Documentos de Académico
Documentos de Profesional
Documentos de Cultura
opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
Question Bank
tyuiopasdfghjklzxcvbnmqwertyuiopas
IC 34
dfghjklzxcvbnmqwertyuiopasdfghjklzx
msrivas
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmrty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
CHAPTER 1
INTRODUCTION TO INSURANCE
Page | 2
6. Lloyds Coffee House is regarded as the place where insurance started the way it is
practised today. Lloyds is located in __________.
I. Bangalore
II. Singapore
III. London
IV. Dubai
Page | 3
IV. one decides to bear the risk and its effects
13. Out of 400 houses, each valued at Rs.20, 000, on an average 4 houses get burnt every year
resulting in a combined loss of Rs.80, 000. What should be the annual contribution of each
house owner to make good this loss?
I. Rs.100/-
II. Rs.200/-
III. Rs.80/-
IV. Rs.400/-
15. Before acceptance of a risk, the insurer arranges a survey and inspection of the property.
Why?
I. To assess the risk for rating purposes
II. To find out how the insured purchased the property
III. To find out whether other insurers have also inspected the property
IV. To find out whether neighbouring property also can be insured
Page | 4
CHAPTER 2
PRINCIPLES OF INSURANCE
1. Which one of the following does not represent an insurable risk?
I. Fire
II. Stolen goods
III. Burglary
IV. Loss of goods due to ship capsizing
3. Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding
accident. The pneumonia resulted in death of Mr. Pinto. What is the proximate cause of
the death?
I. Pneumonia
II. Horse
III. Horse riding accident
IV. Bad luck
5. Risk indicates:
I. Fear of unknown
II. Chance of loss
III. Disturbances at public place
IV. Hazard
The correct option is II.
Risk indicates a chance of loss.
Page | 5
6. ______________ means spreading ones investment in different kinds of assets.
I. Pooling
II. Diversification
III. Gambling
IV. Dynamic risk
10. Select the most appropriate logical equivalence for the statement.
Statement: Insurance cannot protect an asset from loss or damage.
I. True
II. False
III. Partially true
IV. Not necessarily true
11. __________________ means transfer of all rights and remedies, with respect to the
subject matter of insurance, from insured to insurer.
I. Contribution
II. Subrogation
Page | 6
III. Legal hazard
IV. Risk pooling
12. An example of a fact which need not be disclosed unless asked for is ______________ by
the insurer.
I. Age of the insured
II. Presence of fire extinguisher
III. Heart ailment
IV. Other insurance details
Page | 7
CHAPTER 3
MARKETING AND SELLING INSURANCE
1. Which among the following is not an essential component of the sales process?
I. Goodwill
II. Buyer
III. Seller
IV. Product / Service
4. General insurance could help in achieving all of the following objectives EXCEPT:
I. Protection against loss to business premises
II. Making windfall gains on the occurrence of a contingent event
III. Protection against errors and omissions
IV. Protection against property losses
Page | 8
I. Sales
II. Segmentation
III. Marketing
IV. Prospecting
7. The key to successful closing lies in helping the prospect to say ________.
I. No
II. Dont know
III. Yes
IV. Maybe
Page | 9
The correct option is III.
Negotiation is a process to reach at a win-win situation.
Page | 10
CHAPTER 4
LEGAL AND REGULATORYASPECTS OF INSURANCE AGENCY
1. What is the primary purpose of insurance regulations?
I. To generate fee income
II. Protect the interests of policyholders
III. To settle customer disputes
IV. To control the market share of private insurers
2. Which among the following activities is prohibited as per the provisions of Insurance Act,
1938?
I. Keeping aside reserves to meet solvency requirements
II. Using rebates as a tool to sell insurance policies
III. Prospecting customers
IV. Limiting management expenses
3. Insurance agents who hold licence to act as an agent for both a life insurer and a general
insurer are called _______________.
I. Common insurance agents
II. Composite insurance agents
III. Multiple insurance agents
IV. General insurance agents
Page | 11
6. Moral hazard means:
I. Dishonesty or character defects in an individual
II. Honesty and values in an individual
III. Risk of religious beliefs
IV. Hazard of the property to be insured
10. Identify the statement which is not correct. Insurance agent should __________.
I. Indicate the scale of commission if asked by the customer
II. Share the commission by way of rebate
III. Disclose his licence on demand
IV. Indicate the premium to be charged
11. Rs.______________ is the fees payable to the Authority for issue / renewal of licence to
Act as an Insurance Agent or Composite Insurance Agent.
I. 250
II. 150
III. 520
Page | 12
IV. 100
13. If an agent is found guilty of criminal misappropriation, the designated person will
_______________.
I. Cancel the licence
II. Issue a duplicate licence
III. Renew the existing licence
IV. Take some fees from the agent
15. ________________ may deal with more than one Life Insurance Company or general
insurance company or both.
I. Agent
II. Broker
III. Corporate agent
IV. Retail agent
Page | 13
CHAPTER 5
DOCUMENTATION
1. What is the significance of the principle of contribution?
I. It ensures that the insured also contributes a certain portion of the claim along with the
insurer
II. It ensures that all the insured who are a part of the pool, contribute to the claim made
by a participant of the pool, in the proportion of the premium paid by them
III. It ensures that multiple insurers covering the same subject matter; come together and
contribute the claim amount in proportion to their exposure to the subject matter
IV. It ensures that the premium is contributed by the insured in equal installments over
the year.
3. In case the premium payment is made by cheque, then which of the below statement will
hold true?
I. The risk may be assumed on the date on which the cheque is posted
II. The risk may be assumed on the date on which the cheque is deposited by the
insurance company
III. The risk may be assumed on the date on which the cheque is received by the insurance
company
IV. The risk may be assumed on the date on which the cheque is issued by the proposer
Page | 14
I. A warranty is a condition which is implied without being stated in the policy
II. A warranty is a condition expressly stated in the policy
III. A warranty is a condition expressly stated in the policy and communicated to the
insured separately and not as part of the policy document
IV. If a warranty is breached, the claim can still be paid if it is not material to the risk
6. If certain terms and conditions of the policy need to be modified at the time of issuance,
it is done by setting out the amendments through __________.
I. Warranty
II. Endorsement
III. Alteration
IV. Modifications are not possible
Page | 15
10. A document which provides an evidence of contract of insurance is called________
I. Policy
II. Cover note
III. Endorsement
IV. Certificate of insurance
Page | 16
III. Has to be kept in the car always
IV. Has to be kept in the bank locker
16. A warranty
I. Is a condition expressly stated in the policy
II. Has to be complied with
III. Both a and b
IV. None of the above
Page | 17
CHAPTER 6
THEORY AND PRACTICE OF PREMIUM RATING
1. Identify the two factors that affect insurance ratemaking.
I. Probability and severity of risk
II. Source and nature of risk
III. Source and timing of risk
IV. Nature and impact of risk
4. Suggest an insurance scheme for a doctor to protect him from any claims of negligence
against him.
I. Personal accident insurance
II. Liability insurance
III. Marine hull insurance
IV. Health insurance
Page | 18
I. Rate
II. Premium
III. Sum Assured
IV. Bonus
9. Hazards are:
I. Factors that increase the impact of losses
II. Factors that increases the frequency of loss
III. Factors that increase the impact and severity of losses
IV. Factors that decrease the impact and severity of losses
Page | 19
III. The vehicle should not be used for carrying luggage for personal use
IV. The vehicle should not be run more than 200 km per day.
Page | 20
CHAPTER 7
PERSONAL AND RETAIL INSURANCE
1. Which of the below statement is correct with regards to an accident?
I. An accident usually denotes a sudden, foreseen and an unexpected event.
II. An accident usually denotes a sudden, unforeseen and an expected event.
III. An accident usually denotes a sudden, foreseen and an expected event.
IV. An accident usually denotes a sudden, unforeseen and an unexpected event.
3. Which of the below statement is correct with regards to corporate frequent travelers
plan?
I. It is valid for one trip
II. It is valid for 6 trips or 6 months whichever happens first
III. It is an annual policy valid for multiple trips with a limit on maximum number of trips
IV. It is an annual policy valid for multiple trips but ends with the first claim
4. Which of the below statement is correct with regards to a householders insurance policy?
I. A named peril policy may be purchased as a less expensive alternative to a
comprehensive coverage policy that tends to offer coverage to most perils.
II. A comprehensive policy that tends to offer coverage to most perils; may be purchased
as a less expensive alternative to a named peril policy.
III. A named peril policy or comprehensive policy comes at the same price.
IV. With regards to a householders policy, only a named peril policy can be bought and
comprehensive policies are not available.
5. Under the shopkeeper policy, the insured may opt for an additional Fixed plate glass and
sanitary fittings cover. This will cover accidental loss of damage to which of the
following?
I. Fixed plate glass
Page | 21
II. Sanitary fittings
III. Neon signs
IV. All of the above
Page | 22
Health insurance covers all of the above: pre-hospitalisation treatment, post-hospitalisation
treatment, domiciliary treatment.
14. In shop keepers insurance, which of the following are not covered?
I. Machinery breakdown
II. Malicious damage
III. Business interruption
IV. Willful destruction by insured
Page | 23
15. In shop keepers insurance which of the following are usually not covered
I. Money in till/counter at business premises
II. Money in transit from bank to business premises
III. Money in safe at business premises
IV. Money carried by customer to business premises.
Page | 24
CHAPTER 8
COMMERCIAL INSURANCE
Page | 25
III. Employees and employers against the financial loss suffered by them due to fraud or
dishonesty of third party
IV. Shareholders against the financial loss suffered by them due to fraud or dishonesty of
the company management
6. Which of the below can be covered under a bankers indemnity insurance policy?
I. Money securities lost or damaged whilst within the premises due to fire
II. Forgery or alteration of cheques
III. Dishonesty of employees with reference to money
IV. All of the above
9. Which of the following is not covered under Industrial All Risks insurance?
I. Fire and special perils as per fire insurance practice
II. Larceny
III. Machinery breakdown
IV. Electronic equipment
Page | 26
10. Which branch of insurance offers cover against war perils?
I. Marine policies
II. Aviation policies
III. Both of the above
IV. None of the above
11. Under the Public Liability Insurance Act, 1991, how much is the compensation payable for
actual medical expenses?
I. Rs. 6,250
II. Rs, 12,500
III. Rs. 25,000
IV. Rs. 50,000
13. An employer insures himself from dishonest act of his employees by _________
I. Employees compensation policy
II. Public Liability Insurance policy
III. Fidelity Guarantee Insurance policy
IV. Declaration policy.
Page | 27
I. Statutory liability
II. Property insurance
III. Aviation insurance
IV. Money insurance
16. Fire Insurance Policy does not cover damage to property even as add-on cover due
to___________.
I. Floods
II. Earthquake
III. Fire
IV. Bombing due to war
Page | 28
IV. Engineering Insurance
Page | 29
CHAPTER 9
CLAIMS PROCEDURE
1. Which of the following activities would not be categorised under professional settlement
of claims?
I. Seeking information relating to the cause of the loss
II. Approaching the claim with a prejudice
III. Ascertaining whether the loss was a result of an insured peril
IV. Quantifying the amount payable under the claim
2. Raj is involved in a car accident. His car is insured under a motor insurance policy. Which
among the following is the most appropriate thing for Raj to do?
I. Notify the insurer of the loss as soon as reasonably possible
II. Notify the insurer at the time of insurance renewal
III. Damage the car further so as to receive a bigger compensation
IV. Ignore the damage
5. Which among the following documents is most likely to be requested while examining a
cyclone damage claim?
I. Coroners report
II. Report from Fire Brigade
III. Police report
Page | 30
IV. Report from Meteorological Department
6. Under which principle can the insurer assume the rights of the insured in order to recover
from a third party the loss paid under a policy?
I. Contribution
II. Discharge
III. Subrogation
IV. Indemnity
7. If the insurer decides that a certain loss is not payable because it is not covered under the
policy then who decides on such matters?
I. Insurers decision is final
II. Umpire
III. Arbitrator
IV. Court of Law
Page | 31
IV. Coroner
11. Independent surveyors are required for claims above_______ as per the Insurance Act.
I. Rs. 40,000
II. Rs. 15,000
III. Rs. 20,000
IV. Rs. 25,000
12. Claims assessed outside the country in case of travel insurance polices are assessed by:
I. Indian surveyors
II. Local surveyors in the country of loss
III. Insurers own employees
IV. Claims settling agents named in the policy
Page | 32
16. Arbitration is a claim settlement process done ______________.
I. in the court of law
II. by a group of surveyors
III. by arbitrator(s) chosen by the parties involved
IV. arbitrarily by the insurance companys employees
17. Insurers under right of subrogation are allowed to recover the loss paid from:
I. Shipping companies only
II. Railways and road carriers only
III. Airlines and Port Trusts only
IV. Shipping companies and railway and road carriers and airlines and port trusts
Page | 33
CHAPTER 10
CUSTOMER SERVICE
1. What is meant by customer lifetime value?
I. Sum of costs incurred while servicing the customer over his lifetime
II. Rank given to customer based on business generated
III. Sum of economic benefits that can be achieved by building a long term relationship
with the customer
IV. Maximum insurance that can be attributed to the customer
2. Identify the scenario where a debate on the need for insurance is not required.
I. Property insurance
II. Business liability insurance
III. Motor insurance for third party liability
IV. Fire insurance
3. As per the Consumer Protection Act, 1986, who cannot be classified as a consumer?
I. Hires goods / services for personal use
II. A person who buys goods for resale purpose
III. Buys goods and services for a consideration and uses them
IV. Uses the services of another for a consideration
Page | 34
The correct option is II.
Being extremely judgemental is not an element of active listening.
11. A customer having complaint regarding his insurance policy can approach IRDA through
Page | 35
I. IGMS
II. District Consumer Forum
III. Ombudsman
IV. IGMS or District Consumer Forum or Ombudsman
13. ___________ has jurisdiction to entertain matters where value of goods or services and
the compensation claim is up to 20 lakhs
I. High Court
II. District Forum
III. State Commission
IV. National Commission
Page | 36
II. Giving an occasional nod and smile
III. Providing feedback
IV. Paying attention to the speaker, giving an occasional nod and smile and providing
feedback
Page | 37
CHAPTER 11
INSURANCE CAREER PROSPECTS
1. Which among the following are the two basic qualities that make a good sales person?
I. Empathy and ego drive
II. Prejudice and loathing
III. Pride and honesty
IV. Scepticism and perseverance
2. Which among the following is the most likely to contain the IRDA stipulated 50 hours
training to help prospects clear the IRDA examination?
I. Process training
II. Product training
III. Pre-recruitment training
IV. Sales training
5. _____________ determines whether the proposal should be admitted, whether risk can be
accepted.
I. Agent
II. Insurer
III. Underwriter
Page | 38
IV. Insured
6. Broker represents:
I. One insurance company
II. Multiple insurance companies
III. Insurance Regulatory and Development Authority
IV. Customer
Page | 39
Will to excel, empathy towards customer and truthfulness is required for a successful
insurance agency career.
Page | 40