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IC38 General Insurance Documentation MCQs (Non-Life)

Byadmin

General insurance documentation is a key topic in the IC38 exam. It includes proposal forms, underwriting, policy documents, warranties, and endorsements. Practicing MCQs helps in understanding concepts and applying them in exam scenarios, improving both accuracy and confidence.

IC38 General Insurance Documentation MCQs

1. The proposal form is mainly used to:

A. Pay claim
B. Assess risk
C. Issue policy
D. Calculate bonus

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Answer: B
Explanation: It provides information required for underwriting.

2. Which principle applies while filling proposal form?

A. Indemnity
B. Contribution
C. Utmost good faith
D. Subrogation

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Answer: C

3. Non-disclosure of material fact may result in:

A. Bonus
B. Claim payment
C. Policy cancellation
D. Premium reduction

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Answer: C

4. Underwriting involves:

A. Claim settlement
B. Risk evaluation
C. Policy cancellation
D. Investment

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Answer: B

5. Which decision is taken in underwriting?

A. Claim amount
B. Risk acceptance
C. Bonus declaration
D. Investment plan

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Answer: B

6. A proposal is accepted with special conditions. This is:

A. Rejection
B. Standard acceptance
C. Conditional acceptance
D. Claim settlement

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Answer: C

7. Premium must be paid:

A. After claim
B. After policy expiry
C. Before risk begins
D. Anytime

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Answer: C

8. If premium is not paid, insurer:

A. Still covers risk
B. Rejects claim later
C. Does not assume risk
D. Pays partial claim

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Answer: C

9. Premium receipt acts as:

A. Policy
B. Proof of payment
C. Claim form
D. Proposal

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Answer: B

10. A cover note is:

A. Final contract
B. Temporary proof
C. Claim document
D. Renewal notice

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Answer: B

11. Cover note is commonly used in:

A. Life insurance
B. Motor insurance
C. Health insurance
D. Pension plans

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Answer: B

12. Policy document is:

A. Temporary document
B. Final contract
C. Proposal form
D. Claim form

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Answer: B

13. Which is included in policy document?

A. Premium details
B. Risk covered
C. Conditions
D. All of these

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Answer: D

14. Warranty in insurance means:

A. Optional condition
B. Strict condition
C. Suggestion
D. Advice

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Answer: B

15. Breach of warranty may lead to:

A. Bonus
B. Claim payment
C. Policy void
D. Premium increase

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Answer: C

16. Endorsement is used for:

A. Claim payment
B. Policy modification
C. Premium payment
D. Risk assessment

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Answer: B

17. Change of address in policy is done through:

A. Proposal
B. Endorsement
C. Claim
D. Renewal

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Answer: B

18. Renewal means:

A. New policy
B. Policy cancellation
C. Continuation of policy
D. Claim

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Answer: C

19. Renewal notice is:

A. Mandatory
B. Legal requirement
C. Good practice
D. Claim document

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Answer: C

20. Which document gives evidence of insurance?

A. Proposal
B. Policy
C. Certificate of insurance
D. Claim form

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Answer: C

21. Certificate of insurance is compulsory in:

A. Life insurance
B. Motor insurance
C. Fire insurance
D. Marine insurance

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Answer: B

22. Incorrect information in proposal may lead to:

A. Bonus
B. Claim rejection
C. Premium decrease
D. Policy extension

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Answer: B

23. Which factor is considered in underwriting?

A. Risk details
B. Past loss
C. Nature of asset
D. All of these

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Answer: D

24. Which is NOT part of proposal form?

A. Name
B. Address
C. Claim amount
D. Occupation

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Answer: C

25. Policy conditions define:

A. Claim amount
B. Terms of contract
C. Premium
D. Bonus

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Answer: B

26. Cover note validity is:

A. Long-term
B. Short-term
C. Permanent
D. Lifetime

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Answer: B

27. Endorsement can be used to:

A. Increase cover
B. Reduce cover
C. Modify terms
D. All of these

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Answer: D

28. Proposal form becomes part of contract when:

A. Signed
B. Premium paid
C. Accepted by insurer
D. Claim filed

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Answer: C

29. Interpretation of policy in ambiguity is:

A. Against insured
B. Against insurer
C. In favor of insured
D. Ignored

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Answer: C

30. Main purpose of documentation is:

A. Profit
B. Legal clarity
C. Marketing
D. Investment

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Answer: B

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