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IN IC 78 – MISCELLANEOUS INSURANCE

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

PRACTICE TEST 4

Question1 Which of the following groups is not eligible for coverage under group personal accident
policies?
(a) Group of unrelated individuals
(b) Employees of an Organisation
(c) Members of a Club
(d) Members of a Association
(e) Members of a Society

Correct Answer Group of unrelated individuals

Answer Explanation Group of unrelated individuals is not eligible for coverage under group personal accident
policies.

Question2 What step is most likely taken in case of adverse claim ratio for a group health policy?
(a) Policy is discontinued with immediate effect
(b) All the claims beyond a certain value are rejected
(c) Risks are examined by an external underwriter
(d) Loading is applied to renewal premium
(e) All of the above

Correct Answer Loading is applied to renewal premium

Answer Explanation In case of adverse claim ratio for a group health policy loading is applied to renewal
premium.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question3 The factors governing retention limit of the insurer include which of the following?
(a) The nature of the risk
(b) Location of the risk
(c) The nature of the perils covered
(d) The insurer’s capacity to bear the loss
(e) All of the above

Correct Answer All of the above

Answer Explanation The factors which govern the determination of this limit are as under:

a) The nature of the risk

b) Location of the risk
c) The nature of the perils covered
d) The insurer’s capacity to bear the loss to the limit of retention without seriously
jeopardising his financial position
e) Whether the number of risks identical to the risk under consideration is sufficiently large
so as to allow for the play of the law of large numbers

Question4 Which of the following is not covered under money insurance?

(a) Cash in transit from bank to insured premises, for payment of wages
(b) Shortage due to error or omission
(c) Cash collected by employees from the time of collection and until delivered at the insured’s
premises or bank on the day of collection
(d) Cash in transit from the insured’s main premises to insured’s branch premises, for the
payment of wages
(e) Money in safe

Correct Answer Shortage due to error or omission

Answer Explanation Shortage due to error or omission is not covered under money insurance policy.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question5 A horse insurance policy provides indemnity in respect of death of a horse occurring from -
(a) Disease contracted whilst within the specified area during the period of insurance
(b) Accident within the specified area during the period of insurance
(c) Disease contracted whilst in transit within the specified geographical area during the
period of insurance
(d) Accident while in transit within the specified geographical area during the period of
insurance
(e) All of the above

Correct Answer All of the above

Answer Explanation Blood Stock (Horse) Insurance provides indemnity in respect of death of a horse occurring
from accident, illness of disease sustained or contracted whilst within the specified
geographical area (including transit therein) during the period of insurance.
The amount payable under the policy is either the sum insured or the market valued of the
animal immediately prior to the occurrence of the accident or the contracting of the illness
or disease, whichever is less.

Question6 ________ is not a personal accident based social insurance scheme.

(a) Rashtriya Swasthya Bima Yojana
(b) Rajarajeshwari Mahila Kalyan Yojana
(c) Bhagyashree child welfare policy
(d) All of the above
(e) None of the above

Correct Answer Rashtriya Swasthya Bima Yojana

Answer Explanation Rashtriya Swasthya Bima Yojana is not a personal accident based social insurance scheme.
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.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question7 In case of layer farms having more than 5,000 birds, inspection of the farm is done by
_________ .
(a) The Insurer
(b) The Insured
(c) The Company’s own vet officer
(d) The Underwriter
(e) The Surveyor

Correct Answer The Company’s own vet officer

Answer Explanation In case of layer farms having more than 5000 birds, inspection of the farm is done by the
Company’s own vet officer or panel Doctor.

Question8 The insurers liability respect of each Janata agent is limited to the extent of least of which
of the following?
(a) 5% of basic sum insured or Rs 1,000
(b) 10% of basic sum insured or Rs 5,000
(c) 10% of basic sum insured or Rs 10,000
(d) 5% of basic sum insured or Rs 10,000
(e) 5% of basic sum insured or Rs 100,000

Correct Answer 5% of basic sum insured or Rs 10,000

Answer Explanation The insurers liability respect of each such agent is limited to 5 percent of the basic sum
insured or Rs.10,000 whichever is less.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question9 In case of scheme animals, the policy is issued as agreed value policy and claims are settled
for -
(a) 75% of sum insured
(b) 65% of sum insured
(c) 90% of sum insured
(d) 80% of sum insured
(e) 100% of sum insured

Correct Answer 100% of sum insured

Answer Explanation Cattle Insurance - The market value of cattle varies from breed to breed, from area to
area and from time to time. The sum insured is based on market value as recommended by
a veterinarian. Indemnity is based on sum insured or market value whichever is less.
In case of scheme animals (Animals supported by Govt. schemes), the policy is issued as
agreed value policy and claims are settled for 100% of sum insured.

Question10 The exclusions under a burglary (business premises) insurance policy include _____ .
(a) Goods held in trust
(b) Stock in trade
(c) Tools of trade such as typewriters and calculators
(d) Loss/Damage discovered at the time of stock taking /checking
(e) Fixtures and fittings

Correct Answer Loss/Damage discovered at the time of stock taking /checking

Answer Explanation Loss/Damage discovered at the time of regular stock taking /checking is excluded under a
burglary (business premises) insurance policy.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question11 Kevin has two personal accident insurance policies with a sum insured of Rs 1,00,000 and
Rs 2,00,000 each. He dies in an accident. What is the amount he is eligible to receive?
(a) Rs. 1,00,000
(b) Rs. 2,00,000
(c) Rs. 3,00,000
(d) Rs. 1,50,000
(e) NIL

Correct Answer Rs. 3,00,000

Answer Explanation Kevin will receive the sum insured of both the policies.
Rs 3,00,000 will be received by Kevin as the principle of contribution does not apply to
personal accident policies.

Question12 Choose the incorrect statement - -

(a) Student Safety Insurance policy is issued in the name of students
(b) Suhana Safar policy covers any mode of transport
(c) Amartya Shiksha Yojana policy is designed to cover the education expenses of the insured
student
(d) Rasta Aapathi Kavach is designed to cater to needs of an individual who meets with an
accident with a motor vehicle on road or rail
(e) In Suhana Safar policy, the premium depends on the number of persons undertaking the
tour

Correct Answer Student Safety Insurance policy is issued in the name of students
Answer Explanation Student Safety Insurance is available to schools, colleges or other educational institutions.
The policy provides personal accident benefits to registered students.
Student Safety Insurance policy is issued in the name of the institution and the students
are the beneficiaries.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question13 In Personal accident insurance, the onus of substantiating a claim under the policy rests on
the ________ .
(a) Insured
(b) Insurer
(c) Underwriter
(d) Surveyor
(e) Both 1 and 2

Correct Answer Insured

Answer Explanation The onus of substantiating a claim under the policy rests on the insured. It is also necessary
for him to comply with the condition of the policy concerning claim procedure.
The usual relevant conditions are
- Notice of the occurrence be given immediately, to be followed by full details.
- The insured shall furnish satisfactory proof of all matters upon which a claim is based.

Question14 Which statement is not a part of the declaration in the proposal form for Videsh Yatra
Mitra policy?
(a) I will not be travelling against the advice of a physician
(b) I will not be travelling for the purpose of obtaining medical treatment
(c) I am not on waiting list for any medical treatment
(d) I am travelling for the purpose of obtaining medical treatment
(e) All of the above

Correct Answer I am travelling for the purpose of obtaining medical treatment

Answer Explanation I am travelling for the purpose of obtaining medical treatment is not a part of the
declarations present in the proposal form for Videsh Yatra Mitra policy.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question15 “Money” as used in the Banker’s indemnity insurance policy is deemed to mean –
1. Currency 2. Cheques 3. Precious stones
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 1 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.
Cheques are included under 'Securities' in the Banker’s indemnity insurance policy.

Question16 In Poultry farming, the small farmers face problems related to –

1. Input supplies 2. Veterinary aid 3. Marketing services
(a) Only 1
(b) Only 3
(c) 1 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation In Poultry Farming, small farmers supplement their income through production of eggs.
These small farmers far outnumber the big producers, but they face problems of input
supplies, veterinary aid, marketing services etc.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question17 Which of the following are covered under Sericulture insurance ?

1. Total loss or destruction of the cocoons due to disease during the period of insurance
2. Total loss or destruction of the cocoons due to theft during the period of insurance
3. Total loss or destruction of the cocoons due to accident during the period of insurance
(a) Only 1
(b) 1 and 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 3

Answer Explanation In Sericulture (Silkworm) insurance, the indemnity is in respect of total loss or destruction
of the cocoons, following the death of silkworm due to accident or disease during the
period of insurance.
Loss due to theft is an exclusion.

Question18 Which of these is NOT included in Plantations?

(a) Teak wood
(b) Tea
(c) Rubber
(d) Oil Palm
(e) Orchids

Correct Answer Orchids

Answer Explanation Plantation include the following:
a) Rubber
b) Eucalyptus
c) Poplar and Kadam
d) Teak wood
e) Tea
f) Oil Palm
Orchids is included under Flowering plants (floriculture).

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question19 In Office protection shield, what are the minimum number of sections to be insured by
TENANT?
(a) 2
(b) 4
(c) 5
(d) 6
(e) 7

Correct Answer 4
Answer Explanation Office protection shield(General office) -The policy offers coverage under 12 sections.
Minimum number of sections to be insured by tenant (building) insured is four.
(Minimum number of sections to be insured by owner is five)

Question20 Indemnity is NOT available for which of the following under Sports Insurance?
1. Loss of or damage to personal effects and clothing caused by theft
2. Loss or damage arising from moth or vermin
3. Loss or damage arising from rust or atmosphere conditions
(a) Only 1
(b) Only 2
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Explanation Loss of or damage to personal effects and clothing caused by fire, burglary, housebreaking
or theft is included in the indemnity under sports insurance.
Loss or damage arising from moth, vermin, mildew, gradual deterioration, wear and tear,
rust or atmosphere conditions or from any process of cleaning, repairing or restoring are
some of the exclusions.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question21 Under which arrangement the ceding company reinsures with the treaty reinsurers
surpluses over and above its retention in terms, and within the size of, the treaty?
(a) Pool basis
(b) Excess of loss reinsurance
(c) Facultative reinsurance
(d) Treaty reinsurance
(e) Surplus treaty reinsurance

Correct Answer Surplus treaty reinsurance

Answer Explanation Under surplus treaty reinsurance, the ceding company reinsures with the treaty reinsurers
surpluses over and above its retention in terms and within the size of the treaty.
The surplus basis of reinsurance is most common type of treaty reinsurance.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question22 Which of these statements best describes ‘HOUSEBREAKING’?

(a) Where five or more persons conjointly commit or attempt to commit a robbery or are
present and aid such commission or attempt, every one of them is said to commit
housebreaking
(b) A person who commits house trespass if he effects his entrance into the house, or if, being
in the house, for the purpose of committing an offence, or having committed an offence
therein, he quits the house, such entrance or exit being made in the six ways as described
in the penal code, is said to commit housebreaking
(c) Theft of property from the premises described in the schedule of policy following upon
felonious entry of the said premises by violent and forcible means is known as
housebreaking
(d) Whoever intending to take dishonestly any movable property out of the possession of any
person without the consent of that person or any person having for that purpose authority,
moves that property in order to such taking is said commit housebreaking
(e) If in order to the commission of or in committing of the theft or in carrying away property
obtained by theft, the offender, for that end, voluntarily causes to any person death or
hurt is said to commit house breaking

Correct Answer A person who commits house trespass if he effects his entrance into the house, or if, being
in the house, for the purpose of committing an offence, or having committed an offence
therein, he quits the house, such entrance or exit being made in the six ways as described
in the penal code, is said to commit housebreaking
Answer Explanation Housebreaking:
“A person who commits house trespass if he effects his entrance into the house (or any
part of it), or if, being in the house (or any part of it), for the purpose of committing an
offence, or having committed an offence therein, he quits the house (or any part of it),
such entrance or exit being made in the six ways as described in the penal code, is said to
commit housebreaking”.

The other options (above) are examples of Dacoity, Robbery, Theft etc.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question23 Which of these statement(s) is/are CORRECT with respect to Honey Bee Insurance?
1. The insurance applies to hives and/or bee colony belonging to the cooperative society
2. Theft risk can be covered on payment of additional premium
3. The cover is in respect of all accidental loss or damage to the hive and / or bee colony
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Under Honey Bee insurance -
a) The insurance applies to hives and/or bee colony belonging to the cooperative society
b) The cover is in respect of all accidental loss or damage to the hive and / or bee colony.
c) Theft risk can be covered on payment of additional premium.

Question24 Which of these is/are special conditions applicable to Maternity expenses benefit
extension in a group health cover?
(a) A waiting period of 9 months is applicable for payment of any claim relating to normal
delivery or cesarean section or abdominal operation for extra uterine pregnancy
(b) These benefits are admissible only if the expenses are incurred in hospital / nursing home
as in-patients in India
(c) Claim in respect of delivery for only first two children and / or operation associated
therewith will be considered
(d) All of the above
(e) None of the above

Correct Answer All of the above

Answer Explanation All the above special conditions are applicable to Maternity expenses benefit extension.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question25 Which of these is NOT a horticulture crop ?

(a) Banana
(b) Apple
(c) Chikoo
(d) Orange
(e) Sugarcane

Correct Answer Sugarcane

Answer Explanation All of the above are examples of horticulture crop except sugarcane. Although sugarcane
can also be covered, it doesn’t fall under horticulture crop. For sugarcane, there is a
separate insurance.

Question26 The Horse Insurance policy provides indemnity in respect of death of a horse occurring
from –
1. Illness of disease sustained or contracted whilst within the specified geographical area
during the period of insurance
2. Accident
3. Slaughter in cases of fracture of a bone necessitating immediate slaughter on
humanitarian grounds
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer Explanation Horse insurance policy provides indemnity in respect of death of a horse occurring from
accident, illness or disease sustained during policy term (within the specified geographical
area including transit) and slaughter in cases of fracture of bone necessitating immediate
slaughter on humanitarian grounds.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question27 Tertiary care insurance cover can be issued for a period of _____ .
1. 5 years 2. 1 year 3. 10 years
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Tertiary care insurance policies can be issued for 1 year, 5 years or 10 years depending on
the option exercised by the insured.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question28 Domiciliary hospitalization benefit can be taken by the insured under which of the
following circumstances?
1. Patient has received a minor injury and can be treated at home
2. The patient cannot be removed to hospital for lack of accommodation therein
3. The condition of the patient is such that he cannot be removed to the hospital
(a) All 1, 2 and 3
(b) Only 2
(c) Only 3
(d) 1 and 2
(e) 2 and 3

Correct Answer 2 and 3

Answer Explanation Domiciliary hospitalisation means, medical treatment for a period exceeding three days for
such illness / disease / injury which in the normal course would require care and treatment
at the hospital / nursing home but actually taken whilst confined at home in India under
any of the following circumstances namely:
i. The condition of the patient is such that he / she cannot be removed to the hospital /
nursing home or
ii. The patient cannot be removed to hospital / nursing home for lack of accommodation
therein.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question29 Which of these is NOT covered under Sericulture insurance?

1. Loss or destruction of the cocoons, following the death of silkworm due to accident or
disease during the period of insurance
2. Theft or clandestine sale
3. Loss due to improper management and / or rough handling
(a) Only 2
(b) Only 1
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Explanation Sericulture (silk worm) insurance covers total loss or destruction of the cocoons, following
the death of silkworm due to accident or disease during the period of insurance.
Some important exclusions 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.

Question30 Under Commercial fidelity guarantee, __________ are only suitable for an employer with a
large staff and the organisation to make adequate inquiries into the antecedents of his
employees.
(a) Position policy
(b) Blanket policy
(c) Individual policy
(d) Collective policy
(e) Floating policy or floater cover

Correct Answer Blanket policy

Answer Explanation Blanket policy :
This policy covers the entire staff without showing name or position. No inquiries about
the employees are made by the insurers. Such policies are only suitable for an employer
with a large staff and the organisation to make adequate inquiries into the antecedents of
his employees. The references that the employer obtains must be available to the insurers
in the event of a claim.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question31 Identify the insurance which is designed to protect individuals and corporations operating
in high-risk areas around the world.
(a) Burglary and Theft cover
(b) Withdrawals from ATMs cover
(c) Kidnap and Ransom Insurance
(d) Identity theft cover
(e) Intellectual Property Insurance

Correct Answer Kidnap and Ransom Insurance

Answer Explanation Kidnap and Ransom insurance is designed to protect individuals and corporations
operating in high-risk areas around the world. This K & R policy covers the perils like
kidnap, extortion, wrongful detention & hijacking.

Question32 A pig is 2 years old. Mr. Q, who is the owner of this pig wants to insure it. Can it be
insured?
(a) Yes, it can be insured as the maximum age for which a pig can be insured is 3 years
(b) Yes, it can be insured as the maximum age for which a pig can be insured is 5 years
(c) Yes, it can be insured as the maximum age for which a pig can be insured is 6 years
(d) Yes, it can be insured as the maximum age for which a pig can be insured is 7 years
(e) No, it cannot be insured as there is no pig insurance cover in India

Correct Answer Yes, it can be insured as the maximum age for which a pig can be insured is 3 years
Answer Explanation Pigs (indigenous/cross bred, (exotic) in the age group of 6 months to 3 years can be
insured.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question33 A pedal cycle was damaged by fire / explosion. Which policy will offer cover for loss or
damage to the pedal cycle ?
(a) Sports insurance
(b) Missing documents indemnity
(c) Pedal cycle insurance
(d) Television insurance
(e) Plate glass insurance

Correct Answer Pedal cycle insurance

Answer Explanation The Pedal Cycle cover granted generally is in respect of:
Loss of or damage to the pedal cycle described in the schedule of the policy:
- Resulting from fire, lightning, explosion,
- Resulting from burglary, housebreaking, theft, or
- By accidental external means

Question34 Which of these is/are exceptions to a HOUSEHOLDER’S INSURANCE POLICY?

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

Correct Answer 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 under Section I of this policy)

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question35 As per Plate Glass Insurance, unless specifically stated in the schedule of the policy, glass
means _____________ .
1. Plain glass of ordinary glazing quality
2. Glass with embossing, silvering and lettering
3. Glass with ornamental work
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer Only 1

Answer Explanation Plate Glass Insurance - Unless specifically stated in the schedule of the policy, glass means
plain glass of ordinary glazing quality and does not include any embossing, silvering,
lettering or ornamental work.

Question36 Lift irrigation insurance policy provides indemnity against unforeseen and sudden physical
loss and/or damage by –
1. Bursting of pipelines 2. Fire 3. Theft
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

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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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question37 Which of these will be considered as 'Continuous illness' under Health Insurance?
(a) Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 105 days from the day of last consultation
(b) Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 90 days from the day of last consultation
(c) Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 365 days from the day of last consultation
(d) Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 51 days from the day of last consultation
(e) Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 201 days from the day of last consultation

Correct Answer Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a 105 days from the day of last consultation
Answer Explanation Any one illness will be deemed to mean continuous period of illness and it includes relapse
within a certain number of days (105 presently) from the day of last consultation with the
hospital / nursing home where treatment may have been taken.

Question38 Which of these are covered under 'Web business insurance'? 1. Downtime 2.
Reimbursements that are internet-specific in nature 3. Actual physical damage to property
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 2

Answer Explanation Web business insurance covers can help compensate companies that experience a website-
related loss. Web business insurance provides reimbursements that are internet-specific in
nature.
Downtime due to server being down etc. results in lost revenue for e-commerce
companies.
(Property insurance coverage for a business protects against physical damage)

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question39 The policy term for horticulture insurance is _________ .

(a) the crop duration (from planting to harvest) or one year whichever is longer
(b) the crop duration (from planting to harvest) or one year whichever is shorter
(c) One year
(d) Two years
(e) the crop duration (from planting to harvest)

Correct Answer the crop duration (from planting to harvest) or one year whichever is shorter
Answer Explanation The period of insurance under horticulture insurance is crop duration from planting to
harvest or 1 year whichever is shorter.

Question40 Under Sports Insurance cover, indemnity is available in respect of –

1. Loss of sporting equipment 2. Loss of sporting apparel 3. Loss of sporting accessories
(a) Only 1
(b) 1 and 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation The indemnity in Sports Insurance is available in respect of loss of or damage to sporting
equipment, accessories and sporting apparel used in connection with any sport for which
insurance is effected.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question41 In COMMERCIAL FIDELITY GUARANTEES, the premium under individual and collective
policies is charged on –
1. The number of employees which have been guaranteed
2. The amount of guarantee
3. The type of occupation
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Explanation The premium under individual and collective policies is charged as a rate per cent of the
amount guaranteed, subject to a minimum premium. The factors ordinarily taken into
consideration for determining the rate of premium are:
- The amount of guarantee
- The type of occupation
- The system of check and the method of supervision

Question42 As per Bankers’ blanket indemnity insurance, 'Money' means _______ .

1. Precious stones 2. Currency 3. Jewellery
(a) Only 2
(b) 2 and 3
(c) 1 and 3
(d) Only 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation “Money” as used in the Bankers’ blanket 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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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question43 Which of these statements are true for 'Non-declaration policies'?

1. A Non declaration policy is one where the full value is indicated at inception and the
premium is charged on the value indicated
2. These policies are suitable for insuring property the value of which is likely to remain
more or less stable during the period covered by the policy
3. A Non declaration policy is customarily issued in respect of commodities like food grains,
cotton, jute, rubber, etc., where the fluctuation in values takes place very frequently
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 2

Answer Explanation Non-declaration policies
- A non-declaration policy is one where the full value is indicated at inception and the
premium is charged on the value indicated.
- Any increase or decrease in the sum insured to be effected by endorsement and premium
charged or refunded at short period scale.
- These policies are suitable for insuring property the value of which is likely to remain
more or less stable during the period covered by the policy.

(A Declaration policy is customarily issued in respect of commodities like food grains,

cotton, jute, rubber, etc., where the fluctuation in values takes place very frequently)

Question44 Identify which of these is / are Non proportional type of reinsurance?

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

1. Pool basis 2. Excess of loss 3. Stop loss basis

(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Explanation In treaty reinsurance, a formal agreement is drawn up between the ceding company and a
group of reinsuring companies.
The different types of treaty reinsurances which are transacted are as under -
Non proportional type:
- Excess of loss
- Stop loss basis
Proportional type:
- Quota share basis
- Surplus basis
- Pool basis

Question45 Mr. Shyam is seeking indemnity from the insurer under Permanent Total Disability (PTD)
for his cattle as per the Cattle Insurance cover. In cattle insurance, such indemnity is
limited to _____ of Sum Insured.
(a) 45%
(b) 50%
(c) 60%
(d) 75%
(e) 85%

Correct Answer 75%

Answer Explanation In Cattle Insurance, the indemnity is limited to 75% of Sum Insured.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question46 ______ can be insured under Event Insurance policy.

1. Film Festivals 2. Beauty Contests 3. Musical Nights
(a) Only 1
(b) Only 2
(c) Only 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Under Event Insurance policy, beauty contests, musical night, film festivals and many other
similar functions can be covered. The policy covers cancellation of an event due to
specified losses / perils, loss of profit, cancellation due to accident or illness of performers
etc.

Question47 Which of these statement(s) is/are CORRECT with respect to Poultry Farming?
1. In poultry farming, small farmers supplement their income through production of bird
feathers
2. Exotic birds mean those whose parents are of foreign breed
3. Poultry farming is done by the big farmers on a large scale on a commercial basis with
the use of modern management techniques
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Explanation Statement 1 is wrong as in poultry farming small farmers supplement their income through
production of eggs and not feathers.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question48 Shopkeepers insurance policy can be given to –

1. Shops 2. Tea / Coffee shops 3. Restaurants
(a) Only 1
(b) Only 3
(c) 1 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Correct Answer Only 1

Answer Explanation Shopkeepers insurance policy is meant for shops only for some maximum sum insured.
It is not to be issued to restaurants, tea/coffee shops.

Question49 Which of these statement(s) is/are TRUE in connection to Commercial fidelity guarantees?
1. This policy covers the employer in respect of any direct financial loss which he may
suffer as a result of employees’ dishonesty
2. The majority of policies issued are to commercial and manufacturing firms
3. 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
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

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.
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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

Question50 Which of these extensions can be used under Money Insurance cover to insure 'money in
till or on counter' in the insured’s premises during business hours?
(a) Money in safe
(b) Infidelity of employees
(c) Riots/Strikes/Terrorism
(d) Disbursement risk
(e) Money at business counter

Correct Answer Money at business counter

Answer Explanation 'Money at business counter' is an extension in Money Insurance cover:

i. Money in till or on counter in the insured’s premises during the insured’s business hours,
can be covered at an additional premium.
ii. Such cover is generally granted against the risk of hold up.
iii. Hold up is theft accompanied by violence by any person other than an employee of the
insured.

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PRACTICE TEST 4

WWW.TOP4SURE.IN IC 78 – MISCELLANEOUS INSURANCE

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