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English Mock Test Chapter 3

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Question 1
Which element of a valid contract deals with premium?
A
Consideration
B
Offer and acceptance
C
Free consent
D
Capacity of parties to contract
Question 2
_____________ relates to inaccurate statements, which are made without any fraudulent intention.
A
Contribution
B
Offer
C
Misrepresentation
D
Representation
Question 3
________________ involves pressure applied through criminal means.
A
Fraud
B
Undue influence
C
Mistake
D
Coercion
Question 4
Which among the following is true regarding life insurance contracts?
A
They are verbal contracts not legally enforceable
B
They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
C
They are verbal which are legally enforceable
D
They are similar to wager contracts
Question 5
They are similar to wager contracts
A
Bribe
B
Money
C
Property
D
Jewellery
Question 6
Which of the below party is not eligible to enter into a life insurance contract?
A
Business owner
B
House wife
C
Minor
D
Government employee
Question 7
Which of the below action showcases the principle of “Uberrima Fides”?
A
Lying about known medical conditions on an insurance proposal form
B
Disclosing known material facts on an insurance proposal form
C
Not revealing known material facts on an insurance proposal form
D
Paying premium on time
Question 8
Which of the below is not correct with regards to insurable interest?
A
Friends taking out insurance on one another
B
Father taking out insurance policy on his son
C
Spouses taking out insurance on one another
D
Employer taking out insurance on employees
Question 9
When is it essential for insurable interest to be present in case of life insurance?
A
At the time of claim
B
Insurable interest is not required in case of life insurance
C
At the time of taking out insurance
D
Either at time of policy purchase or at the time of claim
Question 10
Either at time of policy purchase or at the time of claim
A
At the time of claim
B
Insurable interest is not required in case of life insurance
C
At the time of taking out insurance
D
at time of policy purchase and at the time of claim
Question 11
When is it essential for insurable interest to be present in case of non life insurance?
A
At the time of claim
B
Insurable interest is not required in case of life insurance
C
At the time of taking out insurance
D
at time of policy purchase and at the time of claim
Question 12
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
Question 13
Which among the following is an example of coercion?
A
Ramesh signs a contract without having knowledge of the fine print
B
Ramesh uses his professional standing to get Mahesh to sign a contract
C
Ramesh threatens to kill Mahesh if he does not sign the contract
D
Ramesh provides false information to get Mahesh to sign a contract
Question 14
Which among the following options cannot be insured by Ramesh?
A
Ramesh’s house
B
Ramesh’s friend
C
Ramesh’s spouse
D
Ramesh’s parents
Question 15
In a legal contract if pressure is applied on either of the parties through criminal needs, it is known as
A
Fraud
B
Coercion
C
Undue Influence
D
Mistake
Question 16
Which among the following options cannot be insured by Ramesh?
A
Ramesh's house
B
Ramesh's spouse
C
Ramesh's neighbour
D
Ramesh's parents
Question 17
In which of the following insurable interest will not exist
A
Mr Singh wants to take an insurance policy for his child
B
Anuj wants to take an insurance policy for her wife
C
Anita wants to take insurance policy for her nephew
D
All of the above
Question 18
Carat Emptor relates to
A
Insurable Interest
B
Free Consent
C
Uberrima Fides
D
Capacity of the parties
Question 19
Rajesh had taken life insurance policy for Sum Assured of 50L for 20 yrs while returning home he met with a road accident and died. His death claim was not settled as he did not disclose his age correctly. This is known as breach of ____________
A
Consideration
B
Insurable Interest
C
Offer and acceptance
D
Utmost Good Faith
Question 20
Anthony has taken a new car and immediately gets his car insured too. He is paying a premium of Rs.4000 premium for car insurance. Unfortunately his car meets with an accident and most of the parts are broken.So that Anthony receives the insurance when should the insurable interest exist
A
At time of Purchasing New Car
B
At the time of claim
C
At time of Purchasing New Car & At the time of claim
D
At time of Paying Premium
Question 21
Insurance involves a contractual agreement in which the insurer agrees to provide financial _____________________ against certain specified risks for a price or consideration known as the premium. The contractual agreement takes the form of an insurance policy.
A
protection
B
consideration
C
Agreement
D
Insurable Interest
Question 22
Insurance involves a contractual agreement in which the insurer agrees to provide financial protection against certain specified risks for a price or  ___________________________ known as the premium. The contractual agreement takes the form of an insurance policy.
A
protection
B
consideration
C
Agreement
D
Insurable Interest
Question 23
Insurance involves a contractual agreement  in which the insurer agrees to provide financial protection against certain specified risks for a price or consideration known as the __________________________ . The contractual agreement takes the form of an insurance policy.
A
Agreement
B
Insurable Interest
C
premium
D
protection
Question 24
A contract is an agreement between parties, enforceable at law. The provisions of the Indian Contract Act, _________________ govern all contracts in India, including insurance contracts.
A
1872
B
1912
C
2009
D
2012
Question 25
which of the below is a element of a valid contract?
A
Offer and acceptance
B
Free Consent
C
Agreement between parties
D
All of the above
Question 26
___________________________ :When one person signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of the other to such act, he is said to make an offer or proposal. Usually, the offer is made by the proposer, and acceptance made by the insurer.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Free Consent
Question 27
___________________________ : This means that the contract must contain some mutual benefit for the parties. The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Free Consent
Question 28
___________________________ : Both the parties should agree to the same thing in the same sense. In other words, there should be “consensus ad-idem” between both parties. Both the insurance company and the policyholder must agree on the same thing in the same sense.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Free Consent
Question 29
___________________________ : There should be free consent while entering into a contract.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Free Consent
Question 30
___________________________ : Both the parties to the contract must be legally competent to enter into the contract. The policyholder must have attained the age of majority at the time of signing the proposal and should be of sound mind and not disqualified under law. For example, minors cannot enter into insurance contracts.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Capacity of the parties
Question 31
___________________________ : The object of the contract must be legal, for example, no insurance can be had for illegal acts. Every agreement of which the object or consideration is unlawful is void. The object of an insurance contract is a lawful object.
A
consideration
B
Agreement between parties
C
Offer and acceptance
D
Legality
Question 32
_____________________ :Involves pressure applied through criminal means.
A
Undue influence
B
Fraud
C
Mistake
D
coercion
Question 33
_____________________ : When a person induces another to act on a false belief that is caused by a representation he or she does not believe to be true. It can arise either from deliberate concealment of facts or through misrepresenting them.
A
Undue influence
B
Fraud
C
Mistake
D
coercion
Question 34
_____________________ : When a person who is able to dominate the will of another, uses her position to obtain an undue advantage over the other.
A
Undue influence
B
Fraud
C
Mistake
D
coercion
Question 35
Which among the following is an example of coercion?
A
Ramesh signs a contract without having knowledge of the fine print
B
Ramesh threatens to kill Mahesh if he does not sign the contract
C
Ramesh uses his professional standing to get Mahesh to sign a contract
D
Ramesh provides false information to get Mahesh to sign a contract
Question 36
Which among the following is an example of undue influence?
A
Ramesh signs a contract without having knowledge of the fine print
B
Ramesh threatens to kill Mahesh if he does not sign the contract
C
Ramesh uses his professional standing to get Mahesh to sign a contract
D
Ramesh provides false information to get Mahesh to sign a contract
Question 37
Which among the following is an example of fraud?
A
Ramesh signs a contract without having knowledge of the fine print
B
Ramesh threatens to kill Mahesh if he does not sign the contract
C
Ramesh uses his professional standing to get Mahesh to sign a contract
D
Ramesh provides false information to get Mahesh to sign a contract
Question 38
Which among the following is an example of material information in Life Insurance?
A
own medical history, family history of hereditary illnesses, habits like smoking and drinking, absence from work, age, hobbies, financial information like income details of proposer, preexisting life insurance policies, occupation etc.
B
construction and usage of building, age of the building,nature of goods in premises etc.
C
description of goods, method of packing etc.
D
description of vehicle, date of purchase, details of driver etc.
Question 39
Which among the following is an example of material information in Fire Insurance?
A
own medical history, family history of hereditary illnesses, habits like smoking and drinking, absence from work, age, hobbies, financial information like income details of proposer, preexisting life insurance policies, occupation etc.
B
construction and usage of building, age of the building,nature of goods in premises etc.
C
description of goods, method of packing etc.
D
description of vehicle, date of purchase, details of driver etc.
Question 40
Which among the following is an example of material information in Marine Insurance?
A
own medical history, family history of hereditary illnesses, habits like smoking and drinking, absence from work, age, hobbies, financial information like income details of proposer, preexisting life insurance policies, occupation etc.
B
construction and usage of building, age of the building,nature of goods in premises etc.
C
description of goods, method of packing etc.
D
description of vehicle, date of purchase, details of driver etc.
Question 41
Which among the following is an example of material information in Marine Insurance?
A
own medical history, family history of hereditary illnesses, habits like smoking and drinking, absence from work, age, hobbies, financial information like income details of proposer, preexisting life insurance policies, occupation etc.
B
construction and usage of building, age of the building,nature of goods in premises etc.
C
description of goods, method of packing etc.
D
description of vehicle, date of purchase, details of driver etc.
Question 42
Which among the following is an example of material information in Motor Insurance?
A
own medical history, family history of hereditary illnesses, habits like smoking and drinking, absence from work, age, hobbies, financial information like income details of proposer, preexisting life insurance policies, occupation etc.
B
construction and usage of building, age of the building,nature of goods in premises etc.
C
description of goods, method of packing etc.
D
description of vehicle, date of purchase, details of driver etc.
Question 43
The concept of ___________________ is defined as involving “a positive duty to voluntarily disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not".
A
Undue influence
B
Fraud
C
Mistake
D
Uberrima fides
Question 44
Misrepresentation is of two kinds:
A
Innocent Misrepresentation relates to inaccurate statements, which are made without any fraudulent intention.
B
Fraudulent Misrepresentation on the other hand refers to false statements that are made with deliberate intent to deceive the insurer or are made recklessly without due regard for truth.
C
All of the above
D
none of the above
Question 45
An insurance contract generally becomes ____________________ when there is a clear case of concealment with intent to deceive, or when there is fraudulent misrepresentation.
A
void
B
Voidable
C
All of the above
D
none of the above
Question 46
________________________________ is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril. If the loss has been caused by the insured peril, the insurer is liable. If the immediate cause is an insured peril, the insurer is bound to make good the loss, otherwise not. Under this rule, the insurer looks for the predominant cause which sets into motion the chain of events producing the loss. This may not necessarily be the last event that immediately preceded the loss i.e. it is not necessarily an event which is closest to, or immediately responsible for causing the loss.
A
Proximate cause
B
Undue influence
C
Fraud
D
Mistake
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