RISK UNDERWRITING AND CLAIMS ( ADL – 102)
ASSIGNMENT – ‘A’
Q1. Distinguish between ‘Pure Risks & ‘Trade Risks’.
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Q2. Discuss the functions of an Insurance Underwriter.
Q3. What is the importance of pre-insurance inspection of a proposed risk ?
Q4. Discuss the relevance of ‘Moral Hazards’ & ‘Physical Hazards’ in considering a Personnel Accident Insurance Proposal.
Q5. Write Short Note on :-
(a) ‘ Standard Lives’ & ‘Sub-Standard Lives’.
(b) Depreciation.
(c ) Loading of Premium
(d) No-claim Bonus.
ASSIGNMENT – ‘B’
Q6. Discuss the procedure for settlement of a Fire Claim.
Q7. Enumerate various documents required for settlement of an Accidental Death Claim.
Q8. Write Short Notes on the Following :-
(a). Assignment of a Life Insurance Policy.
(b). Excess clause in Motor Insurance.
( c ). Salvage
Q9. CASE STUDY
(A) Mr. Wilson has a car which is 12 years old. The Market value of which is Rs. 1.00 Lacs. However, Mr. Wilson wishes to Insure this car for Rs. 5 lacs due to his sentiments attached to it. Discuss as a Motor Insurance Underwriter, how you would react to this ?
(B) Mr. Mathew purchased a ‘Money Back Policy’ from M/s. Supreme Life Insurance’ for a Sum Assured of Rs. 2.00 Lacs for 15 years. The survival Benefit after 5 years accrues @ 25% of Sum Insured. A bonus was accumulated to the maturity. Calculate the sum payable at the maturity of the Policy.
ASSIGNMENT – ‘C’
(1). ‘Hazards’ means conditions which:
(a) Reduce the degree of Risks.
(b) Enhance the degree of Risks.
(c) May reduce or enhance the degree of risks.
(d) None of above.
(2). ‘Poor Risk’ means having:
(a) Low degree of exposure.
(b) Medium degree of exposure.
(c) High degree of exposure.
(d) Non-existence of risk
(3). An Insurance Underwriter should be
(a) An Engineer.
(b) A Chartered Accountant.
(c) A young and enterprising person.
(d) A person having good exposure in Risk Analysis and Risk evaluation.
(4) Physical Hazard in Fire Insurance is basically concerned with :
(a) Financial soundness of the proposer.
(b) Physical health of the proposer.
(c) Physical features of the Industrial unit proposed for insurance.
(d) Smoking habit of the proposer.
(5) Pure Risk means:
(a) Gambling.
(b) Business Risk
(c) Risk where possibility of both Profit and Loss is ther.
(d) Unexpected event which, if occurs, shall bring losses only and no profit.
(6) Risk Management means :
(a) Purchasing Insurance covers.
(b) Selling Insurance Policies.
(c) Assessing the Risk Profile and choosing suitable Risk handling techniques.
(d) All of above
(7) Proposal Form is :
(a) Evidence of Insurance Contract.
(b) A document containing information about the proposer and the risks proposed to be insured.
(c) Insurance Policy.
(d) Premium Receipt.
(8) Insurance Covers:
(a) Dynamic Risks
(b) Pure Risks
(c) Static Risks
(d) Business Risks.
(9) ‘Excess Clause’ is being imposed to :
(a) Restrict big claims.
(b) Restrict small claims.
(c) Get higher premium.
(d) Providing No-Claim Bonus.
(10) ‘Sub-Standard Life’ from Life Insurance point of view means :
(a) A person having lower Income.
(b) A person lives in slums.
(c) A person having ill health.
(d) A person having sound health.
(11) Risk Manager is a person who
(a) Looks after an Insurance Company’s Underwriting department.
(b) Looks after the ‘Risk Profile’ of an Industrial/Commercial unit.
(c) Inspects the Risks proposed for seeking insurance cover.
(d) Issues Insurance Policy.
(12) ‘Principle of Indemnity’ is strictly applicable in :
(a) Life Insurance.
(b) Personal Accident Insurance.
(c) Property Insurance.
(d) Valued Policies.
(13) ‘Self Insurance’ means:
(a) Insuring one’s own life.
(b) Insuring one’s own property.
(c) Retaining the part/whole of the risk.
(d) Self-sustained insurance rate.
(14) Insurance Premium is :
(a) A claim amount being promised to be paid by the Insurer.
(b) The consideration being paid by the proposer to Insurer.
(c) The extra benefits the Insured can get by assigining the policy to another person.
(d) Accrued Bonus.
(15). The best technique to handle Risks is:
(a) Avoiding the Risk.
(b) Transfer of Risk.
(c) Reducing the Risk.
(d) May be all of above.
( 16) Proposal Form is submitted by :
(a) Insurance Agent.
(b) Insurance Broker
(c) The Proposer.
(d) The Insurance Company.
(17) In India presently insurance business is controlled by :
(a) Insurance Companies.
(b) GIC
(c) LIC
(d) IRDA
(18) Insurance Claim is settled by :
(a) Insurance Agent.
(b) Insurance Surveyor.
(c) Insurance Company.
(d) All of above
(19) Fire Insurance Premium Rates at present are determined by :
(a) GIC
(b) LIC
(c) IRDA
(d) Individual Insurance Companies.
(20) Generally Insurance Surveyors are deputed by :
(a) Insured.
(b) Insurance Brokers.
(c) Insurers
(d) Insurance Agents
(21) In India presently insurance business is conducted by :
(a) Public Sector Companies Only.
(b) Private Sector Companies Only.
(c) Foreign Insurance Companies Only.
(d) Public Sector & Private Sector Companies.
(22) ‘Insurable Interest’ means :
(a) Interest accrued on Insurance Policies.
(b) Financial Interest in the subject matter proposed for Insurance.
(c) Interest imposed on delayed payment of Insurance premium.
(d) All of above.
(23) Excess is an amount :
(a) Which is being borne by the Insured.
(b) When claim amount exceeds the same then whole claim amount is being paid.
(c) Being paid in excess of claimed amount.
(d) All of above.
(24) No Claim Discount is granted when :
(a) There had been a number of claims in previous insurance policies :
(b) The Insured will not take any claim in the next policy.
(c) Either no claim or low amount of claims were taken in previous policies.
(d) None of above.
(25) Breach of Utmost Good Faith by an Insured :
(a) Shall cause repudiation of claims.
(b) Will not lead to repudiation of claims.
(c) May lead to repudiation of claims.
(d) All of above.
(26). ‘Nomination’ in Insurance Policy means :
(a) Nominating a person to pay Insurance premium.
(b) Nominating a person to pursue claims.
( c) Nominating a person to receive claim after Assured’s Death.
(d) Nominating a person to receive claim before Assured’s Death
(27). From Insurance point of view LCM means :
(a) Low Cost Machines
(b) Lowest Common Men.
(c) Loss Control Measures.
(d) All of above
(28) Insurance Underwriter is a person who:
(a) Sells the Insurance Policies.
(b) Inspects the risks before accepting the proposal.
(c) Decides whether to accept the Insurance proposal or not.
(d) Issue the Insurance Policies
(29) In Motor Insurance (own damage) policy, upon taking partial loss claim :
(a) Policy is cancelled.
(b) Sum Insured is reduced.
(c) Sum Insured is not affected.
(d) Premium is charged on the claimed amount for unexpired policy period.
(30) Insurance claim is being paid:
(a) Before occurrence of loss.
(b) Before conducting the survey.
(c) After conducting the survey.
(d) None of above.
(31) Insurance Surveyor is :
(a) Technically qualified person.
(b) Insurance Companies representative.
( c) An independent person only licenced by IRDA.
( d) Insurance Broker’s representative
(32) ‘Under Insurance’ clause is used to :
(a) Pay full claim
(b) Pay no claim.
( c) Pay proportionate claim.
(d) None of above
(33) Claim Discharge Voucher is submitted :
(a) At the time of lodging the claim.
(b) Before settlement of the claim.
(c) At the time of receipt of full and final claim amount.
(d) After receipt of full and final claim amount.
(34) For Death Claim under life insurance policy :
(a) Death Certificate is not required.
(b) Death Certificate is necessary.
(c) PMR is necessary.
(d) FIR is necessary.
( 35) ‘Principle of Contribution’ means :
(a) Insured contributes in the claim.
(b) All concerned Insurers contributes in the claim.
( c) All Insurance Agents contribute in the claim.
( d) All Brokers contribute in the claim.
(36) ‘Salvage’ is :
( a) The goods which have been destroyed completely.
(b) The goods which not at all affected.
(c) The goods which were affected but still could be utilized for some purpose.
(d) All of above.
(37) In Fire Insurance upon taking partial loss claim :
(a) Policy is cancelled.
(b) Sum Insured is reduced.
(c) Sum Insured is not affected.
(d) Premium is charged on the claim amount for unexpired policy Period.
(38) Survey Fee for assessing the loss is borne by :
(a) The Insured.
(b) The Insurance Agent.
(c) The Insurance Broker.
(d) The Insurance Company.
(39) For Settlement of ‘Theft’ claims :
(a) Lodging FIR by the Insured is necessary.
(b) Conducting Investigation by the Policy is necessary.
(c) Conducting Investigation by Insurer’s Investigator is desirable.
(d) All of the above.
(40) The ‘Claim Form’ is :
(a) Not required by the Insurer.
(b) Necessarily required by the Insurer.
(c) Submitted by the Insurer’s Agent.
(d) None of the above.
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