1.

_______risks cause financial loss due to import/exchange control

regulations
Trade

Pure

Both

None

2. Insurance takes care of

Tangible Asets

Intangible Risks

Both

None

3. The term "insurer" refers to

A licensed legal entity

A person who has taken an insurance policy

A person who paid the premium

None

4. Which of the following is `not` an implied condition under insurance contracts

Pro-rata average

Insurable interest

Good faith

Existence of the subject matter

5. Which of the following is an evidence of insurance contract

Policy of insurance

Prospectus

Payment of premium

Acceptance of proposal

6. The policy is a document which provides

Evidence of contact of insurance
 Insurable interest

Pro-rata average

None

7. The policy becomes----- if the a warranty is breached.

Voidable

Void

Invalid

unenforceable in a court of law

8. The cover note is valid for a period of

30 days

50 days

60 days

100 days

9. Express warranty for Marine Insurance is

that the goods must be packed in double gunny bags

that the goods should not be packed

that the goods should be packed in single gunny bag

None

10. In which of the following clauses of the "scheduled" form of policy,the parties
to the contract are mentioned
Operative Clause

Recital Clause

signature Clause

warranties clause

11. The rate of premium is fixed based on

Degree of Hazard or exposure to loss

Variations in the degree of hazard

The degree of hazard which is determined on the basis of past loss experience.
 All of the above

12. Insurers cannot charge their own rates for which of the classes of Insurance
Motor Third party Insurance

Fire Insurance

Workmens compensation Insurance

Engineering Insurance

13. In general, Insurance Policies are issued normally for a period of

18 months

12 months

24 months

36 months

14. The mathematical value to the risks to fix the rates is expressed in the formula
L/V*100

V/L*100

V*L/100

None

15. . Short period rates are higher than the proportionate premiums
for 3 months 25%

for 3 months 50%

for 6 months 75%

for 6 months 100 %

16. Which of the following complaints cannot be made to the Ombudsman

Partial repudiation of claim by insurer

Delay in settlement of claims

Premium rates are high

Total repudiation of claim by insurer

17. Under the Consumer Protection Act, a State Commission can entertain
complaint if the compensation claimed is more than ________ lakhs:
 5 Lakhs

10 Lakhs

25 Lakhs

20 Lakhs

18. This insurance Act passed in 1938 came into force on

1st July, 1939

1st July, 1938

1st Jan, 1939

1st Jan, 1939

19. _____ is not an example of standing charges insured under consequential loss
(fire) policy
purchase cost of raw materials

salaries to permanent staff

office and general establishment expenses

insurance premium

20. Fire reinstatement value policy is not issed in respect of

Machinery

Building

Stock

Plant

21. Calculate the sum Insured for a Consequential Loss (Fire) policy, if turnover is
Rs. 20 lakh, cost of production is Rs. 14 lakhs, Fixed overheads is Rs.4,00,000 and
net profit is Rs.2,00,000
Rs 10 lakhs

Rs 18 Lakhs

Rs 2 lakhs

Rs 6 lakhs

22. Which of the following risks covered under institute cargo clauses(B) is not
covered under institute cargo clause (C)
 Sea water damage

Stranding of vessels

Collision of vessel

Explosion

23. The clause in open cover which limits the liability insurers at any time or place
before shipment is known as ____
Location clause

Limit per bottom clause

Basis off evaluation clause

Declaration clause

24. Which of the following general exclusion under institute cargo clauses can be
covered at extra premium under ICC (B) and (C) clauses
Malicious damage

inherent vice

ordinary leakage

ordinary loss in weight

25. The cover under the Transit clause of ICC termibates on the expiry of --- days
after discharge from the vessel at the final port of discharge.
30 days

45 days

60 days

15 days

26. Under the Motor Vehicles Act the limit of liability for death or bodily injury of
a passenger in a public service is----
Rs 25000

Rs 100000

Rs 50000

unlimited

27. Which of the following exclusions under Damage Section of a Motor Policy
does not to private cars
 Wear and tear

mechanical breakdown

malicious damage

electrical breakdown

28. In Personal Accident Insurance Long-term discount is available under:

Individual Policies

Individual Policies on family package basis

Group Policies on Govt. Employees

Group Janata Personal Accident Policies

29. The amount of weekly payment for temporary total disablement under personal
accident insurance is restricted to
Rs 2000

Rs 1000

Rs 5000

Rs 3000

30. The Mediclaim policy is available upto a maximum sum insured of Rs___
lakhs
2

31. Under which of the following Professional Indemnities voluntary excess does
not apply
Architects

Chartered accountants

Doctors

Medical establishments

32. Which of the following extensions of cover are relevant to public liability
policy for hotels?
 Food and Beverages

property in the custody of the insured

Pollution

All the above

33. Which of the following products is charged the highest rate of premium under
products liability policy
Motor vehicle tyres

Motor vehicles

alcoholicbeverage

pharmaceutical products

34. Whcih of the following fall under Industrial Risks for the purpose of public
liability insurance
Permanent Amusement parks

Exhibitions

Film Studios

None of the above

35. Which of the following is not covered under the Boiler policy
Fire

explosion of the boiler

Collapse of the boiler

Failure of boiler

36. Which of the following property is not covered under electronic equipment
policy
Dish antenna

Air-conditioning equipment

Heating equipment

Power conversion

37. Under electronic equipment insurance compulsory access is applied in-respect

of
 Damage to equipment only (Sec 1)

Damage to external data medi only (Sec 2)

increased cost of working only (Sec 3)

all of the above sec

38. Which of the following statement(s) is true?A: contractor’s plant and

machinery policy is an annual policy B: contractor’s plant and machinery
policy covers subjects matter different projects
only stament A

only stament B

both statements

Neither of the statements

39. Which type of the following fidelity guarantee policies is suitable to an insured
who fears that more than one employee may act in collusion and cause a loss
Group

Floating

Collective

Individual

40. Which of the following risks is excluded under "Television insurance policy"?
Lightning

Riot and strike

Theft

None of the above

41. Under cattle policy,which of the following is covered by extra premium?

Surgical operations

Riot and strike

Famine

Permanent total disability

42. Which of the following is excluded under cattle policy?

Earthquake
 Theft

Flood

Riot and strike

43. Under IRDA regulations every insurer underwrite business in the rural sector to
the extent of at least -----% of the total gross premium in the first financial year.
1

44. Which of the following diseases is excluded under Hospitalisation of Tribal

package Insurance
Cancer

Leprosy

TB

None

45. In addition to claim form for Fire claims a report from -----is necessary
Fire Brigade

Materiological Office

Police

None