GI Mock Test Paper - I

1. The measures to reduce chances of occurrence of risk are known as

_____________.
(a) Risk avoidance
(b) Loss prevention
(c) Risk retention
(d) Risk transfer [b]
2. Which among the following is not an element of active listening?
(a) Empathetic listening
(b) Responding appropriately
(c) Paying good attention
(d) Being extremely judgmental [d]
3. Which of the following is not covered in Personal Accident?
(a) Loss and one hand
(b) Death
(c) Suicide
(d) Permanent disability [c]
4. With respect to PA policy, it is necessary for the proposer to ask for
specific covers in respect of all commonly needed contingencies.
(a) true
(b) false
(c) xxxx
(d) xxxx [a]
5. Which of the following is a contract between the Insurer and the
insured wherein insurer agrees to pay hospitalization extent of an
agreed sum assured in the event of any medical treatment arising
out of an illness or an injury?
(a) personal accident policy
(b) group accident policy
(c) travel insurance policy
(d) health insurance policy [d]
6. Which of the below elements promote trust?
(a) Attraction, communication and being present
(b) Politeness, affirmation and communication
(c) Communication, assertiveness and being present
(d) Affirmation, assertiveness and attraction [a]

[1]
7. Which of the following is covered under Householder’s Insurance?
(a) cars owned by the family
(b) content’s of one’s shop
(c) parcels sent by post
(d) gold and silver ornaments [d]
8. Which of the following does Householder’s Insurance cover?
(a) only the structure of the home
(b) both structure and contents only when insured is not at home
(c) both the structure and contents
(d) only the contents of the home [c]
9. In engineering insurance, what does ‘CAR’ stand for?
(a) Companies all requirements
(b) Motor car
(c) Contractors all risks
(d) Company’s all risks [c]
10. Which policy is used by an employer to insure himself from
dishonest act of his employees?
(a) employees compensation policy
(b) public liability insurance policy
(c) fidelity guarantee insurance policy
(d) declaration policy [c]
11. Which of the following is not covered by fire insurance policy even
as add-on cover?
(a) floods
(b) fire
(c) bombing due to war
(d) earthquake [c]
12. What does consequential loss (fire policy) cover?
(a) material wear & tear in machinery
(b) loss of goodwill
(c) losses due to foreign exchange fluctuations
(d) loss of profit due to damage to factory [d]
13. Money insurance policy covers the losses that my occur while only
cash is being handled.
(a) false
(b) true
(c) xxxx
(d) xxxx [a]

[2]
14. Which of the following is contractor’s all risk policy a variation?
(a) life insurance
(b) engineering insurance
(c) fire insurance
(d) marine insurance [b]
15. Fire policy doesn’t cover damages caused by leakage from
automatic sprinkler installation.
(a) true
(b) false
(c) xxxx
(d) xxxx [b]
16. Which of the following questions need not be answered, during the
process of claims settlement?
(a) what is the extent of the damage
(b) what is the insured’s source of income
(c) how much amount is payable
(d) did the loss really happen [b]
17. Which of the following statements is true with respect to intimation
or notice of loss?
(a) after the initial check/scrutiny, the claim register, with details
like policy number, name of insured, estimate of amount of
loss, date of loss.
(b) the notice of loss can be given to the insurer, any time the
insured wishes
(c) for any policy, the police need not be involved
(d) delays do not cause any inconvenience in obtaining [a]
information of the event/mishap
18. For which of the following claims, is police report not necessary?
(a) cyclone damage
(b) burglary
(c) accident
(d) motor [a]
19. Which of the following statements is not true, with respect to loss
assessment and claim settlement?
(a) the second aspect to be decided is whether the insured has
complied with policy conditions, especially conditions which
are precedent to ‘liability’.
(b) the fourth aspect concerns the determination of the amount
payable
(c) the third aspect is in respect of compliance with warranties

[3]
 (d) the first aspect to be decided is whether the loss is within the [b]
scope of the policy
20. Which of the following is the claim, wherein the insured has
committed a breach of condition or warranty?
(a) specific claim
(b) non-specific claim
(c) non-standard claim
(d) standard claim [c]
21. Which of the following methods cannot be used to reduce moral
hazard?
(a) sub-limits
(b) deductible
(c) co-payment
(d) sharing and pooling [d]
22. Where the moral hazard of the insured is suspected, the agent
should interrogate the insured and not let the insurance company
intervene.
(a) true
(b) false
(c) xxxx
(d) xxxx [a]
23. What does the installation of sprinkler system in the premises do?
(a) decreases the risk
(b) neither increases nor decreases risk
(c) increases risk of hooding
(d) increases risk [a]
24. Which of the following is true of motor insurance?
(a) the vehicle should be washed daily
(b) the vehicle should not be used for carrying luggage for personal
use
(c) the vehicle should not be run more than 200 km per day
(d) the vehicle should not be used for speed testing [d]
25. Which of the following is not a source of information for
underwriter?
(a) pre acceptance risk survey of the asset
(b) registration certificate of Insurer
(c) proposal form
(d) annual accounts of proposer [b]

[4]
26. What is the price of a given unit of insurance called?
(a) rate
(b) bonus
(c) premium
(d) sum assured [a]
27. Who decides whether to accept the risk?
(a) surveyor
(b) agent
(c) underwriter
(d) assured [c]
28. What is meant by Moral hazard?
(a) risk of religious beliefs
(b) dishonesty or character defects in an individual
(c) hazard of the property to be insured
(d) honesty and values in an individual [b]
29. Which of the following is indicated by “Risk”?
(a) chance of loss
(b) hazard
(c) disturbances at public place
(d) fear of unknown [a]
30. Which of the following is not an example of Risk?
(a) damage of cargo due to rain water
(b) damage to property due to fire
(c) damage to car due to accident
(d) damage to car tyre due to wear and tear [d]
GI Mock Test Paper - II

1. Risk transfer through risk pooling is called _____________.

(a) Savings
(b) Investments
(c) Insurance
(d) Transfer [c]
2. Before acceptance of a risk, the insurer arranges a survey and
inspection of the property. Why?
(a) To assess the risk for rating purposes
(b) To find out how the insured purchased the property
(c) To find out whether other insurers have also inspected the

[5]
 property
(d) To find out whether neighbouring property also can be insured [a]
3. Cost of risk is determined by ________________.
(a) Probability only
(b) Impact only
(c) Probability and impact
(d) Timing of risk [c]
4. _______________ is not an indicator of service quality.
(a) Cleverness
(b) Reliability
(c) Empathy
(d) Responsiveness [a]
5. In customer relationship the first impression is created:
(a) By being confident
(b) By being on time
(c) By showing interest
(d) By being on time, showing interest and being [d]
confident

6. Which of the below will be the most appropriate option for a

customer to lodge an insurance policy related complaint?
(a) Police
(b) Supreme court
(c) Insurance ombudsman
(d) District court [c]
7. Are there any fee/ charges that need to be paid for lodging the
complaint with the Ombudsman?
(a) A fee of Rs.100 needs to be paid
(b) No fee or charges need to be paid
(c) 20% of the relief sought must be paid as fee
(d) 10% of the relief sought must be paid as free [b] [b]
8. The ___________ has jurisdiction to entertain matters where value
of goods or services and the compensation claim is up to 20 lakhs
(a) High Court
(b) District Forum
(c) State Commission
(d) National Commission [b]
9. Which of the below action showcases the principle of “Uberrima
Fides”?
(a) Lying about known medical conditions on an insurance

[6]
 proposal form
(b) Not revealing known material facts on an insurance proposal
form
(c) Disclosing known material facts on an insurance proposal form
(d) Paying premium on time [c]
10. Find out the proximate cause for death in the following scenario?
Ajay falls off a horse and breaks his back. He lies there in a pool of
water and contracts pneumonia. He is admitted to the hospital and
dies because of pneumonia.
(a) Pneumonia
(b) Broken back
(c) Falling off a horse
(d) Surgery [c]
11. Which of the following is not the correct reason? Insurer requires
material information
(a) to decide about acceptance
(b) to fix the rate of premium
(c) to fix the sum insured
(d) to fix terms and conditions of cover [c)
12. What is the significance of the principle of contribution?
(a) It ensures that the insured also contributes a certain portion of
the claim along with the insurer
(b) 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
(c) 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
(d) It ensures that the premium is contributed by the insured in [c]
equal installments over the year.
13. _________ is the maximum limit of liability of insurer under the
policy
(a) Sum insured
(b) Premium
(c) Surrender value
(d) Amount of loss [a]
14. _______ is the consideration or price paid by insured under a
contract.
(a) Claim amount
(b) Surrender value

[7]
 (c) Maturity amount
(d) Premium [d]
15. Material fact:
(a) Is the value of all material covered in a policy
(b) Not important for assessing the risk
(c) Is important as it influences the decision of the underwriter
(d) Is not important as it has no bearing on the decision of the [c]
underwriter
16. The principal officer and specified person before seeking a renewal
of registration shall have practical training for:
(a) 25 hrs
(b) 30 hrs
(c) 40 hrs
(d) 50 hrs [a]
17. Suggest an insurance scheme for a doctor to protect him from any
claims of negligence against him.
(a) Personal accident insurance
(b) Professional Indemnity Insurance
(c) Marine hull insurance
(d) Health insurance [b]
18. The administrator of motor third party insurance is:
(a) IRDAI
(b) GIC
(c) General Insurance Council
(d) Motor Accident Claims Tribunal [b]
19. As per IRDAI guidelines, a ________ grace period is allowed for
renewal of individual health policies.
(a) Fifteen days
(b) Thirty days
(c) Forty Five days
(d) Sixty days [b]
20. The first and the primary source of information about an applicant,
for the underwriter is his ________________.
(a) Age proof documents
(b) Financial documents
(c) Previous medical records
(d) Proposal form [d]
21. Insurable interest refers to ____________.
(a) Financial interest of the person in the asset to be insured
(b) The asset which is already insured

[8]
 (c) Each insurer’s share of loss when more than one company
covers the same loss
(d) The amount of the loss that can be recovered from the insurer [a]
22. For Travel insurance the sum insured depends on:
(a) Age
(b) Number of days of trip
(c) Countries to be visited
(d) All the above [d]
23. The insurance under Overseas Medical Policy does not operate
beyond a period of ___________ days continuous absence (unless
specifically agreed by insurers).
(a) 60 days
(b) 90 days
(c) 120 days
(d) 180 days [d]
24. Which of the following is the biggest advertisement for an insurance
company?
(a) Door to door counselling for insurance
(b) Settling claims professionally
(c) Obtaining high profile customers
(d) Marketing the features of the policy [b]
25. Which policy is used by an employer to insure himself from
dishonest act of his employees?
(a) declaration policy
(b) employees compensation policy
(c) fidelity guarantee insurance policy
(d) public liability insurance policy [c]
26. Which policy covers loss or damage to aircraft?
(a) property insurance
(b) aviation insurance
(c) statutory liability
(d) money insurance [b]
27. Which of the following is not covered by Fire Insurance Policy even
as add-on cover?
(a) Fire
(b) bombing due to war
(c) floods
(d) earthquake [b]
28. For which of the following claims is the insured required to submit a
report from the attending doctor specifying the duration of

[9]
 disablement.
(a) Fire
(b) Motor
(c) Marine
(d) Personal Accident [d]
29. Which of the following statements is not true, with respect to the
loss assessment and claim settlement?
(a) The third aspect is in respect of compliance with warranties
(b) The fourth aspect concerns the determination of the amount
payable
(c) The first aspect is to be decided is whether the loss is within
the scope of the policy
(d) The second aspect to be decided is whether the insured has [b]
complied with policy conditions, especially conditions which
are precedent to ‘liability’
30. Which of the following is the claim, wherein the insured has
committed a breach of condition or warranty?
(a) Non standard claim
(b) Non-specific claim
(c) Standard claim
(d) Specific claim [a]

GI Mock Test Paper - III

1. Which among the following is the regulator for the insurance

industry in India?
(a) Insurance Authority of India
(b) Insurance Regulatory & Development Authority of India
(c) Life Insurance Corporation of India
(d) General Insurance Corporation of India [b]
2. Which of the following statements is true?
(a) Insurance is a method of sharing the losses of a “few” by the
“many”
(b) Insurance is method of transferring the risk of an individual to
another individual
(c) Insurance is a method of sharing the losses of “many” by a few
(d) Insurance is a method of transferring the gains of a few to the [a]

[10]
 many
3. Insurance deductible is an example of ___________.
(a) Risk mitigation
(b) Risk avoidance
(c) Risk transfer
(d) Risk retention [d]
4. _____________ is not a tangible good.
(a) House
(b) Insurance
(c) Mobile Phone
(d) A pair of jeans [b]
5. Active Listening involves:
(a) Paying attention to the speaker
(b) Giving an occasional nod and smile
(c) Providing feedback
(d) Paying attention to the speaker, giving an occasional nod and [d]
smile and providing feedback
6. Which of the below consumer grievance redressal agencies would
handle consumer disputes amounting between above Rs.20 lakhs
and upto Rs.100 lakhs?
(a) District Forum
(b) State Commission
(c) National Commission
(d) Zilla Parishad [b]
7. Which among the following cannot form the basis for a valid
consumer complaint?
(a) Shopkeeper charging a price above the MRP for a product
(b) Shopkeeper not advising the customer on the best product in a
category
(c) Allergy warning not provided on a drug bottle
(d) Faulty products [b]
8. Can a complaint be launched against a private insurer?
(a) Complaints can be launched against public insurers only
(b) Yes, complaint can be launched against private insurers
(c) Complaint can be launched against private insurers only in the
life sector
(d) Complaint can be launched against private insurers only in the [b]
non-life sector
9. A customer having complaint regarding his insurance policy can
approach IRDAI through

[11]
 (a) District Consumer
(b) Forum
(c) Ombudsman
(d) IGMS [d]
10. Which element of a valid contract deals with premium?
(a) Offer and acceptance
(b) Consideration
(c) Free consent
(d) Capacity of parties to contract [b]
11. If there is no insurable interest the insurance contract becomes
(a) unenforceable in a Court of Law
(b) illegal
(c) void
(d) voidable [c]
12. __________________ means transfer of all rights and remedies,
with respect to the subject matter of insurance, from insured to
insurer.
(a) Contribution
(b) Subrogation
(c) Legal hazard
(d) Risk pooling [b]

[12]
13. ________________ is a wrong statement made during negotiation
of a contract.
(a) Misrepresentation
(b) Contribution
(c) Offer
(d) Representation [a]
14. Which of the following principles prevents an insured from making a
profit out of his loss?
(a) Proximate cause
(b) Pro-rate average
(c) Indemnity
(d) Insurable interest [c]
15. Identify the two factors that affect insurance ratemaking.
(a) Probability and severity of risk
(b) Source and nature of risk
(c) Source and timing of risk
(d) Nature and impact of risk [a]
16. _____________ decides whether to accept or not to accept the risk.
(a) Assured
(b) Underwriter
(c) Agent
(d) Surveyor [b]
17. _______________ is the price of a given unit of insurance.
(a) Rate
(b) Premium
(c) Sum Assured
(d) Bonus [a]
18. Intimation of loss is to be made:
(a) at the exact time of the loss
(b) after 15 days
(c) as soon as reasonably possible
(d) any time after the loss [c]
19. Independent surveyors are required for claims for and
above_______ as per the Insurance Act.
(a) Rs. 40,000
(b) Rs. 15,000
(c) Rs. 20,000
(d) Rs. 25,000 [c]

[13]
20. Identify which of the below statement is correct:
(a) Health insurance deals with morbidity
(b) Health insurance deals with mortality
(c) Health insurance deals with morbidity as well as mortality
(d) Health insurance neither deals with morbidity or mortality [a]
21. Which of the following codes capture the procedures performed to
treat the illness?
(a) ICD
(b) DCI
(c) CPT
(d) PCT [c]
22. ________________ are paid upfront by Assistance Company and
later claimed from insurance company.
(a) Bail bond cases
(b) Personal accident claims
(c) Overseas travel insurance claims
(d) Untenable claims [c]
23. Insurance cannot protect an asset from loss or damage.
(a) true
(b) false
(c) xxxx
(d) xxxx [a]
24. ______________ means transfer of all rights and remedies, with
respect to the subject matter of insurance, from
(a) legal
(b) risk pooling
(c) subrogation
(d) contribution [c]
25. What does consequential loss (fire policy) cover?
(a) material wear & tear in machinery
(b) loss of goodwill
(c) loss of profit due to damage to factory
(d) losses due to foreign exchange fluctuations [c]
26. Money Insurance Policy covers the losses that may occur while only
cash is being handled. Select the correct option.
(a) true
(b) false
(c) xxxx
(d) xxxx [b]

[14]
27. Identify which of the below statement is incorrect?
(a) an employer can take a group policy for his employees
(b) a bank can take a group policy for its customers
(c) a shopkeeper can take a group policy for its customers
(d) a group policy taken by the employer for his employees can be [d]
extended to include the family members of the employees
28. ______________ are paid upfront by Assistance Company and later
claimed from insurance company.
(a) Bail bond cases
(b) Personal accident claims
(c) Overseas travel insurance claims
(d) Untenable claims [b]
29. Which of the following is covered under House Holder's Insurance?
(a) content's of one's shop
(b) parcels sent by post
(c) gold and silver ornaments
(d) cars owned by the family [c]
30. Which of the following does House Holder's Insurance cover? Select
the correct option.
(a) both the structure and contents
(b) only the structure of the home
(c) both structure and contents only when insured is not at home
(d) only the contents of the home [a]

GI Mock Test Paper - IV

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

(a) Business interruption cost
(b) Goods damaged cost
(c) Hospitalisation costs as a result of heart attack
(d) Setting aside reserves as a provision for meeting potential [d]
losses in the future
2. Death due to illness is not within the scope of the policy PA
(a) false
(b) true
(c) xxxx
(d) xxxx [b]

[15]
3. Which of the following means any person who is licensed under the
IRDAI Regulations, and is engaged for the purposes of providing
health services?
(a) third party administrator
(b) insurance ombudsman
(c) insurer
(d) insured [a]
4. Which of the following statements is not true with respect to Motor
Insurance?
(a) the claims for compensation to third party victims in case of
death or injury caused by a motor accident are to be filed by
the complaint in MACT.
(b) Liability is covered for a limited amount in respect of death or
injury and damage.
(c) as per Motor Vehicle Act, it is mandatory for any vehicle plying
in public place to insure liabilities towards third parties.
(d) the two important motor covers are Act (Liability) only policy [b]
and package policy/comprehensive policy

5. Which policy covers loss or damage to aircraft?

(a) Property insurance
(b) Money insurance
(c) Aviation insurance
(d) Statutory liability [c]
6. Fire policy doesn’t cover damages caused by leakage from
automatic sprinkler installation.
(a) true
(b) false
(c) xxxx
(d) xxxx [b]
7. Investigation and assessment of loss mean the same.
(a) false
(b) true
(c) xxxx
(d) xxxx [a]
8. By who are the claim assessed outside the country, in case of travel
insurance polices, assessed?
(a) local surveyors in the country of loss
(b) claims settling agents named in the policy
(c) insurer’s own employees

[16]
 (d) Indian surveyors [b]
9. Which is not an example of an asset?
(a) sunlight
(b) house
(c) plant & machinery
(d) motor care [a]
10. Which of the following risks involves situations in which the
outcomes can result only in loss or no loss, but never in gain?
(a) speculative risk
(b) dynamic risk
(c) pure risk
(d) natural risk [c]
11. Lloyds Coffee House is regarded as the place where insurance
started the way it is practised today. Lloyds is located in
__________.
(a) Bangalore
(b) Singapore
(c) London
(d) Dubai [c]
12. Expand the term IGMS:
(a) Insurance General Management System
(b) Indian General Management System
(c) Integrated Grievance Management System
(d) Intelligent Grievance Management System [c]
13. Which among the following is true regarding life insurance
contracts?
(a) They are verbal contracts not legally enforceable
(b) They are verbal which are legally enforceable
(c) They are contracts between two parties (insurer and insured)
as per requirements of Indian Contract
Act, 1872

(d) They are similar to wager contracts [c] [c]

14. Which of the following is an evidence of insurance contract?
(a) Payment of premium
(b) Acceptance of proposal
(c) Insurers’ Prospectus
(d) Policy of insurance [d]
15. Which of the below statement is correct with regards to renewal
notice?

[17]
 (a) As per regulations there is a legal obligation on insurers to send
a renewal notice to insured, 30 days before the expiry of the
policy
(b) As per regulations there is a legal obligation on insurers to send
a renewal notice to insured, 15 days before the expiry of the
policy
(c) As per regulations there is a legal obligation on insurers to send
a renewal notice to insured, 7 days before the expiry of the
policy
(d) As per regulations there is no legal obligation on insurers to [d]
send a renewal notice to insured before the expiry of the policy
16. What is pure premium?
(a) Premium sufficiently big enough to pay for losses only
(b) Premium applicable to marginal members of the society
(c) Premium after loading for administrative costs
(d) Premium derived from the most recent loss experience period [a]
17. 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?
(a) Contribution
(b) Discharge
(c) Subrogation
(d) Indemnity [c]

[18]
18. Which of the following is not under personal accident insurance?
(a) Permanent total disablement
(b) Permanent partial disablement
(c) Temporary total disablement
(d) Temporary partial disablement [d]
19. Investigation and assessment of the loss mean the same
(a) True
(b) False
(c) xxxx
(d) xxxx [b]
20. There is no arbitration condition in the Marine Cargo Policies
(a) False
(b) True
(c) xxxx
(d) xxxx [b]
21. In the insurance context “risk retention” indicates a situation where
___.
(a) Possibility of loss or damage is not there
(b) Loss producing event has no value
(c) Property is covered by insurance
(d) One decides to bear the risk and its effects [d]
22. Which of the below tips are useful for making a good first
impression?
(a) Being on time always
(b) Presenting yourself appropriately
(c) Being open, confident and positive
(d) All of the above [d]
23. Which among the following is not a pre-requisite for launching a
complaint with the Ombudsman?
(a) The complaint must be by an individual on a ‘personal lines’
insurance
(b) The complaint must be lodged within 1 year of the insurer
rejecting the complaint
(c) Complainant has to approach a consumer forum prior to the
ombudsman
(d) The total relief sought must be within an amount of Rs.20 lakhs [c]
24. ________________ involves pressure applied through criminal
means.
(a) Fraud
(b) Undue influence

[19]
 (c) Coercion
(d) Mistake [c)
25. When there are several policies on the same subject-matter, each
insurer pays only a proportion of the loss. This is known as
(a) pro-rata average
(b) franchise
(c) contribution
(d) subrogation [c]
26. Under the Motor Vehicles Act, the fixed compensation for death in
‘hit and run’ motor accident is Rs. _______
(a) Rs. 12,500/-
(b) Rs. 25,000/-
(c) Rs. 50,000/-
(d) Rs. 1,00,000/- [b]
27. Who among the following is considered as primary stakeholder in
insurance claim process?
(a) Customers
(b) Owners
(c) Underwriters
(d) Insurance agents/brokers [a]
28. Which among the following is a secondary burden of risk?
(a) goods damaged cost
(b) hospitalization costs as a result of heart attack
(c) business interruption cost
(d) setting aside reserves as a provision for meeting potential [d]
losses in the future
29. Which of the following means any person who is licensed under the
IRDA Regulations, and is engaged for the purposes of providing
health services? Select the correct option.
(a) third party administrator
(b) insured
(c) insurance ombudsman
(d) insurer [a]
30. Which of the following statements is not true with respect to Motor
Insurance? Select the correct option.
(a) The claims for compensation to third party victims in case of
death or injury caused by a Motor Accident are to be filed by
the complainant in MACT.
(b) Liability is covered for a limited amount in respect of death or
injury and damage.

[20]
 (c) The two important motor covers are Act (Liability) Only Policy
and Package Policy/comprehensive policy.
(d) As per Motor Vehicles Act, it is mandatory for any vehicle [b]
plying in public place to insure liabilities towards third parties.

GI Mock Test Paper - V

1. In a customer's mind, there are two types of feelings and related

emotions that arise with each service failure on part of the
insurance company. Which feelings are these?
(a) Confusion and empathy
(b) Dishonesty and revenge
(c) Sense of unfairness and hurt ego
(d) Ignorance and sympathy [c]
2. Under which of the following does comatose condition fall?
(a) STD
(b) TTD
(c) PTD
(d) PPD [c]
3. In shopkeeper’s insurance, which of the following is not covered?
(a) willful destruction by insured
(b) machinery breakdown
(c) business interruption
(d) malicious damage [a]
4. ______________________ refers to the body of the ship.
(a) hull
(b) jettison
(c) cargo
(d) piracy [a]
5. Which of the following is employee’s compensation policy a type
of?
(a) marine cargo insurance
(b) fire insurance
(c) liability insurance
(d) engineering insurance [c]
6. For which of the following claims is the insured required to submit a
report from the attending doctor specifying the duration of

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 disablement?
(a) fire
(b) marine
(c) personal accident
(d) motor [c]
7. There is no arbitration condition in marine cargo policies.
(a) false
(b) true
(c) xxxx
(d) xxxx [b]
8. Which of the following is the purpose of deductible clause?
(a) to increase the premium
(b) to avoid claim payment
(c) to harass the policy holder
(d) to eliminate payment of small claims [d]
9. Which of the following is not true with respect to physical hazards?
(a) cast pipes, hard board sometimes get damaged only at the
edges
(b) the application of some clauses will reduce the claim/loss
amounts
(c) in marine cargo, small damage to parts may cause costly
machinery to be a constructive total loss
(d) policy may not be subject to survey before acceptance [d]
10. Which of the following is defined as ‘anything that confers some
benefit and has an economic value is its owner?
(a) insurance
(b) property
(c) asset
(d) liability [c]
11. Which of the following statement is true?
(a) Insurance protects the asset
(b) Insurance prevents its loss
(c) Insurance reduces possibilities of loss
(d) Insurance pays when there is loss of asset [d]
12. ___________ relate to one’s ability to interact effectively with other
workers and customers, both at work and outside.
(a) Hard skills
(b) Soft skills
(c) Negotiating skills
(d) Questioning skills [b]

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13. _____________ relates to inaccurate statements, which are made
without any fraudulent intention.
(a) Misrepresentation
(b) Contribution
(c) Offer
(d) Representation [a]
14. Identify the correct full form of PPN with regards to hospitals in
health insurance.
(a) Public Preferred Network
(b) Preferred Provider Network
(c) Public Private Network
(d) Provider Preferential Network [b]
15. As per guidelines, an insurance company has to process an
insurance proposal within __________.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 45 days [b]
16. A document which provides an evidence of contract of insurance is
called__________.
(a) Policy Bond
(b) Cover note
(c) Endorsement
(d) Certificate of insurance [a]
17. Which among the following documents is most likely to be
requested while examining a cyclone damage claim?
(a) Coroner’s report
(b) Report from Fire Brigade
(c) Police report
(d) Report from Meteorological Department [d]
18. Which of the following document is maintained at the hospital
detailing all treatment done to an in-patient?
(a) Investigation report
(b) Settlement sheet
(c) Case paper
(d) Hospital registration certificate [c]
19. Which of the following questions need not be answered , during the
process of claim settlement?
(a) What is the insured’s source of income
(b) How much amount is payable

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(c) What is the extent of damage
(d) Did the loss really happen [a]

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20. With respect to PA policy, it is necessary for the proposer to ask for
specific covers in respect of all commonly needed contingencies.
Select the correct option.
(a) False
(b) True
(c) xxxx
(d) xxxx [a]
21. Chance of loss is referred to as _________.
(a) Luck
(b) Risk
(c) Bad luck
(d) Peril [b]
22. One of the methods of reducing insurance cost of an insured is
_______
(a) Reinsurance
(b) Deductible
(c) Co-insurance
(d) Rebate [b]
23. What is the time limit for approaching an insurance ombudsman?
(a) Within two years of rejection of the complaint by the insurer
(b) Within three years of rejection of the complaint by the insurer
(c) Within one year of rejection of the complaint by the insurer
(d) Within one month of rejection of the complaint by the insurer [c]
24. A Corporate Agent (Life), (General), or (Health) may have
arrangements with a maximum how many insurers?
(a) One insurer
(b) Two insurer
(c) Three insurer
(d) No limit [c]
25. Earthquake is an example of:
(a) Catastrophic risk
(b) Dynamic risk
(c) Marginal risk
(d) Speculative risk [a]
26. Shop insurance covers
(a) Dishonest acts of employees
(b) Dishonest acts of insured
(c) Dishonest acts of customers
(d) Dishonest acts of money lenders [a]

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27. The principle of utmost good faith in underwriting is required to be
followed by ___________.
(a) The insurer
(b) The insured
(c) Both the insurer and the insured
(d) The medical examiners [c]
28. Which of the following is a wrong statement made during
negotiation of a contract?
(a) representation
(b) misrepresentation
(c) contribution
(d) other [b]
29. Who among the following is considered as primary stakeholder in
insurance claim process?
(a) customers
(b) owners
(c) underwriters
(d) insurance agents/brokers [b]
30. In shop keeper's insurance, which of the following is not covered?
Select the correct option.
(a) willful destruction by insured
(b) malicious damage
(c) business interruption
(d) machinery breakdown [a]

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