"When truth is hurled against falsehood, falsehood perishes, for falsehood by its nature is bound to perish". Ch. 21, V.18, Holy Quran.

Saturday, May 7, 2011

Insurance Foundation Certificate Examination - Sample Test Part - II

11 A car is insured for SR. 50,000. It meets with an accident and is totaled. There is a deductible of SR. 1,000 on the policy. Insurance Company settles the claim for 49,000 net of deductible. The Insurance Company recovers an amount of SR. 50,000 from the Third Party. How much the insured is entitled to receive from this amount?         

a          50,000         
b          49,000         
c          1,000
d          None

12       If an insured has more than one Policy covering the same risk, which of the following principle is applied   
       
a          Subrogation
b          Insurable Interest  
c          Contribution           
d          None

13       An earthquake knocks over a burning oil-stove.  The building catches fire which spreads to the adjacent building.  A third building 500 yards away catches fire due to wind blowing in that direction.  The owners of the third building submit a claim.  The policy covers fire (an insured peril) but not losses caused by earthquake (an excluded peril).  What the Insurer should do as per the rule of the proximate cause? 
        
a          Claim is not payable         
b          Claim is payable     
c          Claim is payable but only half    
d          None of the above

14       Match the following -

1) Daman Khatr Al-Tariq
2) Aqila
3) Aqd muwalat
4) Hilf 

a) An Agreement for  Assistance among people
b) Contracts to bring about an end to mutual amity
c) Surety placed on traders against losses suffered during a journey
d) Assistance provided to captives and the families of murder victims
       
a          1-c,2-d,3-a,4-b      
b          1-d,2-c,3-b,4-a      
c          1-a,2-b,3-c,4-d      
d          1-c,2-d,3-b,4-a

15       Senior Ulema recommended that the Insurance should be worked on the following basis  
         
a          Commercial
b          Co-operative          
c          Co-ordination         
d          Economic

16       The following organization is involved in the preparation of the implementing Rules and Regulations for the Insurance Companies 
 
a          SAMA           
b          SAGIA           
c          CCHI  
d          SAMBA

17       The SAMA regulations require that each company appoint an_______, who is a Fellow and plays an important role in maintaining company's sound financial position  

a          Underwriter           
b          CEO   
c          Actuary        
d          Accountant

18       Which of the following needs to be disclosed to Insurance Company 
         
a          Facts of law 
b          Facts of Public Knowledge          
c          Facts that lessen the risk 
d         Facts of previous Insurances

19       What is the purpose of mandatory deductible/excess  

a          Eliminates small claims    
b          Eliminates premium payment   
c          Eliminates accidents           
d          Eliminates risk valuation

20       Which of the following are false statements

1) Proposal forms are not required for small pleasure boats

2) Broker's slip will contain all the necessary details including possibly even a guide to the rate and condition they expect. 
       
a          1 only           
b          2 only           
c          1 &  2
d          None

For Answer Key - Please click the following Link
Answer Key to Sample Test II

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