The pain suffered by the insured due to the loss.
146) Moral Hazard in insurance means:
a) The presence of people with hazardous occupations in the site covered by insurance.
b) The acts of the insured that result in increased probability of loss because of an in different attitude towards losses and not
out of dishonesty.
c) The acts of the insured that result in increased in probability of loss that result from dishonest tendency on the part of the
insured.
d) The increase in probability of loss that has nothing to do with the acts of the insured but purely due to extraneous
circumstances.

147) Dynamic risks are those risks:

a) That prevail in situations involving continuous movement of men & material.
b) That result from changes in the economy or the external environment.
c) That result in increased losses due to the movement of the people from one place to another.
d) That remain constant irrespective of what happens to the economy.

148) Insurance as a device has the characteristics of:

a) Risk accumulation and control
b) Risk transfer and sharing of losses.
c) Risk control and avoidance.
d) Risk pooling and prevention.

149) In insurance, the offer is made by the insured in the form of:
a) Policy document.
b) Prospectus.
c) Brochure
d) Proposal Form.

150) The evidence of the insurance contract between the insured and the insurer:
a) The proposal form.
b) The policy document.
c) The premium receipt.
d) The endorsement.

151) In life insurance, Insurable interest is presumed not to exist in which of the following relationships:
a) Parent and children.
b) Husband and wife.
c) Employer and employees.
d) Brothers and Sisters.

152) The legal principle by which the insurers get a right to recover any compensation paid by third parties to the insured in
respect of an insured loss is:
a) Principle of Indemnity.
b) Principle of subrogation.
c) Principle of adhesion.
d) Principle of Insurable Interest.

153) Co- Insurance refers to:

a) Sharing of insurance of a risk by two or more insurers.
b) Covering more than one risk under the same insurance contract concurrently.
c) The insurance cover that an insurance company gets from another bigger insurer.
d) Insuring the same risk (Like flood or earthquake) faced by more than one person under a single contract.
154) In general insurance, a certificate of insurance is required to be issued in respect of:
a) All insurance contracts written.
b) All insurance contracts written through intermediaries.
c) All insurance contracts written directly without any intermediaries’ involvement.
d) All insurance contracts which are mandatory by law.

155) Condition of Average operates in cases where:

a) More than one risk being covered under one contract of insurance.
b) More than one person having a financial interest in the subject matter of insurance.
c) The sum insured on a property is less than value of the property at the time of loss occurring.
d) Similar properties of the same insured are insured for different sums insured at different locations.

156) Contribution in general insurance means:

a) The right of the insurance company to reject a claim that has been made.
b) The causes that have contributed to the insured loss not covered by the insurance contract.
c) The right of the insurance company to call others who are liable to the insured to share the cost of indemnity.
d) None of the above.

157) Personal History and family history are the factors which influence assessment of risk in life insurance and can be classified
as:
a) Moral Hazard.
b) Physical Hazard.
c) Occupational hazard.
d) Health hazard.

158) The Practice of days of grace for payment of renewal payment premium is mainly available in case of:
a) Motor insurance.
b) Life insurance.
c) Fire insurance.
d) Miscellaneous insurance.

159) Section 64VB of insurance act, 1938 deals with:

a) Payment of claims.
b) Payment of premium in advance.
c) Payment of premium in arrears.
d) Payment for permanent disability.

160) Investigations into the financial condition of the life business and the valuation of its liabilities is carried out by:
a) Chairman cum Managing Director
b) Auditors.
c) Actuaries
d) Surveyors.