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    

d          No Refund

For Answer Key - Please click the following link
Answer Key to Sample Test III