axondendriteplus/IC38-Insurance-Marketing-Firm-Questions huggingface dataset:
Question: How long can a Cover Note's validity be extended?
1. 15 days
2. 10 days
3. 30 days
4. 20 days
Correct answer: 1
Question: Are companies encouraging or discouraging the use of Cover Notes?
1. It varies from company to company
2. Neutral
3. Encouraging
4. Discouraging
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 1
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
Correct answer: 3
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
Correct answer: 3
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. 
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 4
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
Correct answer: 1
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
Correct answer: 3
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
Correct answer: 1
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 2
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
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 4
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
Correct answer: 1
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
Correct answer: 3
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. 
Correct answer: 3
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
Correct answer: 4
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
Correct answer: 1
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
Correct answer: 4
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. 
Correct answer: 2
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
Correct answer: 4
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
Correct answer: 2
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
Correct answer: 3
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
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 2
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
Correct answer: 3
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
Correct answer: 2
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
Correct answer: 2
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
Correct answer: 3
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
Correct answer: 2
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
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 1
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
Correct answer: 2
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
Correct answer: 4
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
Correct answer: 3
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. 
Correct answer: 2
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
Correct answer: 4
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
Correct answer: 3
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
Correct answer: 1
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
Correct answer: 2
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
Correct answer: 2
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
Correct answer: 1
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
Correct answer: 2
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
Correct answer: 2
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
Correct answer: 1
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
Correct answer: 3
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
Correct answer: 2
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
Correct answer: 2
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)
Correct answer: 2
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. 
Correct answer: 1
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 1
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
Correct answer: 1
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. 
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 4
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)
Correct answer: 2
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
Correct answer: 3
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
Correct answer: 3
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
Correct answer: 2
Question: What is FLEXA in Householder's Insurance coverage?
1. Losses from fire, lightning, explosion, and aircraft fall/impact damage
2. Losses from flood and inundation
3. Losses from electrical and mechanical failure of appliances
4. Losses from personal baggage during travel
Correct answer: 1
Question: The earliest kind of risks to be handled through the concept of insurance was losses due to:
1. Train accidents
2. Road accidents
3. Misadventure at sea
4. Earthquakes
Correct answer: 3
Question: _______ Insurance covers factories and shopping complexes. 
1. Medical
2. Life
3. Commercial
4. Agricultural
Correct answer: 3
Question: For EAR Policies the Premium chargeable depends on the nature of the project, its cost and tenure, the location of execution and ________
1. The Nature of Goods
2. The Period of Testing
3. The Probability of Failure
4. The Apportioned Loss
Correct answer: 2
Question: The insurance which provides cover in respect of breakdown of machinery and contractors plant_________. 
1. Marine insurance
2. Universal health insurance
3. Hull insurance
4. Engineering insurance
Correct answer: 4
Question: Suggest a Class of Insurance, that will provide the Protection against Loss of Goodwill. 
1. Life Assurance
2. Property Insurance
3. Liability Insurance
4. Personal Insurance
Correct answer: 3
Question: Which of the following movable and immovable properties can be insured under the Standard Fire and Special Perils Policy
1. Only buildings and plant and machinery
2. Only stocks at suppliers/ customer's premises
3. Both movable and immovable property located at a particular premises
4. None of the above
Correct answer: 3
Question: What is covered under the perils of the Fire policy for commercial risks
1. Riot strike and malicious damage
2. Theft
3. Earthquake
4. Life
Correct answer: 1
Question: What type of enterprises are Bharat Sookshma Policy and Bharat Laghu Policy suitable for
1. Small and Medium Enterprises (SMEs)
2. Large Business Enterprises
3. Both a) and b)
4. None of the above
Correct answer: 1
Question: What is the waiver provided under the Bharat Sookshma Udyam Suraksha policy
1. Waiver of premium payment
2. Waiver of policy coverage
3. Waiver of claim settlement
4. Waiver of underinsurance to the extent of 15%
Correct answer: 4
Question: What does a reinstatement value policy cover
1. Stocks
2. Buildings, plant, machinery, furniture, fixture, fittings
3. Both (a) and (b)
4. None of the above
Correct answer: 2
Question: What is the sum insured for a declaration policy based on
1. Market value
2. A fixed value determined by the insurer
3. The highest value expected to be stored in the godown during the policy period
4. The value of stocks at the beginning of the policy period
Correct answer: 3
Question: What are floater policies
1. Policies issued for covering stocks stored at various specified locations under one sum insured
2. Policies issued for covering stocks on market value basis
3. Policies issued for covering hazardous goods held in storage areas
4. Policies issued for covering industrial complexes only
Correct answer: 1
Question: What does Business Interruption Insurance provide indemnity for
1. Loss of gross profit and increased cost of working
2. Loss of merchandise goods
3. Loss of property damage
4. Loss of standing charges
Correct answer: 1
Question: What risks are covered under burglary insurance
1. Loss of property due to natural calamities
2. Loss of property due to employee negligence
3. Loss of property due to power failure
4. Loss of property following actual forcible and violent entry into the premises or loss followed by actual, forcible and violent exit from the premises or hold up
Correct answer: 4