axondendriteplus/IC38-Insurance-Agent-Questions huggingface dataset:
Category: Life
Question: What does Section 64 VB of the Insurance Act-1938 state regarding the payment of insurance premiums?
1. Insurers may assume risks without receiving any premium
2. Insurers may assume risks without guarantee of premium payment
3. Insurers must receive the premium in advance or guarantee of payment before assuming the risk
4. Insurers must receive the premium after the risk is assumed
Answer: 3
Category: Life
Question: What is the purpose of the proposal form in insurance?
1. To assess the policyholder's financial stability
2. To gather information about the risk to be insured
3. To determine the premium amount quoted by other insurance companies. 
4. To provide coverage for potential losses
Answer: 2
Category: Life
Question: What is the time limit for an insurance agent to deposit the premium collected on behalf of an insurer?
1. 48 hours
2. 24 hours excluding bank and postal holidays
3. 7 days
4. 1 month
Answer: 2
Category: Life
Question: How should any refund of premium due to an insured be paid by the insurer?
1. By crediting it to the account of the agent
2. By direct payment to the insured through crossed or order cheque or electronic mode
3. By sending it to the insurer's bank account
4. By deducting it from the premium of a new policy
Answer: 2
Category: Life
Question: What is the validity of a cover note?
1. Up to 1 year
2. Up to 6 months
3. Up to 60 days
4. Up to 30 days
Answer: 3
Category: Life
Question: In which classes of business are cover notes predominantly used?
1. Health and life insurance
2. Property and liability insurance
3. Marine and motor insurance
4. Homeowners insurance
Answer: 3
Category: Life
Question: When are marine cover notes typically issued?
1. When all details required for the policy are known
2. When there is difficulty securing adequate shipping space
3. When the cargo has already been shipped
4. When the cargo is being transported inland
Answer: 2
Category: Life
Question: What is the basis of valuation for loss or damage prior to declaration and/or shipment on board the steamer under a marine cover note?
1. Market value of the goods at the time of loss or damage
2. Cost of the goods at the time of loss or damage
3. Prime cost of the goods plus charges actually incurred and for which the assured is liable
4. Value of the goods declared at the time of issuance of the cover note
Answer: 3
Category: Life
Question: What is the purpose of the certificate included in the Motor insurance policy?
1. To certify that the insured has paid the premium
2. A certificate of compliance, certifying that the cover note complies with the Insurance Act, 1938
3. A certificate of inspection, certifying that the insured vehicle is in good condition
4. A certificate to the effect that the cover note is issued in accordance with the provisions of Chapters X and XI of the Motor Vehicles Act, 1988
Answer: 4
Category: Life
Question: What types of risks are typically covered by fire insurance proposal forms?
1. Complex industrial risks
2. Agricultural risks
3. Standard risks like houses and shops
4. Risks located in remote areas
Answer: 3
Category: Life
Question: Which of the following statements is false regarding the Motor Cover Note?
1. It includes the registration mark and number, or description of the vehicles insured
2. It does not mention the effective date and time of commencement of insurance for the purpose of the Act
3. It includes the name and address of the insured
4. It includes limitations as to use and additional risks, if any
Answer: 2
Category: Life
Question: How long can a Cover Note's validity be extended?
1. 15 days
2. 10 days
3. 30 days
4. 20 days
Answer: 1
Category: Life
Question: Are companies encouraging or discouraging the use of Cover Notes?
1. It varies from company to company
2. Neutral
3. Encouraging
4. Discouraging
Answer: 4
Category: Life
Question: Who is entitled to drive the insured vehicle according to the certificate of insurance?
1. Only the insured
2. Only the person holding an effective learner's license
3. Any person who is driving on the insured's order or with his permission and holds and effective driving license. 
4. Only the person holding a commercial driver's license
Answer: 3
Category: Life
Question: What is the purpose of a policy document in insurance?
1. To provide evidence of the contract of insurance
2. To describe the insured property in detail
3. To specify the period of insurance
4. To mention the exclusions from coverage
Answer: 1
Category: Life
Question: Which act governs the stamping of a policy document in India?
1. Indian Evidence Act, 1872
2. Indian Contract Act, 1872
3. Indian Stamp Act, 1899
4. Indian Insurance Act, 1938
Answer: 3
Category: Life
Question: What is a warranty in insurance?
1. A separate document from the policy
2. A condition that is not important for the validity of the contract
3. A part of both cover notes and policy document
4. A condition that can be disregarded if it is not material to the risk
Answer: 3
Category: Life
Question: What happens if a warranty is breached in insurance?
1. The policy becomes voidable at the option of the insured. 
2. The insurer is obliged to cover the loss. 
3. The insurer may process the claims according to norms and guidelines. 
4. The policy becomes voidable at the option of the insurer. 
Answer: 4
Category: Life
Question: What is warranted in Fire Insurance for cigarette filter manufacturing?
1. No hazardous goods shall be stored in the insured premises during the currency of policy
2. No manufacturing activity is carried out in the insured premises for consecutive period of 30 days or more
3. No solvents having flash point below 30 degrees Celsius are used/ stored in the premises
4. The property is guarded by a watchman for twenty four hours
Answer: 3
Category: Life
Question: What is warranted in burglary insurance?
1. No hazardous goods shall be stored in the insured premises during the currency of policy
2. The insured vessel will not navigate in a certain area
3. The property is guarded by a watchman for twenty four hours
4. Goods must be packed in tin-lined cases
Answer: 3
Category: Life
Question: Which of the following is NOT a reason for issuing an endorsement?
1. Variations/ changes in sum insured
2. Change of insurable interest by way of sale, mortgage, etc. 
3. Extension of insurance to cover additional perils/ extension of policy period
4. Request for a refund of premium by the insured
Answer: 4
Category: Life
Question: What is the purpose of the "Increase in Stock Value Cover" endorsement?
1. To increase the sum insured of the policy
2. To cover additional perils
3. To change the name or address of the insured
4. To cancel the policy
Answer: 1
Category: Life
Question: If a policy is issued in an ambiguous manner, how will it be interpreted by the courts?
1. In favor of the insurer
2. In favor of the broker
3. In favor of the insured
4. In favor of agent
Answer: 3
Category: Life
Question: If an endorsement contradicts other parts of the contract, which document's meaning will prevail?
1. The endorsement
2. The policy
3. The clauses in italics
4. The clauses printed or typed in the margin of the policy
Answer: 1
Category: Life
Question: Which part of a policy is given more importance than the wording within the body of the policy?
1. The standard printed policy form
2. The clauses in italics
3. The clauses printed or typed in the margin of the policy
4. The endorsements
Answer: 3
Category: Life
Question: Which document overrides both marginal clauses and the clauses in the body of the policy?
1. Clauses in italics
2. Clauses printed or typed in the margin
3. Clauses attached or pasted to the policy
4. Endorsements
Answer: 3
Category: Life
Question: If there is any ambiguity or lack of clarity in a policy, which ordinary rules are applied?
1. The rules of construction
2. The rules of grammar and punctuation
3. The rules of interpretation
4. The rules of evidence
Answer: 2
Category: Life
Question: What is the principal rule of construction for insurance contracts?
1. The intention of the parties must not prevail
2. The interpretation of the court prevails
3. The intention of the parties is not relevant
4. The intention of the parties must prevail
Answer: 4
Category: Life
Question: When should technical terms be given their technical meaning in insurance policies?
1. Only when defined by statute
2. When indicated by the context
3. Always
4. Never
Answer: 3
Category: Life
Question: What is the purpose of a renewal notice in non-life insurance policies?
1. To inform the insured of the expiry date of the policy
2. To invite the insured to renew the policy
3. To incorporate all relevant particulars of the policy
4. All of the above
Answer: 4
Category: Life
Question: What is the insured's attention drawn to in a motor renewal notice?
1. The requirement to revise the sum insured
2. The requirement to pay the premium in advance
3. The insurer's contact information
4. The insured's claims history
Answer: 1
Category: Life
Question: What kind of questions are asked in a motor insurance proposal form?
1. About the proposer’s health
2. Details about the raw material used
3. About the vehicle, its operations, make, and carrying capacity
4. Details of the hazardous goods present in the property
Answer: 3
Category: Life
Question: What information is required for a private car insurance proposal?
1. Person's Overseas Travel Policy
2. Person's Health Condition
3. Engine number, chassis number, and registration number
4. Details of Person's monthly income. 
Answer: 3
Category: Life
Question: Loading of Premium is done for adverse claims ratio, as in case of ________: a) Motor Insurance b) Health insurance Policy
1. Neither
2. Only (a)
3. Only (b)
4. Both Option (a) & (b) apply
Answer: 4
Category: Life
Question: No Claim Bonus is allowed by way of : a) deduction on the total premium at renewal only b) depending upon the incurred claim ratio for the entire group c) insurance sum
1. Both Option (a) & (b) apply together
2. Both Option (a) & (c) apply together
3. Both Option (b) & (c) apply mutually exclusive
4. Both Option (a) & (c) apply mutually exclusive
Answer: 1
Category: Life
Question: No claim bonus recognizes the factor of _________
1. Moral hazard in the Insured
2. Physical hazard
3. Marine hazard
4. Physical and moral hazard
Answer: 4
Category: Life
Question: Discuss the Difference between Insurance and Assurance. 
1. Insurance: Protection Against an Event, that_Will_Happen. Assurance: Protection Against an Event, that_Might_Happen. 
2. Insurance: Protection Against an Event, that Might Happen. Assurance: Protection Against an Event, that Will Happen. 
3. Both: Insurance and Assurance, Refer to the Same Thing. 
4. Insurance: Guaranteed Protection, Against an Event, that_Might_ Happen. Assurance: Protection Against an Event, that_Might_Happen, is Not Guaranteed. 
Answer: 2
Category: Life
Question: Mr. Poddar has used Insulated Wiring in His House, so as to Reduce the Chances of Damage, Due to Fire. Identify the Risk-Management Technique, practiced here. 
1. Risk-Avoidance
2. Risk-Retention
3. Risk-Transfer
4. Risk-Reduction and Risk- Control
Answer: 4
Category: Life
Question: What is physical hazard in insurance underwriting?
1. A thorough knowledge of the construction materials used in the building
2. A thorough knowledge of various hazards to which property and persons are exposed
3. A thorough knowledge of the policyholder's personal history
4. A thorough knowledge of the policyholder's financial status
Answer: 2
Category: Life
Question: What is a bad physical hazard for liquid cargo in marine transportation?
1. Cargo packed in bales
2. Cargo packed in double bags
3. Cargo packed in second-hand drums
4. Cargo packed in new drums
Answer: 3
Category: Life
Question: Which of the following methods do underwriters use to deal with physical hazards?
1. Imposition of excess/deductibles
2. Loading of premium
3. Applying warranties on the policy
4. All of the above
Answer: 4
Category: Life
Question: What is the reason for loading of premium in risk exposure?
1. To reduce the probability of claims
2. To ignore the occurrence of large claims
3. To take into consideration the higher probability of claims
4. To avoid the risk exposure altogether
Answer: 3
Category: Life
Question: What is the purpose of imposing warranties in insurance policies for physical hazards?
1. To increase the premium amount
2. To reduce the physical hazard
3. To limit the coverage provided
4. To delay the claim settlement process
Answer: 2
Category: Life
Question: Which of the following is an example of physical hazard in fire insurance?
1. The policyholder's occupation
2. The policyholder's age
3. The construction materials used in the building
4. The policyholder's driving record
Answer: 3
Category: Life
Question: What is a no claim bonus?
1. A bonus given to policyholders who have lodged claims in the previous year
2. A bonus given to policyholders who have not lodged claims in the previous year
3. A penalty imposed on policyholders who have lodged claims in the previous year
4. A discount given to policyholders regardless of whether they have lodged claims or not
Answer: 2
Category: Life
Question: How is the no claim bonus allowed to the insured?
1. By increasing the total premium at renewal
2. By deducting a percentage of the total premium at renewal
3. By providing a cash reward to the insured
4. By reducing the coverage provided in the policy
Answer: 2
Category: Life
Question: Which of the following is an example of moral hazard due to dishonesty in insurance?
1. An insured accidentally causing damage to their own property
2. An insured being unable to pay their insurance premiums
3. An insured deliberately causing damage to their property to collect a claim
4. Overestimating the value of the insured property
Answer: 3
Category: Life
Question: Which of the following is an example of carelessness in the context of insurance?
1. Taking necessary precautions to prevent loss
2. To adopt careless attitude towards the insured property
3. Being overprotective of the insured property
4. Filing claims promptly
Answer: 2
Category: Life
Question: Which of the following involves an element of moral hazard in the employer-employee relationship?
1. Macroeconomics
2. Microeconomics
3. International trade
4. Industrial relations
Answer: 4
Category: Life
Question: What is a sub-limit in insurance?
1. A limit on the total payout that can be made to the insured
2. A limit on the number of claims that can be made in a year
3. A limit on the total payout separately each for room expenses, surgical procedures or doctor fees
4. A limit on the amount of premium that can be paid by the insured
Answer: 3
Category: Life
Question: How is premium charged for short period insurance?
1. On a proportionate basis
2. At a fixed rate
3. According to a special scale
4. Based on the policyholder's claims history
Answer: 3
Category: Life
Question: How can the sum insured be determined in personal accident insurance?
1. Based on the insured's age
2. Based on the insured's occupation
3. Based on the insured's income
4. Based on the insured's health history
Answer: 3
Category: Life
Question: What does IDV stand for in motor insurance?
1. Insured Declared Value
2. Insured Declaration Value
3. Insured Damage Value
4. Insured Depreciation Value
Answer: 1
Category: Life
Question: How is the sum insured determined for contents in fire insurance?
1. Based on their original cost
2. Based on their current market value
3. Based on the replacement cost
4. Based on the appreciation value
Answer: 2
Category: Life
Question: How is the sum insured determined in stocks insurance?
1. Based on the original cost of the stocks
2. Based on the replacement cost of the stocks
3. Based on the appreciation value of the stocks
4. Based on the market value of the stocks
Answer: 4
Category: Life
Question: What is the basis of sum insured in marine cargo insurance?
1. Market value of the cargo
2. Original cost of the cargo
3. Agreed value between insurer and insured
4. Replacement cost of the cargo
Answer: 3
Category: Life
Question: Which of the following statements is true about deciding the sum insured for liability insurance policies?
1. The sum insured is always a fixed amount predetermined by the insurer. 
2. The sum insured is the liability exposure of the industrial units based on the degree of exposure and geographical spread. 
3. The sum insured is based on the insured's income. 
4. The sum insured for liability insurance is the market value of the property. 
Answer: 2
Category: Life
Question: Why does the process of manufacturing during the night increase the hazard of a fire?
1. Due to the use of artificial lights
2. Due to continuous use of machinery leading to friction
3. Due to likely carelessness of workers due to fatigue
4. All of the above
Answer: 4
Category: Life
Question: What is an ignition hazard in relation to occupancy in insurance?
1. The risk of collapse of upper floors
2. The risk of damage to adjacent premises
3. The risk of chemical reactions
4. The risk of water damage
Answer: 3
Category: Life
Question: In Market Value (MV) method who is paid the amount does not replace value of property
1. Insured
2. Agent
3. Broker
4. Insurer
Answer: 1
Category: Life
Question: Any lost income or additional expenditure in the event of an unexpected claim are covered under:
1. Health Insurance
2. Shop keeper's insurance
3. Motor Insurance
4. Market Value (MV) Insurance
Answer: 2
Category: Life
Question: Compensation for accidents arising out of and in the course of employment is known as insurance for covering
1. Sum assured
2. Legal Liability
3. Baggage
4. Infidelity
Answer: 2
Category: Life
Question: Scooters & Motorcycles, Private cars and Commercial vehicles are covered under the following policies except ______
1. fire Insurance
2. Third-Party Insurance
3. Motor Insurance
4. Liability Insurance
Answer: 1
Category: Life
Question: _______ does not cover theft by employees, family members or owner. 
1. Consequential Loss Insurance
2. Burglary Insurance
3. Money Insurance
4. Bankers Indemnity Insurance
Answer: 2
Category: Life
Question: What are retail insurance products?
1. Insurance products purchased by businesses for covering certain interests
2. Insurance products purchased by individuals for covering certain interests
3. Insurance products sold in bulk to large corporations
4. Insurance products exclusively sold online
Answer: 2
Category: Life
Question: What is the Bharat Griha Raksha policy?
1. A mandatory policy offered by all general insurers for fire and allied perils insurance business
2. A policy that covers only losses from natural catastrophes
3. A policy that covers only losses from theft and burglary
4. A policy that covers only personal accidents of the insured and spouse
Answer: 1
Category: Life
Question: Does the Bharat Griha Raksha policy provide waiver of underinsurance?
1. Yes, the policy settles claims up to twice the Sum Insured
2. No, the policy only settles claims for losses from fire and natural catastrophes
3. Yes, the policy gives complete waiver of underinsurance
4. No, the policy only settles claims proportionately
Answer: 3
Category: Life
Question: Is the RIV method allowed for stocks and stocks in process?
1. Yes
2. No
3. It depends on the insurance company
4. It depends on the nature of the stocks
Answer: 2
Category: Life
Question: What is the difference between reinstatement value and market value?
1. Reinstatement value is based on the age of the property while market value is based on the reconstruction cost
2. Reinstatement value is the cost to reconstruct the home while market value is the sale value of the home
3. Reinstatement value is the cost to repair the home while market value is the rental value of the home
4. Reinstatement value is based on the location of the property while market value is based on the demand for the property
Answer: 2
Category: Life
Question: What are the two methods of fixing the Sum Insured for fire insurance?
1. Fire Value (FV) and Replacement Value (RV)
2. Market Value (MV) and Reinstatement Value (RIV)
3. Cash Value (CV) and Recovery Value (RV)
4. Purchase Value (PV) and Restoration Value (RV)
Answer: 2
Category: Life
Question: What is the difference between "All Risks" and "Named Perils" insurance policies?
1. "All Risks" policies cover any risk not specifically excluded, while "Named Perils" policies cover only specific listed perils. 
2. "All Risks" policies cover only specific listed perils, while "Named Perils" policies cover any risk not specifically excluded. 
3. "All Risks" policies are less comprehensive and priced lower, while "Named Perils" policies are more expensive and cover a wider range of risks. 
4. "All Risks" policies and "Named Perils" policies are the same thing. 
Answer: 1
Category: Life
Question: What is the definition of robbery in insurance terms?
1. Unforeseen and unauthorised entry to or exit from the insured premises with the intent to steal contents
2. House trespass for the purpose of committing an offence
3. Theft of contents at the insured's premises using aggressive and violent means against the insured and/or employees
4. Intentional and fraudulent taking of property without permission or consent
Answer: 3
Category: Life
Question: Who is required to take motor insurance?
1. The person who sold the car
2. The person who last drove the car
3. The person in whose name the vehicle is registered with the Regional Transport Authority
4. The person who is currently driving the car
Answer: 3
Category: Life
Question: What must vehicle owners in India carry as proof of insurance?
1. A certificate of insurance
2. A driver's license
3. A registration certificate
4. A pollution control certificate
Answer: 1
Category: Life
Question: What is the purpose of Third-party insurance?
1. Protection against legal actions of another party
2. Protection against damage to one's own property
3. Protection against natural disasters
4. Protection against theft
Answer: 1
Category: Life
Question: Which of the following statements is true about Package Policies?
1. They don't cover physical assets such as buildings and contents. 
2. They cannot include personal lines or liability covers. 
3. They provide a combination of covers under a single document. 
4. They have different terms and conditions for each section. 
Answer: 3
Category: Life
Question: What happens if the policyholder chooses to take a stand-alone CPA policy?
1. The CPA cover offered as part of the Liability Only or Package policy shall remain in effect
2. The CPA cover offered as part of the Liability Only or Package policy shall be reduced
3. The CPA cover offered as part of the Liability Only or Package policy shall be deleted
4. The policyholder cannot opt for a stand- alone CPA policy
Answer: 3
Category: Life
Question: What are some of the important exclusions under the policies?
1. Wear and Tear, Breakdowns, Consequential Loss
2. Loss due to driving with invalid driving license or under the influence of alcohol
3. Use of vehicle not in accordance with `limitations as to use '
4. All of the above
Answer: 4
Category: Life
Question: What does the sum insured of a vehicle in a Motor Policy refer to?
1. Motor Value (MV)
2. Insured's Declared Value (IDV)
3. Reinstatement Value (RIV)
4. Market Value (MV)
Answer: 2
Category: Life
Question: What does shopkeeper's insurance usually cover?
1. Damage to the shop due to insect infestation
2. Loss of income due to employee absenteeism
3. Damage to the shop structure and contents due to fire or flooding
4. Coverage for employee medical expenses
Answer: 3
Category: Life
Question: Which of the following is not an additional cover that can be opted for under a shopkeeper's insurance policy?
1. Personal accident cover
2. Infidelity/dishonesty of employees cover
3. Coverage for loss of stock due to spoilage
4. Legal liability cover
Answer: 3
Category: Life
Question: What is business interruption protection in shopkeeper's insurance?
1. Protection against shoplifting
2. Coverage for loss of income due to unexpected events causing interruption of business operation
3. Protection against natural disasters
4. Protection against employee theft
Answer: 2