IC38 English Paper

Que. 1 : Which among the following is the regulator for the insurance industry in India ?
1. Insurance Authority of India
2. Insurance Regulatory and Development Authority of India
3. Life Insurance Corporation of India
4. General Insurance Corporation of India
Que. 2 : Which among the following is a secondary burden of risk ?
1. Business interruption cost
2. Goods damaged cost
3. Setting aside reserves as a provision for meeting potential losses in the future
4. Hospitalisation costs as a result of heart attack
Que. 3 : Which among the following is a method of risk transfer ?
1. Bank FD
2. Insurance
3. Equity shares
4. Real estate
Que. 4 : Which among the following scenarios warrants insurance ?
1. The sole bread winner of a family might die untimely
2. A person may lose his wallet
3. Stock prices may fall drastically
4. A house may lose value due to natural wear and tear
Que. 5 : Which of the below insurance scheme is run by an insurer and not sponsored by the Government ?
1. Employees State Insurance Corporation
2. Crop Insurance Scheme
3. Jan Arogya
4. All of the above
Que. 6 : Risk transfer through risk pooling is called ________.
1. Savings
2. Investments
3. Insurance
4. Risk mitigation
Que. 7 : The measures to reduce chances of occurrence of risk are known as _____.
1. Risk retention
2. Loss prevention
3. Risk transfer
4. Risk avoidance
Que. 8 : By transferring risk to insurer, it becomes possible ___________.
1. To become careless about our assets
2. To make money from insurance in the event of a loss
3. To ignore the potential risks facing our assets
4. To enjoy peace of mind and plan one’s business more effectively
Que. 9 : Origins of modern insurance business can be traced to __________.
1. Bottomry
2. Lloyds
3. Rhodes
4. Malhotra Committee
Que. 10 : In insurance context ‘risk retention’ indicates a situation where _____.
1. Possibility of loss or damage is not there
2. Loss producing event has no value
3. Property is covered by insurance
4. One decides to bear the risk and its effects
Que. 11 : Which of the following statement is true ?
1. Insurance protects the asset
2. Insurance prevents its loss
3. Insurance reduces possibilities of loss
4. Insurance pays when there is loss of asset
Que. 12 : 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 ?
1. Rs.100/-
2. Rs.200/-
3. Rs.80/-
4. Rs.400/-
Que. 13 : Which of the following statements is true ?
1. Insurance is a method of sharing the losses of a ‘few’ by ‘many’
2. Insurance is a method of transferring the risk of an individual to another individual
3. Insurance is a method of sharing the losses of a ‘many’ by a few
4. Insurance is a method of sharing the losses of a ‘many’ by a few
Que. 14 : Why do insurers arrange for survey and inspection of the property before acceptance of a risk ?
1. To assess the risk for rating purposes
2. To find out how the insured purchased the property
3. To find out whether other insurers have also inspected the property
4. To find out whether neighbouring property also can be insured
Que. 15 : Which of the below option best describes the process of insurance ?
1. Sharing the losses of many by a few
2. Sharing the losses of few by many
3. One sharing the losses of few
4. Sharing of losses through subsidy
Que. 16 : What is meant by customer lifetime value ?
1. Sum of costs incurred while servicing the customer over his lifetime
2. Rank given to customer based on business generated
3. Sum of economic benefits that can be achieved by building a long term relationship with the customer
4. Maximum insurance that can be attributed to the customer
Que. 17 : Identify the scenario where a debate on the need for insurance is not required.
1. Property insurance
2. Business liability insurance
3. Motor insurance for third party liability
4. Fire insurance
Que. 18 : As per the Consumer Protection Act, 1986, who cannot be classified as a consumer ?
1. Hires goods / services for personal use
2. A person who buys goods for resale purpose
3. Buys goods and services for a consideration and uses them
4. Uses the services of another for a consideration
Que. 19 : What does not go on to make a healthy relationship ?
1. Attraction
2. Trust
3. Communication
4. Scepticism
Que. 20 : Which among the following is not an element of active listening ?
1. Paying good attention
2. Being extremely judgemental
3. Empathetic listening
4. Responding appropriately
Que. 21 : Which among the following is not a characteristic of ethical behaviour ?
1. Making adequate disclosures to enable the clients to make an informed decision
2. Maintaining confidentiality of client’s business and personal information
3. Maintaining confidentiality of client’s business and personal information
4. Placing client’s interest ahead of self interest
Que. 22 : ____________ is not a tangible good.
1. House
2. Insurance
3. Mobile Phone
4. A pair of jeans
Que. 23 : _______________ is not an indicator of service quality.
1. Cleverness
2. Reliability
3. Empathy
4. Responsiveness
Que. 24 : In India _______________ insurance is mandatory.
1. Motor third party liability
2. Fire insurance for houses
3. Travel insurance for domestic travel
4. Personal accident
Que. 25 : One of the methods of reducing insurance cost of an insured is __________
1. Reinsurance
2. Deductible
3. Co-insurance
4. Rebate
Que. 26 : A customer having complaint regarding his insurance policy can approach IRDA through
1. IGMS
2. District Consumer Forum
3. Ombudsman
4. IGMS or District Consumer Forum or Ombudsman
Que. 27 : Consumer Protection Act deals with:
1. Complaint against insurance companies
2. Complaint against shopkeepers
3. Complaint against brand
4. Complaint against insurance companies, brand and shopkeepers
Que. 28 : ___________ has jurisdiction to entertain matters where value of goods or services and the compensation claim is up to 20 lakhs
1. High Court
2. District Forum
3. State Commission
4. National Commission
Que. 29 : In customer relationship the first impression is created:
1. By being confident
2. By being on time
3. By showing interest
4. By being on time, showing interest and being confident
Que. 30 : Select the correct statement:
1. Ethical behaviour is impossible while selling insurance
2. Ethical behaviour is not necessary for insurance agents
3. Ethical behaviour helps in developing trust between the agent and the insurer
4. Ethical behaviour is expected from the top management only
Que. 31 : Active Listening involves:
1. Paying attention to the speaker
2. Giving an occasional nod and smile
3. Providing feedback
4. Paying attention to the speaker, giving an occasional nod and smile and providing feedback
Que. 32 : The ______________ has jurisdiction to entertain complaints, where value of the goods or services and the compensation claimed is up to Rs.20 lakhs
1. District Forum
2. State Commission
3. ZillaParishad
4. National Commission
Que. 33 : Expand the term IGMS.
1. Insurance General Management System
2. Indian General Management System
3. Integrated Grievance Management System
4. Intelligent Grievance Management System
Que. 34 : Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs ?
1. District Forum
2. State Commission
3. National Commission
4. ZillaParishad
Que. 35 : Which among the following cannot form the basis for a valid consumer complaint ?
1. Shopkeeper charging a price above the MRP for a product
2. Shopkeeper not advising the customer on the best product in a category
3. Allergy warning not provided on a drug bottle
4. Faulty products
Que. 36 : Which of the below will be the most appropriate option for a customer to lodge an insurance policy related complaint ?
1. Police
2. Supreme Court
3. Insurance Ombudsman
4. District Court
Que. 37 : Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance Ombudsman ?
1. Insurance Ombudsman has National jurisdiction
2. Insurance Ombudsman has State jurisdiction
3. Insurance Ombudsman has District jurisdiction
4. Insurance Ombudsman operates only within the specified territorial limits
Que. 38 : How is the complaint to be launched with an insurance ombudsman ?
1. The complaint is to be made in writing
2. The complaint is to be made orally over the phone
3. The complaint is to be made orally in a face to face manner
4. The complaint is to be made through newspaper advertisement
Que. 39 : What is the time limit for approaching an Insurance Ombudsman ?
1. Within two years of rejection of the complaint by the insurer
2. Within three years of rejection of the complaint by the insurer
3. Within one year of rejection of the complaint by the insurer
4. Within one month of rejection of the complaint by the insurer
Que. 40 : Which among the following is not a pre-requisite for launching a complaint with the Ombudsman ?
1. The complaint must be by an individual on a ‘Personal Lines’ insurance
2. The complaint must be lodged within 1 year of the insurer rejecting the complaint
3. Complainant has to approach a consumer forum prior to the Ombudsman
4. The total relief sought must be within an amount of Rs.20 lakhs.
Que. 41 : Are there any fee / charges that need to be paid for lodging the complaint with the Ombudsman ?
1. A fee of Rs 100 needs to be paid
2. No fee or charges need to be paid
3. 20% of the relief sought must be paid as fee
4. 10% of the relief sought must be paid as fee
Que. 42 : Can a complaint be launched against a private insurer ?
1. Complaints can be launched against public insurers only
2. Yes, complaint can be launched against private insurers
3. Complaint can be launched against private insurers only in the Life Sector
4. Complaint can be launched against private insurers only in the Non-Life Sector
Que. 43 : Which among the following is an example of coercion ?
1. Ramesh signs a contract without having knowledge of the fine print
2. Ramesh threatens to kill Mahesh if he does not sign the contract
3. Ramesh uses his professional standing to get Mahesh to sign a contract
4. Ramesh provides false information to get Mahesh to sign a contract
Que. 44 : Which among the following options cannot be insured by Ramesh
1. Ramesh’s house
2. Ramesh’s spouse
3. Ramesh’s friend
4. Ramesh’s parents
Que. 45 : Which element of a valid contract deals with premium ?
1. Offer and acceptance
2. Consideration
3. Free consent
4. Capacity of parties to contract
Que. 46 : _____________ relates to inaccurate statements, which are made without any fraudulent intention.
1. Misrepresentation
2. Contribution
3. Offer
4. Representation
Que. 47 : _______________ involves pressure applied through criminal means.
1. Fraud
2. Undue influence
3. Coercion
4. Mistake
Que. 48 : Which among the following is true regarding life insurance contracts ?
1. They are verbal contracts not legally enforceable
2. They are verbal which are legally enforceable
3. They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
4. They are similar to wager contracts
Que. 49 : Which of the below is not a valid consideration for a contract ?
1. Money
2. Property
3. Bribe
4. Jewellery
Que. 50 : Which of the below party is not eligible to enter into a life insurance contract ?
1. Business owner
2. Minor
3. House wife
4. Government employee

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