IC38 Insurance Agent Exam (Non-Life) Mock Test 1 (50 Questions)

IC38 Non-Life Mock Test 1

Attempt IC38 Insurance Agent Exam (Non-Life) Mock Test 1 with 50 exam-level questions including case-based and concept-based questions. Improve your preparation.

No. of Questions: 50

Time: 60 Mins

No Negative Marking

1 / 50

1. A proposer hides previous claim history while buying policy. This violates:

A. Indemnity

B. Contribution

C. Utmost good faith

D. Subrogation

2 / 50

2. A factory owner insures machinery and installs fire alarms. This represents:

A. Risk avoidance

B. Risk transfer only

C. Risk reduction + transfer

D. Risk retention

3 / 50

3. A cover note is issued when:

A. Claim is settled

B. Premium unpaid

C. Policy is under preparation

D. Policy expired

4 / 50

4. If premium is not received, insurer:

A. Covers risk

B. Rejects later

C. Does not assume risk

D. Pays partial claim

5 / 50

5. Underwriting mainly involves:

A. Claim settlement

B. Risk evaluation

C. Investment decision

D. Bonus calculation

6 / 50

6. A proposal accepted with higher premium due to risk is:

A. Standard acceptance

B. Conditional acceptance

C. Rejection

D. Claim

7 / 50

7. Fire is an example of:

A. Hazard

B. Risk

C. Peril

D. Loss

8 / 50

8. Faulty wiring is an example of:

A. Moral hazard

B. Physical hazard

C. Legal hazard

D. Peril

9 / 50

9. A person intentionally plans to claim insurance fraudulently. This is:

A. Physical hazard

B. Moral hazard

C. Legal hazard

D. Risk

10 / 50

10. Which document is final proof of contract?

A. Proposal form

B. Cover note

C. Policy document

D. Premium receipt

11 / 50

11. A motor policy must include:

A. Proposal

B. Certificate of insurance

C. Claim form

D. Bonus

12 / 50

12. Warranty in policy means:

A. Optional condition

B. Strict condition

C. Suggestion

D. Advice

13 / 50

13. Breach of warranty leads to:

A. Bonus

B. Claim payment

C. Policy void

D. Renewal

14 / 50

14. Endorsement is used to:

A. Cancel policy

B. Modify policy

C. Pay claim

D. Calculate premium

15 / 50

15. Renewal of policy ensures:

A. New contract

B. Continuity of cover

C. Claim settlement

D. Premium reduction

16 / 50

16. A person insures same property with two insurers. Which applies?

A. Subrogation

B. Contribution

C. Indemnity

D. Warranty

17 / 50

17. After claim payment, insurer recovers from third party. This is:

A. Contribution

B. Subrogation

C. Indemnity

D. Warranty

18 / 50

18. Insurance cannot cover:

A. Pure risk

B. Speculative risk

C. Financial loss

D. Property damage

19 / 50

19. A shopkeeper buys fire insurance. This is:

A. Life insurance

B. General insurance

C. Health insurance

D. Investment

20 / 50

20. Which principle ensures no profit from insurance?

A. Contribution

B. Indemnity

C. Subrogation

D. Good faith

21 / 50

21. A claim is payable only if:

A. Premium paid

B. Risk covered

C. Policy valid

D. All of these

22 / 50

22. Which is NOT part of policy?

A. Conditions

B. Exclusions

C. Personal opinion

D. Risk details

23 / 50

23. Proposal form becomes contract when:

A. Signed

B. Submitted

C. Premium paid

D. Accepted

24 / 50

24. Which factor affects premium?

A. Risk level

B. Value of asset

C. Loss history

D. All of these

25 / 50

25. A person reduces risk by installing CCTV. This is:

A. Risk transfer

B. Risk reduction

C. Risk avoidance

D. Risk retention

26 / 50

26. Claim is:

A. Premium

B. Request for compensation

C. Investment

D. Loss

27 / 50

27. Which is example of indemnity?

A. Life insurance

B. Fire insurance

C. Pension

D. Savings

28 / 50

28. Insurance contract is:

A. Informal

B. Legal

C. Verbal

D. Temporary

29 / 50

29. A person bears minor losses himself. This is:

A. Risk transfer

B. Risk retention

C. Risk avoidance

D. Risk pooling

30 / 50

30. Insurance works due to:

A. Risk pooling

B. Profit

C. Investment

D. Saving

31 / 50

31. A warehouse owner increases sum insured mid-term. This is done by:

A. Renewal

B. Endorsement

C. Proposal

D. Claim

32 / 50

32. A policyholder fails to renew policy. Result is:

A. Claim paid

B. Policy lapses

C. Bonus increases

D. Premium reduces

33 / 50

33. A loss caused indirectly is covered based on:

A. Indemnity

B. Proximate cause

C. Contribution

D. Warranty

34 / 50

34. Which risk is insurable?

A. Gambling

B. Fire

C. Speculation

D. Lottery

35 / 50

35. Which is not a hazard?

A. Fire

B. Carelessness

C. Faulty design

D. Dishonesty

36 / 50

36. Which is primary function of insurance?

A. Profit

B. Protection

C. Saving

D. Investment

37 / 50

37. Which document is temporary?

A. Policy

B. Cover note

C. Certificate

D. Proposal

38 / 50

38. Which policy is mandatory by law?

A. Fire

B. Motor third-party

C. Marine

D. Health

39 / 50

39. A policyholder exaggerates loss amount. This is:

A. Fraud

B. Misrepresentation

C. Hazard

D. Warranty

40 / 50

40. Which is example of commercial insurance?

A. Motor car

B. Factory insurance

C. Personal accident

D. Health

41 / 50

41. Personal insurance includes:

A. Marine

B. Fire

C. Motor car

D. Factory

42 / 50

42. Which risk is measurable?

A. Speculative

B. Pure risk

C. Gambling

D. Lottery

43 / 50

43. Premium depends on:

A. Risk

B. Value

C. Coverage

D. All of these

44 / 50

44. Which is NOT insurable?

A. Fire

B. Theft

C. Intentional loss

D. Accident

45 / 50

45. Insurance spreads risk among:

A. Government

B. Insurer only

C. Policyholders

D. Agents

46 / 50

46. Which is example of retail insurance?

A. Factory

B. Shop

C. Home insurance

D. Industrial plant

47 / 50

47. Claim settlement requires:

A. Policy validity

B. Covered risk

C. Loss proof

D. All of these

48 / 50

48. Which party issues policy?

A. Agent

B. Insurer

C. Broker

D. Customer

49 / 50

49. Risk pooling helps in:

A. Increasing loss

B. Predicting loss

C. Avoiding loss

D. Eliminating risk

50 / 50

50. Main aim of general insurance is:

A. Profit

B. Compensation

C. Saving

D. Investment

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