Test Paper

1. Which of the following statements 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

( Total Marks : 25)

2. Which of the following statements is true. 1. Insurance is a method of sharing the losses of a 'few' by the 'many'. 2. Insurance is a method of transferring the risk of an individual to a group of individuals a) b) c) d) Only Statement 1 Only Statement 2 Both Statements Neither of the Statements

3. Which of the following makes the contract unenforceable Court of Law. a) b) c) d) The proposer has committed non-disclosure The proposer has committed mis-representation The proposer has given wrong address of property dui to a clerical error The policy is not stamped as per Indian Stamp Act,

4. . Out of 400 houses, each valued at Rs.20,000, 4 houses get burnt every year on an average resulting in a 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.400/5. If there is no insurable interest the insurance contract becomes a) unenforceable in a Court of Law b) illegal c) void d) voidable 6. Which of the following is not insured under Standard Fire & Special perils policy. a) Goods in factories b) Goods in open c) Goods in transit by rail / road d) Goods in godowns 7. Which of the following is not covered under Standard Fire and Special perils policy. a) Cyclone b) Hurricane c) Earthquake d) Flood

8. Under the Motor Vehicles Act, the limit of liability for damage to third party is Rs.____. a) Rs.10,000/-. b) Rs.6,000/c) Rs.20,000/d) Rs.25.000/9. Under the Motor Vehicles Act the limit of liability for death or bodily injury of a passenger in a public service vehicle is a) Rs.25,000 b) Rs.50,000 c) Rs.1,00,000 d) Unlimited 10. Liability only Motor policy covers liability 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 11. Constructive total loss in motor insurance arises when a) the vehicle is stolen b) the vehicle is a total wreck c) the vehicle is beyond repairs d) the cost of repair exceeds 75% of IDV of vehicle 12. Which of the following is not considered as permanent total disablement. a) Loss of both eyes b) Loss of hearing in both ears c) Paralysis d} Loss of one limb and one eye 13. Under Mediclaim policy any disease contracted by the insured doing the first_____days from The commencement of policy is excluded. a) 15 Days b) 30 Days c) 45 Days d) 60 Days 14.For which of the following diseases, medical certificate from i consulting physician is

required to be submitted along with the proposal form. a) Diabetes b) Hypertension c) Coronary insufficiency d) All the above

15.Any critical illness discovered or discoverable within_______days of the inception date of the policy is not covered under this policy. a) b) c) d) 30 days 45 days 60 days 90 days

16. The purpose of the proposal form is to provide for a) b) c) d) material information declaration that the answers are true and accurate agreement of the insured that the form shall be the basis of the insurance contract all the above three

17. 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 18. Which of the following statements is true. 1. Code of Conduct applies to corporate insurance executives 2. Code of Conduct applies to 'specified persons' of corporate agents a)1 is true b) 2 is true c) Both are true d) Neither is true 19. Which of the following statements is true under Code of conduct for Agents. 1. The Agent must disclose his licence to the prospect on demand 2. The Agent must disclose the scales of commission under policies offered for sale, if asked by the prospect. a) Only 1 b) Only 2 c) Both are true d) Both are false 20. As per IRDA Regulations which of the following is not a function of Third Party Administrators. a) b) c) d) collection of premium collection of claims documents claims scrutiny and processing claims payment

21. Which of the following are the functions of IRDA : 1. To regulate the rates of premium offered by insurers 2. To regulate investment of funds by insurance companies a) b) c) d) 1 only 2 only Both are true Neither

22. As per the Code of Conduct, which of the following is true. The agent must inform promptly the prospect about 1. the acceptance of the proposal by the insurer 2. the rejection of the proposal by the insurer a) b) c) d) 1 is true 2 is true Both are true Both are false

23. Money laundering refers to a) b) c) d) Conversion of assets into cash Conversion of money which is illegally obtained Conversion of cash in gold Conversion of assets into cash

24. One of the important steps in Money Laundering is a) b) c) d) Placement & Layering Organization & Controlling Depositing All of the above

25. Which one of the following is a valid document available to the banks for identification a) b) c) d) Ration Card Photograph Election ID Card All of the above