Sample Questions

IC 11 Practice of General Insurance Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 Which professional is primarily responsible for calculating the prices and premiums of insurance products?

A. Risk Engineer
B. Underwriter
C. Actuary Correct Answer
D. Surveyor

Explanation:

Actuaries are mathematical experts who use statistics and probability to determine the appropriate pricing and premium levels for insurance policies.

Marks: 1

Q2 Under the Insurance Act, who must be appointed to evaluate property losses exceeding Rs. 20,000?

A. An underwriter
B. An insurance agent
C. A licensed surveyor and loss assessor Correct Answer
D. A bank manager

Explanation:

Licensed surveyors are independent experts required by law to assess large property claims.

Marks: 1

Q3 At what point in time did the General Insurance Corporation of India (GIC) begin its actual business operations?

A. 1970
B. 1971
C. 1972
D. 1973 Correct Answer

Explanation:

Following the nationalisation of the industry in 1972, GIC was established as a holding company and officially started its commercial activities in 1973.

Marks: 1

Q4 To legally avoid a claim based on "non-disclosure," which of the following facts is NOT necessary for the insurance company to prove?

A. The undisclosed facts were material to the risk.
B. The policyholder was aware of these facts.
C. The policyholder intentionally acted to defraud the company. Correct Answer
D. The facts were not shared with the insurer.

Explanation:

For non-disclosure, the insurer only needs to prove the facts were material, known to the insured, and not communicated. Proving a specific "intent to defraud" is not always required to repudiate the contract.

Marks: 1

Q5 What is the standard "Sum Insured" typically granted for death cover under a Personal Accident policy?

A. 3 years of income
B. 5 years of income Correct Answer
C. 10 years of income
D. No limit

Explanation:

As a thumb rule, insurers provide death cover equal to 5 to 6 years of the person's annual income.

Marks: 1

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Sample Questions

Q1 Which professional is primarily responsible for calculating the prices and premiums of insurance products?

Q2 Under the Insurance Act, who must be appointed to evaluate property losses exceeding Rs. 20,000?

Q3 At what point in time did the General Insurance Corporation of India (GIC) begin its actual business operations?

Q4 To legally avoid a claim based on "non-disclosure," which of the following facts is NOT necessary for the insurance company to prove?

Q5 What is the standard "Sum Insured" typically granted for death cover under a Personal Accident policy?

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