All Deptt Question Bank 72

FIRE AND ENGINEERING
1.Which one of the following is a mega risk.
a) A petroleum refinery with sum insured Rs 3000 cr

b) An organisation having 25 different location with overall SI of Rs 2500 cr
c) A power plant with sum insured Rs 2000 cr
d) A fertilizer plant with SI of Rs 600 cr
2. Silent risk under fire policy in manufacturing premises are treated as silent risk
when
a) The factory is closed for 1 week continuously

b) The factory is closed for 15 days continuously
c) The factory is closed for 30 days or more continuously
d) None of the above
3. Please indicate which of the following statements is true.

a) Fire declaration policy is not permissible on short period basis
b) Tsunami is a peril covered in Standard fire policy
c) Fire policies are agreed value policies
d) Stocks can be covered with replacement value clause
4. Which one of the considerations are not taken into account for processing fire
claims
a) Condition of average
b) Breach of warranty
c) Confirmation of surveyor about verification of books of accounts
d) Distance from fire station
5.Which will be treated as Hazardous goods under Fire and special perils policy
a) Methylated spirits
b) Common salt
c) Sodium carbonate
d) Sugar
6.Long term Fire policy can be issued for dwellings
a)For minimum period of 2 years

b)For minimum period of 3 years
c)For minimum period of 5 years
7.Following add on covers are not available in standard Fire Special Perils Policy
a) Spontaneous combustion
b) Loss of rent clause
c) Start up expenses
8. Which of the following losses is not covered under fire insurance policy?
a) Process losses
b) Impact Damage
c) Missile testing operations
d) Aircraft damage
9. In Consequential Loss (Fire) Insurance Policy, the sum insured is arrived at by

a) All standing charges plus net profit
b) Specified standing charges plus net profit
c) Only net profit
10) Automatic reinstatement clause deals with
a) Insurance of stocks
b) Insurance of plant and machinery
c) Insurance of hazardous goods
d)Claim under fire policy
11.Subsidence and Landslide Loss covers

a. Coastal and River Erosion
b. Visible physical damage to property
c. Defective design
d. Demolition by government authority
12. Standard Fire Policy contains the following number of conditions

a. 13
b. 14
c. 15
d. 16
13. As per AIFT how many earthquake zones are available
a. 3
b. 4
c. 5
d. 6
14. Loss or damage to property caused by sprinkler leakage is covered under

Fire Policy if leakage is caused by
a. Heat due to fire
b. Leakage due to repair or alteration to the building or premises
c. Loss or damage to property caused by sprinkler installation
d. Sprinkler installation by either repaired or --- or extended.
15. Stock is divided into how many categories for spontaneous combustion cover
a. 3
b. 4
c. 5
d. 6
16. Which of the following risks is not considered as add on cover

a. Spontaneous combustion
b. Lightning
c. Earthquake
d. Startup expenses
17.Reinstatement Value policy can be issued for

a. Stock in process
b. Building
c. Stock in godown
d. None of above
18.Standard Fire policy covers

e. Loss due to explosion of boiler
f. Loss due to explosion of domestic boiler
g. (a) and (b)
h. None of above
19.Burning cost is calculated to

i. Assess the amount of loss
j. determine premium rating
k. determine any insurance
l. calculate Cost of burning the property
20.Standing charges does not include

m. Depreciation
n. Salaries of staff
o. Interest
p. Cost of Raw Material
21.Loss of profit insurance covers

q. Third Party Claim
r. Loss of goodwill
s. Loss of Gross Profit
t. Fines and penalties payable for delayed fulfillment or cancellation of
sales/service contract
22.Fire policy contains the following number of conditions

a 13
b 14
c 15
d 16
23. As per AIFT how many earthquake zones are available
a 3
b 4
c 5
d 6
24. Subsidence and landslide covers
a Coastal and River Erosion
b Visible Physical damage to property
c Defective design
d Demolition by government authority
25. Loss or damage to property caused by sprinkler leakage is covered under
a Heat due to fire
b Leakages due to repair or alteration to the building or premises
c Loss or damage to property caused by sprinkler installation
d Sprinkler installation by either repaired, or removed or extended.
26. How many categories are available under Spontaneous Combustion Cover?
a 3
b 4
c 5
d 6
27. Which of the following risks not considered as add on cover
a Spontaneous Combustion
b Lightning
c Earthquake
d Start up expenses
28. What is spontaneous Combustion
a Charring due to self heating
b Spread of Fire
c Change of colour or deterioration of quality due to self heat
d Loss of damage and fire caused by own fermentation or due to nature
heating
29. Reinstatement Value policy can be issued for
a Stock in process
b Building
c Stock in godown
d None of above
30. Standard Fire Policy Covers
a Loss due to explosion of boiler
b Loss due to explosion of domestic boiler
c (a) and (b)
d None of above
31. Terrorism Cover under fire policy can be granted upto
a Rs.200 Crore
b Rs.300 Crore
c Rs.500 Crore
d Rs.600 Crore
32. Burning cost is calculated for
a Assessing the amount of loss
b Determining the rating only
c For determining any insurance
d Cost of burning the property
33. Standing charges do not include
a Depreciation
b Salaries Staff
c Interest
d Cost of Raw Material
34. Loss of profit covers
a Third Party claim
b Loss of goodwill
c Loss of Gross Profit
d Fines and penalties payable for delayed fulfillment or cancellation of
sales/service contract
35. Engineering policy issued during construction phase is

a Machinery Insurance Policy
b Boiler and Pressure Plant Policy
c Erection All risk Policy
d Contractors’ Plant, Machinery and Equipment Policy
36. Sum Insured under Engineering Policy is
a Depreciated value of machinery
b Market value of machinery
c Cost of replacement value of machinery
d None of above
37. Boiler and Pressure Plant Policy covers
a Explosion of boiler
b Implosion of boiler
c Surrounding Property
d All of above
38. Rusting damage is covered under
a Marketing Insurance
b Erection Insurance
c Boiler and Pressure Plant Insurance
d None of above
39. Aesthetic damage is covered under which of the following policies
a Machinery Insurance Policy
b Electronic Equipment Policy
c Contractors Plant, Machinery and Equipment Policy
d None of above
40. Calculation of MLOP rating does not depend on the following factors
a Relative Importance
b Spare capacity
c Indemnity period
d Location
41. Obligatory session to GIC is
a 30%
b 20%
c 15%
d 10%
42. A fire underwriter will least likely consider which u/w factor
a Construction of building
b Occupation of building
c Age of building
d Approach road to the building
43. The peril of ‘fire’ in a fire policy does not include damage caused by
a Earthquake following fire
b Only smoke damage
c Damage caused by use of water to extinguish fire
d Theft/ robbery following fire
44. Worldwide which was the earliest class of property insurance to be underwritten
a Marine Cargo Insurance
b Fire Insurance
c Liability Insurance
d Marine Hull Insurance
45. Worldwide which was the first class of property insured under fire insurance
a Residential buildings
b Factories
c Ports
d Small Scale Industries
46. Fire loss of Profit – Policy covers
a Net profit + Standing Charges
b Gross Profit – Variable charges
c Net profit + Variable charges
d Cross profit + variable charges
47. Fire Policy exclusions do not mention
a Fire damage due to spontaneous combustion
b Fire damage due to war, civil war etc.
c Fire damage to nuclear strike etc.
d Fire damage due to riot, strike etc.
48. The subject matter of Fire Insurance needs to be clearly specified so that
a There is no ambiguity in the subject matter of insurance
b Rates are correctly charged
c Exclusions of policy are applicable
d None of above
49. Earthquake cover in fire policy is

a It is mandatory at the time of taking the policy
b There is no scope of earthquake coverage
c This is an additional coverage with addition premium
d This is an inbuilt cover without any premium
50. In fire policy
a Theft of the insured materials are covered without any premium
b Theft of insured material is covered with addition premium
c Theft is not at all covered
d None of the above
51. In fire policy, the premium is charged on the basis of
a Raw materials
b Geographical situation of the factory
c Finished goods
d Trade name of the company
52. In fire policy there is
a No arbitration clause
b Arbitration clause is there
c Arbitration clause may be imposed with additional premium
d None of the above
53. In fire policy
a There is a scope of floater policy
b There is no scope of floating policy
c Floating policy is mandatory
d None of the above
54. CAR (Contractors All Risk) Policy is meant for
a Marine cum erection
b Civil works
c Carrying material in a good carrying vehicle only
d Liability of death & bodily injured to the workers only
55. In MCE policy, during the time policy period if the works have not been coupled
there is
a Scope of extension of policy
b NO scope of extension of policy
c The policy is issued for an indefinite period
d None of the above
56. IN MCE policy
a Loss or damage due to flood is not covered
b Loss damage due to flood is covered
c Loss due to flood is covered if the loss is below 20% of sum assured
d None of the above
57. In MCE policy
a There is no condition of average clause
b There is condition of average clause
c Condition of average clause is applicable if additional of premium is given
at the time of acceptance
d None of the above
58. In Fire declaration Policy, the premium is refunded
a On the basis of calculation of premium or declared value
b Refund of premium shall not exceed 50% of Total premium
c There is no scope of refund of premium
d Refund of premium is made if there is no claim
59. The essentials of Fire are
a) Fuel & Oxygen
b) Fuel & CO2 & Ignition
c) Fuel, Nitrogen & Spark
d) Fuel, Oxygen & Source of ignition
60. A tiny sector industry is one having
a) SI Upto Rs.5 lac
b) SI upto Rs.10 lacs
c) SI upto Rs.50 lacs
d) SI upto Rs.1 Crore
61. Declaration Policy has minimum S.I. of

a) Rs.5 crores
b) Rs.10 crores
c) Rs.1 crore
d) Rs.0.50 crore
62. Declaration Policy can be issued

a) For short period
b) Stocks undergoing process
c) Stocks in Rly Slidings
d) Fluctuation in stock
63. Minimum SI for floater declaration policy

a) Rs.5 Crores
b) Rs.10 Crores
c) Rs.15 Crores
d) Rs. 2 Crores
64. Long Term Policies Fire can be issued

a) Only for shops
b) Only for dwelling
c) Only for manufacturing risk
d) Only for storage godowns
65. Co-Insurance in Fire Policies pertain to

a) S.I. distributed over no. of locations
b) Policy shared amongst various insurers
c) Double insurance
d) Insured Opting for an higher excess
66. Reinstatement value policy can be given to

a) Stocks
b) Bldg. , Plant & Machinery
c) Stock in Process
d) All the above
67. Which of the following statements is incorrect under Fire Policy under agreed
bank clause
a) Material change in risk does not effect the interest of the Banker
b) Valued Policies can be issued whose mkt. Value cannot be ascertained
c) In multiple occupancy building per se ratings is permitted
d) Insurable interest does not automatically pass on to the legal heir
67. Reinstatement value policies are characterized by
a) The deviation from the principle of indemnity
b) Reinstatement written six months of the less
c) U/Insurance based on Market value
d) Applying the average clause on the date of loss
69. Ex-gratia settlement in fire policies are

a) Under Insurance
b) Loss outside the ambit of the policy
c) Contribution
d) Subrogation
70. Policy wording after 01/01/2007 cannot be altered earlier than

a) 30.06.2007
b) 30.09.2007
c) 01.04.2008
d) 31.12.2007
71. Project Policies are
a) All risk
b) Named Perils
c) Consequential Loss
d) Agreed Value
72. Fire Business is U/W on the basis of
a) Long Tail liability
b) Loss Reserve
c) Profit Margin
d) Probable Maximum Loss
73. Percentage of obligatory cession to GIC is
a) 30
b) 20
c) 15
d) 10
74 CPM is
a) Coverage all risk policy with inclusion of Breakdown
b) All risk policy with exclusion of breakdown
c) Self propelled machineries on Public / Private Road
75. FOES is an extension under:

a) CPM
b) CAR
c) DOS
d) MBO
76 Silent Risks means more than 30 days under
a) No Risk
b) No manufacturing activity including storage
c) No manufacturing activity excluding storage
d) Annual over handling of machines / plants
77. DSU stands for

a) Delay in start up insurance
b) Derivatives stock units
c) Dead stock under insurance
d) Diluted stock undertaking
78. A machine worth Rs.40,000/- insured for Rs.30,000/- under Fire Policy. It
was damaged due to fire and the amount assessed in Rs.16,000/- The claim
payable is:
a) Rs.30,000/-
b) Rs.12,000/-
c) Rs.16,000/-
d) Rs.40,000/-
79. Material damage proviso under the Consequential Loss (Fire Insurance) means:
a) claims admissible under Standard Fire and Special Perils Policy
b) Occurrence of the loss
c) Loss discovered during stock taking
d) Loss of goodwill
80. Value of foundation and plinth if not included in Sum Insured will render a
building claim due to fire
a. payable in full
b. payable after application of average
c. payable in full after collection of extra premium
d. payable as non-standard
81. In an LOP policy, Auditor fees is

a. an extension
b. a built-in cover
c. a part of Standing charges
d. not to be covered
82. Fire at Supplier’s Premises can be a part of

a. A Material Damage Fire Policy
b. An LOP policy
c. Is a stand alone policy
d. Has no relevance
83. Common utilities outside the premises can be

a. Rated per se
b. Rated as per the main risk
c. Highest rate to apply
d. insured separately
84. Storage of hazardous chemical upto 5% of value at risk

a. does not affect a claim
b. renders a claim non-standard
c. renders a claim as no claim
d. can be covered after collection of extra premium
85. Cracks appearing in a building on account of subsidence of land below

a. Fire policy will cover the loss without any extension
b. Claim is payable on repair basis
c. Claim is not payable
d. Fire policy would have covered the claim had an extension been taken.
86. A dish antenna (covered under fire policy) breaks as a monkey jumps on it
a. The claim is payable
b. The claim is not payable
c. The claim is payable as non standard
d. Some other insurance should have been taken
87. The adjustment of sum insured in EAR policy is not done in respect of
a. freight and handling charges
b. custom duties
c. cost of erection
d. increase or decrease in cost of plant and machinery
88. Standby machinery in MBD is

a. not covered
b. covered at a discount of 50% in rate
c. discount of 75%
d. only covered when it is put to use
89. Preliminary investigation of loss under Fire Policy includes

a. whether the loss caused by an insured peril
b. whether the damage property is in fact covered under the policy
c. whether adjacent property is damaged
d. All of the above
90. It is not the duty of the insured in the event of a claim under a fire policy to
a. Save as much as possible of the insured property
b. Take all reasonable steps to extinguish the fire
c. shift the operations immediately
d. diminish their loss
91. What is meant by spontaneous combustion ?

u. Charring due to self heating
v. Spread of fire
w. Change of colour or deterioration in quality due to self heat
x. Loss or damage due to fire caused by own fermentation or natural
heating
Section I.01 BULLET QUESTIONS

1. What are the add on covers available under the standard fire policy
a. Architect/ surveyors/ engineer fee in excess of 3% of claimant
b. Removal of debris in excess of 1% of the claim amount
c. Deterioration of stock due to power failure in cold storage due to loss/
damage to cold storage machinery
d. Forest fire
e. Impact damages due to insured’s own rail/ road vehicles/ lifts etc.
f. Spontaneous combustion
g. Omission to insure additions/ alterations
h. Earthquake
i. Leakage and contamination
j. Temporary removal of stocks
k. Additional expenses of rent for alternative accommodation
l. Start up expenses
2. How the S.I. is fixed under the EAR policy

a. Cost of erected value of property including freight, custom duty, erection
cost
b. Adj. clause in respect of material damage section towards freight and
handling charges, custom duty, cost of erection but not towards increase/
decrease in the cost of plant & equipment
c. Extensions like civil works
d. Debris removal
e. CPM
f. Surrounding property
g. Expediting cost/ overtime, express rates
h. Air freight for equipment
i. Additional custom duty
j. Escalation in cost upto 50%.
MARINE
1. Which of the following represents the widest form of coverage?

a. ICC (A)
b. ICC (B)
c. ICC ( C )
d. None of the above
2. For which of the following extra premium is charged?

a. Vessel Overage
b. Vessel undertonnage
c. Non classification
d. All the above
3. For which of the following insurance cover has to be arranged by the
buyer/ importer?
a. Sale on CIF basis
b. Sale on FOB basis
c. Both the above
4. For Inland Transit , ‘Duration Clause” limits the coverage to

a. 7 days of arrival of consignment at destination town
b. 7 days of arrival of consignment to the warehouse of consignee.
c. 60 days of arrival of consignment at destination town
d. 60 days of arrival of consignment to the warehouse of consignee
5. What is not true for a Marine Open Cover

a. Open cover is proof of an insurance cover
b. Open cover gives the term of cover during policy period
c. Open cover is a stamped document
d. All of the above.
6. After issuance of a Marine Open cover which document gives the
particulars of insurance for individual voyages?
a. Marine certificate
b. Marine Policy
c. Cover note
d. Any of the above
7. If a Marine consignment is being sent to a appreciating market, what
clause can be attached to ensure that the appreciation of value of
consignment is covered in case of loss?
a. Duty clause
b. Increased value clause
c. Protection and indemnity clause
8. In case of various consigners are affected due to operation of a common
peril , for saving a marine adventure, the loss would be apportioned by
declaration of
a. General average
b. Particular average
c. Average clause
9. In case additional expenses are incurred to save an unrelated marine

voyage the charges incurred would be recovered under
a. General average Clause
b. Sue and labor clause
c. Increased value clause
d. Limitation Clause
10. What is the full form of sale term FAS

a. Free alongside Ship
b. Free alongside steamer
c. Free alongside Steerage
11. A Marine cargo underwriter is expected to know

a. Port conditions
b. Shipping practices
c. Labour disturbances at ports
d. All the above
12. Under a marine Hull cover a loss can be declared as a CTL if

a. The cost of recovery of salvage exceeds the sum insured
b. If more than one interest is involved in the salvage
c. If there is excessive third party liability
13. A marine cargo claim has been received for loss of certain fluid carried
in glass container. The claims manager has repudiated liability citing “Trade
ullage”
What does the term mean?
a. Natural loss of fluid
b. Self destruction of subject matter
c. Mysterious diasappearance
d. Non standard packing
14. Sue and labor charges are usually paid

a. In addition to damage to goods but limited by the sum insured
b. In addition to damage to goods and can exceed the sum insured
c. As a fixed percentage of sum insured
15. Franchise in Marine hull policy means

a. Exercising voting among the crew to decide in times of peril to save
the ship or not
b. Amount to be be deducted from each and every claim
c. Maximum limit within which claim is payable
d. Claim amount to reach the franchise amount and on exceeding the
amount paid in full
16. In marine hull policy freight

a. Has to be insured separately
b. To be included in the hull policy itself
c. Either of the above
d. Freight cannot be insured at all
17. Particular charges in hull policy means

a. loss or damage caused by a sea peril insured against
b. It is a general sacrifice to save the marine adventure
c. It is an expense in addition to general average incurred for
preservation of the subject matter
18. For covering various risks associated with port operation the following
cover is an internationally accepted cover
a. Property all risk policy
b. Mega project policy
c. Port package policy
d. Special contingency policy
19. One of the purposes of Draft survey is to

a. Find out the weight of commodity on board the ship
b. Find out the extent of damage to commodity while being unloaded
from ship
c. Find out the weight of personnel on board the ship
20. What does the term “ Phantom vessel” in maritime frauds denotes
a. Non existent vessels which are shown transporting goods
b. Poor quality vessels transporting high value cargo
c. Vessel belonging to flags of convinience
d. None of the above.
21.In which year was Marine Insurance Business detariffed?

a. 01st JANUARY,2007
b. b. 01st APRIL,1994
c. c. 01st SEPTEMBER,2006
d. d. 01st JANUARY,2006
22.In Marine Insurance an assured is required to have an insurable interest

a. When The Insurance Is Effected
b. At The Time Of The Inception Of The Policy
c. At The Time Of Loss
d. None
23.Can Insurable interest be transferred in Marine Insurance by way of

a. Assignment
b. Negotiation
c. Subrogation
d. None
24.Concept of GENERAL AVERAGE LOSS is applicable to

a. Fire Insurance
b. Engineering Insurance
c. Liability Insurance
d. Marine Insurance
25.What is the qualifying Sum Insured of MARINR SPECIAL
DECLATION POLICY ?
a. Rs.100 LACS
b. Rs. 50 LACS
c. Rs. 75 LACS
d. .300 LACS
26.What are the special discounts available in MARINE SDP?

a. Turnover Discount
b. Good Feature Discount
c. Both A & B
d. None
27.DURATION CLAUSE in Marine Policy for overseas consignment
suggest ceasation of Risk
a. The Moment Consignment Reaches The

Consignees Warehouse
b. Within Sixty Days After Date Of Discharge At

Final Port Of Destination
c. Reaches Consignees Warehouse Within Forty-Five Days From

The Date Of Discharge At Port Of Destination.
d. The Moment Consignment Unloaded At The Port

Of Discharge.
28.For Damage claim of CARGO monetary claim notice with the SHIP-
OWNERS
Should be lodged within
a. One Month From The Date Of Bill Of Lading
b. Fifteen Days From Yhe Date Af Arrival Of Cargo
c. Seven Days From The Date Of Arrival Of Cargo
d. Five Days From The Date Of Arrival Of Cargo
29.Which of the following is not true as the eligibility criterion for SDP?
a. The Policy Shall Not Be In Joint Names,Even Though The
Companies May Be Under Control Of Same Management
Or Owned By A Holding Company.
b. The Policy Is Not Assignable Or Transferrable
c. Acceptance Of Policy Does Not Required Any Proposal
Form
d. Issue Of Sdp To Transport Operators/Contractors Etc Either
In Their Own Name Or Jointly With The Owner Of Goods
Is Prohibited, Accept On Goods Owned By Them.
30. THEFT peril is covered under

a. ICC –C
b. ICC – A
c. ICC – B
d. ICC - I
31.PROXIMATE CLAUSE is
a. Remote Clause
b. Indirect Clause
c. Active And Efficient Clause
d. Other
32.GENERAL AVERAGE arises when property involved in common

Maritime adventure
a. The Cost Of Vessel Removal From One

b. Port To Another
c. Tempory Repair Of Accidental Damage
d. Effected During The Course Of Voyage
e. Cargo Is Discharged And Or Jettisoned
f. To Save The Ship
g. None
33.SPECIAL STORAGE RISK Insurance Policy does not cover

a. Consignment Dispathes As Stock Tranferred Or Inter Depot
Tranferr By The Insure
b. Losses Attributable To The Willful Misconduct Of The
Assured
c. Insufficient/Unsuitable Packing
d. All Of The Above
34.RECOVERIES FROM THIRD PARTIES ARE ALLOWED

UNDER MARINE POLICY
a. Doctorine Of Contributon
b. Doctorine Of Subrogation
c. Doctorine Of Assignment
d. Doctorine Of Contributon & Subrogation
35.Insurance of Cargo on sailing vessels has the following exclusion

a. General Average Contribution
b. Loss/Damage Or Expense Caused By Inherent Vice
c. Loss/Damage Or Expense Caused By Proximately Caused
By Delay In Even Though Delay Be Caused By A Risk
Insured Against.
d. All Of The Above
36.What is not a shipping document?

a. Bill Of Lading
b. Bill Of Entry
c. Mate Receipt
d. Invoice
37. BILL OF ENTRY is prepared for

a. Excise Duty
b. Custom Duty
c. Sales Tax
d. Octroi
38. In Cargo Insurance practice the additional insurance is termed an

a. Increased Value Policy
b. Extra Value Policy
c. Additional Value Policy
d. Added Value Policy
39. Which is not a Marine Insurance Clause?

a. Inchmaree Clause
b. Sue And Labour Clause
c. Continution Clause
d. Cross Liabilty Clause
40. Stamp Duty is recovered from the assured in

a. Fire Insurance
b. Miscellaneous Insurance
c. Marine Insurance
d. None
41. Which is not a GENERAL AVERAGE CLAIM?

a. When Fire Breaks Out On Board The Ship And Inorder To
Extinguish It Water Is Poured On And Chemicals Are
Applied.
b. When There Is A Collision With Another Vessel. Or Other
Casualty And The Cargeo Is Discharged To Enable The
Vessel To Be Repaired.
c. There Is Theft And Missing Of Packages
d. Lorry Carrying Goods Cathes Fire
e. Both C & d
42. Which of the following peril does not appear under ICC-C
a. Earthquake, Volcanic Eruption Or Lightning
b. Fire Or Explosion
c. Overturning Or Derailment Of Land Conveyance
d. Discharge Of Cargo At A Port Of Distress
43.The Marine Insurance Cover is available in the following forms

a. Specific Policy
b. Cover Note
c. Open Policies/Open Covers
d. All Of The Above
44.Which document in the absence of specific policy helps the Bank

to authenticate the existence of insurance cover and relate it to the
documentary bill
a. Certificate Of Incorporation
b. Certificate Of Insurance
c. Certificate Of College
d. None
45. In a marine cargo policy, the insurable interest should exist

a) at the time of commencement of transit
b) at the time of acceptance of proposal
c) at the time of loss
d) at the time of proposal
46. Which one of the following marine cargo policy is not assignable
a) marine cargo specific policy
b) certificate issued under open cover
c) certificate issued under open policy
d) annual policy
47. CIF Contract means

a) co-insurance form
b) cost input freight
c) cost insurance freight
d) cost incidental freight
48. The maximum indemnity available under a marine open policy in

respect of a consignment awaiting shipment at the port is
a) Total sum insured under open policy
b) Limit per bottom
c) Total value of particular declaration
d) Limit per location
49. Which of the following is not a stamped document

a) open cover
b) open policy
c) specific policy
d) special declaration policy
50. Liability under “Both to blame collision” clause of ICC (A) has a
reference to
a) Shipping Bills
b) Lloyd’s firm
c) Proforma Invoice
d) Bill of lading
51. Which one of the following is an extra charge under a marine cargo
policy
a) Reconditioning cost incurred at an intermediary port
b) Salvage charges
c) Sue and labour charges
d) Port charges
52. Which one of the following differentiates the salvage charge from the
sue and labour charge
a) cost of food expenses for crew members
b) cost incurred independent of any contract
c) cost incurred short of destination to complete the voyage
d) Expenses for extra fodder for animals on board
53. Which of the following is not a Trade Clauses

a) Institute Replacement Clause
b) Institute Bulk Oil Clauses
c) Institute natural rubber Clause
d) Institute Coal Clauses
54.Overseas Transit Policy comes to an end

a) 30 days after landing at the port
b) 45 days after landing at the port
c) 60 days after landing at the port
d) 90 days after landing at the port
55.The Institute clauses have been drafted by

a) TAC
b) Institute of London Underwriters
c) Lloyd’s
d) GIC
56. In marine insurance parlance, ‘average’ means

a) Premium
b) Cost
c) Freight
d) Loss
57. “Shut out Cargo” means a cargo which is
a) Not loaded on to the ship due to late arrival
b) Thrown out of the ship
c) Shut in the bounded warehouse
d) Rejected by the buyer
58. PPI in marine cargo policy means

a) Pre & Post Inspections
b) Policy Proof of Interest
c) Cost parcel Identification
59.Subrogation in marine insurance refers to transfer of

a) Right of recovery
b) Right of possession
c) Right of ownership
60. In overseas Transit claim the proof of shipment is

a) Bill of lading
b) Bill of Exchange
c) Bill of Treasury
61. Marine Policy offers

a) Pure indemnity
b) Strict Indemnity
c) Adequate indemnity
D) Modified form of indemnity
62. Survey fees reimbursable to the insured in a marine policy to

the extent of
a) 25%
b) 50%
c) 75%
d) 100%
63. Find odd one out

a) Flag of convenience
b) Polish Register of shipping
c) Lloyd’s Register
d) Bureau veritas
64. In which of the following the loss assessed is not ratably

reduced in the proportion of sum insured bears to the value at
risk
a) Particular average
b) Partial Loss
c) Total Loss
d) Sue and Labour Charges
65. Which one of the following is an exclusion under ¾ th

collision clause of ITC-Hulls
a) Loss of life in other vessel
b) Loss of life in insured vessel
c) Loss of property of other vessel
d) Both a & b above
66. In marine hull policy the subject matter for insurance is

a) Hull & Machinery
b) Freight and Disbursement
c) Premium reducing
d) All the above
67. ¼ Collision liability is covered by

a) P&I club
b) Hull Underwriters
c) Lloyd’s
d) Reinsurance
68.Per carrying limit/ policy SI in a all risk Marine Cargo

policy is 5 cr. and 500 cr. respectively. In a flood due to
cyclone goods worth of 6 cr. got damaged totally.
a. Actual goods covered is5.50 cr.
b. Total loss claim for Rs. 5 cr. subject to excess is

payable
c. Claim of Rs. 6 cr. is payable

d. Pro rate claim is payable
e. Claim of Rs. 5.50 cr. is payable
69. For issuing any marine, cargo policy
a. LR/ Real receipt in a Precondition
b. LR/ Rail receipt – reference number above is sufficient
c. LR/ Rail receipt is not at all necessary
d. Undertaking from the consigner is sufficient
70. Marine cargo declaration policy expired on 31.12.2006

with a balance premium amount of Rs. 2 lacs as utilized and
refund not effected. Policy was not renewed as it is and there
was claim for Rs. 1 Lac. On 20.01.2007
a. Fresh policy can be issued with the unitized premium

and there claim can be processed and period
b. To collect premium separately, issues a fresh policy and

to process and pay the claim
c. To effect the refund separately and decline the

claim
d. Extend the previous policy for one more year by an

endorsement and pay the claim
71. After settlement of a cargo claim,

a. Proceeding against the carrier by the insurer is
simultaneous
b. Only the insured has to proceed against carrier and to

recover and remit to the insurer
c. Any time, at leisure recovery proceeding can be

initiated
d. Recovery proceeding is a not at all necessary
72. After issue of marine cargo policy shipment could not

be covered out due to expiry of the L.C. Insd. Seeks
repayment of premium of Rs. 100000/-
a. Insurer declaim refund of premium, sagging policy has

been issued already
b. Retaining Min. Premium and effect refund for the

balance amount is in order
c. Retain 50 % of the premium and to refund the balance
d. Substitute the premium for any subsequent transit
73. In an export policy, goods are sold in mid-sea, which

goes elsewhere hence was getting refund from insurance
company starting that the goods has not reached the
destination stated in the policy
a. Refund is very well order
b. Refund should not be granted, as the shipment and

transit had commenced
c. As transit, as per policy deviated in the mid sea pro rata
refund of premium according to the distance covered
can be effected

74) General average means
a) Age of the ship and its year of built
b) It is the average age of the sharp in a fleet
c) It is a sacrifice in the term of cargo fright incurred in

times of the peril of the sea to save the adventure
75) Franchise in a hull policy means
a) Exercising voting among the crew in a ship to decide in times

of worse peril to save the ship is not
b) Amount to be deducted from each every claim
c) Claim within with It is payable
d) Claim amount to reach the franchise amount and on

reaching paid in full
76) In a Hull policy: - Fright to be covered by the ship in a

particular
a) Has to be insured separately
b) To be included in the Hull policy itself

c) Can be insured separately can also Both a & b
d) Fright cannot be insured at all
77) Particular charge in a hull policy means
a) Loss or damage caused by a sea peril insured against
b) It is a general sacrifice made in times of peril
c) It is an expires in addition to the general average for the

prevention of the subject matter
78 ) Which of the following is false in relation to marine cargo insurance?
a)Claim Survey Fees are payable by insurers only if the claim is

payable
b)Under every marine policy for export shipments, a certificate of

insurance is issued.
c)General average losses are covered only under Institute cargo

clauses(A)-All risks.
d)None of the above.
79) Which of the following policies are freely assignable without the consent
of insurers?
a) Marine Cargo
b) Marine hull
c) Burglary
c) Fire
80) Which of the following risks are automatically covered without extra
premium under Institute Cargo Clause ‘A’
a) Breakage only
b) Leakage only
c) Strikes Riots and Civil Commotion
d) Breakage & Leakage
81. If loss or damage is not apparent at the time of taking delivery from
ocean carriers written notice must be given to the carrier’s representative
within______________ days of delivery.
a) 7
b) 10
c) 30
d) 3
82. Which of the following General Exclusions under Institute cargo Clauses
can be covered at extra premium under ICC (B) & (C) clauses?
a) malicious damage
b) Inherent vice
c) Ordinary Leakage
d) Ordinary Loss in weight
83. Which of the following statements is true?

Statement A: Marine cargo policies are valued policies .
Statement B: Marine Hull policies are valued policies.
a). both.
b). neither.
c). A only.
d). B only.
84. Which of the following statements is false in relation to marine cargo

insurance?
Statement A: The entire marine cargo tariff is governed by tariff or market
agreement .
Statement B: Special storage insurance is granted in conjunction with
inland transit policy.
a). A only.
b). B only.
c).both.
d). neither.
85. Which of the following covers is suitable for regular export/import
shipments?
a) Open cover
b) Annual policy
c) Special Declaration policy
d) Duty insurance
86. Which of the following insurances is not relevant to inland transit?

a) ‘Increased value’ insurance
b) Special storage risks insurance
c) Special declaration policy
d) Annual policy
87. Which of the following document is common to claims processing under

marine import policies and inland transit (Rail/Road) policies?
a) Invoice
b) Bill of Lading
c) Copy of Protest
d) Lost Overboard Certificate
88. Which of the following statement (s) is true?

Statement A: Certificates of insurance are issued under both open covers and
open policies.
Statement B: Certificates need not be stamped when the original policy is
stamped.
a) Neither of the statements
b) Only statement A
c) Only statement B
d) Both statements
89. Which of the following documents provides evidence of loss of cargo

during loading or unloading operations?
a) Bill of entry
b) L.O.B. Certificate
c) Copy of protest by the Master of the vessel
d) Ship Survey Report
90. Under the Transit Clause (Warehouse to Warehouse) of Institute Cargo
Clauses, the insurance terminates on the expiry of -------- days after
discharge from the vessel at the final port of discharge.
a) 60
b) 7
c) 15
d) 30
91. Which branch of Insurance is codified by way of an Act in

India-
a. Marine Hull
b. Marine Cargo
c. Both (a) and (b)
d. None of (a) and (b)
92. ‘The Institute Clauses’ used in Marine Insurance were

framed by –
a. Insurance Institute of India

b. Chartered Insurance Institute
c. Institute of London Underwriters
d. Lloyds
93. Marine Insurance offers:

a. Strict Indemnity
b. No indemnity
c. Modified Indemnity
d. Revised Indemnity
94. In case of which of the following insurances, the stamp duty

is borne by the insured-
a. Fire Insurance
b. Personal Accident Insurance
c. Marine Cargo Insurance
d. Health Insurance
95. Insurance cover note can not be issued in case of –
a. Marine Insurance
b. Fire Insurance
c. Health Insurance
96. Which one of the following information is not reflected on
the schedule of Marine Insurance Policy (Cargo)-
a. Identification of Vessel or Conveyance

b. Type of contract between Seller and Buyer
c. Invoice details issued by Seller
d. Description of Voyage or Transit
97. Seller’s Contingency Policy Cover can be issued in case of –
a. CIF contract
b. FOB Contract
c. Either of the above (a) and (b)
d. None of the above (a) and (b)
98. In case of CIF contract the Insurable Interest of the seller
ceases –
a. Once the goods leave the factory gate

b. Once the goods are discharged at the port of discharge
c. Once the goods are put on board
99. For an exporter having frequent exports which one of the

following will be more useful-
a. Open Policy
b. Open Cover
c. Open Declaration Policy
d. Annual Marine Policy
100. In case of which one of following covers, war risk can be

covered by paying extra premium-
a. Personal Accident Policy

b. Health Insurance Policy
c. Marine Inland Transit Policy
d. Marine Overseas Transit Policy
101. In India Marine Cargo Insurance was detariffed in the year–
a. 1992
b. 1993
c. 1994
d. 1998
102. Which one of the following is unnamed peril cover -
a. Motor Insurance
b. ICC ‘A’ cover
c. Fire Insurance
103. Which one of the following perils is not covered under ICC –
C Clause-
a. Washing Overboard
b. General Average Sacrifice
c. Jettison
d. Entry of sea, lake or river water into vessel
104. In case of Marine Insurance, Insurable interest is a must-
a. a.at the time of loss

b. at the time of underwriting
c. both at the time of claim and underwriting
d. Either at the time of claim or at the time of underwriting
105. In case of Marine Insurance, which one of the statement is correct with
respect to GRT of the ship-
a. Risk increases with the increase in GRT

b. Risk decreases with the decrease in GRT
c. Risk decreases with increase in GRT
d. The GRT does not play any role on risk
106. In case of Marine Insurance vessel approval is done by
a. GIC
b. GIPSA
c. Individual Companies
d. IRDA
107. Which one of the exclusion gets deleted in case where the
full ship load cargo is transported through duly ‘approved’
vessel-
a. Loss/ damage/expense caused by inherent vice or nature of

the subject matter insured
b. Ordinary leakage, ordinary loss in weight or volume or
ordinary wear and tear.
c. Loss/damage/expense arising from insolvency or
financial default of the owner , managers, charterers or
operators of the vessel
Article II. MOTOR Seniors
1. Which feature is not an u/w consideration for Motor Dept.?

a. Colour of car
b. Cubic capacity
c. Age of vehicle
d. Hire & reward
2. IDV of new vehicle represents
a. Invoice price
b. Invoice price less 5%
c. Ex factory price
d. Cost on road less 5%
3. IMT 23 deals with
a. Compulsory excess
b. Exclusion of special perils like flood, storm, typhoon
c. Exclusion of riot, strike and terrorism
d. Replacement of parts
4. which of the following is a Miscellaneous and special type of vehicle
a. scooter
b. trailer
c. agricultural tractors
d. taxi
5. IDV of a vehicle 7 years old is –
a. Invoice less 50%
b. Market price of 7 years old vehicle
c. Invoice less 70%
d. Not to insure at any value
6. Which of the following countries is not covered under extension of
geographical areas
a. Bangladesh
b. Bhutan
c. China
d. Nepal
7. Concession for laid up vehicle can be given in which the following cases-
a. Vehicle can not be used due to accident
b. Vehicle laid up in garage and not in use for more than one month
c. Vehicle laid up in garage and not in use for more than two months
d. Vehicle under police custody
8. Motor pool takes care of the following business
a. Obligatory cession
b. Declined insurers
c. Third party commercial vehicles
d. Third party all vehicles
9. Motor Reinsurance is normally done on the following basis
a. Quota share
b. Facultative
c. Surplus treaty
d. Excess of loss
10. Motor Trade Road Risk Policy can be underwritten on the basis of
a. Type of vehicle
b. Trade certificate
c. Dealership
d. Vehicle in transit
11. Motor insurance can be made in the name of Registered owner except in the
following case –
a. Director of company
b. Temporary substitution
c. Partner of a Partnership firm
d. Legal Heir
12. Motor third party insurance is not required for cubic capacity of two wheelers
in the following cases
a. Vehicle under 100 cc
b. Vehicle under 35 cc
c. Vehicle with side car
d. Vehicle specially made for handicapped persons
13. Agreed Value policy for Motor Insurance can be granted in which of the
following cases
a. Vintage cars
b. Laid up vehicle
c. Brand new vehicle
d. Classic cars
14. Section 173 of MV Act relates to
a. TP Property Damage
b. Appeal Cases
c. Fault liability
15. Co passenger traveling in a private car is entitled to compensation in MACT
from Insurance Co. in which of the following covers
a. Package policy
b. Act only policy
c. Both a & b
16. No appeal lies in High Court if the MACT compensation amount is less than
a. Rs. 1 lakhs
b. Rs. 50,000
c. Rs. 10,000
d. Rs. 25,000
17. Non Motor Policy can be issued in the following case
a. Mobile crane
b. Private car
c. Commercial vehicle
d. Motor cycle with 50 cc
18. Under section 170 of MV Act Insurer can get the right to contest the TP claim
on all grounds as of the owner in which of the following cases
a. Collusion between driver and conductor
b. Collusion between insured and claimant
c. Collusion between driver and claimant
d. Collusion between insurance co. and claimant
19. Maximum liability for OD claim in total loss can be
a. IDV
b. Market price
c. IDV less excess
d. Market price less excess+
20. Which of the following losses are not excluded under OD section of package
policy?
a. Consequential loss
b. Depreciation of wear and tear
c. Mechanical and electrical failure
d. Fire damage
21. Which document is not required for OD claim processing?
(a) Registration book of vehicle

(b) Assessed loss statement
(c) Driving License of driver while accident
(d) Driving License of the Insured
22.Following documents are not required for TP claim processing:
(a) Summon from Court

(b) Purchase receipt of vehicle
(c) Police report
(d) Insurance Policy
23.Overturning claim of vehicles can only be paid under:
(a) Cranes
(b) Trucks
(c) All private cars
(d)
24.Who fixes IEV of motor vehicle?
(a) Manufacturer
(b) Surveyor
(c) Insurer
(d) Insured
25.For which type of vehicles India is divided into three zones?
(a) Private car

(b) Commercial vehicle – passenger carriers
(c) Two wheelers
(d) Motor trade
26.What are the other countries which cannot be covered under motor vehicle insurance
issued in India?
(a) Nepal
(b) Bangladesh
(c) Myanmar
(d) Pakistan
27.Sunset clause refers to:
(a) Vintage vehicles

(b) Constructive total loss
(c) No claim bonus
(d) Expiry of the policy
28.Public place is defined under MV Act as:
(a) Factory premises

(b) Public needs
(c) All places where public can access
(d) Public sector companies premises
29.For constructive total loss under motor vehicle policy payable loss has to
constitute more than what percentage of IEV:
(a) 50%
(b) 60%
(c) 75%
(d) 90%
30. Which one is an add-on cover under motor vehicle insurance:
(a) Volcanic outburst

(b) Mechanical break down
(c) Meteorite strike
(d) Accident to employees
31. Which is not a factor for structured compensation under Motor Third Party
liability:
(a) Age of the deceased

(b) Dependency of the complainant
(c) Income of the deceased
(d) Income of the insured
32. Insurance Agency Commission is not allowed under:
(a) Commercial vehicles

(b) Two-wheelers
(c) All third party insurances
(d) Only third Party private car insurance
33. Insurer’s liability towards third party ceases:
(a) When owner is not the insured

(b) When new owner shows another insurance policy
(c) After motor total loss claim is paid
(d) On the death of the insured
34. Motor vehicle insurance is not compulsory if:
(a) Engine is below 25 cc without gar

(b) If it is registered as per MV Act
(c) If it is plying / being used within a premises all the time
(d)
35. Higher premium is charged for short period policy than annual policy:
(a) Annual premium is collected and they are paid in advance

(b) Expenses are same in both annual and short period policy
(c) Annual policy requires one renewal in a year while short period policy
requires more renewal
(d) Insured moral hazard seems to be high
36. Knock for knock agreement is applicable for:

(a) Indemnity
(b) Contribution clause
(c) Proximate cause
(d) Rule of subrogation
37. What is not a factor for making provision for Motor TP Claim:
(a) Applicant’s amount claim

(b) Legal expenses
(c) Interest on delayed settlement
(d) Interest already gained on incurred claim not yet paid
38.The Insurer can cancel the policy by sending notice of
a. 10 days
b. 15 days
c. 7 days
d. 30 days
39.No claim discount can be allowed provided a fresh policy is obtained

within
a. 30 days
b. 180 days
c. 90 days
d. 15 days
of the expiry of the previous policy.
40. The insured may authorize repairs necessitated by damage caused

under policy provided estimated cost of such repairs does not
exceed :
a. Rs.1000/-
b. Rs.500/-
c. Rs.250/-
d. Rs.1200/-
41.As regards risk of ‘explosion’ to be covered, it means :

a. Only Internal
b. Both internal and external
c. Only external explosion
d. Covered only by additional premium
42. Sum Insured of a vehicle is based on :

a. Insured Market value
b. Insured Declared value
c. Insured Draft Value
d. Insured Estimated Value
43.N.C.B. can be given by New Insurer

a. Automatically on the basis of proposal
b. On production of old policy
c. On production of such certificate
d. Given on face value and confirmed later
44.Maximum discount on IMT is

a. Upto 31%
b. Upto 35%
c. Upto 51%
d. Upto 20%
45.T.P. premium on a private car

a. Ceded entirely of G.I.C.
b. Ceded entirely of India Motor Pool
c. Retained by U/W Company
d. Shared by all PSUs
46.T.P. Provision in a claim is kept

a. Present trend of local courts
b. Age factor of deceased
c. Rate of interest prevalent
d. All above factors
47. Section 170 of MV Act relates to :

a. Taking over the Defence of Owner
b. Collision between the claimants
c. Restricting the award to 6,000
d. Right to appeal.
48.What is not required in a Theft Case?

a. D.L.
b. Subrogation Bond
c. F.I.R.
d. F.R.
49.Agreed value Policy is given to :

a. Vintage Cars
b. Vehicles not in use
c. Vehicles plying in restricted area
d. Scooters with a side car.
50.T.P. Insurance was first made mandatory in :
a. India
b. England
c. U.S.A.
d. Soviet Union
51.An MACT case can be filed :

a. In the area of accident
b. Anywhere in India
c. Any place near to U/W Office
d. At the place where the victim belonged to.
52.Which of the following is incorrect?

a. Insurance of a Motor Vehicle is compulsory
b. Policy can be insured for TP cover only
c. Proposed Form is a part of the policy
d. Wear and tear is covered by a motor policy
53.Which of the following doesn’t have a bearing while accepting a

motor proposal?
a. Moral hazard of the insured
b. Roadworthiness of the vehicle
c. Educational qualification of the proposer.
d. Anti theft devices fitted into the vehicle.
54.Owner of goods traveling along in a goods vehicle will be treated for

the purpose of claims as :
a. Insured
b. Third Party
c. Gratuitous Passenger
d. Employee
55.“Claim Enq. Officer” and “Claim Settlement Commissions” are part
of :
a. MACT
b. EST Act
c. Solatium Fund
d. WC Act
56.OD Claim under Comml. Vehicle chemical tanker will be considered

if the driver has
a. Valid D.L. to drive any vehicle

b. Valid D.L. to drive a tanker
c. Valid D.L. endorsed with handling of hazardous chemicals.
d. Valid D.L. with five years experience in driving a tanker.
57. Our policies are governed by MV Act of

a. 1988/1939
b. 1988
c. 1939
d. 1989
58.No Fault liability is governed by which sector of MV Act :

a. 140
b. 173
c. 146
d. 170
59.Amount of compensation of Death & Injury under no fault :

a. 35000/50000
b. 25000/40000
c. 50000/25000
d. 25000/35000
60. Application for compensation to be made at MV Act :
a. Place of Accident
b. Place of Insurance
c. Place of residence of the claimant
d. Any of the above.
61. The time limit normally allowed for presenting claim petition u/s
166 is :
a. 3 months
b. 6 months
c. 9 months
d. 1 year
62. In respect of TP Claims, the insurance company can repudiate

liability
a. Only if it proves that the DL was not valid and the driver
was dis-qualified from having a license on the date of
accident.
b. If the driver was in possession of the Learning License
c. If the D.L. had expired
63. On the date of accident, the Insured had sold the vehicle and the
policy was not transferred under the circumstances.
a. The Insured Co. can deny TP liability
b. The Insured Co. cannot deny TP liability
c. The Insured Co. can pay OD Claim and deny TP Claim
BULLET QUESTIONS
1) U/w considerations for covering LPG tankers

2) U/w considerations in detariff scenario – in Motor underwriting for Commercial
Vehicles.
3) Actuarial analysis of claims for motor how far it relevant.
4) How Motor Third Party Claim ratio can be reduced?
5) Underwriting considerations for motor vehicle insurance
6) What are the objectives in issuing an endorsement?
1. To establish a Burglary claim under Burglary Policy a sign of forcible entry OR

exit is required
a.TRUE
b. FALSE
2. In package policy i.e. SHOPKEEPERS POLICY group discount is only available,

If the insured opts for coverage
a. FOUR OR MORE
b. THREE OR MORE
c. TWO OR MORE d. TEN
3. Whether cash can be covered under Burglary and House Breaking Policy ?
a. YES
b. NO
4. Under TABLE III of PA Policy maximum weekly compensation is allowed upto

a. 54 WEEKS
b. 104 WEEKS
c. 30 WEEKS
d. 10 WEEKS
5. First Loss concept is available under

a. BURGLARY
b. MONEY
c. BAGGAGE
d. SHOPKEEPER’s POLICY
6. In Burglary Insurance the premium rate is depends upon

a. NATURE OF CONSTRUCTION
b. TYPE OF SECURITY EMPLOYED BY THE INSURED
7. In Liability Policy premium is determined on the limit of

a. AOA
b. AOP
c. BOTH
d. NONE
8. Retroactive date is related with

a. PROFESSIONAL INDEMNITY
b. PRODUCT LIABILTY
c. PUBLIC LIABILTY
d. BOTH b & c
9. Money retained in Burglar resisting safe in the Insured premises is ordinarily

covered only
a. FOR 24 HOURS
b. FOR 48 HOURS
c. FOR 72 HOURS
d. FOR 96 HOURS
10. The discovery period under Fidelity Guarantee Policy is

a. 12 MONTHS
b. 24 MONTHS
c. 18 MONTHS
d. 15 MONTHS
11. Maximum Indemnity limit available under PUBLIC LIABILTY Policy

(AOA:AOP) is
a. 1:8
b. 1:6
c. 1:4
d. 1:2
12. House Holder Insurance Policy is comprised of sections

a. EIGHT
b. TEN
c. TWELVE
d. FIFTEEN
13. Which section under House Holder Insurance Policy is compulsory?

a. SECTION V
b. SECTION III
c. SECTION X
d. SECTION I
14. Expenses incurred for carriage of dead body of the Insured to place of
residence are reimbursed under PA Policy subject to
a. 2% CSI or Rs.5000/-, WHICHEVER IS LESS
a. 1% CSI or Rs.1500/-,WHICHEVER IS LESS
c. 1% CSI or Rs.1000/- WHICHEVER IS LESS
d. 2% CSI or Rs.2500/-,WHICHEVER IS LESS
15. The earned cumulative Bonus will be lost if the PA Policy is not renewed within
a. 30 DAYS
b. 45 DAYS
c. 60 DAYS
d. 90 DAYS
16. Laptop can be covered under

a. EEI POLICY
b. SPECIAL CONTINGENCY
c. HOUSE HOLDERS POLICY
d. SHOPKEEPERS POLICY
17. Special discount is not allowed under Jewelers Block Policy for
a. CLOSE CIRCUIT TV
b. ARMED GUARDS
c. BUILT IN VAULTS
d. FIRE PROTECTION
18. Which type of Bond is a long time contract?

a. CUSTOMS BONDS
b. EXCISE BONDS
c. FIDELITY BONDS
d. NONE OF THE ABOVE
19. Burglary Policy on Workshop art, curio etc. may be issued

a. AGREED VALUE BASIS
b. MARKET VALUE BASIS
c. WRITTEN DONE VALUE
d. REINSTATEMENT VALUE
20. Baggage Insurance Policy covers which of the following

a. PERSONNEL EFFECTS
b. DEALER STOCK
c. TRAVELLERS SAMPLES
d. NONE OF THE ABOVE
21. Whether pre-inspection is necessary for granting ALL RISK cover in

Beetle vine Insurance?
a. YES
b. NO
22. Franchise and Excess is applicable in

a. HORTICULTURE INSURANCE
b. CATTLE INSURANCE
c. PIGGERY INSURANCE
d. HONEY-BEE INSURANCE
23. Maximum SI permissible under standard JPA Policy is
a. Rs. ONE LAC
b. Rs. TWO LAC
c. FIVE LAC
d. TEN LAC
24. In standard PA Policy on duty cover is allowed at a premium of

a. 75% OF APPROPRIATE PREMIUM
b. 50% OF APPROPRIATE PREMIUM
c. 33 ½ % OF APPROPRIATE PREMIUM
d. 25% OF APPROPRIATE PREMIUM
25. Which is not a example of Court Bonds?

a. ADMINISTRATION BONDS
b. LIQUIDATORS BONDS
c. RECEIVER BONDS
d. EXCISE BONDS
26.Which of the following is not a part of table of benefits under a personal accident
policy
a) Permanent total disablement
b) Temporary Partial disablement
c) Temporary total disablement
d) Permanent partial disablement
27.Which of the following does not come under the ambit of accident
a) External
b) Visible means
c) Violent
d) Mental shock
28.Which of the following differentiates GPA policy from individual PA policy

a) Death
b) Disablement
c) Cumulative bonus
d) Medical expenses
29.A burglary policy does not cover
a) Housebreaking
b) Theft by an employee
c) Hold up
d) Dacoity
30.One of the underwriting consideration for issuing fidelity guarantee insurance

policy on blanket basis in
a) Financial position of the insured
b) Solvency Margin of the Insured
c) Good Internal Controls
d) Transfer & Mobility policy of the insured
31.Cash in transit policy does not cover*

a) Money carried by means of contract of afreighment
b) Errors of omission
c) Lost during war
d) Infidelity of the employee carrying cash
e) All the above
32.In cash – in safe policy, a loss is not covered if
a) A duplicate key is used

b) Cash is kept in locked safe
c) Occasioned by house breaking
d) A key is obtained by coercion
33.Bankers Indemnity Policy can not be extended to cover

a) Earthquake
b) Trading Losses
c) Flood
34.Discount in premium under bankers indemnity policy is not dependent on

a) No. of Bank Branches
b) Operations limited to state levels
c) Claims experience
d) No. of employees
35.Categorization of risk in Jewellers Block Policy is done on the basis of

a) Extent of watch & Ward Facility
b) Theft prone area
c) Proximity to police station
d) Proximity to public fire station
36.Under the plate Glass Policy which of the following peril is covered
a) Accidental breakage of glass in store
b) Accidental breakage to fixed glass
c) Fire and explosion
d) Earthquake
37.Blood Stock Policy is meant to cover

a) Horses
b) Cattle
c) Piggery
d) Pet dogs
38.A Canine is associated with

a) Blood stock policy
b) Elephant policy
c) Cattle policy
d) Pet dog policy
39.IN cattle insurance, tag no. referes to
a) Policy number
b) Claim number
c) Veterinary doctors registration number
d) Animal Identification number
40.Tatooing in rural insurance refers to

a) Immunization
b) Sales Promotion
c) Vaccination
d) Identification
41.Poultry insurance does not cover

a) Layers
b) Broilers
c) Hatcheries
d) Tandoori
42.Fresh Water Prawn Insurance does not cover

a) Pollution
b) Poisioning
c) Riot & Strike
d) Partial Loss
43.Which of the following is not a court bond

a) Administration Bond
b) Receiver Bond
c) Liquidators Bond
d) Excise Bond
44.Court Bonds are variants of

a) Performance Guarantee policy
b) Fidelity Guarantee Policy
c) Money in Transit Policy
d) Advance Loss of Profit Policy
45.Customs Bonds & Excise Bonds are issued to protect

a) Interest of Govt. Exchequer
b) Interest of the importer
c) Interest of the manufacturer
d) Interest of the financers
46. Which of the following is not a part of table of benefits under a personal
accident policy
a. Permanent total disablement
b. Temporary Partial disablement
c. Temporary total disablement
d. Permanent partial disablement
47. Which of the following does not come under the ambit of accident
a. External
b. Visible means
c. Violent
d. Mental shock
48. Which of the following differentiates GPA policy from individual PA policy
a. Death
b. Disablement
c. Cumulative bonus
d. Medical expenses
49. A burglary policy does not cover

a. Housebreaking
b. Theft by an employee
c. Hold up
d. Dacoity
50. The Claim under Burglary Policy can be established by the following section
under IPC
a. 379
b. 445
c. 420
d. 380
51. The retroactive period under a fidelity guarantee insurance policy is

a. 6 months
b. 3 months
c. 12 months
52. One of the underwriting consideration for issuing fidelity guarantee insurance
policy on blanket basis in
a. Financial position of the insured
b. Solvency Margin of the Insured
c. Well Internal Controls
d. Transfer & Mobility policy of the insured
53. Standard cash in transit policy does not cover
a. Money carried by means of contract of afreighment
b. Errors of omission
c. Lost during war
d. Infidelity of the employee carrying cash
54. In cash – in safe policy, a loss is not covered if

a. A duplicate key is used
b. Cash is kept in locked safe
c. Occasioned by house breaking
d. A key is obtained by coercion
55. Bankers Indemnity Policy can not be extended to cover

a. Earthquake
b. Trading Losses
c. Flood
56. Discount in premium under bankers indemnity policy is not applicable for
a. No. of Bank Branches
b. Operations limited to state levels
c. Claims experience
d. No. of employees
57. Categorization of risk in Jewellers Block Policy is done on the basis of

a. Extent of watch & Ward Facility
b. Theft prone area
c. Proximity to policy station
d. Proximity to public fire station
58. Following feature does not attract discount in premium under a Jewellers
Policy
a. Special Security built in vaults
b. Fire and alarm system
c. Strong rooms
d. Closed circuit TV
59. Under the plate Glass Policy which of the following peril is covered
a. Accidental breakage of glass in store
b. Accidental breakage to fixed glass
c. Fire and explosion
d. Earthquake
60. Blood Stock Policy is meant to cover
a. Horses
b. Cattle
c. Piggery
d. Pet dogs
61. A milch cow is covered under cattle insurance upto the age of
a. 8 years
b. 10 years
c. 12 year
d. 14 years
62. A Cnin is associated with

a. Blood stock policy
b. Elephant policy
c. Cattle policy
d. Pet dog policy
63. IN cattle insurance, tag no. referes to

a. Policy number
b. Claim number
c. Veterinary doctors registration number
d. Animal Identification number
64. Tatooing in rural insurance referes to

a. Immunization
b. Sales Promotion
c. Vaccination
d. Identification
65. Poultry insurance does not cover
a. Layers
b. Broilers
c. Hatcheries
d. Tandoori
66. Fresh Water Prawn Insurance does not cover

a. Pollution
b. Poisioning
c. Riot & Strike
d. Infidelity
67. Which of the following is not a court bond

a. Administration Bond
b. Receiver Bond
c. Liquidators Bond
d. Excise Bond
68. Various Court Bonds are the extension of

a. Performance Guarantee policy
b. Fidelity Guarantee Policy
c. Money in Transit Policy
d. Advance Loss of Profit Policy
69. Customs Bonds & Excise Bonds are issued to protect

a. Interest of Govt. Exchequer
b. Interest of the importer
c. Interest of the manufacturer
d. Interest of the financers
70. Banker’s blanket policy does not cover

a. Banks property
b. Money in banks custody and transits
c. Fidelity guarantee
d. Trading Losses
71. W.C. Policy provides for compensation as provided in
a. Indian Fatal accident Act
b. W.C.Act
c. Common Law
d. a & b above
72. Householder comprehensive policy is
a. A Package Policy
b. A All Risk Policy
c. A Property Insurance Policy
d. A Liability Policy
73. Role of TPAs is
a. To settle claims
b. To standardize rates with local hospitals
c. To issue identity cards to insured for cash less settlement
d. All the above
74. Risk groups for Personal Accident Cover are identified on basis of
a. Risk associated with their jobs
b. Risk associated with loss of earning
c. Risk associated with financial risk
d. Risk associated with age
75. Discount of group size for group PA and Group JPA cannot be given in
a. Anticipated group size
b. Group added on during currency of policy
c. For groups smaller than 1 lac people
d. For non earning members in a group
76. Shopkeeper’s Insurance does not cover
a. Buildings and Stocks for fire perils
b. Contents for Burglary
c. LOP
d. Marine Risks for Stocks
77. Which statement is not true
a. An insured who has claimed under the Common Law cannot claim under
W.C. Act
b. An insured who has claimed under Indian Fatal Accident Act can also
claim under W.C.Act
c. The Compensation is structured under W.C. Act
78. Baggage insurance can be given to cover
a. Unaccompanied baggage
b. Accompanied baggage
c. Baggage sent by rail/road
79. First Loss Policy for Burglary insurance is given when there is
a. Low probability of total loss
b. High probability of total loss
c. When the subject mater can be segregated on the basis of the risk exposure
d. None of above
80. In a Burglary Insurance Policy:
(a) Theft cover is inbuilt

(b) Policy has to be explicitly extended to cover theft cover
(c) Theft cover cannot be covered at all
(d) Theft is otherwise burglary. No question of inbuilt add-on cover
81. In case of Cattle Insurance:
(a) Tagging the animal is a must

(b) Tagging not at all compulsory
(c) Suffice if we hand over the new tags in the hands of the owner
(d) If handed over to the doctor is suffice
82. In case of pedal cycle theft:
(a) FIR is a must

(b) Police certificate is sufficient
(c) Acknowledged copy of complaint to the police is sufficient
(d) None of the above – only intimate to the INSR is sufficient
83. There exist PA policy separately and PA cover is for him as owner / rider in a
two-wheeler policy – the insured dies in an accident:
(a) Death Claim to the legal heir in a PA policy only is payable

(b) Death claim in the PA cover in the two-wheeler policy only is payable
(c) Both the claims under both the policies are payable
(d) Claim under none of the policy is payable
84. Under PA policy:
(a) Any SI can be granted to cover comprehensively

(b) SI is limited reasonably to anyone’s 5 to 6 years annual income
(c) SI is standardized according to the age of the person
(d) 50% of any sum demanded by the proposer is granted
85. In a Fidelity Guarantee Policy, employee who run away with money and found
guilty was found to have seen re-employed even before the settlement of the
claim:
(a) Full claim under FG is still payable

(b) Insurer can repudiate the claim citing the re-employment
(c) 50% of the misappropriated amount can be settled
(d) Advise the insured to recover it from the employee, as he was re-
employed
86. A worker covered under a WC policy whilst returning from duty on his way dies
of a road accident:
(a) His legal heir can make a claim before MACT only
(b) Can make a claim under WC policy
(c) Can make a claim under both the FORUM
(d) Cannot make claim before any FORUM
87.Which of the following condition is essential for an accident to be covered P.A.

Insurance
(a) Bodily injured
(b) Caused by external means
(c) Caused by visible & Violent means
(d) All the above
88.Claim under P.A. cover is not payable if the death is occasion by
a. Murder
b. Drowning
c. Snake bite
d. Suicide
89.Which of the losses does not fall under exclusion in case money insurance.
a. Shortage due to error & omission
b. Loss covered by using duplicate keys
c. Losses arising from war & allied perils
d. Losses covered by other policies
90.Which statement is correct in case of Money Insurance
a. Infidelity of employer is covered in inbuilt basis
b. Infidelity of employee can not be covered
c. Infidelity of employee is can be covered on as extension by charging extra

premium
91. Burglary / theft of cash meant for salary distribution has taken place by
breaking/ open the drawer, getting the original key and opening the Safe
whether the loss is payable under
a. Burglary Policy
b. Cash in Safe Policy
c. Cash in Transit Policy
92. Pair Clause is applicable on which type of insurance:
a. Baggage Insurance
b. All Risks Insurance
c. Fire Insurance
d. Burglary Insurance
93. Which of the following statement is not true:
a. Infidelity of Employee is covered under FG Insurance
b. Infidelity of Employee is covered as an extension for carrying cash under
Money in Transit Policy
c. Cash kept in Safe is covered under Burglary Policy
d. None of above
94. Deployment of watchman is a main consideration in classification of risk &
rates in which of the following policies:
a. Burglary Insurance
b. Shopkeeper Insurance
c. Bankers’ Indemnity
d. Jewellers’ Block
95. Re-insurance helps insurers in*
a. Wider distribution of risk
b. Achieving safeguard against catastrophe losses
c. Repudiating their liability
d. Limiting its liability to their retention capacity
96. Public liability is not being covered under the following policy
a. House Holders Insurance
b. Shop Keepers Insurance
c. Office Protection Shield
d. Burglary Insurance
97. Point out the ‘odd’ one from the following
a. Facultative reinsurance
b. Treaty reinsurance
c. Excess of loss reinsurance
d. First loss insurance
98. Which of the statement is true
a. Blood stock insurance deals with blood bank
b. Blood stock insurance deals with race horses/ studs
c. Blood stock insurance deals with mules
d. Blood stock insurances deals with burglary insurance for stocks
99. Which one of the loss is not within the scope and coverage of Fidelity
Guarantee Policy?
a. A direct Pecuniary Financial Loss covered by Employee
b. The loss should be course of the duties
c. The loss should be in respect of money or goods of the insured
d. Shortage of stock noticed during Annual Stock
100. In Money Insurance which loss is excluded:
a. Wages in Transit from Bank to Insured’s Premises
b. Wages in Transit from Insured’s main
c. Postal orders, in transit form post offices to insured’s premises
d. Shortage while in transit due to error or omission
101. In Money Insurance which of the loss is not payable
a. Money whilst in Transit directly from Bank to Factory
b. Wages in transit from insured’s main premises to insured.
c. From Bank to Residence
d. During the process of collection of money by employee from various
places
102. Which of the following policy average clause is not applicable
a. Fire insurance
b. Machinery break insurance
c. Burglary insurance
d. All risk insurance
(1) Which of the following disablement is not covered under PA policy
(a) Temporary total disablement
(b) Permanent partial disablement
(c) Temporary partial disablement
(d) Permanent total disablement
(2) Which of the following benefits can be granted only on payment of extra
premium under PA policy
(a) Medical expenses
(b) Loss of limb
(c) Carriage of dead body
(d) Education fund
(3) Special feature of normal PA policy
(a) Cover is for office hours & on a world wide basis
(b) Cover is for 24 hours & within India only
(c) Cover is for office hours & within India only
(d) Cover is for 24 hours & on a world wide basis
(4) Maximum Sum Insured under JPA can be
(a) 1 Lacs
(b) 3 Lacs
(c) 5 Lacs
(d) No such limit

(5) For commodities like food grain, cotton, jute, rubber etc which type of supply
policy would you recommend
(a) Declaration policy
(b) First loss policy
(c) Floating policy
(d) All the above
(6) A good moral hazard is primary and indispensable requirement of following
(a) PA policy
(b) Burglary policy
(c) All risk policy
(d) Mediclaim policy

Miscellaneous Seniors
1. Which of the following risk is not covered under Burglary (Business Premises)
Insurance?
a. Forceful and violent entry
b. Larceny
c. Damage to safe whilst burglary is carried on
d. None of above
2. Which of the following policies is not a strict contract of indemnity?

e. Burglary
f. Personal accident
g. Mediclaim
h. Fire
2. In Money Policy, definition of money does not include

a. Cheque
b. Bill of Exchange
c. Share Certificate
d. Currency Note
3. First loss policy in Burglary cannot generally be given to

a. Cotton
b. Iron
c. Jute
d. Diamond
4. Worldwide cover can be given in the following cases

a. Burglary
b. Personal accident
c. Fidelity
d. Mediclaim
5. Which of the following policies are adjustable on completion of policy period?

a. WC
b. Cash in transit
c. (a) and (b)
d. Neither (a) nor (b)
6. Which of the following is not covered under money policy
a. Cash in transit
b. Cash in safe
c. Cash in counter
d. Cash kept at residence of insured
7. Compensation under WC policy is not based on

a. Age
b. Wage
c. (a) and (b)
d. Occupation
8. Baggage Policy does not cover

a. Loss of suitcase
b. Loss of samples
c. Cash and valuables
d. Clothes
9. Condition of average is applicable in

a. Personal accident policy
b. Mediclaim policy
c. In case of total loss
d. Fire portion of householder’s policy
10. Special contingency policy does not cover

a. Loss by overloading or strain
b. Burglary
c. Fire
d. Lightning
11. Which of the following risk is excluded under television insurance policy
a. Fire & lightning
b. STFI
c. Burglary
d. Wear and Tear
12. Which of the following is treated as Rotor Wing aircraft

a. A320
b. 747-440
c. Chetak
d. Turbojet
13. Student safety policy can be issued to

a. Individual student
b. Parent
c. Group of students
d. Educational Institutions
14. On duty PA policy covers

a. Accident in course of employment
b. Accident while coming to workplace
c. Accident while returning to house from workplace
d. Accident occurring during holidaying
15. Pedigree record is not required for

a. Dog insurance
b. Blood stock insurance
c. Cattle insurance
d. None of above
16. Neon Sign policy does not cover

a. Storm
b. Riot and Strike
c. Malicious damage
d. Weathering
17. Contribution clause is not applicable for following cover

a. Baggage policy
b. Householder’s policy
c. PA policy
18. A mobile phone shop-keeper who has a burglary policy for the business premises
finds that a mobile phone has been shop lifted by a customer. In this case
a Claim is payable in full
b Claim is not payable
c claims is payable subject to excess
d Claim is payable subject to investigation.
19. Student Safety policy is issued in the name of

a Student, with Parent / Guardian
b The Institution in which the student is studying
c Principal of the Institution
d Doctor
20. Indian Penal Code does not define

a Dacoity
b House Breaking
c Burglary
d Robbery
21. All Risk Policy does not exclude
a Clocks and Watches
b Musical Instruments
c Sculptures
d Chipping of crockery
22. Following loss is not excluded in the Money in Transit Policy

a Shortage due to error or omission
b Losses occurring due to use of duplicate key unless such key is obtained
by force or threat
c Postal orders etc in transit from the Post Office to the Insured’s
premises
d Losses arising from riot strike civil commotion and acts of terrorism
23. In the following risks which do you think is not hazardous risk for a fidelity
guarantee policy
a Jewelry sales Personnel
b Estate Agent
c Salesman of a shop
d Treasurers of Societies / Associations.
24. Retroactive cover is not relevant in

a Jewelers Block Policy
b Bankers Indemnity
c Professional Indemnity
d Fidelity Guarantee
25. An electronic / mechanical breakdown in the Lap Top is only covered under
a Special Contingency Policy
b Electronic Equipment Policy
c Standard Fire Policy
d Burglary Policy
26. Payment of Weekly Compensation can be covered under the following policy
a Mediclaim Policy
b Workman Compensation
c Personal Accident
d None of above
27. Under the Professional Indemnity (Doctors) Policy, which of the following
attracts the highest rate
a General Practitioner
b Cardiac Surgeon
c Anesthetist
d Eye Surgeon
28. The Principle of Contribution does not apply to the following policy
a Standard Fire Policy
b Machinery Breakdown
c Personal Accident
d Burglary Policy
29. Claim on the following is not payable under the standard Personal Accident
Policy.
a Death
b Permanent Partial Disablement
c Temporary Partial Disablement
d Temporary Total Disablement
30. Shop-lifting is covered under which one of the following policy

a Burglary Policy
b Jewelers Block Policy
c Shop Keepers Policy
d None of the above
31. A banker who has a Bankers Indemnity Policy reports a claim for fraudulent
transfer of funds from one of the customers account by his employee, by
manipulating the computer software. Which of the following is correct
a The claim is payable
b The claim is not payable
c Payable subject to the Sum Insured in Section 1
d Payable subject to Sum Insured in Section 2.
32. The Television Insurance under All Risk Policy covers which one of the
following.
a Damage to Cathode Ray Tube due to fluctuation in voltage
b Damage due to Accidental External Means
c Theft of a part of the set
d Loss due to failure / breakdown caused by normal atmospheric
conditions.
33. A claim is lodged under the WC policy. At the time of claim it is observed that
Total Salary Paid had exceeded the Sum Insured. If so
a The claim is not payable
b Claim is payable after adjustment of the policy.
c Claim is payable as non standard
d Claim is payable after imposition of penalty
34. The Neon Sign Insurance Policy does not cover

a Fire and Burglary
b Accidental damage
c Damage due to Riot Strike or malicious act
d Damage due to improper maintenance of the hoardings.
35. Arbitration can be considered in which of the following circumstances

a Claim is not admissible
b Claim is repudiated for breach of policy condition
c Claim is admissible, but amount is disputed by the Insured
d In none of the above cases
36. Which of the following is not a liability policy

a Product liability
b Professional Indemnity
c Employers Liability
d Machiery break down policy
37. First loss cover is available under
a) House Holders Insurance

b) Shopkeepers insurance
c) Bankers Indemnity
d) Burglary Insurance
38. Bankers Indemnity Insurance Policy covers
a) Burglary from vault

b) Wrongful and dishonest acts on the part of employees
c) Fire of Bank Building
d) Cash in transit
39. Which insurance policy has worldwide geographical scope
a) Overseas health insurance

b) Cash in transit
c) Personal accident insurance
d) Fidelity guarantee insurance cover
40. PA insurance Policy doesn’t cover
a) Death
b) Permanent total disability
c) Permanent partial disability
d) Temporary partial disability
41. Contribution clause is not applicable for
a) All risk insurance for valuables

b) Fidelity Guarantee Insurance
c) PA policy
d) Burglary Insurance
42. Floating cover is not allowed in
a) PA insurance
b) Fidelity Guarantee insurance
c) Burglary insurance
d) Health insurance
43. Standard Burglary Insurance (business premises) covers
a) Loss occurring without any forcible entry

b) Loss detected while taking inventory
c) Loss arising out of snatching of goods
d) Loss occurring as a result of forcible violent entry
44. Householder’s insurance policy does not cover
a) WC of servants
b) Money in transit
c) All risk of valuables
d) PA insurance
45. Which one is not an insurance policy of indemnity
a) Health
b) Personal accident
c) Burglary insurance
d) Cash in transit
46. Which of the following rules is not applicable to air travel insurance
a) Duration of coverage is limited to period from embarking to disembarking of the

passenger
b) Flight coupons are normally purchased by the policy holder at the airport
c) Maximum limit of compensation in case of Death / PTD is Rs. 12 lacs if
Individual is of 12 years of age and above
d) Maximum limit of compensation in case of Death / PTD is Rs. 7.50 lacs if
Individual is of 12 years of age and above
47. “Retroactive period clause” is relevant to
a) Personal accident policy

b) Bankers indemnity insurance
c) Workmen compensation insurance
d) Health insurance
48. “Pair and Set” clause is not a special condition under
a) Fire Insurance
b) Burglary insurance
c) All Risk Insurance
d) Baggage insurance
49. Agreed value condition is applicable to
a) Valuable and curios under fire insurance

b) Marine cargo insurance
c) Vintage car motor insurance policy
d) All of the above
50. Under Sec.I of shopkeeper policy which risk is not covered
a) Lightning
b) Flood
c) Aircraft falling
d) Loss of money
51. “Environmental Relief Fund” is compulsory along with premium of insurance of

a) Public liability (Act) insurance
b) Workmen’s compensation insurance policy
c) Erection insurance policy
d) Cancer insurance policy
52. Which of the following policies has compensation fixed exactly as per statute
a) Workmen’s compensation insurance

b) Public liability Act insurance
c) Motor third party insurance
d) (a) and (b) above
53. Service tax is not chargeable along with premium under
a) Burglary insurance
b) Personal accident insurance
c) Health insurance
d) Janata Personal Accident Insurance
54. Stamp duty is to be paid by insured under
a) W.C. Policy
b) Marine cargo transit policy
c) Short period insurance policy
d) Personal accident insurance
55. Aviation Hull Insurance policy can be purchased by
a) Manufacturer of aircraft
b) Operator of aircraft
c) Lessor of the aircraft
d) All the above
56. Age group of girl child in Bhagyashree policy is revised to
a) Upto 10 years
b) 10 to 25 years
c) Upto 18 years
d) Upto 21 years
57. Workmen’s compensation policy is not guided by
a) WC Act
b) Fatal Accident Act
c) Indian Contract Act
d) Trade Union Act
58. Under which policy insured’s residence and its contents are covered
a) Transit insurance
b) Mobile insurance
c) Aviation insurance
d) Householder’s insurance
Article III. Bullet questions

Elucidate the scope of cover in Credit Risk Insurance
 Two types of risks are covered – Commercial and Political.

 Commercial risk refers to the payment risk related to the buyer
including nonpayment due to insolvency default etc.
 Political risk refers to the payment related to the country of the buyer.
 Political risk refers also to transfer difficulties due to economic events
like export license cancellation and war.
 Policy excludes Inter company sales
 Policy excludes also transactions with Government Institutions
 Excludes private individuals
 If the defaulter is a subsidiary or other department of the same
company, these are excluded from the scope of the policy.
Give the exclusions in the Commercial General Liability Policy:
 Losses resulting from war and nuclear attack

 Intentional acts with in the control of the Insured, which can be prevented
 Losses that are covered under other types of insurance.
 Pollution
 Product or service warranties including cost of removal or reinstallation in lieu of
defective products.
 Damage to the products.
 Damage to the works.
 Damaged to impaired property.
 Product recall.
While rating a Flying Club Aircraft what are the under writing considerations that to be
looked into
 Type of Aircraft and the value

 The experience of regular Pilot
 The number of members of the club
 The geographical area in which the club operates
 The facilities at the airfield used regularly by the club
 The frequency of usage of the aircraft
 The experience of the chief flying instructor
 Whether there is any maintenance contract with outsider and their credibility.
Article IV.
Article V.
Article VI.
Article VII.
Article VIII.
Article IX.
HEALTH & LIABILITY INSURANCE

1. In group health insurance covers , the least important underwriting
aspect is
a. Financial resources of the client firm
b. Male to female ratio among employees
c. Age group profile of employees
d. Past claims experience
2. In individual health insurance , normally which contingency is not
automatically covered
a. Cancer
b. Maternity
c. Minor surgery
d. Accidental fall
3. In underwriting group health insurance , the underwriting factors that

we do not consider are
a. Occupation of employees
b. Age of employees
c. Previous claims experience
d. Longevity of life of average Indian
4. All companies and /or individuals dealing in hazardous goods have to
take a Publict Liability policy as per the
a. Fatal accident act 1965
b. Indian Insurance act
c. Public Liability insurance act 1991
d. All the above
5. As per the Public liability act policy the compensation in case of an

accident is
a. Structured compensation
b. Unlimited liability
c. As per sum insured
6. Equal amount of premium collected under the PLI Act Policy goes to
a. Prime Minister’s Relief fund
b. Environment relief fund
c. Disaster management fund
7. Claim settling authority incase of claims under PLI Act Policy is
a. Divisional Manager/ Sr. Divisional Manager
b. Regional Manager/ Chief regional Manager
c. General Manager
d. District Magistrate/ Collector
8. Claims under Public Liability Policy are in the nature of

a. Legal liability
b. Agreed liability
c. Vicarious liability
9. Under Public Liability Industrial risks Policy pollution risk is
a. automatically covered
b. can be taken as an add on cover
c. cannot be covered
d. any of the above
10. Premium rating for Public liability policy depends on

a. Turnover, Limit of indemnity, No. of Units covered, Risk group
b. Sum insured selected, location of the Risk, Surrounding Property,
Past claims experience
c. Both of the above
11. Which of the following parties can bring an action against a director of
a company giving rise to a claim under the D&O policy
a. Customers
b. Employees
c. Regulator
d. All above
12. What costs cannot be usually covered under a Product Recall cover
a. Product Guarantee
b. Cost of recovering defectives products sent out in the market
c. Cost of advertising to the public
13. Claims under Product Liability policy can be paid in

a. Foreign currency
b. Indian rupees only
c. In Foreign currency with RBI permission
14. The retroactive clause under a liability policy defines that

a. Under a claims made policy the loss should occur within policy
period in case of renewal without break
b. The date of inception of cover and the time within which the legal
proceedings should be completed
c. The period of keeping provisions for claim made under the policy
15. Liability policies are called long tailed policies because
a. Actual liability may arise a long period after expiry of the policy for
claims arising during the policy period
b. Provisions for claims have to be maintained on the insurers books for
a long period
c. Both of the above
16. Cost of health check-up is available to the insured after an interval of:
a. Once In Three Claim Free Years Of Policy
b. Once In Four Claim Free Years Of Policy
c. Once In Two Claim Free Years Of Policy
d. Once in every five years
17. What is the cost of Health check-up under Individual Mediclaim?

a. 1% OF Average SI
b. 2% OF SI
c. 5% OF SI
d. MAXIMUM Rs.2500.
18. Give the correct answer from the following choices –
a. Pre-Hospitalization Medical Expenses For 30 Days
b. Pre-Hospitalization Medical Expenses For 15 Days
c. Pre-Hospitalization Medical Expenses For 45 Days
d. Pre-Hospitalization Medical Expenses For 21 Days
19. Domiciliary Hospitalization Benefit is available
a. Medical Treatment Exceeding 7 Days
b. Medical Treatment Exceeding 3 Days
c. Medical Treatment Exceeding 10 Days
d. Medical Treatment Exceeding 5 Days
20. Family discount is available under individual Mediclaim Policy if taken

for the family
a. @ The Rate 5%
b. @ The Rate 15%
c. @ The Rate 10%
d. @ The Rate 33 1/2%
21. When Insured opts for Mediclaim cover with cashless facility the
Premium
amount is loaded by
a. 10%
b. 6%
c. 5%
d. 7.5%
22. When Maternity Benefit is extended to Group Mediclaim Policy the

additional Premium is
a. 10%
b. 12.5%
c. 15%
d. 17.5%
23. What is the waiting period in respect to Maternity Benefit extension

under Group Medical Policy
a. 10 MONTHS
b. 12 MONTHS
c. 7 MONTHS
d. 9 MONTHS
24. Which one of the following diseases do not form part of first year
exclusion
a. Cataract
b. Hysterectomy
c. Fistula
d. Apendicitis
25. Pre-Hospitalization medical expenses is reimbursable for how many

days prior to Hospitalization?
a. 45 DAYS
b. 60 DAYS
c. 30 DAYS
d. 90 DAYS
26. Post-Hospitalization medical expenses is reimbursable for how many

days after discharge from Hospital ?
a. 45 DAYS
b. 60 DAYS
c. 30 DAYS
d. 90 DAYS
27. Ratio of AOA:AOY Maximum Indemnity limit under Public Liability

(ACT POLICY) is
a. 1:1
b. 1:2
c. 1:3
d. 1:4
28. Contribution to Environmental Relief Fund is under the PLI Act

a. Rs.50000/-
b. Rs.100000/-
c. An Equivalent Amount Of Premium
d. An Equivalent Amount Of Premium With Service Tax
29. Retroactive date means

a. Inception Date Of First Policy Without Break
b. Date Of Renewal Premium Without Break
c. Expiry Date Of Last Policy
d. Expiry Date Of First Policy
30. Which is not an NON-INDUSTRIAL RISK under Public Liability

Policy?
a. Hotel
b. Library
c. Paint Factory
d. Shop
31. Which one of the following statement is not correct in respect of
Liability Insurances-
a. Implied principle of Good faith is not applicable.

b. Claims are paid to persons other than the insured
c. The insurer provides indemnity to the insured in respect of his
potential legal liability.
d. Legal costs of the insured incurred with the consent of the
insurers are reimbursed.
32. Which one of the following statement is not correct in respect of the
liability Insurance covers –
a. It covers Civil Liability arising under Common Law

b. It covers Civil liability arising under Statutory Law
c. It covers both (a) and (b)
d. It cover neither of (a) and (b)
33. In Liability insurance policies

a. Policy period and period of insurance are always different
b. Policy period and period of insurance are always same
c. Policy period and period of insurance may or may not be same
d. There is no difference between the two
34 If your client is in hazardous industry dealing in hazardous substance,

which policy would you suggest
a. Public liability (Non industrial risk)
b. Product liability
c. Professional liability
d. Compulsory public liability act policy
35 For claiming compensation under W C policy, accident should

a. Always be within factory premises
b. Always be outside factory premises
c. May be within or outside factory premises
d. Always be at workers residence only
36 Under Personal Accident Policy Payment of Compensation in respect

of death, injury or disablement of the insured Directly or indirectly
caused by Venereal diseases or insanity is: -
a. Cover. Subject to 2% pf capital Sum insured.
b. Cover subject to2% of Sum insured or 2,500/- whichever is less
c. Full amount is payable.
d. Not covered.
37. Bhagyashree Child Welfare Policy is applicable to :-
a. Girl Child in the age group of0 to 18 years.

b. Who’s Parents age does not exceed 60 years.
c. This Scheme is for one Girl Child in a family.
d. All above.
38 Generally Blood Stock Insurance relates to
a. Blood Stock in Blood Bank.

b. Testing of Blood.
c. Indemnity in respect of death of a horse occurring from
accident, illness of disease etc.
d. No such Insurance cover is available.
39. Under Medi Claim Policy the term “ Medical Practitioner means:-
a. A person who holds a degree/ diploma from recognized

institution.
b. Person who is registered by Medical Council of respective State
of India.
c. Both of above.
d. None of above.
40 Anatomy is a science, which deals with: -
a. Matter pertaining to TV Antenna.

b. Matters pertaining to Aviation.
c. Deals with structure and position of body.
d. None of above.
41 Physiology relates to :-
a. Study of Social Science.

b. Study of Physiology.
c. Study of the functions of the body in health.
42 Under Liability Insurance the terms “AOA” relates to :-
a. Assessment of Assets.
b. Against one Accident.
c. Any one Accident.
d. Any other Accident.
43. Under Legal background “ Crime” means: -
a. Breach of Private right of individuals.

b. Breach of Public right, which affect any individual.
c. Breach of Private right of Public.
d. Breach of Public right, which affects the entire Society.
44. Under Legal background “Trespassers” means: -
a. A man found guilty of cutting trees.

b. A man who enters in forest and passes through.
c. A man who enter property without any right or permission.
d. All of above.
45. The time limit for appeal for National Consumer Forum to Supreme
Court is :-
a. 30 days from the Order of National Commission.

b. 60 days from the Order of National Commission,.
c. 90 days from the Order of National Commission.
d. No time limit.
46 In W.C. cases we can go for appeal only on the ground of: -
a. On guan m
b. Finding of facts
c. Substantial Question of Law are involved.
d. None of above.
47. In Employers Liability Insurance one of the following not covered :-
a. Personal negligence of the Employer.

b. Negligence of Employees in the performance of their
employment duties.
c. The willful disobedience of the Workman.
d. Personnel negligence of fellow employee.
48. Under Pedal Cycle Policy Legal Liability for Bodily injury, property
damage is :-
a. Rs.5, 000/-
b. Rs. 10,000/-
c. Rs. 15,000/-
d. Rs. 20,000/-
49. In relation to Standard Mediclaim Policy which of the

following statement is correct-
a. Condition with respect to number of beds must be observed

in all the cases
b. Condition with respect to number of beds is applicable
only if the Hospital is not registered with local authority
c. Condition with respect of number of beds has been waived
by IRDA
d. None of the above is correct
50. The benefit of section 80D of Income Tax Act in 2007 Budget has
been-
a. Scrapped
b. Increased
c. Decreased
d. Kept unchanged
51. Under Mediclaim Policy, pre hospitalization expenses are available up

to
a. 60 days
b. 45 days
c. 30 days
d. 105 days
52. Which of the following expenses are not covered under Standard
Mediclaim Policy-
a. Expenses related to Psychological disorders

b. Expenses related to Cancer
c. Expenses related to MTP
d. Expenses incurred towards pace-maker in case of hear
disease
53. Which one of the following expenses is not covered under Standard
Mediclaim Policy-
a. Expenses towards HIV Test of patient before operation
which is covered under this policy
b. Registration Charges of Hospital
c. Dialysis Charges in case of renal failure
d. Angioplasty expenses
54. Which of the following criteria may not be complied with in the
definition of hospital/nursing home, if it is not registered
a. Fully equipped OT
b. At least 10/15 in-patients beds
c. Tie up with TPA
d. Fully qualified nursing staff
55. For admissibility of expenses on hospitalization, the period of

hospitalization should be
a. Minimum 24 hours in all the cases
b. Minimum 24 hours except in some cases of specific treatment
c. Minimum 3 days
d. No such condition
56. Which of the following does not fall under the definition of Family
under the Mediclaim policy for family discount
a. Spouse
b. Dependent children
c. Dependent sister
d. Dependent parents
57. In which of the following aspects, Mediclaim and JanArogya differs

a. Definition of hospital
b. Cumulative bonus
c. Tax benefit under sec 80D
58. Which of the following is a deferred mediclaim policy

a. Bhavishya Arogya
b. Jan Arogya
c. Cancer medical policy
d. Overseas mediclaim
59. Nine major ailments are covered in which of the following

a. Rasta Apatti kavach
b. Tertiary care
c. OMP
d. Bhavishya Arogya
60. Which one of the following statement is not correct in respect of

Liability Insurances-
a) Implied principle of Good faith is not applicable.

b) Claims are paid to persons other than the insured
c) The insurer provides indemnity to the insured in respect of his
potential legal liability.
d) Legal costs of the insured incurred with the consent of the insurers
are reimbursed.
61. Which one of the following statement is not correct in respect of the
liability Insurance covers –
a) It covers Civil Liability arising under Common Law
b) It covers Civil liability arising under Statutory Law
c) It covers both (a) and (b)
d) It cover neither of (a) and (b)
62. For claims made Basis Liability insurance policies

a. Policy period and period of insurance are always different
b. Policy period and period of insurance are always same
c. Policy period and period of insurance may or may not be same
d. There is no difference between the two
63. Which policy is mandatory If your client is in hazardous industry

dealing in hazardous substance,
a. Product liability
b. Professional liability
c. Public Liability (Non-Industrial)
d. Public Liability Act Policy
64. For claiming compensation under W C policy, accident should

a. Always be within factory premises
b. Always be outside factory premises
c. May be within or outside factory premises
d. Always be at workers residence only
65. Bhagyashree Child Welfare Policy is applicable to :-
a. Girl Child in the age group of 0 to 18 years.

b. Who’s Parents age does not exceed 60 years.
c. This Scheme is for one Girl Child in a family.
d. All above.
66. Under Medi Claim Policy the term “ Medical Practitioner means:-
a. A person who holds a degree/ diploma from recognized

institution.
b. Person who is registered by Medical Council of respective State
of India.
c. Both of above.
d. Neither a nor b
67. Under Liability Insurance the terms “AOA” relates to :-
a. Assessment of Assets.
b. Against one Accident.
c. Any one Accident.
d. Any other Accident.
68. Under Legal background “Trespassers” means: -
a. A man found guilty of cutting trees.

b. A man who enters in forest and passes through.
c. An individual who enters restricted area without any right or
permission.
d. All of above.
69. The time limit for an appeal against the order of National Consumer
Forum to Supreme Court is :-
a. 30 days from the Order of National Commission.

b. 60 days from the Order of National Commission,.
c. 90 days from the Order of National Commission.
d. No time limit.
70. In W.C. cases we can go for appeal only on the ground of: -
a. On quantum
b. Finding of facts
c. Substantial point of Law is involved.
d. None of above.
71. In Employers Liability Insurance one of the following not covered :-
a. Personal negligence of the Employer.

b. Negligence of Employees in the performance of their
employment duties.
c. The willful disobedience of the Workman.
d. Personnel negligence of fellow employee.
72. In relation to Standard Mediclaim Policy which of the
following statement is correct-
a. Condition with respect to number of beds must be observed in all
the cases
b. Condition with respect to number of beds is applicable only if the
Hospital is not registered with local authority
c. Condition with respect of number of beds has been waived by
IRDA
d. None of the above is correct
73. The benefit of section 80D of Income Tax Act in 2007 Budget has
been-
a. Scrapped
b. Increased
c. Decreased
d. Kept unchanged
74. Under Mediclaim Policy, pre hospitalization expenses are available up
to
a. 60 days
b. 45 days
c. 30 days
d. 105 days
75. Which of the following expenses are not covered under Standard
Mediclaim Policy-
a. Expenses related to Psychological disorders

b. Expenses related to Cancer
c. Expenses related to Medical Termination of Pregnency
d. Expenses incurred towards pace-maker in case of heart disease
76. Which one of the following expenses is not covered under Standard
Mediclaim Policy-
a. Expenses towards HIV Test of patient before operation
which is covered under this policy
b. Registration Charges of Hospital
c. Dialysis Charges in case of renal failure
d. Angioplasty expenses
77.Find the correct answer: The premium under Mediclaim policy is based
on
a) Age
b) Job
c) History of previous surgery
d) Sex
78.Under which of the following liability policies, compulsory excess does

not apply?
a) Industrial risks
b) Non-Industrial risks
c) Products
d) Compulsory Public liability policy.
77. Which of the following risks fall under Industrial Risks Liability policy?
a) Exhibitions
b) Permanent Amusement Parks
c) Film Studios
78. In the limits of indemnity under Industrial Risks Public Liability, which
combination of Any one Accident and Any one year cannot be generally
allowed under the Market Agreement?*
a) Rs.10 lakh and Rs.40 lakh
b) Rs.10 lakh and Rs.50 lakh
c) Rs.10 lakh and Rs.20 lakh
d) Rs.10 lakh and Rs.30 lakh
79. Which of the following statements is true in relation to Standard group

Mediclaim policy?
Statement A : Cumulative Bonus is not available.
Statement B : Health checkup expenses are not payable.
a) Neither of the Statements
b) Statement A only
c) Statement B only
d) Both statements
80. Under Public Liability Insurance Act 1991 the owner is not liable to pay
relief in the event of:
a) Damage of property of any person
b) Death of workman as defined in the Workmen’s Compensation Act
c) Death of any person
d) Injury of any person
81. Under Hospitalisation claim in Standard Mediclaim policy, relevant

medical expenses incurred during the period of how many days after
hospitalization are treated as part of the claim:
a) 15
b) 30
c) 45
d) 60
82. The Standard Mediclaim policy excludes any disease (other than
diseases excluded during the first year of operation) for how many days
from commencement of policy.
a) 30
b) 45
c) 15
d) 60
83. Under Standard group Mediclaim policy, which of the discounts are not
granted?
a) Long term discount
b) Group discount
c) Low claims discount
84. Which of the following policies does not fall under public liability
policies?
a) Employers liability
b) Carrier’s liability
c) Lift liability
d) Products liability
85. Under Public Liability Insurance Act, a company has to insure for an
amount not less than the amount of the insured’s.
a) Good will
b) Paid up capital
c) Turnover
d) Value of assets
86. Which of the following factor does not affect premium for Overseas
Mediclaim Policy:
a. Age
b. Country/Countries to Visit
c. Nationality of the Insured.
d. Duration of cover.
87.Daily compensation benefit is available under which of the following:
a. Individial mediclaim
b. Group mediclalim
c. Cancer insurance
d. Universal Health insurance
88.Accidental death is covered only under:

a. Group mediclalim
b. Ind. mediclaim
c. cancer insurance
d. Universal Health Insurance.
89.Pricing of Mediclaim policy is made based on

(a)The pure risk cost method
(b) Experience rating cost
a. a only
b. b only
c. Both a & b
d. none of the above
90. No fault liability concept is applicable to which of the following:

a. Public liability (industrial risk)
b. Public liability (non industrial)
c. Compulsory public liability under PLI act 1991
d. Product liability
91.Family discount of 10% in the total premium cannot be allowed to a
family comprising the insured and any or more of the following:
a. Spouse
b. Dependent Children
c. Dependent Parents.
d. Dependent Sisters/Brothers.
92.What is the maximum Cumulative Bonus, which can be earned in a
Group Mediclaim Policy?
a. 10%
b. 15%
c. 50%
93.Under which of the following situations, one month Waiting period under
Medicalim Policy claim is not required:
a. Sudden Heart Attack.
b. Child birth.
c. Accidental injuries.
d. Tooth ache.
Health & Liability Seniors
1.The Mediclaim policy was first introduced in India in

1. 1986 3. 1987
2. 1985 4.1990
2. Who is eligible for deduction available for Mediclaim under Sec 80 D of IT ACT
1. The Person who has paid the Premium for himself or his family by
Cheque
2. The First Insured person in the policy
3. Head of the Family
4. None of the Above
3. What is the maximum Income Tax Relief available under Sec 80 D of Income
Tax Act for Medi Claim Premium for other than senior citizens
1. Rs.25000/
2. Rs.20000/-
3. Rs.15000/-
4. Rs.10000/-
4. What is the minimum number of persons to be covered for the eligibility of

Family Discount under the Medi Claim Policy
1. 1
2. 2
3. 4
4. 5
5. Post Hospitalisation and Pre Hospitalisation expenses are covered for the
following number of days under the Medi claim policy
1. 45/45
2. 60/30
3. 30/30
4. 75/15
6. Which of the following statement is TRUE in respect of a claim under a new

mediclaim policy
1. The coverage starts after 15 days from inception of the policy

2. There is a waiting period of 30 days except for accidents
3. There is a waiting period of 60 days
4. None of the above
7. Which of the following is excluded in the Standard Medi Claim Policy

1. Simple Tooth Extraction
2. Cataract Operations
3. Hysterectomy
4. All the above
8. In respect of Medi Claim Policy, TPA denote

1. Third Party Availability for claims
2. Third Party Administrator
3. To Pay Afterwards
9. Which of the following is / are exclusion/s in the Overseas Medi Claim policy
1. All pre existing disease
2. Travel against Medical Advice
3. First USD 100 on every claim
4. All of the above.
10. Following is not an ADD ON COVER under OMP

1. Personal Accident
2. Loss of Check in Baggage
3. Delay of checked in Baggage
4. Loss of Spectacles
11. Premium rate under the Overseas Medi claim policy does not depend on
1. Country of Visit
2. Trip band
3. Age band of the insured
4. Family status of the proposer
12. Universal Health Insurance Policy for BPL families is issued by

1. Private and PSU Insurers
2. PSU Insurers only
3. Central Government
4. State Government
13. UHIS will not cover

1. Earning Member
2. Earning Member spouse and 3 Dependent Children
3. Earning Member Spouse, 3 Dependent Children and Parents
4. Only dependent children
14. Medical Benefit under UHIS is restricted to

1. Rs. 30000/- per family
2. Rs. 30000/- per member
3. Rs.50000/- per family
4. Rs.12500/- per member
15. Claim are settled under the Overseas Mediclaim Policy

1. By the Policy Issuing Office
2. Overseas Claim Settlement Agent
3. Insured pays to the Hospital and seek reimbursement
4. Lloyds of London
16. Under the Mediclaim Policy a Hospital in an urban area is one which has facility
at least
1. 20 Beds
2. 15 Beds
3. 10 Beds
4. 25 beds
17. Which of the following conditions is not necessary to be fulfilled to consider a
claim under Domiciliary Hospitalisation of Mediclaim policy
1. There is no availability of beds in the Hospital
2. The condition of the patient is such that he cannot be taken to Hospital
3. The disease is such that necessitates hospitalization
4. Admission into a Government hospital
18. In the first year of commencement of the Policy, the Mediclaim policy does not
cover
1. Accidents
2. Cataract
3. Heart diseases
4. Fractures
19. Limit of liability in respect of Death under an ACT only public liability policy
a. Rs.25000/-
b. Rs.50000/-
c. Rs.12500/-
d. Rs100000/-
20. Co-Insurance Option is not available under

a. Marine Insurance
b. Professional Indemnity
c. Public Liability Insurance
d. Industrial All Risk Polices
21. Environment Relief Fund is collected by

a. A Public Sector Banker
b. State Treasury
c. Wild Life Society
d. Insurance Company
22. Rate of Commission Payable under “Act only” Public Liability Policy
a. Nil
b. 5 %
c. 10 %
d. 12.5%
23. health insurance company in India
a. 100 crores
b. 50 crores
c. 35 crores
d. 200 crores
24. Meaning of ‘legally liable’ in a liability policy is

a. Breach of legal duty to take care
b. Contractual liability
c. Statutory liability
d. (a) and (c)
25. The Policy and the Schedule shall be read together as one contract and any
wording or expression to which a specific meaning has been attached in any
part of this Policy or Schedule, shall bear specific meaning wherever it may
appear.
a. This applies to Public Liability policy
b. This applies to Professional Indemnity policy
c. This applies to Workmen’s Compensation policy
d. Only (a) and (b)
26. Which of the following is an exclusion under the Workmen’s Compensation

policy?
a. Insured’s liability to employees of contractors
b. Liability in respect of employees of insured
c. Liability in respect of workmen contracting any disease whilst discharging
duties
d. (b) and (c)
27. Reinsurance of Public Liability is generally done on which basis

a. Facultative
b. Excess of loss treaty
c. Quota Share
d. Stop loss
28. Under Bhavishya Arogya Policy, premium is not based on

a. Age at entry
b. Retirement age chosen
c. Sum assured opted
d. Sex of the insured
29. Which of the following is not a health insurance product

a. Kisan Package policy
b. Cancer Insurance policy
c. Critical Illness policy
d. Bhavishya Arogya policy
30. Which of the following diseases is not covered in the first year after inception
of a health policy
a. Cataract, Piles and Hernia
b. Diabetes, Jaundice and Stroke
c. Kidney Failure, Cataract and Piles
d. Hypertension, Stroke and Piles
31. Reinsurance of a health portfolio is normally done on

a. Facultative basis
b. Excess of loss basis
c. Quota Share basis
d. Stop loss basis
32. Income tax benefit under Section 80(D) of IT Act is admissible

a. If premium is paid in cash
b. If premium is paid by cheque
c. (a) and (b)
33. The tax relief for annual premium for a health policy for senior citizens is
a. Rs. 10,000/-
b. Rs. 15,000/-
c. Rs. 20,000/-
d. Rs 25,000/-
34. A disease under mediclaim policy shall not be considered as “pre-existing” if

a. Insured is not aware of the disease
b. Insured is aware of the disease
c. Insured has contracted the disease but is not aware of the disease
d. Insured has contracted the disease and is aware of the disease
35. Which of the following is covered under mediclaim insurance policy

a. Dental treatment
b. Cost of Spectacles
c. Cost of Pacemaker
d. Cosmetic Surgery
36. Claim Series Clause in Liability insurance means

a. Single Accident may result in only one claim
b. Single Accident may result in several claims
c. Single Accident may result in a series of claims which has to be clubbed
d. (a) and (b)
37. In liability insurance premium is based on AOA and AOY ratio. Under which
ratio limit of liability may get exhausted after one accident.
a. 1 : 1
b. 1 : 2
c. 1 : 3
d. 1 : 4
38. Under which mediclaim policy , the benefit is paid in cash but not
reimbursed
a. Universal Health Insurance
b. Jan Arogya
c. Critical Illness
39. Products Liability policies are normally issued on which of the following
basis
a. Risk Attaching basis
b. Losses occurring basis
c. Turnover basis
40. Which of the following policies is issued on “Worldwide” basis

a. Mediclaim policy
b. Personal Accident policy
c. Product Liability policy
d. (b) and (c)
Engineering
1. Which one of the following is not operational cover under

Engineering Insurance
a. Boiler Insurance
b. Machinery Breakdown Insurance
c. Storage-cum Erection Insurance
d. Electronic Equipment Insurance
2. Ultra sound machine can be covered under

a. Machinery Breakdown Policy
b. Electronic Equipment Policy
c. Any of (a) & (b)
d. None of (a) & (b)
3. The effective date for product variation freedom relating to fire &
Engg. Segment for Non-Life Insurance is
a. 1st Jan 2007
b. 1st Apr 2007
c. 1st April 2008
4. A fire policy taken for one year is extended for one month by
charging
a. Short period note for one month
b. Pro rata premium for one month
c. 50% of the short period note
d. 50% of the pro rata taken for one month
5. If the insured proposes to cover his building for fire and earthquake
from division 1 of the insurance company and his machinery for fire
from division 2 of the same insurance company he will be
a. Permitted to insure as per his request
b. Will not be permitted
c. Permitted by owing him to have both the policy in
division 1
d. Permitted by owing him to have both the policy in
division 2
6. If the insured proposes to get add on are cover for STFI during the
middle of the policy
a. The same can not be covered
b. The same can be covered
c. Covered with a waiting period of 15 days
d. Covered with a waiting period of 30 days
7. If computers are covered under a fire policy and in case breakdown of

the computers due to short circuit
a. The claim is payable in full
b. The claim is payable as not standard
c. The claim is not payable
d. The claim is payable at value of the computers at 40%
depreciation p.a.
8. If a building is occupied in the ground floor as an Engineering

workshop and first floor as a dwelling by different owners
a. First floor are rated at the higher rate for the two
b. Rated at lower rate for the two
c. rated per se
d. Engg. Workshop is rated at the rate of dwindling
9. Under a contractor all risk policy issued for construction of a road

project, is to be extended for a further period
a. Can be done only for the full sum insured
b. Can be extended for the balance sum insured excluding
the completed portion
c. which is not put into service
d. Cannot be extended
10.Can be extended for value of remaining project completion + 50% of
s.i. for the completed portionWhich of the following is true under a
Reinstalment value policies
a. the replacement / Reinstalment need not be carried out
b. The replacement / Reinstalment shall be completed
within 12 months
c. The insured need not intimate his intension to do the
replacement / Reinstalment
d. All the above
11.Can fire policies be issued for more than 12 months

a. Yes can be issued to all types of premiums
b. Can be issued only for dwellings
c. Can be issued for godown covering non-hazardous goods
d. Can be issued only for godown covering hazardous
goods
12.Valued policies can be issued for

a. Properties of a VIP
b. Properties exceeding value of 5 years
c. Properties whose market value can not be ascertained
13.Which of the following is not applicable for Mid-term cover?

a. Insurers must receive specific advice from the insured
accompanied by payment of the reqd. additional prem. in
cash or draft. This additional premium can not be
adjusted against existing case deposit or debited bank
guarantee
b. Mid-term cover shall be granted for the entire property at
one complex / compound / location covering the entire
interest of the insd. under one or more policies insd. Shall
not have any option for selection
c. Cover shall commence 15 days after receipt of the
premium
d. The premium shall be charged on pro-rata basis
14.A silent risk denotes

a. Factories where no manufacturing / storage activities
are carried out continuously for 30 days or more
b. Factories in which machine do not make a noise
c. Factories where trade unions does not exist
15.Average clause becomes applicable when

a. Sum insured is lower than the value of risk at the time
of loss
b. Properties insured situated at more than one location
c. Insured is a partnership firm and they prefer to accept
claim in the proportion of
d. value of amount invested by each one of them
e. None of the above
16.Which of the policies cannot be issued for a project under

a. construction
b. Contractors’ all risk policy
c. Marine -cum-erection policy
d. Machinery breakdown policy
17.If the insured proposes to cover his building for fire and earthquake from division 1 of the insurance
company and his machinery for fire from division 2 of the same insurance company he will be
a.Permitted to insure as per his request
b.Will not be permitted

c.Permitted by owing him to have both the policy in division 1
d.Permitted by owing him to have both the policy in division 2
17.If the insured proposes to get add on are cover for STFI during the
middle of the policy
a. The same can not be covered
b. The same can be covered
c. Covered with a waiting period of 15 days
d. Covered with a waiting period of 30 days
18.If computers are covered under a fire policy and in case breakdown of
the computers due to short circuit
a. The claim is payable in full

b. The claim is payable as not standard
c. The claim is not payable
d. The claim is payable at value of the computers at 40%
depreciation p.a.
19.If a building is occupied in the ground floor as an Engineering

workshop and first floor as a dwelling by different owners
a. First floor are rated at the higher rate for the two
b. Rated at lower rate for the two
c. rated per se
d. Engg. Workshop is rated at the rate of dwindling
20.Under a contractor all risk policy issued for construction of a road

project, is to be extended for a further period
a. Can be done only for the full sum insured
b. Can be extended for the balance sum insured excluding
the completed portion
c. which is not put into service
d. Cannot be extended
21.Can be extended for value of remaining project completion + 50% of
s.i. for the completed portion
a. Which of the following is true under a Reinstalment

value policies
b. The replacement / Reinstalment need not be carried out
c. The replacement / Reinstalment shall be completed
within 12 months
d. The insured need not intimate his intension to do the
replacement / Reinstalment
e. All the above
22.Can fire policies be issued for more than 12 months

a. Yes can be issued to all types of premiums
b. Can be issued only for dwellings
c. Can be issued for godown covering non-hazardous goods
d. Can be issued only for godown covering hazardous
goods
23.Valued policies can be issued for

a. Properties of a VIP
b. Properties exceeding value of 5 years
c. Properties whose market value can not be ascertained
24.Which of the following is not applicable for Mid-term cover?

a. Insurers must receive specific advice from the insured
accompanied by payment of the reqd. additional prem. in
cash or draft. This additional premium can not be
adjusted against existing case deposit or debited bank
guarantee
b. Mid-term cover shall be granted for the entire property at
one complex / compound / location covering the entire
interest of the insd. under one or more policies insd. Shall
not have any option for selection
c. Cover shall commence 15 days after receipt of the
premium
d. The premium shall be charged on pro-rata basis
25.A silent risk denotes

a. Factories where no manufacturing / storage activities
are carried out continuously for 30 days or more
b. Factories in which machine do not make a noise
c. Factories where trade unions does not exist
26.Average clause becomes applicable when

a. Sum insured is lower than the value of risk at the time
of loss
b. Properties insured situated at more than one location
c. Insured is a partnership firm and they prefer to accept
claim in the proportion of
d. value of amount invested by each one of them
e. None of the above
27.Which of the policies cannot be issued for a project under

construction
a. Contractors’ all risk policy
b. Marine -cum-erection policy
c. Machinery breakdown policy
d. Erection all risk policy
28.Under EAR/CAR POLICY installment of premium facility is allowed
only,if the period is more than
a. Ten Months
b. Six Months
c. Nine Months.
d. Twelve Months.
29.The last premium under EAR/CAR Policy where installment facility

has been granted has to be made before
a. Three Months
b. Six Months
c. Nine Months
d. Eight Months
30.How many types of EXCESS are available in long term project
policies
a. Three
b. Four
c. Five
d. Six
31.Incase of EAR/CAR Policy premium is to be paid from the

a. First Consignment Arrived At Site
b. Date Of Proposal
c. Date Of Shipments/Despatch Of Project Material
32.Sum Insured under MI/EEI Policy should be

a. Market Value
b. Written Down Value
c. New Replcement Value
d. Present Value
33.EEI policy does not cover

a. Desktop
b. Laptop
c. Printer D
d. Cpu
34.A separate CAR policy should be issued if total value of Civil work
exceeds
a. 25% Project Value
b. 40% Project Value
c. 50% Project Value
d. No Restriction
35.Time EXCESS under MLOP Policy is

a. Three Days
b. Seven Days
c. Ten Days
d. None
36.How many classified group of machineries available under CPM

Policy?
a. Seven
b. Five
c. Ten
d. Three
37.Is it necessary to admit a loss under MI Policy before a claim under

MLOP Policy?
a. YES
b. NO
38.Mobile Construction equipments can be covered under
a. Motor Policy
b. CAR Policy
c. CPM Policy
d. Both A & C
39.Fire policy covers
a. 12 named perils
b. Unnamed peril policy
c. All risk policy
40.Basis of settlement in Fire policy can be
a. Market value basis only

b. Reinstatement value basis only
c. Market value or Reinstatement value basis
41.For a RIV Policy the insured has to give his concurrence for
settlement at market value basis
a. On day of loss
b. Within 12 months from date of loss
c. Within 180 days from date of loss
d. Not at all
42.Sum insured on Reinstatement value policy should show
a. Cost of rebuilding the subject matter on date of

loss
b. Cost of reinstatement of subject matter at time of
taking policy
c. Cost of rebuilding subject matter less depreciation
on age on date of loss
43.Indemnification for stocks in Fire policy is an
a. Invoice value
b. Market value or cost whichever is less
c. Reinstatement value
d. Book value
44.Declaration policy for Fire is given for
a. Seasonal fluctuating stocks

b. Building
c. Property in course of construction
d. Industrial locations
45.The material damage proviso under FLOP policy states that
a. Loss under LOP is admitted only after there is a

loss under the fire material damage policy
b. The loss of profit policy is independent from the
fire material damage policy
c. The loss under Fire and LOP policies cannot
exceed the S.I. under fire policy
46.The basis rate under Fire LOP policy is based on
a. The average rate of the process blocks under the

Fire policy
b. The average rate of all blocks under Fire policy
c. A separate rate for selected block as per FLOP
tariff
47.The FLOP policy covers
a. Loss of profit due to reduction in turnover during

indemnity period
b. Loss of profit during the financial year
c. Loss of turnover due to fire
48.To constitute FIRE, number of elements required

a. Three
b. B. Four
c. Five
d. Six
49.FIRE business has been detariffed from

a. 1st APRIL, 2006
b. 1st JULY, 2006
c. 1st SEPTEMBER, 2006
d. 1st JANUARY, 2007
50.Declaration Policy can be issued to

a. Stock
b. Stock In Process
c. Building
d. Machinery
51.Fire Material Damage Policy does not cover

a. Furniture & Fixtures
b. Stock
c. Standing Charges
d. Stock In Process
52.The rate for short period under FIRE POLICY for a period not
exceeding Six months
a. 50% Of Annual Rate
b. 40% Of Annual Rate
c. 30 % Of Annual Rate
d. 70% Of Annual Rate
53.Which of the peril is not covered under standard Fire Policy

a. RSMD
b. STFI
c. Earthquake
d. Impact Damage
54.The word CONDITION OF AVERAGE is associated with

a. Subrogation
b. Contribution
c. Under Insurance
d. Reinsurance
55.Under FIRE INSURANCE policies for a period exceeding 12 months

cannot be issued except
a. Dwelling
b. Godown & Warehouses
c. Shops
d. Office - Premises
56.Close Proximity claims is applicable to a risk occurring within

a. Three Days
b. Five Days
c. Seven Days
d. Ten Days
57.Selected percentage increase under ESCALATION CLAUSE shall

not exceed
a. 10%
b. 25%
c. 15%
d. 30%
58.What are the mode of DECLRATION under FIRE DECLRATION

POLICY
a. Two
b. Nine
c. One
d. Ten
59.PML means
a. Probable Maximum Loss
b. Probable Minimum Loss
c. Possible Minimum Loss
d. Probable Maximum Loss
60.F.E.A means
a. Fire Eliminating Application
b. Fire Extinguishing Appliances
c. Fire Electrical Appliance
d. Fire Equipments Allowance
61.Floater Policy can be granted

a. Single Sum Insured
b. Location Wise Sum Insured
c. Both A And B
d. None
62.Refund of premium under FIRE Declaration Policy shall be restricted

to
a. 30%
b. 50%
c. 75%
d. 60%
63.AOG peril does not include

a. TERRORISM
b. EARTHQUAKE
c. FLOOD
d. INUNDATION
64.FIRE POLICY does not cover

a. RSDMD
b. ELECTRICAL/MECHANICAL BREAKDOWN
c. TERRORISM
d. AOG PERIL
65.Excess under standard FIRE POLICY

a. Rs. 10000/-
b. Rs. 5000/-
c. Rs. 15000/-
d. Rs. 20000/-
66.Under reinstatement Value Policy, following a claim time allowed for

reinstatement is
a. Ten Months
b. Twelve Month
c. Eighteen Months
d. Twenty Four Months.
69.In the event of a claim under FIRE POLICY

a. Sum Insured Is Reduced By The Amount Of Claim
b. Sum Insured Is Reduced By Amount Intimated
c. Sum Insured Is Not Reduced At All
d. None.
70.Which one of the following could not be the basis of valuation of Fire
insurance.
a. Market value basis

b. RIV basis
c. Contract price basis
d. Original cost basis
71.Standard Fire Policy doesn’t cover
a. Fire
b. Spontaneous combustion
c. Lighting
d. Aircraft damage
72.Fire policies can be issued for a period of more 12 months in the following case
a. Shops
b. Factory
c. Dwelling
d. Godown
73.Issue of Fire declaration policy is not possible for
a. Raw material
b. Finished goods
c. Process stock
74.The maximum possible refund under a fire declaration policy is

a. 60%
b. 50%
c. 40%
d. 30%
75.Under STD.Fire & Special Perils policy debris removal upto 1% of the SI
can be covered at an additional premium of
a. 15%
b. 10%
c. 5%
d. nil
76.In a fire floater policy the minimum sum insured at one location should not be less than
a. 50%
b. 25%
c. 10%
77.RIV policies – the following is not applicable
a. Designation of property
b. Under insurance
c. Depreciation
d. Salvage value
78.In Fire LOP policy, indemnity period means
a. Specified policy period

b. Specified interruption period opted
c. Specified reinstatement period
79.Unless specified, Fire insurance policy covers works of Art up to a limit
of
a. Rs. 10,000
b. Rs. 15,000
c. Rs. 5000
d. None
80.Loss due to flood on account of Tsunami is covered only when
a. STF I cover is not deleted

b. Add on cover EQ is opted
c. RSMD is not deleted
d. a & b above
81.A fire policy on residence attracts an excess of
a. Rs. 10,000
b. Rs. 20,000
c. Rs. 5,000
d. Nil
82.A CAR policy can be issued where civil work in a project is more than
a. 60%
b. 50%
c. 40%
d. 25%
83.Which one of the following is not underwritten in Engg. Dept.
a. CAR
b. EAR
c. IAR
d. CECR
84.Which policy is not issued for a period of more than 12 months
a. CAR
b. MCE
c. SCE
d. CPM
85.Which equipment cannot be covered under EEI policy
a. Personal Computer
b. Lap top
c. Sonography
d. MRI Scanner Equipments
86.Excess is not applicable is case of
a. EAR policy
b. EEI policy
c. Boiler & pressure plant policy
d. MBD policy
87.Which of the following is not an add on cover under a project policy
a. Surrounding property
b. Third party liability
c. Off site storage and fabrication
d. Debris of uninsured property
88.Terrorism Pool is managed by
a. Head office of companies

b. Reinsurance committee
c. GIC
d. IRDA
89.In which of the following testing is an inbuilt cover
a. CAR
b. CECR
c. EAR
d. MBD
90.Maximum permissible escalation under an EAR policy is
a. 25%
b. 50%
c. 75%
d. none
91.Which of the following is not a standing charge for LOP / ALOP
a. Insurance premium
b. Advertisement & publicity
c. Rent and Tenants
d. Raw material cost
92.Under EAR Policy “Cold Testing” means
a. Plant is situated at cold place

b. Checking of parts under cold condition
c. Testing of parts under “No Load” condition
d. Testing of parts under full load conditions
93.“Hot Testing” under EAR policy means

a. Plant is situated at hot place
b. Checking of parts under hot condition
c. Testing of parts under full or partial load
d. Testing of parts under full load conditions
94.Annual Gross profit means
a. Net profits plus standing charges
b. Turnover minus variable cost
c. None of the above.
d. Both of ‘a’ and ‘b’
95.The force which causes the current to flow through circuit is known as
a. Electro-magnetic Force (EMF)
b. Watt
c. Horsepower
96.Can the following add-on covers be granted under fire policy?
a. E. Q. Cover
b. Terrorism cover
c. Deterioration of stocks in cold storage due to
temperature change
d. All of above
97.Which of the following losses are covered under a fire policy?
a. Cost of extinguishing the fire

b. Theft after fire
c. Loss of market
d. Loss of delay in executing order
98.Loss by theft is covered under fire policy after occurrence of which of the following perils?
a. Earthquake / flood
b. Fire
c. Riot strike & malicious damage
99.The insurance does not cease to attach if:
a. Trade or manufacturing activity is changed

b. Insurance interest changes by will
c. Remains un-occupied for more than 30 days
d. All of the above
100.Which of the following is correct?

a. Fire is an add-on cover
b. EQ is an add-on cover
c. STFI is an add-on cover
101.Which of the following is covered under RSMD peril?
a. Total or partial stoppage of work

b. Loss of rights of possession of buildings and machinery
c. Visible physical damage by external violent means
102.Which of the following statement is true?
a. Flood & Tsunami both are covered under STFI

b. Tsunami is covered under EQ extension when STFI cover is not
deleted
c. All natural calamities are covered under standard fire and special peril
policy
103.It is advisable to cover permanent and temporary works including liability and all material at a contract
work site under:
a. Standard Fire Policy

b. Machinery Insurance
c. BPP Policy
d. EAR Policy
104.Which of the following statement is true –

In the contractor all risk insurance, the ‘excess’ or
deductible applies separately for ---------------
a. Storage & construction claims
b. Maintenance period
c. Major perils claims
d. All the above
105.Which one of the following damages are covered under standard fire & special perils policy:
a. Water damage caused by fire brigade officials for extinguishing fire

b. Damage caused by use of chemicals and foam for extinguishing fire
c. Damage caused by blowing up the property to prevent spreading of fire
d. All of the above
106.Which of the following losses are payable after a fire within the meaning of the fire policy:
a. Smoke & heat damage

b. Collapse of roof, floors, etc.
c. Scorching and falling of walls
d. All of the above
107.Identify the incorrect statement which shall lead to forfeiture of all

benefits under a fire policy
a. The claim is fraudulent

b. The claim is supported by a false declaration
c. Loss or damage is caused by the intentional act of the insured
d. No blockwise sum insured is specified in the schedule of fire policy
108.Compulsory excess and A.O.G. excess are not applicable to fire policy issued to following properties
a. Power Plant
b. Cloth Shop
c. Textile Factor
d. Dwellings
109.Excess in fire policy is

a. Different amount of excess for fire peril & AOG Peril
b. Same amount of excess for fire perils & AOG Peril
c. The same percentage of excess for the peril & AOG Peril
110.Which of the following policy normally cover Lift Cranes, Material handling plant and equipment in
the construction and project sites
a. Contractor Plant & Machinery

b. Contractor All Risk
c. Marine cum erection Policy
d. Erection All Risk
111.Following is not an annual policy
a. MI
b. B.P.P
c. EAR
d. EEI
Article X. REINSURANCE Seniors
1. Reinsurance is the insurance of the risk assumed by the –

a. Insurer
b. Reinsurer
c. Intermediary
d. Non of the above
2. The percentage of statutory cession GIC will receive from all Indian non-life
insurers on all classes business underwriting by them is-
a. 20%
b. 16%
c. 15%
d. 12%
3. Reinsurance is always a contract of-

a. Probable maximum loss
b. Normal maximum loss
c. Indemnity
d. Estimated maximum loss
4. The transaction whereby the reinsurer cedes to another insurer or reinsurer all or
part of the reinsurance it has previously assumed
a. Retention
b. Retrocession
c. Reinstatement
d. Coinsurance
5. Every insurer shall file with the IRDA a photocopy of every insurance treaty slips
and cover notes of excess of loss cover in respect of that year, within
a. 30 days of the commencement of financial year
b. 60 days of the commencement of financial year
c. 90 days of the commencement of financial year
d. 15 days of the commencement of financial year
6. The obligatory cession received by the Indian Reinsurer shall be retro______ to

the ceding insurers, at lease
a. 20%
b. 10%
c. 25%
d. 50%
7. Because of the different laws and insurance practices prevailing the following
countries are usually excluded, where treaties are as a `world wide’ basis-
a. England and Ireland
b. German and France
c. United States of America and Canada

d. Malaysia and Mauritius
8. The Reinsurer is not liable to pay

a. His share of the sum insured paid by the ceding insurer to his insured claimant
b. His share of legal fee
c. His share of assessors fee
d. His share of office expenses of the ceding insurer

9. The premium for an excess of loss treaty is usually expressed as a percentage of
a. The normal claim expected to occur.
b. The gross premium income written by the company

for the class of business
c. The retention of the ceding company
d. The gross premium income written by the company for all classes of business
during the year of the treaty
10. The general exclusions under aviation reinsurance are

a. Tonners
b. Inward treaties
c. Binders
d. All of the above

11. One of the following category of insurance is exposed to high level of
accumulation potential that the market of resorts to pooling
a. Public liability
b. Third party property damage
c. Fire excess of loss cover
d. Mail damage to crops

12. I on the better risk a smaller PML retention will be kept
II on the inferior risk a high PML retention will be kept
a. Only statement I correct
b. Only statement II is correct
c. Both the statements are wrong
d. Both the statements are correct

13. Personal accident business carries catastrophe exposure in respect of
a. Group PA policies
b. Passengers in a vehicle
c. Passengers in a aircraft
d. All the above

14. For small accounts, where the extra administrative burden of a surplus
would be too great the treaty used mainly is
a. Surplus Treaty
b. Quota Share Treaty

c. Excess of Loss Treaty
d. Stop Loss Cover Treaty
15. This is a treaty where the amount reinsured is expressed as being between
a minimum and maximum quota share
a. Surplus treaty
b. Stop loss treaty
c. Variable quota share treaty

d. Stop loss care treaty
16. The reinsurance arrangement which is useful is widely dispersed risks,
such as in agriculture exposed to pest damage, is
a. Quota Share Treaty
b. Surplus Treaty
c. Stop Loss Reinsurance

d. All the above
17. The clause in the reinsurance agreement permits each party to net amounts
due against those payable before making payment is –
a. Accounting clause
b. Currency clause
c. Set-off clause
d. Arbitration clause
18. The entire amount of an insurance loss including deductible but not of
salvage and recoveries is known as
a. Ultimate net loss
b. Incurred loss
c. Paid loss
d. Ground up loss
19. No RI commission is payable to the ceding company under this type of business-
a. Fire and Accident Proportional Reinsurance
b. Marine Proportional Reinsurance
c. Excess of Loss Reinsurance

d. All the above
20. This method for reinsurance commission is very easy to account, as the
commission payable is determined by applying the agreed percentage of commission
to the premium ceded loss returns and cancellation
a. Sliding scale of commission
b. Overriding commission
c. Flat rate of commission

d. All of the above
21. The Portfolio transfer percentage of 35% to 40% is arrived at by-

a. 60% method
b. 70% method
c. 75% method
d. 50% method
22. Any joint underwriting operation of insurance or reinsurance in which

participants assume a predetermined and fixed interest in all business written is
a. Retrocession
b. Agency reinsurance
c. Pool
d. Portfolio transfer
23. The ratio of actual past losses to their corresponding premium (written or
earned) for the same period is
a. Commutation
b. Ground-up-loss
c. Burning cost
d. Insolvency
24. The clause which provides that in the event of the reinsured’s insolvency
any part of a loss covered by reinsurance be paid directly to the original insured by
the reinsurer-
a. Commutation clause
b. Intermediary clause
c. Reinsuring clause
d. Cut through clause

25 “CESSION” is the terminology in reinsurance where
a. Amount of insurance an insurer transfers to reinsurer
b. Amount of insurance an insurer kept as retention
c. The limit of amount of insurance an insurer can write
d. Amount of insurance the reinsurer cedes to another insurer/reinsurer
Article XI.
26. Reinsurance does not perform this function
a Risk Transfer
b Surplus Relief
c Loss Prevention
d Spread of Risk
27. Retrocession is a contract between

a an insurer and a reinsurer
b a primary insured and a reinsurer
c an insurance company with another insurer
d a reinsurer with another reinsurer
28. The minimum capital required to set up a reinsurance company in India as per
regulation is
a Rs 200 crores
b Rs 100 crores
c Rs 400 crores
d Rs 500 crores
29. Retention by the insurer means

a The amount of risk ceded to the reinsurer
b The amount of risk written to the net account of the insurer
c The amount of risk coinsured by the insurer
d None of the above
30. As per IRDA regulations which of the following should not be an objective of the
reinsurance programme of an insurance company
a Develop adequate capacity
b Maximise retention within the country
c Secure best protection for the cost incurred
d Promote FDI in the country
31. The reinsurance programme of an insurer has to be submitted to IRDA how many
days prior to the commencement of the financial year?
a 30 days
b 45 days
c 60 days
d 90 days
32. The minimum rating from Standard and Poors’ required by a reinsurer to to
selected for placement of reinsurance business by an Indian reinsurer is
a A Excellent
b A–
c BBB
d None of the above
33. The “Indian Reinsurer” referred to IRDA regulation is

a IRDA
b GIC
c LIC
d RBI
34. In an Stop Loss agreement the cover is granted generally in excess of

a A percentage of premium income
b A percentage of exposure
c A percentage of claims paid
d A percentage of capital
35. Which ofthe following is not a proportional reinsurance contract

a Quota Share
b Surplus
c Excess of Loss
d None of the above
36. Select the incorrect statement

a. In Quota Share reinsurance risk is shared at predetermined level,
proportionately between the insurer and the reinsurer
b. In Excess of Loss contract the risk is shared proportionately by
reinsurers who participate on the same layer
c. As in Quota Share, in Excess of loss arrangements also each and
every loss is shared proportionately between the insurer and
reinsurer
d. Normally Excess of Loss contracts protect the net accounts of the
insurer.
a. II
b. I and III
c. III
d. II and III
37 Which of the following is not one of the features of facultative reinsurance?

a. Covers a portfolio of risks
b. Covers singleton risk with huge Sum Insured
c. Covers the net account of a company from adverse results of a single risk
d. Derives global expertise in underwriting large risks
37. Which of the following is not an advantage of facultative method of reinsurance

over treaty method of reinsurance?
a Spread of risk
b Rating on the basis of merit of risk
c Cost effectiveness
d Covers unusual large risks
BULLET QUESTIONS
1.A new insurance company has entered the market writing business on various
general insurance lines. How can an effective reinsurance programme be designed
for this company.
2.How are single risks with huge sum insured for eg. Major airlines reinsured?
(a) 3.Discuss the Advantages and disadvantages of PML
Advantages:
 Retained premium will be higher than on sum insured
 Larger shares of risks can be handled
 Easy of placing large risk
 Achieving a balanced portfolio
Disadvantages:
 Subjective estimates and a loss larger than PML can prove disastrous
 Estimates only by experts and may be costly
 No standard definition and /or formula
 Continuous review not possible
(b) 4. Summarise the functions of reinsurance

 Increased capacity
 Financial stability
 Stabilization of claims ratio
 Net underwriting results are protected
 Spread of risks
 Protection of solvency margine
 Stabilize profitability
 Effective means of communication between insurer and reinsurer
 Encourages an insurer to underwrite new and untested risk exposure
 Increase in market capacity
 Reinsurance provides to the insurer the benefit of their expertise on technical,
rating, underwriting and many aspects of relating to product writing of the direct
business.
Investment / Accounts
1) Short term investment is an investment which is

a) Held for less than 12months
b) Held for a period equal to 12 months
c) Held for more than 12months
d) Non of the above
2) Debt securities are valued at

a)Market value
b)Historical cost
c) Historical cost less amortization
3) Audit faced by an insurance company is

a) CAG
b) Statutary audit
c)Internal audit
d) All of the above
4) Without prejudice to sec27 or sec27b of the Insurance Act every insurer carrying
on general insurance business shall invest in infrastructure and social sector
a) 2 % of total investible funds
b)5% of total investible funds
c) Not less than 10% of total investible funds
d) 7.5% of total investible funds
5)The assets/instruments under consideration for investment without referring to

investment committee should be of a grade
a) Not less than B+
b) Not less than BBB-
c) Not less than AA
d) Not less than A
6) Investment in other than approved category shall at no time exceed

a) 25 % of total investible funds
b) 50% of total investible funds
c) 15% of total investible funds
d) 10% of total investible funds
7) Investment committee shall constitute
a) Minimum of 2 non executive Directors and the principal officer
b)Chief of finance and investment divisions
c) The appointed actuary

d) All the above
8) which of the following is not an approved investment

a) investment in secured Bonds
b) investment in Central Government Security
c) Collateralized borrowing and lending obligations (CBLO)
e) Investment in Mutual funds
9) Unrealised gains & losses arising out of change in values of listed equity shares and
derivatives instruments shall be taken to
a)Profit on sale of investments
b) Fair value change account
c)General reserve
d) All of the above
10) Exposures / prudential norms limits the investment made by the insurance company
on the following exposure norms
a) Limit for investee company
b) Limit for the industry sector to which investor company belongs
c) Limit for the entire group to which investor company belongs
11) An insurer shall prepare the following financial statements at the end of the financial
year
a) Revenue account
b) Profit & loss account
c) Balance Sheet
d) All of the above
12) Which of the following is a contingent liability
a) Partly paid up investments

b) Guarantees given by or on behalf of the company
c) Statutory demands/ liability in dispute not provided for
d) All the above
13) For fire insurance Revenue Account gross direct premium is Rs 500 cr,Premium
on RI accepted is Rs 200 cr,Premium on RI ceded Rs 100 cr, Adjustment for
change in RUR is Rs 100 cr. The net premium works out to
a) Rs 400 cr
b) Rs 600 Cr
c) Rs500 cr
d) Rs 700 cr
14) investment in insurance sector is guided by

a) Insurance act
b) IRDA regulations
c) Board laid down norms
d) All the above
15) Claims does not include

a) Only claims specific settlement cost
b) Expenses of management
c) Adjustment for estimated salvage value
d) Surveyors fee, legal and other expenses relating to claims
16) Formula for calculating solvency ratio is
a) Total R S M / Total A S M
b) Total A S M / Total R S M
c) (Total A S M / Total R S M) * Net INCURRED CLAIMS
d) (Total R S M / Total A S M) * Net INCURRED CLAIMS
17) Unexpired Risk Reserve provided under Misc. revenue account is
a) 50% of gross premium

b) 50% of net premium
c) 50% of gross premium + R I accepted
d) 50% of R I accepted –RI ceded
18) Share holders` funds consists of
a) Share capital
b) General reserve
c) Balance of profit in profit and loss account
d) All of the above
19) Set off clause in re insurance agreement allows you to set off balances
a) Under any treaty or treaties between re insured and re insurer
b) Between two brokers
c) Between The RE insurer and the broker
d) Between two direct insurers
20) Proportional treaties are generally written on
a)Clean cut method

b) Underwriting year wise method
c) Both of the above
d) Non of the above
21) Service tax has been introduced in reinsurance business from
a)1st May 2006

b)1st Apr 2006
c) 1st May 2007
d) 1st Jun 2005
22) Investment in government securities are considered to be

a)Available for sale and hence valued at market price
b) Held to maturity and valued at cost
c) Held for trading and valued at market price or cost which ever is lower
e) None of the above
23) Depreciation in respect of fixed assets which has been held for less than 6 months are
provided at
a) 100% of the applicable rates
b) 50% of the applicable rates
c) Pro rata
e) Nil
24) I B N R is a part of outstanding loss provisioning .This figure is

a) Worked out as a % of gross incurred claims
b) Worked out as a % of net incurred claims
c) Estimated by actuary based on loss information and past trend
available
d)None of the above
25)I nvestment policy is drawn up annually and placed by the company for approval
before
a) ministery of finance
b) I R D A
c) Its Board of Directors
d) SEBI
26.The final accounts of the Public Sector Insurance Company is adopted by the Board of
the Company after it is
1. Approved by the CAG auditors
2. Approved by the Audit Committee
3. Approved by the Internal Auditors
4. All of the above
27.Premium Deficiency is provided for on the basis of

1. Unearned Premium and claims outstanding
2. Premium on un expired risk and outstanding claims
3. As percentage of Outstanding Claims
28.As directed by the IRDA, the Cash Flow Statement of the Insurance Companies
are to be prepared by
1. Indirect method
2. Direct method
3. As a combination of both
29.Which of the following statement is TRUE

1. Share holders fund represent the Share Capital only
2. Share holders fund comprises of Share Capital and General Reserves
3. Share holders fund comprises of Provision for Outstanding Claims
4. None of the above.
30. Policy holders fund mainly constitute

1. Provision for Outstanding Claims and Reserve for Un expired Risk
2. Provision for Outstanding Claims and Share Capital
3. Provision for Outstanding Claims and Investment income
31. Solvency Margin is calculated on the basis of

1. Available Solvency Margin and Required Solvency Margin
2. As a percentage of net worth
3. As a percentage of Investments
32.Available Solvency Margin is calculated after
1. Reworking of the Assets and Liabilities
2. As a percentage of Assets
3. As a percentage of Share Capital
33.Which of the following statements is TRUE
1. The General Insurance cos., shall show their investments within

India and abroad separately
2. The General Insurance cos., need not show their investments within
India and abroad separately
3. The General Insurance cos., shall show their investments within India
and abroad combined.

1. Segmental Reporting is compulsory as per IRDA Regulations
2. Segmental Reporting is optional as per IRDA Regulations
3. Gen Insurance Company follow this as a healthy practice
35.Which of the following statement is False in respect of a PSU Gen Ins Co.
1. The Accounts of the Company has to be placed before the CAG for
their comments.
2. The Accounts are not scrutinized by the Comptroller and Auditor
General
3. The Accounts of the Company after approval by the Board are placed
before the Parliament for discussion
4. The Accounts are to be approved by the Statutory Auditors.
1. A Claim relating to Motor Third Party cannot be paid by servicing

Office
2. A Claim relating to Motor Third Party can be paid by Servicing
Office and adjusted through inter office accounts
3. A Claim relating to Marine Cargo can be paid by Servicing Office and
adjusted through inter office accounts
37.Which of the Following statement is False

1. Advocate Fee can be debited to the Respective claim account
2. Survey Fee should be Treated only as professional fee and not as
a claim
3. Survey fee for a Motor Claim shall be treated as part of Claim Paid
38.As per the existing tax provisions which of the following statement is true
1. An Insurance company need not collect Service Tax on Insurance
Premium
2. Service tax collected may be paid to the authorities after
adjusting the Service Tax paid by the co on input services
availed
3. Service Tax need not be paid by the Insurance Co on the Input
services it utilizes.
4. All the statements are true
39.State which of the following Statement is TRUE

1. General Insurance Companies are exempted from payment of Fringe
Benefit Tax.
2. General Insurance co. are not exempted from payment of
Fringe Benefit Tax
3. General Insurance co. are exempted from payment of Income Tax
40.General Insurance Companies shall keep their investible funds in Government

Securities, Housing and Infrastructure Sectors , fire fighting and social sectors at
1. 25 %
2. 30 %
3. 40 %
4. 45 %
41.Which of the following statement is TRUE and more appropriate

1. The expenses of Management are distributed in the Revenue
account according to the Premium
2. The Expenses of Management are distributed in the Revenue
account in proportion of premium with weightage of 75% for
Marine
account in proportion of premium with weightage of 50% for
Marine
Accounts in proportion of the claims paid.
42.Spot the only TRUE statement from the following

1. Investment income is divided between that earned from
Policy holder fund and that from Share Holder Fund
2. Investment income is shown as a total in Profit and Loss Account
3. Investment income is shown as a total in Profit and Loss
Appropriation Account
43.Investments in Equity Shares are valued at

1. Market price on the last working day of the financial year
2. Cost of purchase
3. Lower of the above two
4. Higher of 1 and 2.
[TO BE CHECKED]
44.Spot the Correct Statement

1. Equity Shares are revalued and the adjustments are made in
Fair Value Change account
2. Equity Shares are not revalued every year
3. Equity Shares are taken on the face value
45. The Section 64VB of Insurance Act means

a. Premium can be paid in instalments
b. No risk to be assumed before receipt of premium
c. Premium can be received after loss
d. Premium can be received before loss
e.
46.A male employee whose sister is dependent on him whishes to take her along with
him and claims LTS.
1. The Claim is payable
2. The Claim is not payable
3. The claim is payable if overall limit is not exceeded
4. The claim is only if dependency is proved.

1. Leave Encashment at the time of retirement is not taxable
2. Leave encashment at the time of retirement is taxable subject to
Income Tax rules
3. Leave encashment at the time of retirement is fully taxed
48.An employee wishes to avail 10 days of Leave Encashment after availing 15 days of
earned leave then,
1. It will be permitted
2. He will be advised to take 10 days of EL and avail 10 days of Encashment
3. He will not be permitted
4. He will be permitted only 15 days of EL and 15 days of Encashment
49. A retired Employee, who was under the Staff Mediclaim, discontinued from the same
and got covered with the same Company under the General Mediclaim Policy available
for Public. Now after two years he wishes to get enrolled into the Staff Scheme itself,
quoting that there was no break and hence he should be considered.
1. You will permit him to join the Staff Mediclaim Scheme
2. You will not permit him to join the Staff Mediclaim Scheme
3. You will permit him with Doctor’s Certificate
4. You will permit him with exclusion of pre existing diseases
50.A Retired Officer wishes to cover his dependent children, along with him in the Staff
Mediclaim Scheme, immediately after his retirement, in this case
1. It is permitted
2. It is not permitted, since retired employee and spouse are only covered
3. It is to be referred to higher office for approval
4. It is to be permitted only after medical examination.
51. The loss ratio for the purpose of calculating Sliding scale commission under re
insurance is
a) Gross premium / incurred claims
b) Net premium / incurred claims
c) Incurred claims / earned premium
d) Incurred claims / net premium
52.An employee avails RH on a Friday and Casual Leave on the following Monday.
1. You will debit one day RH and One day CL to his account
2. You will debit one day RH and Three Day CL to his account
3. You will debit Four Day CL to his account
4. You will debit one day RH and Three days LOP.
53.An employee who has 4 days of CL to his Credit and 5 days Earned leave to his credit,
absents himself for 8 days. You will
1. Debit his CL account with 4 days and EL account with 4 days
2. You will debit his EL account with 5 days and CL account with 3 days
3. You will debit his EL account with 5 days and LOP for 3 days
54. BRS stands for
a Bank Reconciliation Statement
b Bank Revenue System
c Balance Revenue Statement
d Balance Reserve Surplus
55. The minimum investment for housing and fire fighting sectors as per
Insurance Act is
a 5%
b 17.5%
c 12.5%
d 7.5%
56. The General Insurers requires to invest in Central and State Govt.
Securities to a maximum of:
a 20%
b 15%
c 30%
d 10%
57. AS per IRDA Regulation, minimum percentage of Rural and Social Sector
Premium to the GDP should be :
a 10%
b 6%
c 5%
d 3.5%
58. Required Minimum Solvency Ratio for General Insurer’s operating in India
is :
a 1
b 1.5
c 2
d 2.5
59. Minimum paid up capital for General Insurers operating in India should be
a 10 crore
b 200 crores
c 100 crore
d 250 crore
60. Solvency Ratio means :

a Ratio of Asset and Liability
b Ratio of Premium and claims
c Ratio of Management Exp. And claims
d Ratio of Available Solvency Margin to Required Solvency Margin
61. The entire shareholding of the four PSU General Insurance companies is
held by :
a Public
b Central Government
c 50% public and 50% Govt.
d None of the above.
62. In determining the reserves for unexpired risk, in Fire Business as per
regulations is :
a 100%
b 40%
c 60%
d 50%
63. Reserve for unexpired Risks for Marine Hull Business is :

a 100%
b 40%
c 60%
d 50%
64. As per Rule No.58 & 59 of Insurance Rules, 1939, which of the following
statement is correct?
a The premium can be collected in four equal quarterly instalments in
respect of Marine Hull and Aviation Hull business
b Premium cannot be collected in four equal quarterly instalments in
respect of Marine Hull and Aviation Hull business
c Premium can be collected in four equal quarterly instalments in
respect of Marine Hull but not for Aviation Hull business.
d Premium can be collected in four equal quarterly instalments in
respect of Aviation Hull but not for Marine Hull business.
65. I.15% obligatory session is incorporated in the Insurance

Act.
II. Unexpired Risk Reserve and Outstanding Claims
Reserve are the sources of the Policyholders Fund.
a.Both statements I& II are True
b.Both statements I & II are False
c.Only Statement I is True
d.Only Statement II is True
66. Every General Insurer shall invest its total assets in Central Govt. Securities
upto a minimum of :
a 30%
b 10%
c 5%
d 20%
67. No investment by the Reinsurer shall be made in an asset / instrument which

a Its actual value
b Market Practice
c Both (a) & (b)
d Is capable of being rated as per market practice but not has been rated as
such.
68. Every Insurer is required to submit to Regulatory Authority the Statement
of Investment and Income on Investment :
a Quarterly
b Half Yearly
c Monthly
d Yearly
69. Every insurer is required to submit to Regulatory Authority the Statement of

Mutual Fund Investments :
a Quarterly
b Monthly
c Annually
d Half Yearly
70. Every Insurer is required to submit to Regulatory Authority a confirmation
of Investment Portfolio details :
a Quarterly
b Monthly
c Annual
d Half Yearly
71. List of approved investments for General Insurance Business is :

a All Secured Loans
b All secured Debentures
c All Secured Bonds
d All the above
72. One of the following is not an approved investment for General Insurance
Business:
a Treasury Bills issued by RBI
b Preferential shares recognized by RBI
c Bills Rediscounting
d Long Term loans with Private Limited Companies
73. Every General Insurer owes the duty to report extra-ordinary events
affecting the investment portfolio which has material adverse impact to :
a Controller of Insurance
b Ministry of Finance
c Insurance Regulatory & Development Authority
d Board of Directors of the Company
74. To protect the policy holder’s interest and review the pattern of investment ,
the authority is
a Chairman-Cum-Managing Director
b Ministry of Finance
c Policyholders
d Company’s Board
75. Accretion of Funds means :

a Investment Income
b Gains on sale of the existing investments
c Operating Surplus
d All the above
76. The Insurance Regulatory and Development Authority (investment)

regulations was brought in the year :
a 1999
b 2000
c 2001
d 2002
77. Every General Insurer shall prepare a statement of the value of assets in
Form
a First Mortgages on immovable property situated in other countries
b Immovable property situated in other countries
c In (a) and (b) above.
d None of the above.
78. Every General Insurer shall prepare a statement of the value of assets in
Form :
a BB
b HG
c KG
d AA
80. What is the minimum solvency margin required for a general insurance
company to operate in India as per regulation?
a. 1
b. 1.5
c. 2.25
d. 3.25
81. Which of the following is not required for calculation of solvency margin?
a. Networth
b. Investment return
c. Capital appreciation
d. Market Share
82. What does not appear in the bank reconciliation statement?

a. Balance as per passbook
b. Cheques dishonoured
c. Bank charges
d. Cash in hand
83. Incurred Claims ratio is

a. (Claims Paid during the year + Claims outstanding at the beginning of the
year – Claims outstanding at the end of the year / Premium ) x 100
b. (Claims Paid during the year - Claims outstanding at the beginning of
the year + Claims outstanding at the end of the year / Premium ) x 100
c. (Claims Paid during the year - Claims outstanding at the beginning of the
year – Claims outstanding at the end of the year / Premium ) x 100
d. (Claims Paid during the year + Claims outstanding at the beginning of the
year + Claims outstanding at the end of the year / Premium ) x 100
84. Management Expenses Ratio is

a. (Management Expenses / Premium) x 100
b. (Debt / Equity) x 100
c. (Management Expenses / Premium)
d. (Management Expenses x Premium) / 100
85. Management expenses as per Insurance Act should be around the following
percentage of premium
a. 15
b. 20
c. 22
d. 25
86. As per Insurance Act separate Revenue Account is not required for the
following
a. Fire
b. Marine
c. Miscellaneous
d. Motor
87. As per Insurance Act, minimum percentage of investible funds to be invested

in Central and State Government securities by a general insurance company is
a. 30
b. 35
c. 45
d. 55
88. Reserve for Unexpired Risk at 100% is provided for the following
a. Fire
b. Engineering
c. Marine Hull
d. Motor
89. Which of the following items does not appear on the Assets side of the
balance sheet
a. Cash at bank and in hand
b. Sundry Debtors
c. General Reserves
d. Plant and Machinery
90. As per Insurance Act, minimum amount to be invested in Social and

Infrastucture sector by a general insurance company is
a. 5%
b. 10%
c. 15%
d. 20%
91. Which of the following items does not appear on the Liabilities side of the
balance sheet
a. Reserve for Unexpired Risk
b. Sundry Debtors
c. Sundry Creditors
d. Provision for Outstanding Claims
92. As per IRDA regulations, every new general insurer is to carry on how much
% of insurance business in rural sector in the first financial year
a. 1%
b. 2%
c. 3%
d. 5%
93. I.B.N.R stands for

a. Insurance Business Not Renewed
b. Incurred But Not Reported
c. Incurred But Not Received
d. Insured But Not Reinsured
94. The minimum initial capital requirement for a general insurance company as
per IRDA Act is
a. Rs. 50 crores
b. Rs. 100 crores
c. Rs. 200 crores
d. Not specified
95. What is the permissible level for FDI in India for insurance business as per
regulations?
a. 20%
b. 26%
c. 49%
d. 50%
96. Which of the following is not an approved investment for a general insurer as
per current regulations
a. Treasury Bill issued by RBI
b. Bills rediscounted
c. All Secured Loans issued by financial institutions recognized by RBI
d. National Savings Certificates
97. Which of the following does not appear in the Revenue Account?
a. Insurance Commission Paid
b. Earned Premium
c. Survey fees paid
d. Fixed Assets
98. Which one of the following will always have a debit balance ?
a. Bank balance
b. Cash balance
c. Sundry creditors
d. Reserve
BULLET QUESTIONS
1.What is the process involved in settlement of an LTS Bill

 Availability of Block year
 Eligibility of the persons availing
 Cadre and eligible mode of travel
 Places to be traveled and mode
 Maximum eligibility in monetary terms
 Amount of advance that has to be paid
 Advance to be paid before two months only for Rail Travel
 Tickets booked should be produced for verification in the office
 If travel not undertaken, advance to be called back
 All supporting documents to be produced within 15 days of
completion of Travel
 Amount payable is restricted to maximum for 2000 kms up and
down in the Eligible Class of Railways
 Permitted to go longer distance by lower class or shorter distance
by lower Class
 In case of travel in Taxi, details of Permit, Trip Sheet, Details of
persons Traveled, Bill for charges are to be given
 Senior citizen, eligible parents are paid at 70% irrespective of the
mode of Travel
 Those promoted from class III to Class I are not eligible for the
carried Forward block.
2.Discuss the advantages of Bank Reconciliation Statement in Divisional Office

Accounts.
3. Discuss the importance of a sound investment policy in the smooth running

of a general insurance company.
ACCOUNTS AND INVESTMENT
1. The statutory requirement of solvency ratio for Non-life Ins.

Companies is-
a. 1.75
b. 1.25
c. 1.50
d. 1.40
2. Solvency Ratio means
a. ratio of the amount of required solvency margin to the amount of

available solvency margin
b. ratio between the amount of Available Solvency margin to the
amount of required solvency margin
c. Excess of assests over liabilities multiplied by hundred
d. Excess of liabilities over assets multiplied by hundered
3. Which one of following forms part of Policy holders’ fund –
a. Share Capital
b. Reserve and Surplus
c. Provision for outstanding claims
d. Investment Reserve
4. Which statement is correct in relation to Investment guidelines of

IRDA for General Insurance Companies-
a. Investment in Central Government securities can not be less than
20% of total assets.
b. Investment in Central Government securities can not be less than
20% of total Premium for the year.
c. Investment in Central Government securities can not be less
than 20% of total Investments
d. Investment in Central Government securities can not be less than
20% of total Share Capital
5. As per IRDA Regulations on Investment which of the following area

for investment has not been prescribed –
a. Central Government Securities

b. Statement Government Securities
c. Investment in Infrastructure and Social Sector
d. Investment in Pension Funds
6. Which one of the following is correct way of calculating ‘Incurred

Claims’
a. Out standing claims at the beginning of the year plus Claims paid
during the year minus claims outstanding at the end of the year
b. Out standing claims at the end of the year plus Claims paid
during the year minus claims outstanding at the beginning of the
year
c. Out standing claims at the end of the year plus outstanding claims
at the beginning of the year minus claims paid during the year
7. An insurance premium paid in the year 2006-07 for covering

Company’s assets for the period commencing from 1st April 2007 will
be reflected in which of the following schedules attached to the
Balance Sheet-
a. Outstanding Expenses
b. IBNR Statement
c. Prepaid Expenses
d. Premium received in advance Schedule
8. Company purchased a Water Cooler for Rs. 4,550/-. What will be rate
of depreciation for this Water Cooler –
a. 16%
b. 25.89%
c. 15%
d. 100%
9 Which of the following is not prepared at BO/DO level

a. Trial Balance
b. Bank Reconciliation statement
c. Fund flow statement
d. Revenue accounts
10 Section 40(C) of the Insurance Act deals with

a. Expenses of management
b. Solvency margin
c. Incurred claims
d. General Reserve
11 Following is not deducted from current assets to arrive at Quick

assets
a. Income accrued on investment
b. Deposits with ceding companies
c. Short term deposits with banks
d. Prepayments
12 Which of the following is not the utilization of funds but is a source of

fund as per fund flow statement
a. Addition to Gross Block
b. Addition to Reserves and Surplus
c. Addition to Investment
d. Increase/Decrease in working capital
13 Operating expenses relating to insurance business are

a. Shown in the Balance Sheet
b. Shown in the Profit & Loss account
c. Apportioned to the Revenue Accounts
14 Reserve for unexpired risk is made at
a. 50% of net premium for marine and 100% of net premium for
other classes of business
b. As per share of each department in total business
c. 100% of net premium for marine and 50% of net premium for
other classes of business
15 Investment income is apportioned between shareholders fund and

policyholder fund
a. Equally
b. In proportion to the closing balance of these funds at the end of the
year
c. Not apportioned at all
d. In proportion to the opening balance of these funds at the
beginning of the year
16.Which of the following statement is correct:

a) Trial Balance is an account.
b) Trial Balance is sum total of Credit Balances.
c) Trail Balance is drawn on Debit Balances only.
d) Trail Balance is a statement showing all Debit Balances and Credit
Balances.
17. Calculate the incurred claim from the following figures of fire claims for
the financial 2006 - 07 of an insurer:
Claims Paid Direct Rs 50,00,000

Claims Outstanding at the end Rs 6000000
Claims o/s t the beginning Rs 4000000
Claims on Reinsurance ceded Rs 1000000
a) Rs 5000000
b) b) Rs7500000
c) Rs 6000000
18. Net premium of Insurance Company is arrived at

a) After adjusting the Reinsurance Premium with the GDPI
b) After adjusting the commission Paid with the GDPI
c) After adjusting Claims Paid with the GDPI
d) None of the above.
19.What is the Paid up Capital required for carrying on General Insurance
business as per IRDA Guidelines:
a)Rs 125 corores
e) Rs 200 crores
c) Rs 100 crores
d) Rs 75 crores
20.The Management expenses are debited to
f) Profit & Loss A/c
g) b) Profit & Loss Appropriation A/c
h) All the three Revenue A/cs proportionately
i) d) None of the above
21.Cash flow Statement is prepared by
j) Direct Method
k) Indirect Method
l) Specified method as prescribed by IRDA
m) d) None of the above
22.One of the following statements does not appear in the Annual Report of
Insurance Company:
a) Profit & Loss Account.
b) Revenue Account of Fire,Marine & Misc.
c) Bank Reconciliation Statement.
d) Balance Sheet.
23.The Companay, on which of the following systems is appointing internal
Auditors:
a) Outsourcing of manpower.
b) Nominated employees of the same company.
c) Professional CA s.
d) From GIC.
24.Find out the statement, which does not appear in the Financial Statement
of Company’s Annual Report:
a) Confirmation of validity of Registration certificate granted by IRDA.
b) Confirmation of having maintained Solvency Margin.
c) Age wise analysis of the claims of the previous years.
d) Region wise premium statement.
25.Which of the Ratio is correct:
a) Operating Ratio: underwriting profit + Investment Income divided by
net premium.
b) Re-insurance ratio: Risk reinsured divided by Gross Premium.
1)(a) Only
2) (b) Only
(3) (a) & (b)
4)None of the above.
26.Claims incurred but not reported including inadequate reserves means:

a) IBNR
b) IBNER
1)(A) Only
2.(B) Only
3.(A) & (B)
4.None of the above.
27.What is the Maximum permissible amount Insurance Co. can invest

outside Govt. related securities:
a) 55%
b) 50%
c) 60%
d) 45%
28. Petty cash is maintained in
a. Computer System
b. Imprest System
c. Rotation System
d. Banking System
29.A cheque issued but not presented for more than six months is
reflected in
a.Collection account
b.Dishonoured cheque account
c.Stale cheque account
d.NOC account
30.Incurred claim means

a. O/S of current year + claim paid – claim O/S of previous year
b. O/S of current year + claim paid + claim O/S of previous year
c. O/S of current year – claim paid – claim O/S of previous year
d. O/S of current year – claim paid + claim O/S of previous year
31.Claim occurring during the accounting year but lodged after 31st
March is the claim
a) Insured but not reported

b) Insured but not renewed
c) Incurred but not renewed
d) Incurred but not reported
32.The Statutory Auditors generally do not physically verify

e) Furniture
f) Cash
g) Cheque
h) Stamp
33.In premium collection account with the bank, the balance available
(leaving the minimum amount) is transferred on
a) Monthly basis
b) Fortnightly basis
c) Daily basis
d) Weekly basis
34.Statutory Auditors for the Public Sector insurance companies are

appointed by
a) RBI
b) C & AG
c) IRDA
d) Central Government
35.Section 40C of the Insurance Act 1938 imposes a limit on

a) Premium Retention
b) Ceiling on Premium Cession
c) Limit on agency commission
d) Expenses of Management
36.The Branch Manager is given the financial authority by

a) D.O.
b) R.O.
c) H.O.
d) Ex officio
37.Insurers can invest funds under their control in

a) Approved securities
b) Debentures issued by a Municipal Corporation of any State
Government
c) Preference share of a company which is regularly paying
dividend to its ordinary share holders
d) In all the above
38.Solvency Margin of a company is an indication of

a.Recognition
b.Financial Soundness
c.Accreditation
d.Revenue Surplus
39.Bad debt means

a.Unrecovered loans
b.Irrecoverable loans
c.Loan to employees
d.None of the above
40.Earning per share means

a.Profit after tax divided by numbers of shares
b.Profit before tax divided by number of shares
c. Surplus of profit after payment of dividend
d.General reserve divided by number of shares.
41.Current Ratio is an indication of

a) Financial Position
b) Liquidity position
c) Profitability
d) Solvency
42.Investment income is a
a) Capital receipts
b) Revenue receipts
c) Miscellaneous receipts
d) Profit on sale of assets
43.Trial Balance of a D.O. after transferring revenue Balance to HO
contains
a) Assets
b) Liability
c) Provisions at the year and
d) All the above
44.Which of the following is not a measure of operating efficiency

a.Incurred claim ratio
b.Management expenses ratio
c.Target realization ratio
d.None of the above
45.Reconciliation of collection bank account has to be made
a) Immediately on the completion of each month
b) Suffice, if we reconcile on quarterly basis
c) As ibs a/c submitted as half yearly basis sufficient to reconcile
at every six months.
d) Reconciliation one in every year is well sufficient
46.Recovery made towards Income Tax can be remitted to Income
Tax Deptt.
a) On Annual basis
b) On half yearly basis
c) On quarterly basis
d) Monthly basis
47.Premium Cheque receipted but lost in transit while banking. Action to
be taken
a) Cancel the policy immediately

b) Continue with the policy as it is.
c) Cancel the policy immediately, Convince the party for a fresh
cheque and issue a fresh policy
48.In case of dishonor of cheque
a) To cancel the policy immediately and to inform the insured
immediately by registered post.
b) Represent the cheque again on the genuine request of the
insured
c) No action is necessary
d) To cancel the policy immediately with immediate intimation to
the insured and to obtain cash premium to issue fresh policy.
49.For making any payment to our own employee through voucher
a) Cashier himself can make payment without approval
b) Approval of the voucher by any of the authorized officer is
sufficient
c) To be approved only by the head of the department
d) Approved by all the officer in the A/c dept. is essential
50.A cheque dated 27-1-2006 has been received on 20-9-2006.whether
receipt of cheque
a) Is in order
b) Not in order
c) In order but could have been avoided
d) With a declaration from the drawer to accept .
51.Reconciliation of collecting bank account has to be levied.

c) As ibs a/c submitted as half yearly basis sufficient to reconcile
at every six months.
52.Recovery made towards IT can be remitted to IT Deptt.

a) On Annual basis
d) None of the above basis
53.Cheque receipted towards premium cash in transit

a) _____ the policy immediately
b) Continue with the policy as it is co. fault
c) Convince the part, get a fresh cheque and issue a fresh policy
d) Give stop payment, ______ the policy, get a fresh cheque from
the party and issue a fresh policy

immediately by --------
insured
d) To cancel the policy immediately to obtain cash premium

a) Cashier himself can make payment
sufficient
56.A cheque dated 27-1-2006 has been received on 20-9-2006

a) Is in order
b) Not in order
d) With a declaration from the drawer to accept and rectify the
cheque is in order
57.What is full form of IBNR?
a. Incurred but not reported
b. Incurred but not registered
c. Incurred but not realised
58.Which of the following gives the correct formula for arriving at the
operating surplus of a DO?
a) GDPI less Incurred claims less Commission less Reserve
Strain less Management Expenses
b) GDPI less Incurred claims less Commission + (add) Reserve
Strain less) Management Expenses
c) GDPI (-) less Incurred claims less Commission + (add)
Reserve Gain – (less) Management Expenses
d) a &/or c
59.In case a large Schedule Fire policy is underwritten by CD the

following accounting entry has to be made to underwrite the policy
a) Debit CD A/c and Credit Premium A/C
b) Credit CD A/c and debit Premium A/C
c) Debit CD A/c and Credit Bank A/C
60.To ensure that cash is deposited in the bank account the BO/DO
accountant should
a) Verify and check the bank deposit slip every day
b) Verify the monthly bank reconciliation statement
c) Make necessary posting in the cash collection register
d) All the above
61.Depreciation is charged on
a) Assets / capital expenditure
b) Expenses which are revenue in nature
c) Wages and salary
62.Incurred claims mean

a) Claims o/s at the end of the year + claim paid during the year
– claims o/s at the beginning of the year
b) Claims o/s at the end of the year - claim paid during the year +
claims o/s at the beginning of the year
c) Claims o/s at the end of the year + claim paid during the year +
a. None of the above
63.In Revenue account , incurred claims is shown

a) Claims o/s at the end of the year + claim paid during the year –
b) Claims o/s at the end of the year - claim paid during the year +
c) Claims o/s at the end of the year + claim paid during the year +
d) Claims o/s at the end of the year + claim paid during the year
– claims o/s at the beginning of the year plus adjustment of
claims on reinsurance ceded and accepted
64.Commission expenses is shown in revenue account
a) gross commission paid
b) net commission with adjustment of commission on
reinsurance
c) commission incurred
d) none of above
65.solvency margin is determined by comparing
a) ASM : RSM
b) RSM : ASM
c) RSM multiplied by ASM
d) ASM multiplied by RSM
66.The statutory Auditors certify the insurance company balance sheet

profit and loss accout in accordance with the applicable provision of the
a) Insurance Act 1938

b) IRDA Act 1999
c) Companies Act 1958
d) All the above three Act
67.The limitations of expenses of management in general insurance

business
dealt by
e) Sect. 40 of the Insurance Act 1938
f) Sect. 40 A of the Insurance Act 1938
g) Sect. 40 B of the Insurance Act 1938
h) Sect.40 C of the Insurance Act 1938
68.Section 64 VB of Insurance Act 1938 deals with

a.No risk to be assumed unless premium is received in
advance
b/Restrictions on the opening of new place of business

c.Sufficiency of assets
d.Prohibition of Rebates
69.System of Accounting followed by Public Sector General Insurance
Company
a. Single Entry
b. Double Entry
c. Triple Entry
d. None
70.Identify the revenue account not prepared in the Financial statement

a. Fire
b. Marine
c. Motor
d. Miscellaneous
71.Claims related cost does not include
a. Survey Fee
b. Audit Fee
c. Advocate Fee For Mact
d. Investigation Fee
72.Incurred claim means

a. Claims Paid
b. Claims Paid Plus Outstanding Claims At The End Of The
Year
c. Claims Paid Minus Outstanding Claims At The End Of The
Year
d. Claims Paid Plus Outstanding Claims At The End Of The
Year Minus Outstanding Claims At The Beginning Of
The Year
73.Management Expenses in Public Sector Insurance Companies is

regulated by
a. Irda Act
b. Insurance Act
c. Insurance Rules
d. None
74.Identify the Capital expenditure
a. Salary And Allowance
b. Printing And Stationery
c. Furniture And Fixture
d. Travelling Expenses
75.Stale cheque means
a. Cheque issued but not presented for payment more than 3
months
b. Cheque issued but not presented for payment more than 6
months
c. Cheque issued but not presented for payment more than 9
months
d. Cheque issued but not presented for payment more than 12
months
76.Statutory Auditors are appointed by
a. GIPSA
b. IRDA
c. CAG
d. Companiies Board
77.In case of Incoming co-insurance Service Tax is collected and paid by

a. Coinsurer
b. Insured
c. Leader
d. None
78.In the context of Financial statement NET PREMIUM means
a. Direct Premium Earned
b. Direct Premium Earned Plus Reinsurance Premium
Received Minus Reinsurance Premium Ceded
c. As Above ‘B’ And Adjustment Towards Provision For
Unexpired Risks.
d. None
79.Identify the revenue expenditure

a. FURNITURE AND FIXTURE Purchase
b. COMPUTERS PURCHASE
c. REPAIRS TO CABIN
d. MOTOR CAR PURCHASE
80.The weightage for apportionment of Management expenses for FIRE
Revenue Account is
a. 25%
b. 50%
c. 75%
d. 100%
81.The weightage for apportionment of Management expenses for Marine
Revenue Account is
e. 25%
f. 50%
g. 75%
h. 100%
82.Provision for Outstanding Expenses is made for

a. Expenses paid during the financial year
b. Expenses incurred during the financial year and paid in
the subsequent financial year (s).
c. Expenses incurred and paid during the financial year
d. None
83.Reconciliation of collecting bank account has to be levied.

c) As ibs a/c submitted as half yearly basis sufficient to
reconcile at every six months.
84.Recovery made towards IT can be remitted to IT Deptt.

a) On Annual basis
d) None of the above basis
85.Cheque receipted towards premium cash in transit

a) _____ the policy immediately
b) Continue with the policy as it is co. fault
c) Convince the part, get a fresh cheque and issue a fresh policy
d) Give stop payment, ______ the policy, get a fresh cheque from
the party and issue a fresh policy

immediately by --------
insured
d) To cancel the policy immediately to obtain cash premium

a) Cashier himself can make payment
sufficient
88.A cheque dated 27-1-2006 has been received on 20-9-2006
a) Is in order
b) Not in order
d) With a declaration from the drawer to accept and
rectify the cheque is in order
HRD / Vigilance/ Estate / Establishment Seniors
1. As per Leave Rules, two types of leave from amongst the following cannot
be availed in conjunction
a. Earned leave with Casual leave
b. Earned leave with Sick leave
c. Casual leave with Sick leave
d. Quarantine leave with Sick leave
2. As per LTS rules for officers in Scale IV, where the entitlement is by air and
the employee has traveled partly by air and partly by rail in AC Ist class total
travel not exceeding 1900 kms, what will be the basis of reimbursement
a. Full reimbursement by air for 1900 Kms
b. Full reimbursement by rail AC II tier fare for 1900 Kms
c. Full reimbursement by rail AC Ist Class fare for 1900 Kms
d. Prorata reimbursement by air on actuals and balance on AC II tier
basis for rail journey.
3. If the services of a person who has opted for pension, is terminated by way of
imposing a major penalty, which of the following benefits are not payable ?
a. Provident Fund
b. Voluntary Provident Fund
c. Pension
4. Qualification pay is granted for the following qualifications in case of

supervisory and clerical staff
a. A.I.I.I.
b. F.I.I.I.
c. M.B.A
d. All of the above
5. Hill Station Allowance is payable for the cities having mean sea level above
a. 1000 mts
b. 1200 mts
c. 1500 mts
d. 2000 mts
6. In Encashment of earned leave, which of the following allowance is not paid

a. Basic Pay
b. Dearness Allowance
c. HRA
d. Conveyance Allowance
7. Which of the following does not constitute a misconduct under CDA rules?
a. Sleeping in office during office hours
b. Taking bribes
c. Accepting gifts valued Rs. 250/- at a time.
d. Accepting a watch valued at Rs. 1000/-
8. Which of the following does not constitute a major penalty under CDA rules?
a. Termination from service
b. Withholding of one increment permanently
c. Withholding of one increment for 2 years
d. Compulsory Retirement
9. Which one of the following is not a minor penalty under CDA rules?
a. Censure
b. Withholding one increment for 6 months
c. Reduction in time scale
d. Recovery of pecuniary loss caused to company from salary
10. Dismissal from services order can be issued by

a. Officer in charge
b. Competent Authority for imposing major penalty
c. Appellate Authority
d. The Appointing Authority
11. An employee under suspension is entitled to

a. Living allowance
b. Subsistence Allowance
c. Dearness Allowance
d. Family Allowance
12. Briefcase allowance is made for officers once after a period of

a. 2 years
b. 3 years
c. 4 years
d. 5 years
13. Uniform is provided to

a. Sweeper and substaff
b. Clerical employees
c. Part-time sweepers
d. Casual Labourers
14. Which of the following does not constitute misconduct under CDA rules?
a. Habitual late or irregular attendance
b. Absence from employee’s appointed place of work without permission or
sufficient cause.
c. Commission of any act amounting to criminal offence involving moral
turpitude
d. Absence from duty for one day without permission.
15.General Insurance (conduct, discipline & appeal) rules were frame in which year.
a. 1973
b. 1975
c. 1976
d. 1978
16. CDA Rules are not applicable to

a. Class I officers
b. Class III & IV Employees
c. Class I Officers on deputation from Govt. Sector
d. P.T.S.
17. Which of the following Act of Omission & Commission shall not be treated as
misconduct
a. Taking/ Giving bribes
b. Sleeping on duty
c. Gambling within office
d. Occasional late attendance
18.An employee may be suspended under the following circumstances except

a. Contemplating Disciplinary Proceeding
b. Criminal offence under investigation/ ___
c. Detained in custody for more than 48 hours
d. Smoking in office premises
19. The following are treated as Minor Penalties except

a. Suspension from duty
b. Censure
c. Witholding one or more increments for a specified period
d. Recovery from pay the pecuniary loss to the company
20. Leave rules permit leave on following grounds, except one

a. C.L.
b. E.L.
c. S.L.
d. Paternity leave
21. Special leave is

a. Home Guard duties
b. Appearing in Ins. Institute Exams
c. Trade Union Activities
d. All three above
22. Casual Leave admissibility per Annum is

a. 15 days
b. 22 ½ days
c. 12 days
d. 10 days
23. Accrual of one day Earned Leave is based on duties spent on

a. 10 days
b. 15 days
c. 11 days
d. 14 ½ days
24. Types of leave which can’t be given in conjunction with

a. C.L. & Exam
b. E.L. & S.L.
c. E.L. & Quarantine
d. C.L. & S.L.
25. Leave Travel Subsidy can be availed for a block of

a. One year
b. Three years
c. Four year
d. Two years
26. LTS for Class I Officers can be granted for a block of two years on
a. Even to odd years
b. Odd to even years
c. Both are correct
d. Both are incorrect
27. LTS for Class III & IV employees can be granted for a block of two years on
a. Even to odd years
e. Both are correct
c. Both are incorrect
28. Encashment of E.L. for officers can be granted for 15 days once in a block of two
years
a. Even to add years
c. Both are correct
d. Both are incorrect
29. D.H.A. permissible under T.E. rules for a period less than six hours is
a. 30%
b. 40%
c. 60%
d. 20%
30. C.V.C. guidelines stipulates Bids for acquiring office premises on lease/ purchase
as under:
a. Technical Bid
b. Financial Bid
c. Preliminary Scrutiny
d. Both (a) & (b)
31. Carpet area prescribed for Divisional office is

a. 3000 sq. ft. + 10%
b. 2500 sq. ft. + 10%
c. 3500 sq. ft. + 10%
d. 2000 sq. ft. + 10%
32. Carpet area prescribed for Branch office is

a. 1000 sq. ft. + 10% Addl
b. 1500 sq. ft. + 10%
c. 850 sq. ft. + 10%
d. 1200 sq. ft. + 10%
33. Regional office premises committee constitution requires the following minimum
members to complete the quorum
a. Officer from Estate Dept., officer from A/cs Dept., officer from Technical
Dept.
b. Officer from Estate Dept., officer from IA & ID Dept., officer from
Technical Dept.
c. Officer from A/cs Dept., officer from Technical Dept., officer from
Personnel Dept.
d. All the above three options
34. For a work/ purchase valued at more Rs. 2 lacs can be done by calling
a. 5 quotations
b. 3 quotations
c. Sealed tenders
d. Open tenders
35. Officers on transfer are permitted to have residential accommodation except

a. Company owned accommodation
b. Company leased accomoation
c. Self leased accommodation
d. Employee’s own property on self leasing
36.. Purchase of briefcase to officers is reimbursed on the expiry of
a. 2 years
b. 3 years
c. 4 years
d. 5 years
37. In the following sequence for acquiring company property, tick the odd choice
a. Agreement for sale
b. Sale deed
c. Mutation
d. Registration of property
38. Source and Designation of CVOS in PSU Insurance Companies are

a From Ministry and equivalent to DGM
b From LIC and equivalent to GM
c From other PSU Insurance Companies and equivalent to DGM
d From the same company
39. Officer depending on behalf of the company in department enquiry is
a Presiding officer
b Enquiry officer
c Defending officer
d Defaulting officer
40. In departmental enquiry and after major penalty is imposed, the defaulting officer
may go for memorial to
a TG overseeing GM
b CVO
c CMD of the company
d President of India
41. Casual leaves cannot be tagged up with
a Holidays
b Privileged Leaves
c Sick Leaves
d Examination Leaves
42. Maximum how may days CLs can be taken at a time.

a 4
b 5
c 6
d 7
43. Who is not free from CDA rules in our company

a CMD
b GM
c Non Executive Director
d
44. If one employee is having only 25 days of PL in his account. Maximum how
many days leave encashment he can avail
a 20
b 15
c 10
d Nil
45. If one employee received a gift item, above what price of the gift he is required to
intimate company
a Rs. 500/-
b Rs. 1500/-
c Rs. 2500/-
d Rs. 5000/-
46. On promotion to which cadre one officer will be on probation

a AM
b Dy. Manager
c Manager
d CMD
47. In which cadre delegation of formal authority is not required

a Manager
b Dy. Manager
c AM
d Vigilance Officer
48. Which cadre is outside the purview of Transfer of Morbidity Policy
a AM
b Dy. Manager
c Manager
d CM
49. For entitlement to avail retirement pension minimum how many years service has
to be completed
a 10 years
b 15 years
c 20 years
d 25 years
50. For entitlement of benefit of Gratuity minimum hw many years of service has to
be completed
a 10 years
b 15 years
c 20 years
d 30 years
51. Maximum how many days PL can be encashed at the time of retirement
a 6 months
b 8 months
c 10 months
d No limit
52. Notional extension of service for compensation of pension for VRS optees under
Pension Schemes
a 5 years
b Maximum 5 years
c Maximum 7 years
d 10 years
53. Which of there is not a minor penalty

a Sensor
b With holding one or more increment for a specified period
c With holding one or more increment permanently
d Recovering from pay or the amount as may be due to him of the while or
part of precautionary loss caused.
54. Which one of the following cities, does not fall under the category A for travel
rules
a Mumbai
b New Delhi
c Bangalore
d Patna
Article XII. Bullet questions
1.Enumerate various functions covered by the Estate Department
 Lease or Purchase of Immovable property for Office

 Lease or purchase of property for Residence of Employees
 Renewal / Negotiation for Lease of premises
 Maintenance and Repair of the properties
 Renovation and Structural changes in the properties
 Empanelling of Architects / Civil Contractors after following CVC guidelines
 Budgetary Control and maintenance of documents related to property
 Dealing with Litigation matters / overstay / illegal occupation of Company’s
properties
 Appointment of Estate Officers / liaison with them for eviction of unauthorized
occupants
2.If the Unions of a company join hands and give notice of “Work to Rule” on various
issues pending for management’s attention, discuss the best possible solution for this
crisis and the immediate steps to be taken to diffuse the crisis.
3.What steps would you suggest to improve the working atmosphere at office?
4. Why is it necessary for public sector general insurance companies to be subjected

to the following audits
a. CAG Audit
b. Statutory Audit
c. Internal Audit
5. Discuss the role of the vigilance in Public sector general insurance companies
Marketing Seniors
1. The institution authorized for conducting training of insurance agent is

a) Insurance Institute of India
b) Actuary Society of India
c) IIRM
d) Engaged in Education and / or training particularly in the area of
insurance sales, service and marketing approved and notified by IRDA
2. An Insurance agent who holds a license to act as an insurance agent for a life
insurer and general insurer is
a) Mixed agent
b) Corporate agent
c) Composite Agent
d) Life and general insurance agent
3. An insurance broker who is licensed by the Authority (IRDA) to act for a
remuneration arranging insurance for its clients with insurance companies and / or
reinsurance is
a) Mixed Broker
b) Direct Broker
c) Composite Broker
d) a & b above
4. An insurance broker who arranges reinsurance for Direct Insurers with

insurance and reinsurance companies, is
a) Composite Broker
b) Direct Broker
c) Reinsurance Broker
d) All the above
5. Which is not a channel of distribution for insurance business

a) Corporate Agent
b) Bankassurance
c) Broker
d) Stock Brokers
6. The minimum amount of capital required to act as Direct Insurance Broker is

a) Rs.100 lakhs
b) Rs.150 lakhs
c) Rs.50 lakhs
d) Rs.200 lakhs
7. The minimum amount of capital required to act as a composit insurance broker is

a) Rs.50 lakhs
b) Rs.100 lakhs
c) Rs.200 lakhs
d) Rs.250 lakhs
8. XYZ Ltd. Company could not get the fire insurance claim settled. They can
approach
a) Ombudsman
b) Consumer Forum
c) a&b above
d) b Only
9. The validity period for an insurance broker is

a) One year
b) Two Years
c) Three Years
d) Five Years
10. The Professional Indemnity Insurance cover for an insurance broker is
a) Mandatory
b) Obligatory
c) Optional
d) Redundant
11. The minimum limit of Professional Indemnity Insurance for a Direct Insurance
Broker is
a) Rs.50 lakhs
b) Rs.75 lakhs
c) Rs.250 lakhs
d) Rs.500 lakhs
12. Which is the most appropriate behavioural response for our consumer
a) Awareness
b) Knowledge
c) Liking
d) Preference
13. The surveyor should submit his report to the insurer within what period from his
date of appointment and furnish addendum on specific issues, if necessary
a) 30/15 days respectively
b) 45/30 days respectively
c) 60/30 days respectively
d) 60/60 days respectively
14. Which is the most cardinal rural insurance marketing problem?

a) accessibility
b) language
c) buying capacity
d) awareness
15. The insurer shall be liable to pay what rate of interest in case of delay in payment
of claim from the date of acceptance of after by the insured?
a) 5%
b) Lending rate of bank at the beginning of the financial year
c) 10%
d) 2% above the lending rate of bank prevalent at the beginning of the
financial year
16. Marketing is the array in which an organization matches………..

a) Its own human resources
b) Financial capabilities
c) Physical abilities
d) Customer’s need
17. The fees payable to IRDA for issue or renewal of licence to a corporate insurance
agent is
a) Rs.500
b) Rs.1000
c) Rs.250
d) Rs.300
Article XIII. INFORMATION TECHNOLOGY
Article XIV. TRADE QUESTIONS
1. Which of the following will connect you to the Internet?

a) A commercial online service.
b) An Internet service provider.
c) A network connection.
d) All of the above.
2. What software allows you to view Internet sites?
a) A cyber cafe
b) A browser
c) A modem
d) Your Computer
3. What does the "F" mean on the F1, F2, F3, F4, and etc. keyboard keys?
a) File
b) Find
c) Format
d) Function
4. "HTML" is an acronym for what?
a) Hypertext Markup Language
b) High Tone Modifier Loop
c) Hypertext Makeup Loop
5. "WWW" is an acronym for what?
a) World Wide Web
b) Web Wide World
c) World Web Wide
d) Wide World Web
6. Which one of the following can hold more data?
a) A book
b) A floppy disk
c) A compact disk
7. What is computer science?
a) Learning how to use computers.
b) Designing circuits for computers.
c) Designing web pages.
d) Learning about algorithms, programs, and computers.
8. Now a days, which one amongst the following is most commonly used mobile storage
device with high storage capacity?
a) Hard Disk
b) Floppy Disk
c) CD ROM
d) None of these
9. Which one of the following is a Network operating System?
a) Windows 2000
b) Windows 98
c) O/S 2
d) None of these
10. A program that provides a software interface to hardware device?
a) Support
b) Driver
c) Extended support
d) None of these
11. Each of the following is a true statement except:
a) In general, the shape of organizations historically changes with the business cycle
and with the latest management fashions.
b) Information technology may encourage networked organizations in which groups
of professionals come together face-to-face or electronically for short periods of
time to accomplish a specific task.
c) Research suggests that all modern organizations will, at some point, undergo
a transformation to self-managed teams.
d) Some research suggests that computerization increases the information given to
middle managers, empowering them to make more important decisions than in the
past, thus reducing the need for large numbers of lower-level workers.
12. Decision support systems serve the:
a) Knowledge level of the organization.
b) Management level of the organization.
c) Operational level of the organization.
d) Strategic level of the organization.
13. Which of the following refers to information systems that help managers identify
external changes that might require an organizational response?
a) Target marketing
b) Mass customization.
c) Environmental scanning.
d) Intelligence.
14. An example of an operational-level human resources information system is a:
a) Career pathing system.
b) Compensation analysis system.
c) Training and development system.
d) Human resources planning system.
15. An example of a management-level system is:
a) Machine control
b) Relocation analysis.
c) Electronic calendars.
d) Manpower planning.
16. To confront the globalization challenge, managers must:
a) Develop global hardware, software, and communications standards and
create cross-cultural accounting and reporting structures.
b) Rethink and redesign the way goods and services are designed, produced,
delivered, and maintained.
c) Develop new information architecture.
d) Develop islands of information and technology to facilitate the decision-making
process.
17. Supporting information systems for the liaison role are:
a) Electronic communication systems.
b) Management information systems.
c) Office and professional systems.
d) DSS systems.
18. Characteristics of management information systems include each of the following
except:
a) MIS rely on existing corporate data and data flow.
b) MIS have an internal rather than an external orientation.
c) MIS have little analytical capability.
d) MIS address non-routine decisions requiring judgment, evaluation, and
insight.
19. Of the following, the best example of information would be:
a) A student identification number.
b) An address.
c) A sales analysis report.
d) A person's age.
20. The types of information systems at the management level of an organization that
serve the functions of planning, controlling, and decision making by providing routine
summary and exception reports are:
a) Transaction processing systems.
b) Decision support systems.
c) Executive support systems.
d) Management information systems.
21. Information systems that support the monitoring, controlling, decision-making, and
administrative activities of middle managers are:
a) Knowledge-level systems.
b) Strategic-level systems.
c) Management-level systems.
d) Operational-level systems.
22. A "task force" organization that must respond to rapidly changing environments
describes a(n):
a) Machine bureaucracy organizational structure.
b) Divisionalized bureaucracy organizational structure.
c) Professional bureaucracy organizational structure.
d) Adhocracy organizational structure.
23. Supporting information systems for the resource allocator role are:
a) Electronic communication systems.
b) Management information systems.
c) Office and professional systems.
d) Decision Support System.
24. The management level responsible for making long-range strategic decisions about
which products and services to produce is the:
a) Technology level.
b) Operational level.
c) Middle level.
d) Senior level.
25. A Web site or other service offering a broad array of resources or services such as e-
mail, on-line shopping, discussion forums and tools for locating information best
describes a:
a) Portal
b) Protocol.
c) Internet service provider.
d) Search engine.
26. Which of the following refers to a cooperative alliance formed between two
corporations for the purpose of sharing information to gain strategic advantage?
a) Intraorganizational system
b) Interorganizational system
c) Information partnership
d) Information linkage
27. The transformation of the business enterprise has resulted in the new manager relying
on each of the following except:
a) Informal commitments and networks to establish goals.
b) A customer orientation to achieve coordination among employees.
c) Appeals to professionalism and knowledge to ensure proper operation of the
firm.
d) A structured arrangement of specialists that typically rely on a fixed set of
standard operating procedures.
28. This approach to information systems emphasizes mathematically based models to
study information systems.
a) Behavioral approach
b) Management approach
c) Social approach
d) Technical approach
29. An example of a strategic-level system is:
a) Machine control.
b) Relocation analysis.
c) Electronic calendars.
d) Personnel planning.
30. Each of the following is a true statement regarding system integration except:
a) Different types of systems are tightly coupled in most organizations.
b) It is advantageous to have some measure of integration among systems so that
information can easily flow between different parts of the organization.
c) There is no "one right level" of integration or centralization.
d) Integration costs money, is time consuming, and is complex.
31. Which of the following is a true statement?
a) Early information systems were responsible for implementing core
institutional activities.
b) Information systems in the 1960s and 1970s brought about primarily technical
changes.
c) Today's information systems are smaller in scope and are less complex than
those of the 1950s, 1960s, and 1970s.
d) Contemporary systems bring about managerial changes and institutional
changes.
32. The physical devices and software that link various computer hardware components
and transfer data from one physical location to another best describes:
a) Hardware.
b) Storage.
c) Communications.
d) Networks.
33. Output that is returned to appropriate members of the organization to help them
evaluate or correct the input stage is called:
a) Turnaround data.
b) Standards.
c) Feedback.
d) A formal system.
34. An organization using networks linking people, assets, and ideas to create and
distribute products and services without being limited by traditional organizational
boundaries or physical location best describes a(n):
a) Intranet.
b) Network enterprise.
c) Virtual organization.
d) Information architecture.
35. The information inputs characteristic of a Knowledge Work Systems (KWS) are:
a) Low-volume data on massive databases optimized for data analysis, analytical
models, and data analysis tools.
b) Design specifications and knowledge base.
c) Aggregate data, external, and internal.
d) Documents and schedules.
36. An internal network based on Internet and World Wide Web technology standards
best describes:
a) An electronic market.
b) An intranet.
c) An interorganizational system.
d) E-mail.
37. The set of fundamental assumptions about what products the organization should
produce, how and where it should produce them, and for whom they should be produced
defines:
a) Corporate policy.
b) Organizational culture.
c) Mission statement.
d) Standard operating procedures.
38. Office automation systems serve the:
a) Knowledge level of the organization.
b) Management level of the organization.
c) Operational level of the organization.
d) Strategic level of the organization.
39. Software that allows two different applications to exchange data best defines:
a) Firmware.
b) Middleware.
c) Hardware.
d) Operating system.
40. A general-purpose language that describes the structure of a document and supports
links to multiple documents, allowing data to be manipulated by the computer best
describes:
a) XML.
b) ActiveX.
c) Visual Basic.
d) FORTRAN
41. The field in a record that uniquely identifies instances of that record so that it can be
retrieved, updated, or sorted best describes a (n):
a) Master key.
b) Master field.
c) Attribute.
d) Key field.
42. The smallest data element in the data hierarchy is a:
a) Byte.
b) Field.
c) File.
d) Bit
43. Problems with the traditional file environment include:
a) Data redundancy.
b) Poor data security.
c) Inability to share data among applications.
44. A large group of servers maintained by a commercial vendor and made available to
subscribers for electronic commerce and other activities requiring heavy use of servers
best describes:
a) A storage area network.
b) A server farm.
c) A local area network.
d) An information appliance.
45. The most prominent data manipulation language today is:
a) COBOL.
b) IMS.
c) SQL.
d) DDL.
46. A small data warehouse containing only a portion of the organization's data for a
specified function or population of users best describes a:
a) Database.
b) Tuple.
c) Relation.
d) Data mart
47. Computing on the Internet uses the:
a) Distributed processing model.
b) Centralized processing model.
c) Client/server computing model.
d) Decentralized processing model.
48. Approximately one trillion bytes is a:
a) Kilobyte.
b) Megabyte.
c) Terabyte.
d) Gigabyte.
49. The smallest unit of data for defining an image in the computer best describes a:
a) Bit.
b) Nibble.
c) Word.
d) Pixel
50. The detailed instructions that control the operations of a computer system defines:
a) Software
b) Hardware
c) System specifications.
d) Procedures
51. The determination of whether or not a customer's claim was paid in full would be
performed by:
a) RAM.
b) ROM.
c) The ALU.
d) The control unit.
52. The largest cost component for both large and small client/server systems is:
a) Downtime.
b) Operations staff.
c) Applications development staff.
d) Software.
53. Common technologies for wireless data transmission include:
a) Cellular telephones.
b) Microwave transmissions.
c) Personal digital assistants.
54. Problems posed by the new information technology infrastructure include:
a) The need for organizational change.
b) The hidden costs of client/server computing.
c) The difficulty of ensuring network reliability and security.
55. A project management technique that ensures that the implementation team operates
as a cohesive unit best describes:
a) External integration tools.
b) Internal integration tools.
c) Formal planning and control tools.
d) Data flow diagramming tools.
56. The Internet benefits to organizations include:
a) Connectivity and global reach.
b) Reduced communication costs.
c) Lower transaction costs.
57. During conversion, the most time-consuming activity is the:
a) Development of the logical design.
b) Conversion of data.
c) Development of a physical design.
d) Feasibility study.
58. The IT-enabled change that has the highest risk and the highest return is:
a) Automation
b) Reengineering
c) Paradigm shift
d) Rationalization
59. The Internet is owned by:
a) The U.S. Department of Defense.
b) Microsoft.
c) The U.S. Department of Education.
d) No one.
60. The most common form of IT-enabled organizational change is:
a) Disintermediation.
b) Reengineering.
c) Rationalization.
d) Automation.
61. Requirements analysis involves:
a) Laying out the components of a system and their relationship to each
other, as they would appear to the users.
b) Translating the abstract logical model into the specific technical design
for the new system.
c) Changing from the old system to the new system.
d) Defining the objectives of the new or modified system and
developing a detailed description of the functions that the new
system must perform.
62. The organizational impact/benefit associated with the disintermediation IT capability
is:
a) IT can transform unstructured processes into routinized transactions.
b) IT can bring vast amounts of detailed information into a process.
c) IT allows the capture and dissemination of knowledge and expertise to
improve the process.
d) IT can be used to connect two parties within a process who would
otherwise communicate through an intermediary.
63. Organizations can counteract problems created by the new information technology
infrastructure by:
a) Planning for and managing the business and organizational changes.
b) Asserting data administration disciplines.
c) Considering connectivity, bandwidth, and cost controls in their
technology planning.
d) Doing all of the above.
64. Each of the following is a true statement except:
a) If one of the computers in a star network fails, none of the other
components in the network are affected.
b) The star topology is useful for applications where some processing
must be centralized and some can be performed locally.
c) All communications on a star network must pass through a central
computer.
d) Communication in a star network will come to a standstill if the host
computer stops functioning.
65. Which of the following argues that the firm's information requirements can only be
understood by looking at the entire organization in terms of organizational units,
functions, processes, and data elements?
a) Enterprise analysis
b) Strategic analysis
c) Informational analysis
d) Conceptual analysis
66. A collection of software tools that is used for data analysis is called:
a) A DSS software system.
b) An inference engine.
c) An AI shell.
d) A model base.
67. Advantages of using software packages for systems development include each of the
following except:
a) The time frame and costs for developing the new system should be
considerably reduced.
b) Most of the design work has been done in advance.
c) The packages are geared to the most common requirements of all
organizations.
d) Vendors supply much of the ongoing maintenance and support for the system.
68. A type of knowledge management system that helps disseminate and coordinate the
flow of information in an organization best describes a(n):
a) Decision support system.
b) Knowledge work system.
c) Group collaboration and support system.
d) Office system.
69. A tool used during the electronic meeting activity of idea generation is:
a) Group matrix.
b) Vote selection.
c) Topic commenter.
d) Enterprise analyzer.
70. A computer system at the management level of an organization that combines data,
analytical tools, and models to support semi-structured and unstructured decision making
best describes a(n):
a) Decision support system.
b) Group decision support system.
c) Expert system.
d) Executive support system.
71. Stored information from an organization's history best describes:
a) A relational database.
b) A DSS database.
c) Organizational memory.
d) A model.
72. Important evaluation criteria to use when selecting a software package include:
a) Flexibility.
b) User-friendliness.
c) Database requirements.
73. Which of the following defines the contents of data flows and data stores so that
system builders understand exactly what pieces of data they contain?
a) Data dictionary
b) Database
c) Data module
d) Object module
74. Organizations need to manage an outsourcer by:
a) Setting priorities.
b) Ensuring that the right people are brought in.
c) Guaranteeing that information systems are running smoothly.
75. Data mining may use:
a) Statistical analysis tools.
b) Genetic algorithms.
c) Fuzzy logic.
76. Which of the following trends has the impact of copying data from one location to
another and easing access to personal data from remote locations?
a) The development of ergonomical keyboards
b) Rapidly declining data storage costs
c) Data mining advances
d) Networking advances
77. The social issue of privacy concerns:
a) The Development of "Expectations of Privacy" Or Privacy Norms, As
Well As Public Attitudes
b) The Development of Statutes That Govern The Relations Between Record
Keepers And Individuals.
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FIRE AND ENGINEERING

1.Which one of the following is a mega risk.

a) A petroleum refinery with sum insured Rs 3000 cr

a) The factory is closed for 1 week continuously

3. Please indicate which of the following statements is true.

6.Long term Fire policy can be issued for dwellings

a)For minimum period of 2 years

9. In Consequential Loss (Fire) Insurance Policy, the sum insured is arrived at by

10) Automatic reinstatement clause deals with

11.Subsidence and Landslide Loss covers

12. Standard Fire Policy contains the following number of conditions

13. As per AIFT how many earthquake zones are available

14. Loss or damage to property caused by sprinkler leakage is covered under

16. Which of the following risks is not considered as add on cover

17.Reinstatement Value policy can be issued for

18.Standard Fire policy covers

19.Burning cost is calculated to

20.Standing charges does not include

21.Loss of profit insurance covers

22.Fire policy contains the following number of conditions

35. Engineering policy issued during construction phase is

49. Earthquake cover in fire policy is

61. Declaration Policy has minimum S.I. of

62. Declaration Policy can be issued

63. Minimum SI for floater declaration policy

64. Long Term Policies Fire can be issued

65. Co-Insurance in Fire Policies pertain to

66. Reinstatement value policy can be given to

69. Ex-gratia settlement in fire policies are

70. Policy wording after 01/01/2007 cannot be altered earlier than

75. FOES is an extension under:

77. DSU stands for

81. In an LOP policy, Auditor fees is

82. Fire at Supplier’s Premises can be a part of

83. Common utilities outside the premises can be

84. Storage of hazardous chemical upto 5% of value at risk

85. Cracks appearing in a building on account of subsidence of land below

88. Standby machinery in MBD is

89. Preliminary investigation of loss under Fire Policy includes

91. What is meant by spontaneous combustion ?

Section I.01 BULLET QUESTIONS

2. How the S.I. is fixed under the EAR policy

1. Which of the following represents the widest form of coverage?

2. For which of the following extra premium is charged?

4. For Inland Transit , ‘Duration Clause” limits the coverage to

5. What is not true for a Marine Open Cover

9. In case additional expenses are incurred to save an unrelated marine

10. What is the full form of sale term FAS

11. A Marine cargo underwriter is expected to know

12. Under a marine Hull cover a loss can be declared as a CTL if

14. Sue and labor charges are usually paid

15. Franchise in Marine hull policy means

16. In marine hull policy freight

17. Particular charges in hull policy means

19. One of the purposes of Draft survey is to

21.In which year was Marine Insurance Business detariffed?

22.In Marine Insurance an assured is required to have an insurable interest

23.Can Insurable interest be transferred in Marine Insurance by way of

24.Concept of GENERAL AVERAGE LOSS is applicable to

26.What are the special discounts available in MARINE SDP?

a. The Moment Consignment Reaches The

b. Within Sixty Days After Date Of Discharge At

c. Reaches Consignees Warehouse Within Forty-Five Days From