Ic 78 Misc mcq1

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IN IC 78 – MISCELLANEOUS INSURANCE
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UPDATED QUESTIONS
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REAL FEEL TEST – UPDATED QUESTIONS
Question1 The Sheep and Goat cover applies to all indigenous, cross breed and exotic sheep and goats
in the age group of 6 months to ______ .
(a) 3 years
(b) 5 years
(c) 6 years
(d) 7 years
(e) 9 years
Correct Answer 6 years

Answer Explanation The Sheep and Goat insurance cover applies to all indigenous, cross breed and exotic sheep
and goats in the age group of 6 months to 6 years (4 months to 7 years to scheme animals).
Question2 Which of the following is not likely to be covered under shopkeeper’s insurance policy?
(a) Loss of or damage to fixed plate glass in the insured premises by accidental means
(b) Loss of or damage to building by storm or tempest
(c) Loss of or damage to building by flood
(d) Personal accident cover for insured/his employees
(e) Loss resulting out of depreciation
Correct Answer Loss resulting out of depreciation

Answer Explanation Loss resulting out of depreciation is not likely to be covered under shopkeeper’s insurance
policy.
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REAL FEEL TEST
UPDATED QUESTIONS
Question3 The word ‘Cattle’ for the purpose of insurance refers to which of the following animals –
1. Bullocks 2. Milch Cows 3. Stud bulls
(a) Only 1
(b) Only 2
(c) All 1, 2 and 3
(d) 1 and 3
(e) 1 and 2
Correct Answer All 1, 2 and 3

Answer Explanation The word ‘Cattle’ for the purpose of insurance refers to the following animals whether
indigenous, exotic or cross bred -
Milch Cows, Milch Buffaloes, Stud bulls and Bullocks.
Question4 Unpaid wages etc. retained at the insured’s premises in burglar-resisting safe, or strong
room are covered in Money insurance. What does 'wages' consist of?
1. Unpaid wages 2. Bonus 3. Salaries
(a) Only 3
(b) All 1, 2 and 3
(c) Only 1
(d) 1 and 3
(e) 1 and 2

Answer Explanation Cash in safe comprise unpaid wages, salaries, bonus etc.
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REAL FEEL TEST
UPDATED QUESTIONS
Question5 A receiver may also be appointed to administer the estate –

1. Of a person who is pronounced mentally incapable
2. Of a person who is in prison
3. Of a minor who is placed under the Court of Wards till he attains majority
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Both 1 and 3
(e) All 1, 2 and 3
Correct Answer Both 1 and 3

Answer Explanation Estates which are under dispute and referred to the court for adjudication are temporarily
placed under the care of a receiver during the pendency of the case. The receiver has to
administer the estate and render to the court, proper accounting of the estate when under
his care.
A receiver may also be appointed to administer the estate:
- Of a minor who is placed under the Court of Wards till he attains majority, or
- Of a person who is pronounced mentally incapable
Question6 In the case of claim procedure for Scheme Animals, the intimation of loss/death of animal
should be given to the Company or Financing Bank within _____ .
(a) 7 days
(b) 10 days
(c) 14 days
(d) 15 days
(e) 21 days
Correct Answer 7 days

Answer Explanation Intimation of loss / death of animal should be given to the Company or Financing Bank
immediately, within 7 days.
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REAL FEEL TEST
UPDATED QUESTIONS
Question7 Event insurance coverage is not likely to include _______ .

(a) Liability cover to spectators, participants and performers
(b) Loss of profit due to the failure of the event
(c) Cancellation of event due to accident or illness to the performers
(d) Cancellation of the event due to specified perils like fire
(e) ‘Loss of profit’ cover due to cancellation or postponement of the event
Correct Answer Loss of profit due to the failure of the event

Answer Explanation Loss of profit due to failure of an event is not likely to be covered under event insurance.
Question8 Choose the false statement - -

(a) Doctors’package insurance does not cover professional liability insurance.
(b) Doctors’package insurance covers fire in respect of building and contents.
(c) Doctors’package insurance covers money in transit with the doctor.
(d) Doctors’package insurance covers professional liability insurance.
(e) Doctors’package insurance covers allied perils in respect of building and contents.
Correct Answer Doctors’package insurance does not cover professional liability insurance.
Answer Explanation Doctors’ package insurance does cover professional liability insurance.
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REAL FEEL TEST
UPDATED QUESTIONS
Question9 Which of these is / are exclusions under the Sericulture (silk worm) insurance?
1. Diseases contracted prior to or within 5 days from the date of commencement of risk
2. Loss due to natural mortalities
3. Loss due to improper management
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) All 1, 2 and 3
(e) 2 and 3

Answer Explanation Exclusions under the Sericulture (silk worm) insurance are:
i. Diseases contracted prior to or within 5 days from the date of commencement of risk.
ii. Loss due to natural mortalities and / or normal trade loss.
iii. Loss due to improper management and / or rough handling.
iv. Theft or clandestine sale.
Question10 Proportional reinsurance agreements do not include ________ .

(a) Pool basis agreements
(b) Quota share agreements
(c) Surplus share agreements
(d) Stop loss agreements
(e) All of the above
Correct Answer Stop loss agreements

Answer Explanation Stop loss agreements are non-proportional reinsurance agreements. Rest all
are proportional reinsurance agreements.
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REAL FEEL TEST
UPDATED QUESTIONS
Question11 Which of the following is not likely to be covered under householder’s insurance policy?
(a) Loss of or damage to jewellery and valuables caused by accident or misfortune whilst
anywhere in India.
(b) Personal accident insurance for insured, his spouse and children
(c) Loss of or damage to personal baggage due to accident or misfortune whilst travelling
anywhere in India
(d) Loss of or damage to personal baggage due to accident or misfortune whilst travelling
anywhere across the globe
(e) None of the above
Correct Answer Loss of or damage to personal baggage due to accident or misfortune whilst travelling
anywhere across the globe
Answer Explanation Loss of or damage to personal baggage due to accident or misfortune whilst travelling
anywhere across the globe is not likely to be covered under householder’s insurance policy.
Question12 Does shopkeeper’s insurance policy cover Business interruption (loss of profit policy)?
(a) Yes, it is covered under Section 8
(b) Yes, it is covered under Section 9
(c) Yes, it is covered under Section 10
(d) Yes, it is covered under Section 11
(e) No, it is not covered
Correct Answer Yes, it is covered under Section 11

Answer Explanation Section 11 of shopkeeper’s insurance policy covers Business interruption (loss of profit
policy)
Loss of profit due to interruption in business consequent upon loss sustained by property
insured in Section A of the policy, due to insured perils under that section.
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REAL FEEL TEST
UPDATED QUESTIONS
Question13 In sports insurance, what can be the maximum age of the insured?
(a) 40 years
(b) 50 years
(c) 60 years
(d) 70 years
(e) 80 years

Answer Explanation The maximum age of the insured in sports insurance can be 70 years.
Question14 The Missing Documents Indemnity can be issued for a period of ____ .
(a) 3 months
(b) 6 months
(c) 1 year
(d) 2 years
(e) Several years
Correct Answer Several years

Answer Explanation In case when owners of original documents apply for duplicate ones as the original have
been misplaced / lost, the authorities concerned ask for an indemnity from an insurance
company before they issue duplicate documents like share certificates.
An important aspect of these indemnities is that they may continue to be force for several
years.
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REAL FEEL TEST
UPDATED QUESTIONS
Question15 Which of these is/are exclusions in a Personal Accident insurance?

1. Disablement due to an accident caused by external violent and visible means
2. Accident while engaging in aviation or ballooning
3. From service in the armed forces
(a) Only 3
(b) All 1, 2 and 3
(c) Only 1
(d) 1 and 2
(e) 2 and 3
Correct Answer 2 and 3

Answer Explanation Personal Accident insurance covers disablement due to an accident caused by external
violent and visible means.
It does not cover accidents while engaging in aviation or ballooning and accidents from
service in the armed forces etc.
Question16 Loss of passport is covered under which section of the Destination India policy?
(a) Section I
(b) Section III
(c) Section V
(d) Section IV
(e) Section VII
Correct Answer Section V

Answer Explanation The Destination India policy, more or less similar to Videsh Yatra Mitra policy but covers
overseas travellers during their visit to India.
Section V covers loss of passport.
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REAL FEEL TEST
UPDATED QUESTIONS
Question17 In the Banker’s indemnity insurance policy, who is not deemed to be an Employee?
1. Director, other than salaried 2. Partner, other than salaried 3. Senior Manager
(a) Only 1
(b) Only 2
(c) Only 2
(d) 1 and 2
(e) All 1, 2 and 3

Answer Explanation ‘Employee’ is deemed to mean all existing employees on the salary roll of the bank at all its
offices, but shall not include any director or partner other than salaried.
Question18 Rashtriya Swasthya Bima Yojana (RSBY) has been launched by _______ .
(a) Ministry of Rural Development, Government of India
(b) Ministry of Economic Development, Government of India
(c) Mahatma Gandhi National Rural Employment Guarantee Scheme
(d) Ministry of Labour and Employment, Government of India
(e) Insurance Regulatory and Development Authority - IRDA
Correct Answer Ministry of Labour and Employment, Government of India

Answer Explanation RSBY has been launched by the Ministry of Labour and Employment, Government of India,
to provide health insurance coverage for the below poverty line (BPL) families. The
objective of RSBY is to provide protection to BPL households from financial liabilities
arising out of health shocks that involve hospitalisation.
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REAL FEEL TEST
UPDATED QUESTIONS
Question19 Market agreements had been formulated by the G.I.C. for the insurance of cattle, poultry,
etc. Which of the following forms had not been standardised under the agreement?
(a) Claim form
(b) Underwriting certificate to be submitted with claim form
(c) Standard policy
(d) Proposal form
(e) All of the above
Correct Answer Underwriting certificate to be submitted with claim form

Answer Explanation Veterinary certificate to be submitted with the claim form is standardised under the
agreement.
Question20 Under Poultry Insurance, which of the following bird(s) is / are included?
1. Guinea fowls 2. Geese 3. Turkey
(a) Only 2
(b) Only 3
(c) All 1,2 and 3
(d) 1 and 2
(e) 2 and 3
Correct Answer All 1,2 and 3

Answer Explanation Poultry means domesticated species of birds, reared for eggs, meat or feathers and
includes chicken, ducks, geese, turkey, guinea fowls etc.
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REAL FEEL TEST
UPDATED QUESTIONS
Question21 Identify the true statement with respect to insurance of zoo animals -
(a) Sum insured is based on valuation done by curator and health certificate by veterinary
doctor
(b) Sum insured is based on valuation done by curator only
(c) Sum insured is based on valuation done by veterinary doctor only
(d) Sum insured is based on valuation done by the zoo authorities
(e) Zoo animals cannot be insured
Correct Answer Sum insured is based on valuation done by curator and health certificate by veterinary
doctor
Answer Explanation The insurance can be done for Zoo and Circus animals and birds on all or none basis. Sum
insured based, on valuation done by curator and health certificate by veterinary doctor.
Question22 _________ cover goods in more than one location covered under one sum insured.
(a) Declaration policies
(b) Floating policies
(c) Valued policies
(d) Policies based on inventory and valuation
(e) First loss policies
Correct Answer Floating policies

Answer Explanation Floating policies - These policies cover goods in more than one location covered under one
sum insured. For example, a sum of Rs. one lakh may be floated over five warehouses. The
subject matter of insurance has to be identical in all locations and the locations should be
in the same city, town or village.
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REAL FEEL TEST
UPDATED QUESTIONS
Question23 Under the Plate Glass Insurance policy, the premium rates ranges from _______ .
(a) 3 % to 9 % of the value of the glass
(b) 5 % to 15 % of the value of the glass
(c) 3 % to 7 % of the value of the glass
(d) 5 % to 10 % of the value of the glass
(e) 1 % to 5 % of the value of the glass
Correct Answer 5 % to 10 % of the value of the glass

Answer Explanation The rate of premium depends on the type of glass, situation, previous experience and
neighborhood.
The rate ranges from 5 percent to 10 percent of the value of the glass.
Question24 ________ also undertakes to pay premiums in a timely manner before the expiry of the
cancer insurance policy so that the policyholder holds a current policy at all times
(a) CAAP
(b) ACAP
(c) PCCA
(d) CPAA
(e) CAPA
Correct Answer CPAA

Answer Explanation CPAA - Cancer Patients Aid Association
In 1994, CPAA introduced the cancer insurance policy in collaboration with New India
Assurance Company. The policy is available to healthy individuals who have not suffered
from cancer in the past.
CPAA also undertakes to pay premiums in a timely manner before the expiry of the policy
so that the policyholder holds a current policy at all times.
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REAL FEEL TEST
UPDATED QUESTIONS
Question25 In Cattle Insurance, Milch Buffaloes can be provided insurance in which of these age limits?
(a) 2 years to 10 years
(b) 3 years to 10 years
(c) 3 years to 12 years
(d) 4 years to 12 years
(e) 2 years to 8 years
Correct Answer 3 years to 12 years

Answer Explanation Milch Buffaloes can be provided insurance within the age of 3 to 12 years.
Question26 ________ diseases are covered under Critical illness cover.

1. Renal failure 2. Multiple sclerosis 3. Cancer
(a) 1 and 2
(b) 2 and 3
(c) 1, 2 and 3
(d) Only 3
(e) 1 and 3
Correct Answer 1, 2 and 3

Answer Explanation The Critical illness cover, which is popular in the western countries, has gained momentum
in India. This is a benefit policy, wherein, the insured gets the sum insured in lump sum as a
benefit, after ninety days of diagnosis of the named critical illnesses like cancer, renal
failure, organ failure requiring transplantation, multiple sclerosis, coronary diseases etc.
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UPDATED QUESTIONS
Question27 In Group Health policies, under what circumstances will the cover be reviewed with regard
to renewal?
(a) When the incurred claim ratio is over 200%
(b) When the incurred claim ratio is over 150%
(c) When the incurred claim ratio is over 100%
(d) When the incurred claim ratio is over 50%
(e) When the incurred claim ratio is over 25%
Correct Answer When the incurred claim ratio is over 200%

Answer Explanation If the incurred claims ratio is very high - over 200% , then the cover is reviewed.
Question28 Kamal owns some heavy machinery and wants to take burglary insurance it. However,
estimating the total loss of this heavy machinery is practically impossible. Kamal desires
that since the maximum probable loss is unlikely to exceed a certain percentage of the full
value, the property may be insured for a sum representing that percentage only. Suggest a
policy to Mr. Kamal.
(a) Reducing Depreciation Policy
(b) Declaration policy
(c) First loss policy
(d) Full value policy
(e) Valued policy
Correct Answer First loss policy

Answer Explanation First loss policies are not full value insurance in the sense that the sum insured under the
policy does not represent the full value of the property covered by the policy. There are
certain bulk commodities stored in loose form like sulphur, rock phosphate, etc. as also
heavy machinery, the total loss of which is practically impossible.
The proposer in such cases desires that since the maximum probable loss is unlikely to
exceed a certain percentage of the full value, the property may be insured for a sum
representing that percentage only. If the insurer agrees to such a request, ‘first loss’ policy
(also known as ‘partial value’ policy) is issued.
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REAL FEEL TEST
UPDATED QUESTIONS
Question29 Householders insurance policy is subject to which of the following exceptions?

1. Wear and tear and depreciation 2. Nuclear perils 3. Earthquake
(a) Only 1
(b) 1 and 2
(c) Only 2
(d) All 1, 2 and 3
(e) 2 and 3

Answer Explanation The HOUSEHOLDER’S INSURANCE policy is subject to certain common exceptions like:
- War and allied perils
- Wear and tear and depreciation
- Consequential loss
- Nuclear perils
(Earthquake is covered in this policy)
Question30 in the section 'Loss of checked baggage' under the Videsh Yatra Mitra, no claim will be paid
for items valued in excess of _____ without proof of ownership.
(a) US $ 100
(b) US $ 200
(c) US $ 500
(d) US $ 750
(e) US $ 1000
Correct Answer US $ 100

Answer Explanation No claim will be paid for items valued in excess of US $ 100 without proof of ownership.
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REAL FEEL TEST
UPDATED QUESTIONS
Question31 What are the qualities required for an underwriter of horse insurance?
1. An underwriter of horse insurance should be well versed in veterinary science
2. He should also have a fair knowledge of animal management
3. He should have the ability to assess independently the value of the horse/s proposed for
insurance
(a) Only 1
(b) Only 1 and 2
(c) Only 1 and 3
(d) All 1, 2 and 3
(e) Only 3

Answer Explanation An underwriter of horse insurance should be well versed in veterinary science and should
also have a fair knowledge of animal management.
The policy provides that the insurers will pay the market value or sum insured whichever is
less. Still, it is difficult to reopen the question of market value at the time of loss and the
policies of this class of insurance are issued more or less as valued policies.
The underwriter should, therefore, have the ability to assess independently the value of
the horse/s proposed for insurance
Question32 What does Aquaculture insurance cover?

1. Loss of fishes 2. Loss of shrimps 3. Loss of prawns
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation The Aquaculture insurance covers only total loss or destruction of shrimp and prawns.
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REAL FEEL TEST
UPDATED QUESTIONS
Question33 Under Plate Glass insurance, _______ is considered a greater hazard.

1. Slum area
2. Disturbed localities where children play in streets or hooliganism is present
3. Vacant premises
(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 and 3
(e) 1 and 3
Correct Answer Only 3

Answer Explanation In Plate Glass Insurance, vacant premises provide greater hazard since damage may be
affected easily without detection for longer period.
Question34 Which of these are exclusions in the Honey bee insurance?

1. Natural mortality
2. Any destruction as required by any order of Government/ Municipal authority.
3. Neglect or improper management
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) All 1, 2 and 3
(e) Only 1

Answer Explanation The important exclusions in Honey bee insurance are:
i. Neglect or improper management and / or rough handling
ii. Natural mortality
iii. Any destruction as required by any order of Government / municipal authority.
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REAL FEEL TEST
UPDATED QUESTIONS
Question35 The basis for a ________ originates from an employer and employee relationship or a
fiduciary relationship where confidence or trust reposed plays a crucial part.
(a) Term Insurance
(b) Money insurance
(c) Burglary insurance
(d) Commercial loyalty insurance
(e) Fidelity Guarantee
Correct Answer Fidelity Guarantee

Answer Explanation Commercial Fidelity Guarantee covers the employer in respect of any direct financial loss
which he may suffer as a result of employee’s dishonesty. The majority of policies issued
are to commercial and manufacturing firms and the basis for a Fidelity Guarantee
originates from an employer and employee relationship or a fiduciary relationship where
confidence or trust reposed plays a crucial part.
Question36 In tertiary care insurance, the long term group policies premium can be paid in
installments. The number of installments for a 10 year policy are ____ .
(a) 2
(b) 3
(c) 4
(d) 5
(e) 6
Correct Answer 4
Answer Explanation Tertiary care insurance is a major ailments hospitalisation/domiciliary hospitalisation
expenses reimbursement policy for individuals and group.
For long term group policies premium can be paid in installments, two in case of 5 year
policies and four in case of 10 year policies.
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REAL FEEL TEST
UPDATED QUESTIONS
Question37 In the Overseas health policy, Children between the ages of ___________ are covered by
excluding certain specific diseases peculiar to children like measles, whooping cough.
(a) 3 months to 3 years
(b) 1 months to 3 years
(c) 3 months to 5 years
(d) 6 months to 5 years
(e) 3 months to 9 years
Correct Answer 6 months to 5 years

Answer Explanation Children between the ages of 6 months to 5 years are covered by excluding certain specific
diseases peculiar to children like measles, whooping cough.
Question38 ________ is / are covered under Overseas Travel/Health Policy.

1. Loss of passport 2. Delay of checked baggage 3. Personal accident
(a) Only 3
(b) Only 1
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation Overseas health policies cover :
Under Section A – Personal accident
Under - Section D – Delay of checked baggage
Under Section E – Loss of passport
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REAL FEEL TEST
UPDATED QUESTIONS
Question39 In a PERSONAL ACCIDENT INSURANCE, claims arising out of _______ is/ are not payable on
grounds of public policy.
1. Breach of law with criminal intent 2. Liquor or drugs 3. Venereal diseases
(a) Only 1
(b) All 1,2 and 3
(c) 2 and 3
(d) Only 2
(e) Only 3
Correct Answer All 1,2 and 3

Answer Explanation In PERSONAL ACCIDENT INSURANCE - Claims arising out of liquor or drugs, venereal
diseases, breach of law with criminal intent are not payable on grounds of public policy.
Question40 Which of the following is covered under Identity theft cover?

(a) Cash advances made by card
(b) Charges post reporting the loss of the card
(c) Charges more than specified number of hours prior to first reporting the loss of the card
(d) Charges incurred by a person whom the card was entrusted to
(e) None of the above
Correct Answer None of the above

Answer Explanation All the above come under Specific exclusions and are not covered under Identity theft
cover.
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REAL FEEL TEST
UPDATED QUESTIONS
Question41 A Group P.A. policy excluding the death benefit can be issued - subject to which of the
following conditions?
1. A group life policy covering death benefit for the same group of persons is in existence
2. Group P.A. policy covers a group of 100 persons and above
3. A discount based on the premium applicable to death cover is allowed from the total
premium
(a) All 1, 2 and 3
(b) 1 and 3
(c) 2 and 3
(d) Only 2
(e) Only 1

Answer Explanation It is possible to issue group P.A. policies excluding the death benefit, subject to following
conditions:
a) A group life policy covering death benefit for the same group of persons is in existence
b) Group P.A. policy covers a group of 100 persons and above
c) A discount based on the premium applicable to death cover is allowed from the total
premium
Question42 Which of the following statement is true with regard to Basic Sum insured of Bankers
indemnity policy ?
1. The proposer has to select the sum insured which is the limit of liability of the insurer for
any one loss.
2. Sum insured cannot be increased during the currency of the policy.
3. Sum insured cannot be increased at the renewal of the policy.
(a) Only 1
(b) Only 1 and 2
(c) Only 1 and 3
(d) All 1, 2 and 3
(e) Only 3
Correct Answer Only 1 and 2

Answer Explanation Basic sum insured - The proposer has to select the sum insured which is the limit of liability
of the insurer for any one loss. The sum is known as the basic sum insured. It cannot be
increased during the currency of the policy.
However, it may be increased at the renewal of the policy.
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REAL FEEL TEST
UPDATED QUESTIONS
Question43 Under which section does the shopkeepers insurance policy provide personal accident
cover for the insured and his employees?
(a) Section 4
(b) Section 8
(c) Section 7
(d) Section 6
(e) No such insurance is provided
Correct Answer Section 8

Answer Explanation Section 8 of the SHOPKEEPERS INSURANCE POLICY covers personal accident covers for
insured/his employees.
Question44 Mr. Ravi had taken a shopkeeper’s insurance policy and suffers losses due to damage to
the neon sign by accidental means. Will this accident be covered under the policy?
(a) Yes, it will be covered under Section 2
(b) Yes, it will be covered under Section 3
(c) Yes, it will be covered under Section 6
(d) Yes, it will be covered under Section 5
(e) No, it will not be covered
Correct Answer Yes, it will be covered under Section 6

Answer Explanation Section 6 of the Shopkeepers insurance policy deals with Neon Sign Insurance.
The insurance is in respect of loss or damage to the neon sign installation by:
- Accidental external means or
- Fire, lightning, external explosion and theft
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REAL FEEL TEST
UPDATED QUESTIONS
Question45 The amount of the _______ is stipulated by the court making the appointment, and it
depends upon the value of both the real and the personal estate of the deceased.
(a) Administration bond
(b) Excise bond
(c) Debenture bond
(d) Custom bond
(e) Liquidator’s bond
Correct Answer Administration bond

Answer Explanation When a person dies intestate, that is, without making a will, the court appoints an
administrator for winding up the affairs of the deceased.
The person who is appointed as an administrator has to furnish a surety for the proper
discharge of his duties and for the proper accounting of the deceased’s estate. The bond
issued by insurers in favour of the court guaranteeing the proper discharge of duties by the
administrator and the proper accounting of the estate of the deceased is known as an
administration bond.
The amount of the bond is stipulated by the court making the appointment, and it depends
upon the value of both the real and the personal estate of the deceased.
Question46 Lift irrigation insurance policy provides indemnity against physical loss and/or damage by -
1. Mechanical and/or electrical breakdown 2. Fire 3. Earthquake
(a) All 1, 2 and 3
(b) Only 3
(c) 2 and 3
(d) 1 and 2
(e) Only 2

Answer Explanation The lift irrigation system comprises of Intake well, Pump House, Electric motors etc.
The policy provides indemnity against unforeseen and sudden physical loss and/or damage
by Fire, Riot, strike and malicious damage, Storm, Flood, Earthquake, Landslide, Theft,
Bursting of pipelines, Mechanical and/or electrical breakdown etc.
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REAL FEEL TEST
UPDATED QUESTIONS
Question47 The time frame stipulated for discovery of losses in Commercial fidelity guarantee is
______ .
(a) Not later than 3 months after the termination of the policy
(b) Not later than 6 months after the termination of the policy
(c) Not later than 9 months after the termination of the policy
(d) Not later than 12 months after the termination of the policy
(e) Not later than 18 months after the termination of the policy
Correct Answer Not later than 12 months after the termination of the policy
Answer Explanation Commercial fidelity guarantees covers the employer in respect of any direct financial loss
which he may suffer as a result of employees’ dishonesty.
The customary time limit provided is that the act insured against should be:
- Discovered not later than twelve months after the resignation, dismissal, retirement or
death of the employee, or
- Not later than 12 months after the termination of the policy, whichever be the earlier
Question48 Which policy is designed to cover the education expenses of the insured student, if the
providing parent or guardian is involved in an accident, which results in his death or
permanent total disablement?
(a) Amar Student Yojana
(b) Amartya Shiksha Yojana
(c) Student Safety Insurance
(d) Siksha Safety Insurance
(e) Janta Personal Accident Insurance
Correct Answer Amartya Shiksha Yojana

Answer Explanation Policy covering education expenses/Amartya Shiksha Yojana policy: This is a policy
designed to cover the education expenses of the insured student, if the providing parent or
guardian is involved in an accident, which results in his death or permanent total
disablement.
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UPDATED QUESTIONS
Question49 Under the VIDESH YATRA MITRA policy, Valuables would mean –
1. Antiques 2. Jewellery 3. Furs
(a) Only 2
(b) Only 1
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation Valuables means photographic, audio, video, computer, telecommunications and electrical
equipment, telescopes binoculars, spectacles, sunglasses, antiques, watches, jewellery, furs
and articles made of precious stones and metals.
Question50 Identify the true statement with respect to insurance of CIRCUS animals -
(a) Circus animals cannot be insured
(b) Sum insured is based on valuation done by the zoo authorities
(c) Sum insured is based on valuation done by curator only
(d) Sum insured is based on valuation done by veterinary doctor only
(e) Sum insured is based on valuation done by curator and health certificate by veterinary
doctor
Correct Answer Sum insured is based on valuation done by curator and health certificate by veterinary
doctor
Answer Explanation The insurance can be done for Zoo and Circus animals and birds on all or none basis. Sum
insured based, on valuation done by curator and health certificate by veterinary doctor.
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UPDATED QUESTIONS
Question51 'Employees' as used in the Banker’s indemnity insurance policy is deemed to mean –
1. Clerks 2. Officers 3. Sub staffs
(a) Only 2
(b) Only 1
(c) 1 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Answer Explanation ‘Employee’ is deemed to mean all existing employees (officers, clerks and sub-staff)
whether permanent or temporary, whole time or part time, on contract or otherwise,
including apprentices, on the salary roll of the bank at all its offices, but shall not include
any director or partner other than salaried.
Question52 In burglary insurance, the rate of premium depends upon ______ .

1. Type of goods 2. Location of premises 3. Construction of premises
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation BURGLARY (BUSINESS PREMISES) POLICY - The rate of premium varies according to type of
goods, location, and construction of premises, security measures etc.
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UPDATED QUESTIONS
Question53 Which of the following is/are covered under Lift Irrigation policy?
1. Pump house 2. Bore wells 3. Centrifugal pump sets up to 25 H.R
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation The lift irrigation system comprises:
- Intake well
- Delivery chambers
- Jack Well
- Pump House
- Water Storage Tank
- Pipelines Cables
- Switch Gears
- Starters
- Electric motors of capacity from 3 H.P. to 200 H.P
(Bore wells and Centrifugal pumps are not included)
Question54 In Plantation insurance, there is no indemnity for losses to the insured plants by –
1. Climatic variations 2. Damage by birds 3. Lightning
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UPDATED QUESTIONS
(a) Only 1
(b) Only 3
(c) 1 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Answer Explanation Plantation insurance covers losses due to :
a) Fire (including forest fire and bush fire)
b) Lightning
c) Storm, Flood and Inundation
d) Riot, Strike and Terrorism
It does not provide indemnity in respect of :

a) Loss by theft
b) Earthquake
c) Loss / damage due to insects , pests and diseases (unless specially covered)
d) Climatic variations, pollution, non-bearing of fruits
e) Damage by birds, animals etc.
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UPDATED QUESTIONS
Question55 Mr. Mohit is interested in insuring an wild elephant which lives in forest. The age of the
elephant is 12 years. Can Mr. Mohit insure this elephant?
(a) Yes, he can insure the elephant as elephants between the age 5 to 50 years can be insured
(b) Yes, he can insure the elephant as elephants between the age 10 to 50 years can be insured
(c) Yes, he can insure the elephant as elephants between the age 12 to 60 years can be insured
(d) No, he cannot insure the elephant as elephants between the age 15 to 50 years can only be
insured
(e) No, he cannot insure the elephant as wild elephants cannot be insured
Correct Answer No, he cannot insure the elephant as wild elephants cannot be insured
Answer Explanation Elephants which are used for commercial / religious purposes in the age group 5 to 60
years can only be insured. Wild elephants cannot be insured.
Question56 In case of 'Delay of checked baggage' claim, a non-delivery certificate must be obtained
immediately from the airline which must be submitted to _____ in the event of a claim.
(a) Indian Embassy
(b) Insurance Company
(c) TPA
(d) Mercury
(e) Jupiter
Correct Answer Mercury

Answer Explanation A non-delivery certificate must be obtained immediately from the airline which must be
submitted to ‘Mercury’ in the event of a claim.
MERCURY is Mercury International Assistance and Claims Limited who provide emergency
assistance and claims administration services.
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UPDATED QUESTIONS
Question57 Mr. Kutty has an elephant of age 50 years, which he uses for religious purpose. Can he
insure this elephant?
(a) Yes, he can insure the elephant as the maximum age up to which such elephants can be
insured is 60 years
(b) Yes, he can insure the elephant as the maximum age up to which such elephants can be
insured is 70 years
(c) Yes, he can insure the elephant as the maximum age up to which such elephants can be
insured is 50 years
(d) No, he cannot insure the elephant as the maximum age up to which such elephants can be
insured is 40 years
(e) Elephants used for religious purpose cannot be insured
Correct Answer Yes, he can insure the elephant as the maximum age up to which such elephants can be
insured is 60 years
Answer Explanation Elephants used for commercial/religious purposes in the age group 5 to 60 years can be
insured.
Question58 The period of Customs Bonds may vary from ________ .

(a) a few months to a period as long as seven years
(b) three years to a period as long as ten years
(c) one year to a period as long as five years
(d) a few months to a period as long as ten years
(e) a few days to a period as long as three years
Correct Answer a few months to a period as long as seven years

Answer Explanation Customs bonds are to be executed by importers in favour of the Controller of Imports and
Exports agreeing, inter-alia, to perform the conditions stipulated in the Import Trade
Control Regulations.
The period of customs bonds may vary from a few months to a period as long as seven
years, depending upon the materials or goods imported.
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UPDATED QUESTIONS
Question59 _______ is / are covered under poultry insurance.

1. Death due to lightning 2. Accident due to lightning 3. Death due to fire
(a) All 1, 2 and 3
(b) Only 3
(c) Only 1
(d) 1 and 3
(e) 2 and 3

Answer Explanation The poultry insurance policy provides indemnity against death of birds due to:
- Accident (including fire, lightning, flood, cyclone / storm / tempest / earthquake, strike,
Riot, act of terrorism) or
- Disease contracted or occurring during the period of insurance
Question60 ‘Money’ as used in the Banker’s indemnity insurance policy is deemed to mean –
1. Stamp papers 2. Ornaments pledged with the insured 3. Postage and revenue stamps
(a) Only 3
(b) 1 and 2
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Answer Explanation “Money” as used in the Banker’s indemnity insurance policy is deemed to mean bank notes
(signed and unsigned), bullion, coins, currency, jewellery, precious stones, ornaments
pledged with the insured, postage and revenue stamps (uncancelled) and stamp papers.
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UPDATED QUESTIONS
Question61 The covers provided under Doctors package insurance include ______ .
1. Fire and allied perils in respect of building
2. Fidelity guarantee insurance for cashier / compounder
3. Professional liability insurance
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Both 2 and 3
(e) All 1, 2 and 3

Answer Explanation The following cover is provided under Doctors’ package insurance:
a) Fire and allied perils in respect of building and contents Burglary / house-breaking, theft
in respect of contents
b) Fidelity guarantee insurance for cashier / compounder / any other authorised employee
c) Money in transit with the doctor, his compounder or any other authorised employee
d) Loss of or damage to doctor’s kit by fire, theft or accident during visits within the
municipal city limits
e) All Risks cover for ECG machine and such other equipment pertaining to doctor’s
profession
f) Signboard
g) Professional liability insurance
Question62 _________ are issued mainly in respect of valuables, paintings, pictures, curios, antiques
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UPDATED QUESTIONS
and other works of art.

(a) Valued Policies
(b) Floating policies
(c) First loss policies
(d) Art and Collectibles policy
(e) Declaration policy
Correct Answer Valued Policies

Answer Explanation Valued policies are contracts where the sum insured is deemed to be the actual value of
the property insured throughout the currency of insurance.
Valued policies are issued mainly in respect of valuables, paintings, pictures, curios,
antiques and other works of art.
Question63 In the case of a Floater Commercial Fidelity Guarantee floater policy, it shall cease to cover
the defaulting employee _________ .
(a) from the date the loss is discovered
(b) from 1 month the date the loss is discovered
(c) from 2 months the date the loss is discovered
(d) from 3 months the date the loss is discovered
(e) from 10th day the date the loss is discovered
Correct Answer from the date the loss is discovered

Answer Explanation if the policy is a floater or collective or blanket Commercial Fidelity Guarantee, it shall only
cease to cover the defaulting employee or employees on and from the date the loss is
discovered.
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UPDATED QUESTIONS
Question64 Which are the documents which need to be submitted by the insured for filing claims
under horse insurance policy?
1. Identity and market value of the horse
2. Satisfactory proof as to the cause of death
3. Appropriate certificates from veterinary surgeon
(a) Only 3
(b) Only 2 and 3
(c) All 1, 2 and 3
(d) Only 1 and 2
(e) Only 1 and 3

Answer Explanation On the death of the horse described in the schedule of the policy, the insured is required to
give within twelve hours notice to the insurer and to give the insurer an opportunity of
inspecting the carcass by not removing, cutting or parting with it until the expiration of at
least 24 hours after such notice is issued to the insurers.
Within 21 days thereafter, satisfactory proof as to the cause of death, identity and market
value of the horse, together with appropriate certificate / s from veterinary surgeon, must
be submitted.
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UPDATED QUESTIONS
Question65 In the Missing Documents Indemnity, the insurers, while granting such an indemnity,
almost always obtain a ______ in order to safeguard their interests.
(a) bank guarantee
(b) confirmation letter
(c) counter indemnity
(d) assurance guarantee
(e) confirmation indemnity
Correct Answer counter indemnity

Answer Explanation In case when owners of original documents apply for duplicate ones as the original have
been misplaced / lost, the authorities concerned ask for an indemnity from an insurance
company before they issue duplicate documents like share certificates.
Insurers, while granting such an indemnity, almost always obtain a counter indemnity in
order to safeguard their interests.
Question66 __________ means manual and / or operative procedures for correction of deformities and
defects, repair or injuries, diagnosis and cure of disease, relief of suffering and
prolongation of life.
(a) Heart Bypass Operation
(b) Surgical Operation
(c) Anaesthesia
(d) Cesarean Operation
(e) Convalescence
Correct Answer Surgical Operation

Answer Explanation “Surgical Operation” means manual and / or operative procedures for correction of
deformities and defects, repair or injuries, diagnosis and cure of disease, relief of suffering
and prolongation of life.
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UPDATED QUESTIONS
Question67 In case of total abandonment of an arranged cricket match special contingency policy,
which of these are covered –
1. Loss of profit or consequential loss of any description
2. Bad debts or irrecoverable revenue
3. Actual financial loss suffered by the insured
(a) Only 1
(b) Only 2
(c) Only 3
(d) Both 2 and 3
(e) All 1, 2 and 3

Answer Explanation The policy covers the actual financial loss suffered by the insured i.e. the organisers.
The important EXCLUSIONS usually applied are -

a) Loss of profit or consequential loss of any description
b) Contractual liability, which would not have attached in the absence of such agreement
c) Bad debts or irrecoverable revenue
d) Liability for injury to any person or damage to any property
e) War and allied perils
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UPDATED QUESTIONS
Question68 Name the occupations which are classified under Risk group I –
1. Architects 2. Veterinary Doctors 3. Accountants
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Answer Explanation Under classification of risk -
Risk group I - Accountants, Doctors, Lawyers, Architects, Consulting Engineers, Teachers,
Bankers, persons engaged in administration functions, persons primarily engaged in
occupations of similar hazards.
Veterinary Doctors come under Risk group II.
Question69 Under the 'Excess of loss reinsurance', limit up to which the ceding company bears losses
arising out of single event is called the –
1. Surplus 2. Loss 3. Underlying net retention
(a) Only 1
(b) 1 and 2
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Answer Explanation The latest form of effecting reinsurance is on the excess of loss basis. Here the ceding
company bears up to a fixed sum of losses in respect of a claim or claims arising out of a
single event in a particular class of business. This limit up to which the ceding company
bears losses arising out of single event is called the “loss” or “underlying net” retention of
the ceding company.
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UPDATED QUESTIONS
Question70 _________ covers for damage to the pedal cycle resulting from fire, explosion, lightning,
riots etc.
(a) Two wheeler insurance
(b) Pedal cycle insurance
(c) Plate glass insurance
(d) Motor insurance
(e) Sports insurance
Correct Answer Pedal cycle insurance

Answer Explanation The Pedal cycle insurance policy covers loss or damage by:
- Accidental external means
- Fire, lightning or external explosions
- Theft, burglary
- Riot, strike, Malicious Act
Question71 Premium paid on health policies qualifies for tax benefit under _____ of Income Tax Act.
(a) Section 80U
(b) Section 80C
(c) Section 80G
(d) Section 80D
(e) Section 80B
Correct Answer Section 80D

Answer Explanation Premium qualifies for tax benefit under section 80D of Income Tax Act.
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UPDATED QUESTIONS
Question72 Ravindra gets an epileptic fit while walking near a lake. He falls into the lake and drowns.
Analyse the case with regard to doctrine of Proximate cause.
(a) The accident remains the proximate cause so long as the events which follow it are the
natural ones in such circumstances
(b) The disease, which is a new intervening cause, is regarded as the proximate cause hence
rendering the claim untenable
(c) The accident caused is no way contributed to by the disease. The condition is proximately
caused by the accident
(d) The disease is remote cause and the accident the proximate cause
(e) A claim for the accident cannot be admitted unless there is a proof of the accident being
the proximate cause of death
Correct Answer The disease is remote cause and the accident the proximate cause
Answer Explanation The disease promotes the accident but the injuries are due to the accident. For example, fit
– fall into lake – drowned – death. Here, the disease is the remote cause and the accident
the proximate cause.
Question73 If a person incurs losses due to theft of his identity and fraudulent usage thereof, he gets
compensated under the __________ .
(a) Web business insurance
(b) Kidnap and ransom insurance
(c) Money policy to individuals for withdrawals from ATMs
(d) Intellectual property insurance
(e) Identity theft cover
Correct Answer Identity theft cover

Answer Explanation Identity theft cover : If a person incurs losses due to theft of his identity and fraudulent
usage thereof, he gets compensated. Modern commercial world has brought with it
associated risks. Use of debit and credit cards has increased manifold.
People have become vulnerable to theft and subsequent losses arising from such cards, for
which they are legally liable to pay. To take care of such losses and the costs incurred for
efforts to resolve the theft and the issue thereof is sought to be covered.
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UPDATED QUESTIONS
Question74 The Pedal cycle insurance will NOT be operative if –

1. The insured pedal cycle is overloaded
2. The insured pedal cycle is used in racing
3. The insured pedal cycle is used for pace making
(a) Only 3
(b) All 1, 2 and 3
(c) 1 and 2
(d) 1 and 3
(e) 2 and 3

Answer Explanation The Pedal cycle insurance cover is not operative if the insured pedal cycle is overloaded, or
in racing, pace making or speed tests.
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UPDATED QUESTIONS
Question75 Under the Office protection shield, which perils are compulsory for owners (building)
insured?
1. Fire and allied perils
2. Burglary, robbery and dacoity
3. Loss of money while in transit, on the premises during office hours and in safe after
office hours.
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) Only 1
(e) All 1,2 and 3

Answer Explanation Under the Office protection shield - Sections I and II (A) are compulsory for owners
(building) insured.
Section I - Building (for owners)
i. Building including landlord’s fixtures, fittings, boundary wall and fences
ii. This section covers fire and allied perils including EQ and STFI perils
Section II (A) - Office contents

i. Furniture, fixtures, fittings, electrical appliances, clothing and personal effects of insured
or employees
ii. Perils covered - As per Section I, including burglary, robbery and dacoity
Loss of money while in transit is covered in Section III.
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UPDATED QUESTIONS
Question76 The advantage of taking Money at business counter extension along with Commercial
fidelity Guarantee is ________ .
(a) Money in till or on counter in the insured’s premises during the insured’s business hours,
can be covered
(b) Infidelity is covered even if discovered after the specified number of hours
(c) Disbursement risk is also covered under the policy
(d) Money retained in burglar resisting safe in the insured premises cover for a period excess
of 48 hours can be granted
(e) Loss or damage arising out of strikes/riots are covered
Correct Answer Money in till or on counter in the insured’s premises during the insured’s business hours,
can be covered
Answer Explanation The advantage of taking Money at business counter extension along with Commercial
fidelity Guarantee is that money in till or on counter in the insured’s premises during the
insured’s business hours, can be covered at an additional premium.
Question77 The duration of ‘crop period’ in Sericulture is _______ .

(a) 1 to 2 months
(b) 3 to 6 months
(c) 1 weeks to 3 weeks
(d) 3 weeks to 5 weeks
(e) 6 weeks to 9 weeks
Correct Answer 3 weeks to 5 weeks

Answer Explanation In Sericulture, the crop period varies from 3 weeks to 5 weeks i.e. from the stage
of plantation of eggs to the final stage i.e. harvesting of cocoons.
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UPDATED QUESTIONS
Question78 The insurer may cancel the health policy (Mediclaim) after a notice period of ____ to the
insured.
(a) 15 days
(b) 20 days
(c) 30 days
(d) 45 days
(e) 60 days

Answer Explanation The insurer may cancel the health policy after a notice period of 30 days with pro-rata
refund of premium. The company shall however remain liable for any claim which arose
prior to the date of cancellation.
Question79 Which coverage is compulsory under Doctors’package insurance?

(a) Loss of or damage to doctor’s kit by fire, theft or accident
(b) Fire and allied perils in respect of building and contents
(c) Money in transit with the doctor
(d) Professional liability insurance
(e) Fidelity guarantee insurance for cashier / compounder
Correct Answer Fire and allied perils in respect of building and contents
Answer Explanation In Doctors’ package insurance, coverage under “Section A” is compulsory which covers -
Fire and allied perils in respect of building and contents Burglary / house-breaking, theft in
respect of contents.
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UPDATED QUESTIONS
Question80 As per the Rashtriya Swasthya Bima Yojana (RSBY), family means ______ .
(a) Earning head only
(b) Earning head and spouse only
(c) Earning head, spouse and up to maximum of one dependent children
(d) Earning head, spouse and up to maximum of two dependent children
(e) Earning head, spouse and up to maximum of three dependent children
Correct Answer Earning head, spouse and up to maximum of three dependent children
Answer Explanation As per the Rashtriya Swasthya Bima Yojana - Family means earning head, spouse and up to
maximum of three dependent children. Dependent parents can also be included.
Question81 Jewellers Block Insurance policy had been specially devised for ______ .
(a) Establishments dealing solely in Gold
(b) Establishments dealing solely in Silver
(c) Establishments dealing solely in Diamonds
(d) Establishments dealing solely in Platinum
(e) Establishments dealing solely in imitation jewellery
Correct Answer Establishments dealing solely in Diamonds

Answer Explanation Jewellers Block Insurance policy had been specially devised for diamontaires, i.e those
establishments dealing solely in diamonds.
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UPDATED QUESTIONS
Question82 As per Section C 'Loss of checked baggage' in the Videsh Yatra Mitra policy -
(a) Partial loss or damage shall become payable
(b) 50% of the loss or damage shall become payable
(c) 75% of the loss or damage shall become payable
(d) 25% of the loss or damage shall become payable
(e) No partial loss or damage shall become payable
Correct Answer No partial loss or damage shall become payable

Answer Explanation Insurance company will pay up to the limit of cover shown in the schedule in the event of
the insured person suffering a total loss of baggage that has been checked by an
international airline for an international flight.
No partial loss or damage shall become payable.
Question83 ______ are appointed by the court to deal with the estates of persons who have filed
insolvency petition before the court or are declared insolvent by the courts.
1. Receivers 2. Liquidators 3. Administrators
(a) Only 1
(b) Only 2
(c) Only 3
(d) 1 and 3
(e) All 1, 2 and 3

Answer Explanation Liquidators are appointed by the court to deal with the estates of persons who have filed
insolvency petition before the court or are declared insolvent by the courts.
Unlike the receivers, the liquidators have to meet the claims of the insolvent’s estate from
his debtors. The liquidator has to produce a bond guaranteeing his honest and faithful
accounting to the estate.
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UPDATED QUESTIONS
Question84 In a health insurance policy, a discount of _____ in the total premium is allowed for a
family insurance.
(a) 5%
(b) 10%
(c) 15%
(d) 20%
(e) 25%
Correct Answer 10%

Answer Explanation A family discount of 10% in the total premium is allowed to a family comprising the insured
and any one or more of the following:
- Spouse
- Dependent Children
- Dependent parents
Question85 In sports insurance, what can be the minimum age of the insured?
(a) 10 years
(b) 12 years
(c) 15 years
(d) 16 years
(e) 17 years

Answer Explanation The age limit for sports insurance is 17 to 70 years.
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UPDATED QUESTIONS
Question86 Under the Bankers Indemnity insurance, the cancellation condition provides for ____ day’s
notice either side, by registered post.
(a) 5
(b) 10
(c) 15
(d) 20
(e) 30
Correct Answer 15
Answer Explanation With the vast expansion of banking business in the country the incidence of white collar
crimes e.g. fraud, dishonesty etc. has also increased. The Bankers Indemnity insurance,
which is a combination of several specific covers provides protection to the banks against
such losses.
The policy provides indemnity for any direct loss of money and / or securities sustained by
the insured and discovered during the period specified in the policy.
The cancellation condition provides for 15 day’s notice either side, by registered post.
Question87 If P.A cover is required only for the restricted hours of duty (and not for 24 hours a day),
________ .
(a) a reduced premium equivalent to 25% of the appropriate premium is charged
(b) a reduced premium equivalent to 50% of the appropriate premium is charged
(c) a reduced premium equivalent to 60% of the appropriate premium is charged
(d) a reduced premium equivalent to 75% of the appropriate premium is charged
(e) Number of hours has no affect on the premium
Correct Answer a reduced premium equivalent to 75% of the appropriate premium is charged
Answer Explanation Under Group personal accident policies, if P.A cover is required only for the restricted
hours of duty (and not for 24 hours a day), a reduced premium equivalent to 75% of the
appropriate premium is charged.
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UPDATED QUESTIONS
Question88 What does the Destination India policy offer –

1. Funeral expenses 2. Medical expenses 3. Personal accident benefit
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation The Destination India policy covers overseas travellers during their visit to India.
The salient features of the coverage are:
a) Section I (Personal accident benefit)
b) Section II (Medical expenses)
It also covers funeral expenses or repatriation of remains, in the event of death of the
insured person whilst on the covered trip etc.
Question89 What is the maximum age limit of Employment and Study policy?
(a) 50 years
(b) 55 years
(c) 57 years
(d) 60 years
(e) 65 years

Answer Explanation The Employment and Study policy is designed for Indian citizens temporarily posted abroad
in a sedentary non-manual work or students undertaking studies or engaging in research
activities abroad. The Age limit is 18 to 60 years.
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UPDATED QUESTIONS
Question90 In Health Insurance the final claim with receipted bills, cash memos, claim form and list of
documents as listed in the claim form etc. should be submitted to the company/TPA within
__________ from the date of completion of treatment.
(a) 3 days
(b) 5 days
(c) 7 days
(d) 10 days
(e) 30 days

Answer Explanation Final claim with receipted bills, cash memos, claim form and list of documents as listed in
the claim form etc. should be submitted to the company/TPA within 30 days from the date
of completion of treatment.
Question91 Mr. Ankit is covered under Corporate frequent traveller’s endorsement. As per the policy,
what can be the maximum duration of any one trip that can be taken by Mr. Ankit abroad?
(a) Not exceeding 10 days
(b) Not exceeding 25 days
(c) Not exceeding 40 days
(d) Not exceeding 50 days
(e) Not exceeding 60 days
Correct Answer Not exceeding 60 days

Answer Explanation The following endorsement is attached to the usual Corporate frequent traveller’s
endorsement policy:
- Notwithstanding anything contained herein to the contrary this insurance is valid in
respect of trips undertaken during the 12 months following the date of purchase as stated
in the schedule, subject to the total number of days of insured travel not exceeding 180
days in all in the 12 months and the duration of any one trip not exceeding 60 days.
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UPDATED QUESTIONS
Question92 Now days, the __________ is the most common form of treaty reinsurance.
(a) Quota share treaty method
(b) Pool basis of reinsurance
(c) Surplus basis reinsurance
(d) Stop loss reinsurance
(e) Excess of loss reinsurance
Correct Answer Surplus basis reinsurance

Answer Explanation Now days, the surplus basis reinsurance is the most common form of treaty reinsurance.
Under this arrangement the ceding company reinsures with the treaty reinsurers surpluses
over and above its retention in terms, and within the size of, the treaty.
Question93 In health cover policies, relevant medical expenses incurred during period up to ______
prior to hospitalisation are treated as part of the claim and are reimbursed to insured.
(a) 10 days
(b) 15 days
(c) 20 days
(d) 30 days
(e) 45 days

Answer Explanation Relevant medical expenses incurred during period up to 30 days prior to and period of 60
days after hospitalisation are treated as part of the claim.
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UPDATED QUESTIONS
Question94 Analyse the meaning of - 'Kidnap and Ransom insurance policies are indemnity policies’
1. K&R policies reimburse a loss incurred by the insured
2. K&R policies pay ransoms on the behalf of the insured
3. The insured must first pay the ransom, thus incurring the loss, and then seek
reimbursement under the K&R policy.
(a) 1 and 2
(b) 1 and 3
(c) All 1,2 and 3
(d) Only 2
(e) Only 3

Answer Explanation Kidnap and Ransom - K&R policies are indemnity policies; they reimburse a loss incurred by
the insured. The policies do not pay ransoms on the behalf of the insured. The insured
must first pay the ransom, thus incurring the loss, and then seek reimbursement under the
policy.
Question95 The insured shall, upon the occurrence of any event giving rise to or likely to give rise to a
claim under the Aquaculture policy, give immediate notice within ____ to the insurance
company
(a) 6 hours
(b) 12 hours
(c) 24 hours
(d) 36 hours
(e) 48 hours
Correct Answer 24 hours

Answer Explanation The insured shall, upon the occurrence of any event giving rise to or likely to give rise to a
claim under this policy, give immediate notice within 24 hours to the Company, and shall
within 14 days thereafter furnish to the company fully completed claim form, death
certificate etc.
-
REAL FEEL TEST
UPDATED QUESTIONS
Question96 Cancellation of the overseas health policy may be done __________ .

(a) not less than 10 days after the first day of insurance as indicated in the policy schedule
(b) when the journey is not undertaken due to ill health or flight cancellation
(c) when the insured person gives an undertaking in writing that the journey has not been
undertaken
(d) in cases where a journey is not undertaken and only on production of the insured person’s
passport as a proof that the journey has not been undertaken
(e) Overseas health policy cannot be cancelled
Correct Answer in cases where a journey is not undertaken and only on production of the insured person’s
passport as a proof that the journey has not been undertaken
Answer Explanation Cancellation of the overseas health policy may be done only in cases where a journey is not
undertaken and only on production of the insured person’s passport as a proof that the
journey has not been undertaken. Any request for cancellation will be entertained not less
than 14 days after the first day of insurance as indicated in the policy schedule.
Question97 According to the Principle of Insurable Interest, employers will have ______ .
1. Complete and unlimited insurable interest on the lives of their employees
2. Nil insurable interest on the lives of their employees
3. Insurable interest in the lives of their employees in so far as they would suffer in a
pecuniary sense by the death or disablement of their employees
(a) Only 1
(b) Only 2
(c) Only 3
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation The employers are deemed to have an insurable interest in the lives of their employees in
so far as they would suffer in a pecuniary sense by the death or disablement of their
employees.
-
REAL FEEL TEST
UPDATED QUESTIONS
Question98 In the Employment and Study policy, the minimum age for eligibility is _____ .
(a) 12 years
(b) 15 years
(c) 18 years
(d) 21 years
(e) 22 years

Answer Explanation The Employment and Study policy is designed for Indian citizens temporarily posted abroad
in a sedentary non-manual work or students undertaking studies or engaging in research
activities abroad. The eligible age limit is 18 to 60 years.
Question99 What is a 'Claim settlement agency' with respect to overseas health policy / Videsh Yatra
Mitra?
1. It is an overseas agency with which insurers have entered into an MOU to provide
emergency assistance and claims administration services
2. They are medical practitioners appointed by the relevant ‘agency’
3. It is that person named in the policy schedule, for whom the appropriate premium has
been paid.
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Answer Explanation Claim settlement agency is an overseas agency with which insurers have entered into an
MOU to provide emergency assistance and claims administration services.
-
REAL FEEL TEST
UPDATED QUESTIONS
Question100 Standard policy wordings for Cattle Insurance as per the specimen incorporated in the
Agreement provided for indemnity only for death due to –
1. Surgical Operations 2. Riot and Strike 3. Accident
(a) All 1, 2 and 3
(b) Only 3
(c) Only 1
(d) 1 and 2
(e) 1 and 3

Answer Explanation Standard policy wordings for Cattle Insurance as per the specimen incorporated in the
Agreement provided for indemnity only for death due to:
- Accident (Inclusive of fire, lightning, flood, inundation, storm, hurricane, earthquake,
cyclone, tornado, tempest and famine)
- Diseases contracted or occurring during the period of this policy.
- Surgical Operations
- Riot and Strike
-
REAL FEEL TEST
UPDATED QUESTIONS
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WE WISH YOU ALL THE BEST!

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

REAL FEEL TEST – UPDATED QUESTIONS

Correct Answer 6 years

Correct Answer Loss resulting out of depreciation

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer All 1, 2 and 3

Correct Answer All 1, 2 and 3

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question5 A receiver may also be appointed to administer the estate –

Correct Answer Both 1 and 3

Correct Answer 7 days

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question7 Event insurance coverage is not likely to include _______ .

Correct Answer Loss of profit due to the failure of the event

Question8 Choose the false statement - -

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer All 1, 2 and 3

Question10 Proportional reinsurance agreements do not include ________ .

Correct Answer Stop loss agreements

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer Yes, it is covered under Section 11

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer 70 years

Correct Answer Several years

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question15 Which of these is/are exclusions in a Personal Accident insurance?

Correct Answer 2 and 3

Correct Answer Section V

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer 1 and 2

Correct Answer Ministry of Labour and Employment, Government of India

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer Underwriting certificate to be submitted with claim form

Correct Answer All 1,2 and 3

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer Floating policies

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer 5 % to 10 % of the value of the glass

Correct Answer CPAA

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer 3 years to 12 years

Question26 ________ diseases are covered under Critical illness cover.

Correct Answer 1, 2 and 3

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer When the incurred claim ratio is over 200%

Correct Answer First loss policy

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question29 Householders insurance policy is subject to which of the following exceptions?

Correct Answer 1 and 2

Correct Answer US $ 100

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer All 1, 2 and 3

Question32 What does Aquaculture insurance cover?

Correct Answer 2 and 3

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question33 Under Plate Glass insurance, _______ is considered a greater hazard.

Correct Answer Only 3

Question34 Which of these are exclusions in the Honey bee insurance?

Correct Answer All 1, 2 and 3

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Correct Answer Fidelity Guarantee