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IN IC 78 – MISCELLANEOUS INSURANCE

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

IMPORTANT ‘LAST DAY REVISION’ TEST 2

Question1 “Office Protection Shield” policy covers which of the following things?
(a) Office contents like fixtures, fittings, electrical appliances etc.
(b) Term insurance of the employees
(c) Maintenance cost
(d) Pre-existing faults and defects
(e) Fidelity guarantee of ex-employees

Correct Answer Office contents like fixtures, fittings, electrical appliances etc.
Answer Explanation The 'Office protection shield'(General office) policy offers coverage under 12 sections.
Under 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

Question2 Choose the FALSE statement regarding amount payable by the insurer in respect of the
defaulting employee.
(a) Any money owed to the employee is deducted from the loss before making a claim
(b) Such amount can exceed the amount of indemnity stated in the schedule of the policy in
respect of such employee
(c) Such amount shall not exceed the amount of indemnity stated in the schedule of the policy
in respect of such employee
(d) All of the above
(e) None of the above

Correct Answer Such amount can exceed the amount of indemnity stated in the schedule of the policy in
respect of such employee
Answer Explanation Amount payable by the insurer in respect of the defaulting employee shall not exceed the
amount of indemnity stated in the schedule of the policy in respect of such employee.
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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question3 Choose the INCORRECT option. Re-compensation benefit is available under Employment
and Study policy provided the insured person is unable to continue completion of his
studies due to _________ .
(a) First occurrence of a covered injury or covered sickness.
(b) Poor performance in studies
(c) Evacuation from the country as a result of permanent total disablement
(d) All of the above
(e) None of the above

Correct Answer Poor performance in studies

Answer Explanation Re-compensation benefit is not available under Employment and Study policy if the insured
person is unable to continue completion of his studies due to poor performance in studies.

Question4 Adhikari Suraksha Kavach is designed for ________ .

(a) Diplomats only
(b) State Government employees only
(c) Central Government employees only
(d) Employees of a PSU
(e) Executives and/or businessmen

Correct Answer Executives and/or businessmen

Answer Explanation Adhikari Suraksha Kavach is a personal package policy designed for executives and/or
businessmen.
This covers Laptops, Cell phones, Cash, Baggage etc.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question5 With regards to Shopkeeper’s insurance policy, choose the correct statement -
(a) Loss of or damage to Neon sign/Glow sign by accidental damage is not covered
(b) Loss of profit due to interruption in business consequent upon loss sustained by property
insured in Section A of the policy is covered
(c) Legal liability of insured for death/injury to third parties is fully covered under the policy
(d) Personal accident cover for insured/his employees is not covered
(e) Loss of or damage to fixed plate glass in the insured premises by accidental means in not
covered

Correct Answer Loss of profit due to interruption in business consequent upon loss sustained by property
insured in Section A of the policy is covered
Answer Explanation Section 11 of SHOPKEEPERS INSURANCE POLICY
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.

Question6 Web business insurance coverage is not likely to include -

(a) Losses from server downtime as a result of non-payment of hosting charges
(b) Unauthorised access of customer information
(c) Loss due to cyber attacks
(d) Accidental loss of server data
(e) Legal liability arising out of online crimes including unauthorised access of customer
information

Correct Answer Losses from server downtime as a result of non-payment of hosting charges
Answer Explanation E-commerce insurance may not cover the loss if the merchant forgot to pay the hosting bill,
resulting in the suspension of service by the hosting company.

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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question7 Identify the correct statement -

(a) RSBY has been launched by the Ministry of Rural Development, Government of India, to
provide health insurance coverage for the below poverty line (BPL) families
(b) 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
(c) Pre-existing diseases are not covered under RSBY.
(d) Insurers selected by the Central Government on the basis of a competitive bidding
(e) All of the above

Correct Answer 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
Answer Explanation Rashtriya Swasthya Bima Yojana (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.
Pre-existing diseases are covered and the insurers selected by the State Government on
the basis of a competitive bidding.

Question8 Under Section I of Money Insurance policy, the premium is charged at _____ .
(a) Rate per amount on the sum insured selected
(b) No premium is charged under Section I
(c) Half of regular premium is charged under Section I
(d) A fixed rate
(e) Rate per mile on the estimated amount of transit

Correct Answer Rate per mile on the estimated amount of transit

Answer Explanation Under Section I of Money Insurance policy, the premium is charged at a rate per mile on
the estimated amount of transit during the policy period.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question9 Which of the following changes needs to be notified to the insurer in case of personal
accident policies.
(a) Changes in marital status
(b) Changes in salary
(c) Change in occupation
(d) Change in dependents
(e) All of the above

Correct Answer Change in occupation

Answer Explanation Change in occupation needs to be notified to the insurer in case of personal accident
policies as change of occupation may materially alter the risk and attract a higher rate of
premium.

Question10 In the case of claims for a Jewellers Block Insurance policy, an insured has to furnish to the
insurers full details of the loss, within -
(a) 14 days of the event coming to his knowledge
(b) 21 days of the event coming to his knowledge
(c) 1 week of the event coming to his knowledge
(d) 14 days of the event occurring
(e) 1 week of the event occurring

Correct Answer 14 days of the event coming to his knowledge

Answer Explanation The insured has to furnish to the insurer full details of the loss, within 14 days of the event
coming to his knowledge.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question11 Which of the following is a valid underwriting consideration for a money insurance policy?
(a) Distance over which money travels
(b) Maximum amount carried in a single transit
(c) Mode of transport used for money.
(d) Whether armed guards accompany the person carrying the money
(e) All of the above

Correct Answer All of the above

Answer Explanation All the above factors are ordinarily taken into consideration for underwriting for a money
insurance policy.

Question12 Which of the following points are included under a burglary insurance claim form?
(a) The description of the premises
(b) The description and value of the property stolen
(c) Details of other insurances
(d) Details in respect of date and time of loss
(e) All of the above

Correct Answer All of the above

Answer Explanation The description of the premises, description and value of the property stolen, details in
respect of date and time of loss and details of other insurances are included in a burglary
insurance claim form.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question13 What is true regarding “Stop loss” reinsurance?

(a) Stop loss reinsurance implies the reinsurance contract is terminated after a certain degree
of loss
(b) The arrangement protects the ceding company against losses beyond a certain percentage
(c) Once stop loss level is breached, the reinsurer absorbs all the losses without any upper
limit
(d) All of the above
(e) None of the above

Correct Answer The arrangement protects the ceding company against losses beyond a certain percentage
Answer Explanation In Stop Loss insurance, the ceding company can so protect itself that its net claim ratio for
any one accounting year does not exceed a predetermined percentage.
In stop loss arrangement, the net losses of the ceding company are stopped at a particular
level.

Question14 Choose the correct statement.

(a) First loss policies are full value insurance policies
(b) A full value policy covers goods for their full value including considerations for profit
(c) A full value policy covers goods for their full value excluding considerations for profit
(d) Full value policies may be further sub divided into two types ‘non- declaration’ and
‘declaration’ policies.
(e) None of the above

Correct Answer A full value policy covers goods for their full value excluding considerations for profit
Answer Explanation A full value policy covers the goods insured for their full value.
In reckoning the full value, considerations of profit are to be excluded.
In other words, the full value should include the original cost price to the proposer and the
overheads.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question15 In the case of television insurance, the premium charged is a function of which of the
following?
(a) Value of apparatus
(b) Value of repairs
(c) Value of consequential loss caused by depreciation and wear and tear
(d) Value of consequential loss caused by normal atmospheric conditions
(e) Value of consequential loss caused by failure or breakage

Correct Answer Value of apparatus

Answer Explanation Premium is charged at a rate percent of the value of the apparatus.

Question16 The cover provided for 'Building & contents - Fire and allied perils' in a Package policy for
Credit Societies is under which section?
(a) Section 1
(b) Section 2
(c) Section 3
(d) Section 4
(e) Section 5

Correct Answer Section 1

Answer Explanation Package policy for Credit Societies -
The covers provided are:
a) Section I Building & contents - Fire and allied perils
b) Section II Office contents – Burglary
c) Section III Money and pledged gold

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question17 In Universal health insurance scheme, premium payable for a family up to 7 (including the
first 3 children and dependent parents) is ______ .
(a) Rs.548/- per annum
(b) Rs.698/- per annum
(c) Rs.730/- per annum
(d) Rs.930/- per annum
(e) Rs.980/- per annum

Correct Answer Rs.730/- per annum

Answer Explanation In Universal health insurance scheme, premium payable for a family up to 7 (including the
first 3 children and dependent parents) is Rs. 730/- per annum.

Question18 The sum insured in horticulture insurance is based on –

1. The value of output 2. The input costs 3. Rs 50000 per acre of cultivation
(a) Only 1
(b) Only 2
(c) Only 3
(d) 1 or 3, which ever is lower
(e) 2 or 3, which ever is lower

Correct Answer Only 2

Answer Explanation The Sum Insured in Horticulture / Plantation insurance is based on the input costs i.e. cost
of cultivation.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question19 If the insured cancels the Bankers’ indemnity insurance policy, the premium is refunded on
_______ .
(a) Short Period scale basis
(b) Long Period scale basis
(c) Audit Basis
(d) Pro-rata Basis
(e) Random Basis

Correct Answer Short Period scale basis

Answer Explanation In case of banker’s indemnity policy, if the insured cancels the policy, the insurers refund
the premium, on short period scale provided no claim has been paid or reported till the
date of cancellation.
(If the insurer cancels the policy then refund of premium is made to the insured on pro-rata
basis)

Question20 A trademark may be similar or identical to other trademarks regulated for similar goods or
services - Discuss this with respect to registration of a trade mark.
(a) Yes, this statement is true
(b) No, this is a false statement
(c) This statement is true as long as the colours of the trademark are completely different
from a one already registered
(d) This statement is true as long as the slogan used for the trademark is completely different
from a one already registered
(e) This statement is true as long as the colours and slogan used for the trademark are
completely different from a one already registered

Correct Answer No, this is a false statement

Answer Explanation This is a false statement. The trade mark must not be similar or identical to other
trademarks regulated for similar goods or services.

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

Question21 In _________ reinsurance, Companies cede a particular percentage of their premium to a

pool formed by a Group of Companies or by the regulators.
(a) Surplus treaty
(b) Quota share treaty
(c) Excess of loss
(d) Pool basis
(e) Stop loss

Correct Answer Pool basis

Answer Explanation In Pool Basis of reinsurance, Companies cede a particular percentage of their premium to a
pool formed by a Group of Companies or by the regulators, for better management of risk.
E.g. Terrorism pool, Motor TP Pool etc.

Question22 Treatment for which of these diseases in not covered under the Domiciliary Hospitalisation
benefit?
1. Influenza 2. Epilepsy 3. Asthma
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Domiciliary hospitalization benefit refers to treatment taken at home (under certain
conditions) which otherwise needs hospitalisation. There are various exclusions under the
policy for such treatment including all of the above i.e. Epilepsy, Asthma and Influenza.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question23 In a health policy, the minimum sum insured normally available is from ______ .
(a) Rs. 10,000
(b) Rs. 20,000
(c) Rs. 25,000
(d) Rs. 50,000
(e) Rs. 1,00,000

Correct Answer Rs. 50,000

Answer Explanation The minimum amount of sum insured that can be availed in a health policy is Rs 50000 &
maximum of Rs. 500000. However, the minimum & maximum sum insured varies between
insurers.

Question24 According to the ‘Principle of Insurable Interest’, a person is deemed to have an insurable
interest in the life of his ______ .
1. Relatives 2. Friends 3. Spouse
(a) Only 3
(b) Only 1
(c) 1 and 3
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer Only 3

Answer Explanation According to the ‘Principle of insurable interest’, a person is deemed to have an insurable
interest in life of spouse. The insurable interest does not exist in case of relatives or
friends.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question25 Money insurance cover is generally granted for a period of __________ .

(a) 100 or 150 hours after arrival of the money
(b) 12 or 24 hours after arrival of the money
(c) 50 or 75 hours after arrival of the money
(d) 48 or 72 hours after arrival of the money
(e) 24 or 48 hours after arrival of the money

Correct Answer 48 or 72 hours after arrival of the money

Answer Explanation Under Money Insurance cover - Unpaid wages etc. retained at the insured’s premises in
burglar-resisting safe, or strong room. (This cover is normally available only for 48 or 72
hours after arrival of the money)

Question26 In Tertiary Care insurance group policies, the minimum number of persons would be
______.
(a) 21
(b) 51
(c) 75
(d) 100
(e) 151

Correct Answer 51
Answer Explanation For Tertiary Care insurance group policies, the minimum number of persons would be 51
and only one group policy is to be issued covering all eligible members of the group.

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Question27 'All Risks' insurance policy is suitable for ______ .

1. Trinkets 2. Jewellery 3. Antiques
(a) Only 2
(b) Only 3
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Strictly speaking, an “All risks” insurance policy is not a policy covering all risks of loss or
damage. It is an “All risks” policy in the sense that it seeks to cover loss or damage by fire,
burglary, theft or any other accidental or fortuitous circumstances.
The policy is especially suitable for jewellery, valuables, curios, antiques and other works of
art, paintings, watches, clocks, cameras, opera glasses, trinkets and other similar articles.

Question28 Pick the correct statement with respect to Treaty Reinsurance.

(a) Companies cede a particular percentage of their premium to a pool formed by a Group of
Companies or by the regulators, for better management of risk.
(b) The ceding company is bound to cede and the reinsurers are bound to accept each and
every cession which falls within the scope of the treaty
(c) The risks are shared by the ceding company and its reinsurers in some predetermined
proportion.
(d) The ceding company reinsures with the treaty reinsurers surpluses over and above its
retention in terms, and within the size of, the treaty.
(e) Each risk is proposed separately and individually to the reinsurer and the reinsurer decides
whether to accept the same or not

Correct Answer The ceding company is bound to cede and the reinsurers are bound to accept each and
every cession which falls within the scope of the treaty
Answer Explanation Under the treaty reinsurance, a formal agreement is drawn between the ceding company &
a group of reinsurance companies. In terms of the agreement, the ceding company is
bound to cede and the reinsurers are bound to accept each and every cession which falls
within the scope of the treaty.

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Question29 As per 'Total abandonment of an arranged cricket match policy', which of these
statement(s) is/are TRUE?

1. The policy covers the actual financial loss suffered by the insured i.e. the cricketers
2. Change in venue or postponement of the match does not constitute a claim
3. It is a condition under the policy that no liability will attach even if a single ball is
bowled.
(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 policy covers the actual financial loss suffered by the insured i.e. the organisers. The
insured has to establish the extent of loss by submitting an audited account. It is a
condition under the policy that no liability will attach even if a single ball is bowled. It
should be noted that once a match, commences, subsequent abandonment would not
constitute a loss. Similarly, change in venue or postponement of the match does not
constitute a claim.

The first statement (The policy covers the actual financial loss suffered by the insured i.e.
the cricketers) is wrong as it mentions cricketers. The organisers of the match are the
insured.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question30 As per the Overseas travel health policy, what does 'Loss of Eye' mean?
1. The total and irrecoverable loss of sight from one eye
2. The total and irrecoverable loss of sight from both eyes
3. Temporary loss of sight from one eye
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) Only 3
(e) 1 and 3

Correct Answer 1 and 2

Answer Explanation As per Videsh Yatra Mitra / Overseas travel health policy, loss of eye means the total and
irrecoverable loss of sight from one or both eyes.
Question31 The Employer and Employee relationship policies are granted to firms, association etc. to
cover –
1. Named employees 2. Unnamed employees 3. Members not identified by name
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer 1 and 2

Answer Explanation The Employer and Employee relationship -
These policies are granted to firms, association etc. to cover:
- Named employees
- Unnamed employees
Non Employer-Employee relationship -
These policies are granted to associations, societies, clubs, etc. to cover:
- Named members
- Members not identified by name

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Question32 The Neon Sign Insurance does not cover which of these damages?
1. Damage to tubes
2. Damage due to over heating or strain
3. Damage due to strikes, riot, civil commotion
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation The Neon Sign Insurance does not cover -

a) The fusing or burning out of any bulbs and / or tubes arising from short circuiting or
arcing or any other mechanical or electrical defect or breakdown.
b) Repair, cleaning, removal or erection, wear and tear, depreciation or deterioration.
c) Damage to tubes unless the glass in fractured
d) Over running, over heating or strain
e) Atmospheric conditions
f) Consequential loss, however caused
g) Strikes, riot, civil commotion
h) Natural risks
i) War and kindred perils

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Question33 Which of these statement(s) is / are correct with regard to Householder’s Insurance policy?
1. Each section is rated independently
2. The cover under “Fire Section” is compulsory
3. The total premium depends upon the sum insured, the type and number of sections
covered
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer Explanation Rating & features under the householder’s insurance policy suggest that, the cover under
‘Fire Section’ is compulsory, each section is rated independently and the total premium
depends upon the sum insured, the type and number of sections covered.

Question34 In Duck Insurance, what is the maximum age till which the ducks can be covered?
(a) 1 year
(b) 2 years
(c) 3 years
(d) 3.5 years
(e) 4 years

Correct Answer 2 years

Answer Explanation Ducks in the age group – 6 months to 2 years – can be covered in Duck Insurance policy.

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Question35 An 'All risks' insurance policy is best described by which of the following statements?
(a) It seeks to cover loss or damage by fire, burglary, theft or any other accidental or fortuitous
circumstances
(b) It covers goods in more than one location covered under one sum insured
(c) It is specially issued for commodities like food grains, jute, rubber cotton etc. where the
high fluctuations in prices
(d) It is a contract where the sum insured is deemed to be the actual value of the property
insured throughout the currency of insurance
(e) This is suitable for insuring property whose value is likely to remain stable during the
period covered by the policy

Correct Answer It seeks to cover loss or damage by fire, burglary, theft or any other accidental or fortuitous
circumstances
Answer Explanation Strictly speaking, an “All risks” insurance policy is not a policy covering all risks of loss or
damage. It is an “All risks” policy in the sense that it seeks to cover loss or damage by fire,
burglary, theft or any other accidental or fortuitous circumstances.
The policy is especially suitable for jewellery, valuables, curios, antiques and other works of
art, paintings, watches, clocks, cameras, opera glasses, trinkets and other similar articles.

Question36 _________ policy was specifically designed to cater to the needs of the economically
weaker section of the society.
(a) Student Safety Insurance
(b) Janta personal accident insurance
(c) Traffic accident policy
(d) Janta economical accident insurance
(e) Rasta Aapathi Kavach

Correct Answer Janta personal accident insurance

Answer Explanation Janta personal accident insurance policy was specifically designed to cater to the needs of
the economically weaker section of the society. The policy covers only death and
permanent total disablement. The sum insured is limited to 1 lakh per person.

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IMPORTANT ‘LAST DAY REVISION’
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Question37 Identify the TRUE statement with respect to a Floater Policy.

(a) The floater policy is issued when the complete staff or a number of selected individuals are
to be covered
(b) A floating policy relieves the employer of the necessity of fixing what he considers to be
suitable individual amounts of guarantee
(c) Floater Policy is a combination of collective policy and a blanket policy
(d) In a floater policy, the liability of insurance in respect of each position remains limited to
the amount guaranteed for the position irrespective of the number of persons acting in
that position
(e) The floater policy covers the entire staff without showing name or position

Correct Answer A floating policy relieves the employer of the necessity of fixing what he considers to be
suitable individual amounts of guarantee
Answer Explanation A Floater policy is an extension of the collective form of policy in which the name and
duties of the individual to be covered are inserted in a schedule, but instead of individual
amounts of guarantee, a specified sum of guarantee is “floated” over the whole group. A
claim in respect of one employee will, therefore, reduce the guarantee by the amount until
renewal, unless the original sum is reinstated by payment of an extra premium.

A floating policy relieves the employer of the necessity of fixing what he considers to be
suitable individual amounts of guarantee.

Question38 Plate Glass insurance cover provides protection against which of the following –
1. Breakage of the plate glass fixed to display windows due to earthquake
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2. Breakage of the plate glass fixed to show cases of commercial establishments

3. Breakage of the plate glass fixed to display windows
(a) Only 1
(b) Only 2
(c) Only 3
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer 2 and 3

Answer Explanation Plate glass insurance cover provides protection against the breakage of the plate glass fixed
to display windows; the breakage of the plate glass fixed to show cases of commercial
establishments but excluding the breakage of the plate glass fixed to display windows due
to earthquake.
Breakages normally excluded from the policy are those by reason of:
-Fire or explosion
-Earthquake or such other convulsions of nature and
-Riot, strikes, war and kindred risks

Question39 Under Tribal Insurance, cover is provided for –

1. Dwelling / Huts/ Cottage industry sheds 2. Hospitalization 3. Personal Accident
(a) 1 and 2
(b) 2 and 3
(c) Only 1
(d) All 1,2 and 3
(e) Only 2

Correct Answer All 1,2 and 3

Answer Explanation Tribal package insurance cover provides coverage for dwelling / hut / cottage industry
sheds (Rs. 2000), contents (Rs. 1000), personal accident (Rs. 10000) and hospitalization /
domiciliary. (Max. Rs 4000 per person / per period of cover)

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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question40 An Individual policy is used where -

(a) the entire staff is covered without showing name or position
(b) only one individual is to be guaranteed
(c) the entire staff or a number of selected individuals are to be covered
(d) the employer is relieved of the necessity of fixing what he considers to be suitable
individual amounts of guarantee
(e) there is a combination of collective policy and a floating policy

Correct Answer only one individual is to be guaranteed

Answer Explanation Individual policy - This type of policy is used where only one individual is to be guaranteed.

Question41 Which type of reinsurance is 'Terrorism pool’ ?

(a) Surplus treaty reinsurance
(b) Stop loss reinsurance
(c) Quota share treaty reinsurance
(d) Excess of loss reinsurance
(e) Pool reinsurance

Correct Answer Pool reinsurance

Answer Explanation Under pool reinsurance, Companies cede a particular percentage of their premium to a
pool formed by a Group of Companies or by regulators, for the better management of the
risk. E.g. Terrorism pool, Motor TP pool etc.

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

Question42 In SHOPKEEPERS INSURANCE POLICY, the legal liability in respect of accidental death or
bodily injury to a third party is covered under _______ .
(a) Section 2
(b) Section 7
(c) Section 8
(d) Section 10
(e) Section 12

Correct Answer Section 10

Answer Explanation Section 10 of SHOPKEEPERS INSURANCE POLICY covers -
Legal liability in respect of accidental death or bodily injury to a third party or accidental
damage to their property during performance of any act in connection with the insured’s
business.

Question43 In Health Policies, the reimbursement criteria is that the expenses on hospitalisation for
minimum period of 24 hours are admissible. However this time limit is NOT applicable to
________ .
1. Radiotherapy 2. Dialysis 3. Chemotherapy
(a) Only 2
(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 24 hour time limit is not applied to specific treatment e.g.:
- Dialysis
- Chemotherapy
- Radiotherapy
- Eye Surgery
- Dental Surgery
- Lithotripsy (Kidney stone removal)
- D&C
- Tonsillectomy done in a Hospital / Nursing Home where the insured is discharged on the
same day

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question44 __________ is an overseas agency with which insurers have entered into an MOU to
provide emergency assistance and claims administration services.
(a) Medical advisors
(b) TPA
(c) Third party liability
(d) Claim Settlement Agency
(e) Physician

Correct Answer Claim Settlement Agency

Answer Explanation

Question45 Which form is sent with the main object of ascertaining the applicant’s integrity and
honesty, the extent of his duties with the previous employers and the reasons for leaving
them?
(a) Secret Referral Form
(b) Confidential Employer Form
(c) Applicants Form
(d) Previous Employer’s Form
(e) Private Reference Form

Correct Answer Previous Employer’s Form

Answer Explanation A reference for the applicant from all the employers for the previous five years is an
important underwriting tool to the insurers.
Previous Employer’s Form is sent with the main object of ascertaining the applicant’s
integrity and honesty, the extent of his duties with the previous employers and the reasons
for leaving them, and whether he was guaranteed.

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

Question46 Which of these statements is/are TRUE with respect to the Jan Arogya Bima Policy?
1. This policy is designed to provide cheap medical insurance to poorer sections of the
society
2. The policy is available to individuals and family members
3. The coverage is along the lines of the individual Mediclaim policy except that cumulative
bonus and medical check-up benefits are not included
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Following are the features of Jan Arogya Bima Policy :

a) This policy is designed to provide cheap medical insurance to poorer sections of the
society.
b) The coverage is along the lines of the individual Mediclaim policy except that cumulative
bonus and medical check-up benefits are not included.
c) The policy is available to individuals and family members.
d) The age limit is 5 to 70 years.
e) Children between the age of 3 months and 5 years can be covered provided one or both
parents are covered concurrently.
f) The sum insured per insured person is restricted to Rs.5000/-

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

Question47 The minimum age of entry for individual in a health policy is ______ years
(a) 2.5 years
(b) 3 years
(c) 5 years
(d) 7 years
(e) 10 years

Correct Answer 5 years

Answer Explanation Health Policy insurance is available to persons between the ages of 5-75 years.
(Children between the age of 3 months and 5 years of age can be covered provided one or
both parents are covered concurrently)

Question48 Which of these is included under FLORICULTURE?

(a) Banana
(b) Orchids
(c) Teak
(d) Rubber
(e) Apple

Correct Answer Orchids

Answer Explanation Flowering plants (Floriculture) include the following:
a) Orchids
b) Roses

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

Question49 The Pre-acceptance survey report generally contains which of the following particulars –
1. Maximum possible loss in a single incident of burglary
2. Number of doors, windows, skylights and other openings on the premises and how they
are secured
3. Particulars of all burglaries which have occurred on the premises, and the steps taken to
prevent a recurrence
(a) Only 2
(b) Only 1
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Explanation Under burglary insurance, acceptance & the terms of the cover are based on the report
given by the surveyor known as Pre-acceptance survey report’. The information contained
in this report includes various aspects of the risk including particulars of all burglaries
which have occurred on the premises and the steps taken to prevent a recurrence, number
of doors, windows, skylights and other openings on the premises and how they are secured
and maximum possible loss in a single incident of burglary.

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IMPORTANT ‘LAST DAY REVISION’
TEST 2

[Link] IC 78 – MISCELLANEOUS INSURANCE

Question50 The registration of a TRADE MARK of one's organisation must have which of the following
criteria?
1. The trademark must be individually distinctive for the goods or services that are applied
for
2. The trade mark can be similar but not same or identical to other trademarks regulated
for similar goods or services
3. The trade mark must not be misleading, break any laws or be in any way immoral
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 3

Answer Explanation The criteria/s for registration of a trademark is that the trademark must be individually
distinctive for the goods or services that are applied for, it must not be misleading, break
any law or be in any way immoral.

If the trademark is similar or identical to other trademarks regulated for similar goods or
services, it cannot be registered.

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IMPORTANT ‘LAST DAY REVISION’
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[Link] IC 78 – MISCELLANEOUS INSURANCE

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