Tuesday, May 24, 2011
Saturday, May 7, 2011
Insurance Foundation Certificate Examination - Sample Test Part - I
This is a pure sample testing, suitable for Insurance Foundation Certificate Examination, Saudi Arabia. This is prepared on the request of some of my trainees and is open to all, those who can utilize it for their benefit. Three sets of 10 questions each has been prepared. Try to complete each set in less than 12 minutes and check your answers with the answer key link given at the bottom of the tenth question. You may write answers on a small sheet of paper or in the comments column and then cross check with the answers provided.
For free course material and other relevant information please visit the following link.
Free Insurance Foundation Certificate Examination English Material Source
1 Which of the following can be called as risk as per Insurance terminology For free course material and other relevant information please visit the following link.
Free Insurance Foundation Certificate Examination English Material Source
a Fire
b Sun
c Bank Guarantee
d Insurance Policy
2 Which is the best example of non-Financial Risk
a Damage to your Car
b Burning of Building by Fire
c Loss of old magazine containing your article
d Theft of your car
3 As per the risk classification the risk, which affects a large group of people is known as
a International Risk
b Property Risk
c Fundamental Risk
d Particular Risk
4 Damage of car in an accident is an example of__________
a Fundamental Risk
b Governmental Risk
c Particular Risk
d Speculative Risk
5 In Insurance terminology a risk which is speculative and non-financial is also known as
a Insurable Risk
b Proximate Risk
c Related Risk
d Un-Insurable Risk
6 The frequently used definition of Insurance is
a Risk Approval
b Risk Transfer
c Risk Appetite
d Eliminating the Risk
7 Find the right definition of Material Fact
a influence the judgement of the prudent underwriter
b influence the judgement of the judge
c influence the judgement of the customer
d influence the judgement of the Claims Investigator
8 A breach that is a deliberate misrepresentation of the facts may be fraudulent and referred to as
a Warranty
b Concealment
c Endorsement
d Ab initio
9 Which of the following can be insured as per the Principle of "Insurable Interest"
1) Ahmed, a taxi driver wants to insure Kingdom tower, not belonging to him and is willing to pay the required premium
2) Salman is a Laundry man and wants to insure the property belonging to his customers in his care custody and control.
a 1 only
b 1 & 2
c 2 only
d None
10 Which of the following class does not apply the "Principle of Indemnity"
a Motor
b Property
c Life
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
Insurance Foundation Certificate Examination - Sample Test Part - III
21 Which of the following statements are false
1) The owners of Proprietary Insurance Companies endure the cost of any losses and could lose their entire Investments.
2) Proprietary Insurance Companies are owned by the Policy holders
a None
b 1 & 2
c 2 only
d 1 only
22 Which of the following are false statements
1) Insured pays the commission to the Agent
2) The term intermediaries is also used for the Re-insurance Companies
a None
b 1 & 2
c 2 only
d 1 only
23 Which of the following is not a part of risk management process
a Risk Identification
b Risk Analysis
c Risk Control
d Risk Pricing
24 Which of the following statements are true
1) A risk may be excluded as it is covered under another policy
2) A risk is excluded because it is covered under the operative clause
a 1 only
b 2 only
c 1 & 2
d None
25 Which of the following classes of Insurance use Certificates of Insurance
a Property
b Marine Hull
c Home Owners
d Marine Cargo
26 Which of the following statements can be termed as reasonable
1) All customers to be treated alike and no company can deny renewing or cancel and insurance policy without giving a valid reason for doing so
2) The Insurance companies have been authorized by SAMA to sell the personal data of the customers at a market price
a 1 only
b 2 only
c 1 & 2
d None
27 Can the broker/agent treat the money in the premium account as security against any sums receivable from the insured ?
a No, he cannot do it
b Yes, but he can do it in case of valid claims only
c Yes, but he can do it only in case of premiums against endorsements only d Yes, he can do it
28 Choose the correct statements
1) The Policy need not contain a description of claims and disputes handling procedure
2) The Policy must contain a disclosure statement indicating that the policy contract is the entire contract
a 1 only
b 2 only
c 1 & 2
d None
29 In Protection and Saving Insurance, the replacement of the existing P and S Insurance with a new one is known as
a Replacement
b Endorsement
c Churning
d Cut-through
30 If a policy holder decides to cancel the policy midterm, he will get the refund based on the following
a Short period Refund
b Full Refund
c Pro-rata Refund
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