IC-S-06 and IC 72 Motor Insurance Chapter 4 Underwriting in Motor insurance MCQ

IC-S-06 and IC 72 Motor Insurance Chapter 4 Underwriting in Motor insurance MCQ

Learn about underwriting in motor insurance, including risk assessment, policy pricing, and coverage evaluation. Understand how insurers determine premiums and ensure fair, accurate policy issuance

Underwriting in Motor Insurance

Question 1

______is more important in underwriting motor insurance than in any other class of insurance.

1. Physical hazard
2. Personal hazard
3. Professional hazard
4. Moral hazard
5. Safety hazard

Underwriting in Motor Insurance

Question 2

Which of the following factors contributes towards a moral hazard by the driver?

1. Temperature
2. Attitude
3. Behaviour
4. All the Above
5. None of the above

Underwriting in Motor Insurance

Question 3

Which of the tactors helps in determining premiums under the motor insurance.

1. NCB earned.
2. Installation of protection devices
3. Number of cars to be insured.
4. Multiple drivers
5. All the above

Underwriting in Motor Insurance

Question 4

In which of the following areas is the real skill of the underwriter tested under motor insurance.

1. Acceptance of high-end vehicles
2. Break in insurance inspection of vehicles
3. Innovation of product
4. Both A and B
5. Both B and C

 

 

 

 

Underwriting in Motor Insurance

Question 5

Pick the odd man out.

1. Liaison the policy and telecommunication network
2. Identify standard of accident repairing facilities
3. Coordination with judicial agencies
4. Creating wordings of the endorsement and eating
5. Evaluate competence of the dealers

Underwriting in Motor Insurance

Question 6

All proposal forms elicit full particulars of settled and outstanding claims in connection with any motor vehicle owned or driven by the proposer during the last – proceedings________.

1. 4 to 6 yrs
2. 2 to 4 yrs
3. 3 to 5 yrs
4. 1 to 3 yrs
5. 1 to 2 yrs

Underwriting in Motor Insurance

Question 7

Which of the Tollowing best describes the purpose or a Claim search systems

1. Used by insurers in deciding whether to sell a policy.
2. Used by insurer in setting rates.
3. Used to detect fraud and to help insurers identify policyholder claims histories.
4. All the above
5. Both B and C.

Underwriting in Motor Insurance

Question 8

According to GT 40, the compulsory deductible for Motorised two wheelers is:

1. Rs 200 |
2. Rs 150
3. Rs 100
4. Rs 50
5. Rs 120

 

 

 

 

 

Underwriting in Motor Insurance

Question 9

The GR 45 B cover is normally offered by insurers for vehicles over ____ yrs.

1. 2yrs
2. 3 yrs
3. 5 yrs
4. 6 yrs
5. 7 yrs

Underwriting in Motor Insurance

Question 10

A cover note is required to be issued only in Form _____ of the Rule 142.

55. 52
56. 53
57. 51
58. 48

Underwriting in Motor Insurance

Question 11

Under which circumstances is the original premium retained on short period scale?

1. When no claim has been taken.
2. Minimum premium as per tariff.
3. Maximum premium as per tariff
4. Only A and B
5. Only A and C

Underwriting in Motor Insurance

Question 12

Motor vehicle in insurance is governed by India Motor traffic effective Trom I-vo-1989 till______.

1. Dec-05
2. Dec-08
3. Dec-07
4. Dec-06
5. Dec-04

 

 

 

Underwriting in Motor Insurance

Question 13

No claim bonus is earned only on the Own damage section of the Package policy covering all classes of vehicle except Motor Trade policies, ___.

1. Road Transit Risks
2. Road Risks
3. Internal Risks
4. All the above
5. None of the above

Underwriting in Motor Insurance

Question 14

For the vehicles loaded without custom duty the premium is loaded by ____ as per the Indian Motor Tariff.

1. 15%
2. 20%
3. 25%.
4. 30%
5. 45%

Underwriting in Motor Insurance

Question 15

Which of the following does not comes under the purview of Commercial vehicles?

1. Taxis
2. Passenger carrying vehicle.
3. Miscellaneous types of vehicles.
4. Goods carrying vehicle.
5. Motor Bikes

Underwriting in Motor Insurance

Question 16

What is the amount of deductible applied in case of the loss of personal belongings?

1. Rs 450
2. Rs 250
3. Rs 500
4. Rs 350
5. Rs 150

 

 

 

Underwriting in Motor Insurance

Question 17

A vehicle is considered to be CTL where the aggregate cost of retrieval and or repair exceeds______ of IDV.

1. 25%
2. 30%
3. 50%
4. 75%
5. 95%

Underwriting in Motor Insurance

Question 18

Whilst underwriting of the policies of handicapped persons the minimum premium applicable for vehicles should be ____?

1. Rs 100
2. Rs 150
3. Rs 50
4. Rs 25
5. Rs 15

Underwriting in Motor Insurance

Question 19

Vintage cars are those cars which are manufactured prior to __?

1. 12/31/70
2. 12/31/40
3. 12/31/50
4. 31/11/1970
5. 12/31/71

Underwriting in Motor Insurance

Question 20

A discount or ____ Is usually allowed for vehicles designed for the physically challenged.

1. 25%
2. 35%
3. 33%
4. 44%
5. 50%

 

 

 

Underwriting in Motor Insurance

Question 21

The insurance on imported cars are considered only it the cars are not older than _____.

1. 2 years
2. 10 years
3. 15 years
4. 20 years
5. 5 years

Underwriting in Motor Insurance

Question 22

Which of the following statement is not true?

1. Owner driven taxis are a better risk than those which are driven by paid drivers.
2. The vehicle repaired with authorised spare parts is considered a better risk.
3. Private carriers are considered a better risk 2 time or the carrier’s
4. All the above
5. Only A and B

Underwriting in Motor Insurance

Question 23

The geographical area under which the vehicle is used takes in consideration the following factors

1. Highway usage
2. Theft prone area
3. Climate of the area
4. Metro area or local movement
5. All the above

Underwriting in Motor Insurance

Question 24

Which of the following information related to the driver is elicited in the proposal form while rating motor insurance policies.

1. Training of drivers
2. Driving history
3. Age of driven
4. Gencer or the driver
5. All the above

 

 

 

 

Underwriting in Motor Insurance

Question 25

Which of the following professionals are considered to be at higher risk?

1. A pizza delivery guy
2. The entertainment professionals
3. The sports car driver
4. All the above
5. Only A and B

Underwriting in Motor Insurance

Question 26

The pricing policy is covered under which subtitle of motor insurance.

1. Proposer
2. Driver
3. Safety features
4. Accident repairing Facilities.
5. Geographical area

Underwriting in Motor Insurance

Question 27

Which of the following point is irrelevant tor consideration for risk selection and underwriting?

1. Health of the driver
2. Occupation of owner
3. Credit history of owner
4. Type of vehicle
5. Name of the driver

Underwriting in Motor Insurance

Question 28

Which of the following best describes the purpose of auto Mobile loss underwriting reports.

1. It is provided to insurers containing up to 7 year’s history or claims associated with auto insurance.
2. Is similar to a credit report.
3. It can be received tree once in a year.
4. All the above

 

 

 

 

Underwriting in Motor Insurance

Question 29

Under the emergency transport and hotel expenses the per occurrence limit will not exceed ____ % of the sum insured.

1. 25%
2. 50%
3. 60%
4. 70%
5. 75%

Underwriting in Motor Insurance

Question 30

The coverage under which extension provides for a number of emergency services that the vehicle owner could face in daily usage of the vehicle.

1. Key replacement
2. No claim bonus protection
3. Daily Allowance
4. Engine protector
5. Spot assistance

Underwriting in Motor Insurance

Question 31

What forms the basis of rates under motor insurance in India.

1. Carrying capacity of the vehicle
2. Sum insured.
3. Geography of the location
4. Both A and B
5. All the above

Underwriting in Motor Insurance

Question 32

Which of the following is the fundamental principle of insurance pricing?

1. Ine rate must not change frequently under dally changing circumstances.
2. Ensure fair rate of return to the investor of the fund.
3. To receive sufficient premiums to find the expected claim, admin, acquisition costs.
4. To follow the most aggressive marketing strategies.
5. Follow the complicated premium setting model.

 

 

 

Underwriting in Motor Insurance

Question 33

Which of the following does not forms the part of the objectives of premium pricing.

1. Fairness
2. Adequacy
3. Consistency
4. Flexibility
5. Profitability

Underwriting in Motor Insurance

Question 34

Under which type of rating is the risk individually evaluated and rated as per the underwriters’ perception of the risk.

1. Differential rating
2. Scheduled rating
3. Individual rating
4. Judgement rating
5. Retrospective rating

Underwriting in Motor Insurance

Question 35

The significance of adjustment in actual cost in respect of applying rates under the motor insurance is for:

1. Expected future claims inflation by examining past date of payment till the claims are paid.
2. Expected future claims inflation by taking in consideration changes in policy conditions.
3. Expected future claims inflation for gap in receipt of premium and claims payments.
4. Only A and B
5. All the above

 

Underwriting in Motor Insurance

Question 36

The information regarding change of number of engine and/or chassis when duly endorsed on registration certificate a new certificate of insurance is issued on remittance of

1. Rs 40
2. Rs 50
3. Rs 80
4. RS 100
5. RS 200

 

Underwriting in Motor Insurance

Question 37

Which all regions are not covered under the Zone A of GR 10?

Underwriting in Motor Insurance

Question 38

The OD rates are detariffed, but third-party premium is being regulated by the insurer.

1. The statement is correct.
2. The statement is incorrect.
3. The first half is correct, but the second half is incorrect.
4. The first half is incorrect, but the second half is correct.
5. The statement is irrelevant.

Underwriting in Motor Insurance

Question 39

Automobile Association Membership Discount is usually a maximum of 5% with a cap of max __.

1. Rs 100
2. Rs 200
3. Rs 300
4. Rs 400
5. Rs 500

Underwriting in Motor Insurance

Question 40

The motor vehicle insurance in India was governed by the India motor tariffs with effect from.

1. 1/1/07
2. 1/1/09
3. 4/1/09
4. 8/1/89
5. 9/1/90

 

 

 

 

Underwriting in Motor Insurance

Question 41

In the development process of motor insurance products and prices, the insurance regulator has laid down file and use guidelines as given hereunder:

1. Desian of products should be on sound and prudent norms in a transparent manner and provide value to the customer.
2. Simple language should be used in all literature of the product.
3. The product should be a genuine insurable risk product with a real risk transfer element.
4. It should comply with the rights of IRDA regulations 2002.
5. All the above.

Underwriting in Motor Insurance

Question 42

________ is required to be submitted by the insured before the commencement of cover, and at renewal in case of material alteration or in case of material alternation or in case of insured.

1. Proposal from GR 2
2. Policy from GR 3
3. GR 39
4. GR 38
5. GR 45

Underwriting in Motor Insurance

Question 43

All policies and certificates under GR 19(IMT-5)/GR 20(IMT-6) are issued in the name of______.

1. Hirer/Lessee
2. Owner
3. Joint names
4. Insured
5. None of the above

Underwriting in Motor Insurance

Question 44

Pick the odd one for lowing Charges GR 47:

400. Two-wheeler-up to Rs 400.
401. Private car-up to Rs 1500.
402. Commercial two-wheeler-up to Rs 300.
403. Commercial three-wheeler-up to Rs 750.
404. Taxi-up to RS 1500

 

 

 

Underwriting in Motor Insurance

Question 45

The motor tariff was withdrawn with effect from _

1. 1st Jan 2004
2. 1st Jan 2005
3. 1st Jan 2006
4. 1st Jan 2007
5. 1st Jan 2008

Underwriting in Motor Insurance

Question 46

Which all factors constitute the depreciation reimbursement?

1. The variations among insurers may be on partial reimbursement, if repairs at insured’s regular repairer.
2. A restriction on the maximum claims for the benefit in a policy year.
3. Tyres and batteries would be excluded.
4. The repair of the vehicle to be done at the insurers approved repairer.
5. All the above.

Underwriting in Motor Insurance

Question 47

Which of the following relates to Spot assistance?

1. Flat battery-providing alternative arrangements to make the vehicle mobile again.
2. Spare keys-in event of loss arranges for pick-up and delivery of spare keys.
3. Flat tyre-arrange for refill/replacement of flat tyre.
4. Minor repairs following mechanical or electrical breakdown.
5. All the above.

Underwriting in Motor Insurance

Question 48

What are the different kinds of vehicles driven by Non-Conventional Source of Power?

1. Private cars/taxis up to 1000 cc.
2. Motorized 2 wheelers with capacity exceeding 150cc but not exceeding 350cc.
3. Vehicles driven solely by any other non-conventional source of power approved by RTA.
4. All the above.
5. Only A and b.

 

 

 

Underwriting in Motor Insurance

Question 49

Which of the following is incorrect for Goods Carrvina Vehicles (own Goods)?

1. Up to 9 years package policy
2. Over 5 and up to 7 years subject to satisfactory inspection report package policy
3. Over 7 years and up to 10 years subject to satisfactory inspection report and a compulsory excess of Rs 2500: over 10 years ‘Act only’ policy.
4. Disposal vehicles on inspection and subject to further compulsory excess of Rs 1000.
5. Renewal is to be offered with normal terms subject to satisfactory claims experience up to a period of 12 years; over 12 years renewals will be on ‘Act only’ policy.

Underwriting in Motor Insurance

Question 50

What are the factors influencing motor risk management?

1. Potential hazards of vehicles.
2. Its uses.
3. Drivers’ ability.
4. Uninsured population.
5. All the above.