TRADE QUESTIONS

1.The principle of indemnity is applied in practice through

a) extra premium b) excess clause deduction

c) franchise clause deduction d) deduction for depreciation

2.Which of the following statements is true?

Statement A:Voluntary excess under own damage section is applicable

to all vehicles.-only Private car/Motor .Cycles
Statement B:Compulsory excess is applicable only to commercial
vehicles.-to all vehicles
a) Neither of the statements b) Only statement A
c) Only statement B d) Both statements

3.Which of the following documents is not relevant to bodily injury claims for
processing third party claims under motor policies?

a) Coroner’s report b) Driving licence

c) Police report d) Medical certificate

4.Which of the following is ‘not’ considered as a Material fact?

a) The previous insurers had cancelled the policy
b) The previous insurer had rejected the proposal
c) The previous insurers had refused to renew the policy
d) The insured had cancelled his policy

5.Application for compensation under Solatium Scheme has to be made to:

a) Corporate office of an insurance company

b) Claims enquiry officer nominated by State Government
c) Nominated divisional office of the insurance company
d) Claims settlement commissioner nominated by the State Government

6.Which of the following statements is true?

Statement A: As per IRDA Regulations, there is a legal obligation on the part

of insurers to issue a renewal notice to the insured
Statement B: Issue of a renewal notice means that the policy is automatically
renewed, if the premium is paid.
a) Neither of the statements b) Only Statement A
c) Only Statement B d) Both Statements
7.Under the Motor Tariff, “Miscellaneous Vehicles” do not include
a) Motorized rickshaws b) Mobile dispensaries
c) Ambulances d) Hearses-vehicles to carry coffins to funeral

8.The duty of disclosure of material facts arises

a) Only during the proposal stage

b) Only during the policy period if there is a change of risk
c) Only at the time of renewal
d) All of the above

9.Of the following exclusions under the Motor Policy, which one does not
appear under general exclusions of the policy?

a) Driving without a valid driving licence

b) Driving under the influence of intoxication
c) Geographical area
d) Breach of limitations as to use clause

10.The liability of the owner of the motor vehicle to pay compensation for death
claims on no fault of him under the Motor Vehicles Act, 1988 is __________

a) Rs.50,000 b) Rs.10,000
c) Rs.25,000 d) Unlimited

11.Under the motor comprehensive policy, towing charges in respect of a

damaged vehicle include the cost of -----

a] protecting the vehicle b] removing it to the nearest

repairers
c] re-delivery to the insured d] All of the above

12 WHICH ONE OF THE FOLLOWING IS CORRECT IN RESPECT OF

SPECIAL SICK LEAVE DUE TO MAJOR SICKNESS,

A) 90 DAYS IN TE ENTIRE PERIOD OF SERVICE.

B) 120 DAYS IN THE ENTIRE PERIOD OF SERVICE.

C) 240 DAYS IN THE ENTIRE PERIOD OF SERVICE

D) NONE OF THE ABOVE

 13 LOSS OR DAMAGE DUE TO TSUNAMI IS PAYABLE

A) UNDER FLOOD , STORM , TEMPEST, HURRICANE PERILS.

B) PAYABLE ONLY UNDER EQRTHQUAKE EXTESNION.

C) PAYABLE EVEN WITHOUT FLOOD

D) NONE OF THE ABOVE.

14.Absence of direct relationship between re insurer and insured is an essence

of the reinsurance concept. Which of the following clause is against this
concept?

a) Premium adjustment clause

b) Claims cooperation clause

c) Cut through clause

d) Follow the fortune clause

15.Which of the following is not relevant in facultative re insurance?

a) Sessions

b) Retrocessions

c) Portfolio entry

d) Reinstatement

16.In an XL form of reinsurance the top and drop method is not relevant in which
of the following case?

a) When there are more than one layer

b) When the number & amount of reinstatement is restricted

c) When there is a single reinsurer

d) None of the above

17.A consequential fire policy indemnifies the insured in respect of:
 Fire losses
 Profit losses
 Net profit
 Net profit and standing charges
 Fire and standing charges
18.Risk covered under IAR policy is
 Fire material damage
 Business interruption
 Machinery breakdown
 Machinery loss of profit
 All the above
19.For an export marine consignment which one of the clauses will be
applicable:
 ITC (A)
 ITC (B)
 ITC(C)
 None of the above
20.Duty and increased value insurance can be granted for the following
consignments
 Export consignments
 Road risks in India
 Rail risks
 None of the above

21.What is a tail end risks:

 Liability risks
 Claims with a long tail
 Risks which attach after 15 days
 None of the above
22.A motorcar with manufacturing date as 12/4/1939 is
 An obsolete car
 Is a vehicle not insurable
 Is a car classified as classic
 None of the above

23.A vehicle not road worthy can be ideally offered the following covers
 Fire policy
 Burglary policy
 Motor policy covering fire
 Motor policy covering theft
 Motor policy covering fire /theft as per GR 45
24.As per ICC(C ) following loss or damage is not covered
 Fire
 Earthquake
 General average sacrifice
 Washing overboard

25. Under marine insurance, cover may be granted for shipments which have
commenced transit but may have been actually lost under the following
provisions/clauses
 Sue and Labour clause
 Not to inure clause
 Lost or not lost clause
 Losses not known clause

26..INCOTERMS are internationally accepted commercial terms defining

respective roles of buyer and seller which of the following is odd term out
 CIF
 CFR
 FAS
 WTO

27..Under Money insurance policy ,burglary took place in show room at 12 mid
night .Sum insured was Rs.10 lacs for transit ,Rs.5 lacs for cash in safe & Rs.2
lacs for cash at counter.The money lost was Rs.1 lac from the counter.How much
is the claim payable?

a) Rs.1 Lac
b) Rs.50,000/-
c) Not payable
d) Payable subject to condition of average

28.Burglars broke open the front door of a business premises and entered .They
took the keys of the safe from cashiers drawer.They took away Rs.10 Lacs from
the safe .Insured had a Money policy covering Rs.5 Lacs under cash in safe.The
claim payable will be:
a) Rs.2.5 lacs
b) Rs.5 Lacs
c) Not payable
d) Payable on Non-standard basis
29.One passenger bus was covered under Motor package policy.While parked in
the garage at night extra horn ,tyres,and decorative fittings were stolen.The calim
is payable :
 a) In full
b) Only 50% is payable
c) Payable on Non-standard basis
d) Not payable
30.Premium from the following classes of vehicles goes to the Motor insurance
pool:
a) Total premium collected on Private car & Two wheelers
b) OD premium and Liability premium collected on Commercial vehicles
c) Liability & PA premium collected on Commercial vehicles
d) Total premium collected from Goods Carrying vehicles