IC 78 – MISCELLANEOUS INSURANCE

PRACTICE TEST . 3

PRACTICE TEST . 3

Question1 Tertiary care insurance covers hospitalisation expenses under which of the following heads?
(a) Cerebral or Vascular strokes
(b) Cataract
(c) Fracture
(d) Hypertension
(e) None of the above

Correct Answer Cerebral or Vascular strokes

Answer Tertiary care insurance is a major ailments hospitalisation/domiciliary hospitalisation expenses
Explanation reimbursement policy for individuals and group.

The policy covers major ailments only listed under nine heads and these include Cerebral or
vascular strokes, Open and close heart surgery, Total replacement of joints etc.

Question2 Which of the following is the cover provided in the case of tribal package insurance if there is a
death, loss of limbs, permanent total/partial disablement?
(a) Rs. 1,000
(b) Rs. 2,000
(c) Rs. 5,000
(d) Rs. 10,000
(e) Rs. 12,500

Correct Answer Rs. 10,000

Answer The cover provided in the case of tribal package insurance if there is a death, loss of limbs,
Explanation permanent total/partial disablement is Rs 10,000.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question3 Choose the correct statement with regards to Employment and Study policy -
(a) The premium for accompanying spouse is same but a lower rate is charged for child under 18
years
(b) The premium for accompanying spouse is same but a higher rate is charged for child under 18
years
(c) The premium for accompanying spouse and 2 children is the same
(d) The premium for accompanying spouse and 1 child is the same
(e) None of the above

Correct Answer The premium for accompanying spouse is same but a lower rate is charged for child under 18
years
Answer The Employment and Study policy is designed for Indian citizens temporarily posted abroad in
Explanation a sedentary non-manual work or students undertaking studies or engaging in research
activities abroad.
Under Employment and Study policy the premium for accompanying spouse is same but a
lower rate is charged for child under 18 years.

Question4 Aditya is an asthma patient who can travel. During one of his travels he falls into a street
excavation site and breaks his leg. He is shifted to a hospital where he contracts an infectious
disease resulting in death. Will his death be covered under personal accident policy?
(a) Yes
(b) No
(c) As decided by insurer
(d) Can't say
(e) None of the above

Correct Answer No
Answer No. The death will not be covered under personal accident policy as accident is not the
Explanation proximate cause of the death.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question5 ‘Poultry’ for the purpose of insurance refers to which of the following?
(a) Exotic birds only
(b) Cross Bred birds only
(c) Exotic and Cross bred parent stock
(d) Indian birds only
(e) None of the above

Correct Answer Exotic and Cross bred parent stock

Answer ‘Poultry’ for the purpose of insurance refers to (a) layers (b) broilers and (c) parent stock
Explanation (hatchery) which are exotic and cross bred.

Question6 represents a hazardous risk.

(a) Jewellery salespersons
(b) Estate agents
(c) Middle class employee
(d) Government employee
(e) Both 1 and 2

Correct Answer Both 1 and 2

Answer Not all risks proposed for insurance are accepted at normal terms. Certain risks are considered
Explanation not good for insurance because of a very high degree of hazard associated therewith and the
high incidence of claims. Some examples are - Jewellery salespersons, Estate
agents, Treasurers of societies, Employees of bullion merchants etc.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question7 Which of the following is not likely to be an extension available under the Money Insurance
policy?
(a) Money in safe
(b) Infidelity of employees
(c) Money lost due to bad accounting practices
(d) Disbursement risk
(e) Riot and strike excluding loss or damage due to terrorism activities

Correct Answer Money lost due to bad accounting practices

Answer Money lost due to bad accounting practices is not likely to be an extension available under the
Explanation money insurance policy.

Question8 The Videsh Yatra Mitra policy is valid only if insured journeycommences within day(s)
of the first day of insurance.
(a) 1
(b) 3
(c) 7
(d) 10
(e) 14

Correct Answer 14
Answer The Videsh Yatra Mitra policy is valid only if insured journey commences within 14 days of the
Explanation first day of insurance.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question9 Mohit is an asthma patient who can travel. During one of his travels he falls into a street
excavation site and breaks his leg. Will this be covered under personal accident policy?
(a) Yes
(b) No
(c) Can't say
(d) Depends on the insurer
(e) None of the above

Correct Answer Yes

Answer Yes. The accident will be covered under personal accident policy.
Explanation

Question10 In respect of sending by Registered Post parcel, the Jewellers Block Insurance policy normally
provides that the limit should not exceed:
(a) Rs. 10 lakhs or 5 percent of the sum insured under Section I, whichever is less.
(b) Rs. 5 lakhs or 10 percent of the sum insured under Section I, whichever is less.
(c) Rs. 10 lakhs or 50 percent of the sum insured under Section I, whichever is less.
(d) Rs. 5 lakhs or 50 percent of the sum insured under Section I, whichever is less.
(e) Rs. 50 lakhs or 10 percent of the sum insured under Section I, whichever is less.

Correct Answer Rs. 5 lakhs or 10 percent of the sum insured under Section I, whichever is less.
Answer In respect of sending by Registered Post parcel, the Jewellers Block Insurance policy normally
Explanation provides that the limit should not exceed Rs. 5 lakhs or 10 percent of the sum insured under
Section I, whichever is less.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question11 Underthe PASSscheme,‘Poorfamilies’ aredefined in thepolicy and includelandlesslabour

households, families of traditional craftsmen etc. whose total annual income does not exceed
.
(a) Rs 5,200
(b) Rs 7,200
(c) Rs 4,200
(d) Rs 6,200
(e) Rs 8,200

Correct Answer Rs 7,200

Answer The Central government had introduced in the year 1985, the Personal Accident Social Security
Explanation Scheme (PASS) for the benefit of poor families.

‘Poor families’ are defined in the policy and include landless labour households, families of
traditional craftsmen etc. whose total annual income does not exceed Rs. 7200/-.

Question12 Which of the following is not a type of horticultural crop?

(a) Mangoes
(b) Banana
(c) Grapes
(d) Apple
(e) Oranges

Correct Answer Mangoes

Answer Mango is not a type of horticultural crop.
Explanation
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question13 The sports insurance cover is not available in respect of which of the following sport?
(a) Badminton
(b) Cricket
(c) Lawn tennis
(d) Football
(e) Golf

Correct Answer Football

Answer The Sports Insurance cover is available in respect of any one or more of the following sports:
Explanation
- Angling
- Badminton
- Cricket
- Golf
- Lawn tennis
- Squash
- Use of sporting guns

Question14 Glass means plain glass of ordinary glazing quality and does not include -
(a) Embossing
(b) Silvering
(c) Lettering
(d) All 1, 2 and 3
(e) None of the above

Correct Answer All 1, 2 and 3

Answer Glass means plain glass of ordinary glazing quality and does not include any embossing,
Explanation silvering, lettering or ornamental work.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question15 In Poultry Insurance cover, if the birds die due to , then no compensation will be paid.
1. Action of predators like preying birds and carnivorous animal
2. Transit by any mode of transport
3. Act of terrorism
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer 1 and 2

Answer The Poultry Insurance policy provides indemnity against death of birds due to:
Explanation
- Accident (including fire, lightning, flood, cyclone / storm / tempest / earthquake, strike, Riot,
Act of Terrorism) or
- Disease contracted or occurring during the period of insurance
However, death of birds due to action of predators like preying birds and carnivorous animal
and in transit by any mode of transport is not covered.

Question16 means a person legally qualified to practice in medicine or surgery including

other legally qualified medical practitioners duly licensed by their respective jurisdiction and
such person is not a member of the insured person’s family.
(a) TPA
(b) Physician
(c) Claim settlement agency
(d) Medical advisors
(e) Nurse

Correct Answer Physician

 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question17 As per the Sheep and Goat insurance cover, the minimum number of animals that should be
covered to avail group discount is .
(a) minimum 60 to 100 animals
(b) minimum 101 to 500 animals
(c) minimum 251 to 600 animals
(d) minimum 101 to 150 animals
(e) minimum 301 to 500 animals

Correct Answer minimum 101 to 500 animals

Answer Sheep and goat insurance cover - Group discount is available depending upon the number of
Explanation animals covered (minimum 101 to 500 animals).

Question18 Which of these is/are exclusions (not covered) under Honey Bee insurance? 1. Natural
mortality 2. Any destruction as required by any order of Government / municipal authority 3.
Theft risk can be covered on payment of additional premium
(a) Only 1
(b) Only 3
(c) 1 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Correct Answer 1 and 2

Answer The important exclusions in Honey Bee insurance are:
Explanation
i. Neglect or improper management and / or rough handling
ii. Natural mortality
iii. Any destruction as required by any order of Government / municipal authority.
Theft risk can be covered on payment of additional premium is applicable.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question19 With regards to Health Insurance, ‘Surgical Operation’• means –

1. Manual and / or operative procedures for correction of deformities and defects
2. Manual and / or operative procedures for diagnosis and cure of disease
3. Manual and / or operative procedures for relief of suffering and prolongation of life
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer “Surgical Operation” means manual and / or operative procedures for correction of
Explanation deformities and defects, repair or injuries, diagnosis and cure of disease, relief of suffering and
prolongation of life.

Question20 Surinder wants to insure his pig which is 5 months old. Can the pig be insured?
(a) Yes, it can be insured as the minimum age for pig insurance is 3 months
(b) Yes, it can be insured as the minimum age for pig insurance is 4 months
(c) No, it cannot be insured as the minimum age for pig insurance is 12 months
(d) No, it cannot be insured as the minimum age for pig insurance is 9 months
(e) No, it cannot be insured as the minimum age for pig insurance is 6 months

Correct Answer No, it cannot be insured as the minimum age for pig insurance is 6 months
Answer Pigs in the age group of 6 months to 3 years can be insured.
Explanation
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question21 In householder’s insurance policy, the duration of notice that has to be given for cancellation
of policy is _ days.
(a) 7
(b) 14
(c) 21
(d) 30
(e) 60

Correct Answer 7
Answer In householder’s insurance policy, the duration of notice that has to be given for cancellation
Explanation of policy by the insured is 7 days.

Question22 are to be executed by importers in favour of the Controller of Imports and

Exports agreeing, inter-alia, to perform the conditions stipulated in the Import Trade Control
Regulations.
(a) RBI Bonds
(b) Court bonds
(c) Commercial guarantees
(d) Custom bonds
(e) Administration bonds

Correct Answer Custom bonds

 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question23 What inference can you make from this statement - 'The principle of utmost good faith applies
to personal accident policies in the same manner and with the same force as it applies to other
classes of insurance'.
(a) The insurance company should know the number of policies already held with the proposer so
that he does not make undue profits out of insurance
(b) When more than one policy is available on the date of loss, each policy will pay the full
benefits under the same
(c) The insured is duty bound to disclose all material facts pertaining to the proposed interest.
(d) A person who has received compensation under the personal accident policy can also claim
from any entity, against which he has a legal right
(e) The insured should be in the same pecuniary position as he was prior to the loss

Correct Answer The insured is duty bound to disclose all material facts pertaining to the proposed interest.
Answer The principle of utmost good faith applies to personal accident policies in the same manner
Explanation and with the same force as it applies to other classes of insurance. The insured is duty bound
to disclose all material facts pertaining to the proposed interest.
The details regarding the condition of health of the life proposed are known best to him only
and may not be known to or inferred by the insurers even after a detailed scrutiny of the
proposal form.

Question24 Under Plate Glass insurance, is considered a greater hazard.

1. Slum area
2. Disturbed localities where children play in streets or hooliganism ispresent
3. Vacant premises
(a) Only 1
(b) Only 3
(c) 2 and 3
(d) 1 and 2
(e) All 1, 2 and 3

Correct Answer Only 3

Answer In Plate Glass Insurance, vacant premises provide greater hazard since damage may be
Explanation affected easily without detection for longer period.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question25 What are the rights of the insurer in the event of a claims in Plate Glass Insurance?
1. All salvage glass shall be the property of the insurers
2. The insurers can pay the claim amount in cash for the intrinsic value of the broken glass
3. The insurers can make replacement by glass of similar manufacture and quality
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer In the event of a claim, the amount payable under the Plate Glass policy is restricted to the
Explanation intrinsic value of the broken glass upto the amount specified in the policy against the relevant
item. All salvage glass shall be the property of the insurers and must be carefully preserved.
The insurers have the option either to pay in cash the amount of the intrinsic value of the
broken glass, or to make replacement by glass of similar manufacture and quality.

Question26 In a burglary insurance cover, the rate of premium is quoted as .

(a) a rate per cent of the duration of insurance cover
(b) a rate per cent of the value of the insured property
(c) a rate per cent of the sum insured
(d) a rate per cent of the possible loss due to burglary
(e) a rate per cent of the premium paid

Correct Answer a rate per cent of the sum insured

Answer In burglary insurance, the rate of premium is quoted as rate per cent of the sum insured.
Explanation
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question27 Under Tertiary Care insurance, which of these ailments is/are covered?
1. Cerebral or vascular strokes
2. Nephritis of any aetiology plus bacterial renal failure requiring kidney transplant and dialysis
3. Open and close heart surgery
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer Tertiary care insurance is a major ailments hospitalisation / domiciliary hospitalisation
Explanation expenses reimbursement policy for individuals & group.
This policy covers major ailments under nine heads including Cerebral or vascular
strokes, Nephritis of any aetiology plus bacterial renal failure requiring kidney transplant and
dialysis and Open and close heart surgery.

Question28 Which type of groups can be issued Group Policy cover?

1. A special group which is purposely formed to avail group policy
2. Holders of credit card of banks / Diners / Master / Visa
3. Holders of deposit certificates issued by banks / NBFC’s
(a) Only 1
(b) Only 3
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 2 and 3

Answer Group policies should be issued only in respect of the named groups. For the purpose of
Explanation availing of group discount and other benefits, the proposed “Group” should fall clearly under
any one of the following categories
a) Employer – employee relationship including dependents of the employee
b) Pre identified segments / groups where the premium is to be paid by the State / Central
Governments
c) Members of a registered co-operative society
d) Members of registered service clubs
e) Holders of credit card of banks / Diners / Master / Visa
f) Holders of deposit certificates issued by banks / NBFC’s
g) Shareholders of banks / public limited companies
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question29 'Securities' as used in the Banker’s indemnity insurance policy is deemed to mean –
1. Bills of exchange
2. Bank money orders
3. Air consignment notes
(a) Only 2
(b) Only 3
(c) 1 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer 'Securities' as used in this policy is deemed to mean air consignment notes, bank money
Explanation orders, bills of exchange, bill of lading, bonds, certificates of deposit, certificate of shares /
stocks, cheques, coupons, debentures etc.

Question30 Which type of risk is covered under Section 5 of the Office protection shield?
(a) Electrical and mechanical breakdown
(b) Loss of money while in transit, on the premises during office hours and in safe after office
hours
(c) Pecuniary loss caused by fraud and/or dishonest act
(d) Death, permanent total or partial disablement and temporary total disablement due to
accident
(e) Liability as a tenant for damage to office premises including fixtures and fittings

Correct Answer Pecuniary loss caused by fraud and/or dishonest act

Answer Section V :
Explanation
Fidelity guarantee of any salaried person employed by insured
Risks covered - Pecuniary loss caused by fraud and/or dishonest act.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question31 In the case poultry insurance, when there is a matter of alarming death of birds or outbreak of
epidemic, a notice of has to be given to the insurance company.
(a) 6 hours
(b) 12 hours
(c) 24 hours
(d) 36 hours
(e) 48 hours

Correct Answer 12 hours

Answer In the case of alarming death / outbreak of epidemic nature notice with 12 hours should be
Explanation given and all birds segregated and produced for inspection.

Question32 According to the Neon Sign insurance cover, the insured neon sign must be examined and
inspected at regular intervals of not longer than by a qualified electrician and
engineer.
(a) three months
(b) six months
(c) five months
(d) nine months
(e) one year

Correct Answer six months

Answer According to the Neon Sign insurance cover, the insured neon sign must be examined and
Explanation inspected at regular intervals of not longer than six months by a qualified electrician and
engineer.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question33 The minimum age of a pig eligible for insurancecover is .

(a) 2 years
(b) 1 year
(c) 9 months
(d) 6 months
(e) 4 months

Correct Answer 6 months

Answer Pigs in the age group of 6 months to 3 years can be insured.
Explanation

Question34 Under Event Insurance, cancellation of an event due to specifiedperil(s) like is/are
covered.
1. Strike
2. Fire
3. Riots

(a) Only 2
(b) 1 and 2
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer In Event Insurance, perils like fire, riot, strike and AOG (Acts of God) perils etc. are covered.
Explanation
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question35 Under individual fidelity guarantee insurance –

1. The name of the defaulting employee is deleted
2. The cover ceases so far as the defaulting employee is concerned
3. The policy is cancelled on payment of a claim
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer Only 3

Answer In COMMERCIAL FIDELITY GUARANTEES, under individual fidelity guarantee insurance, the
Explanation policy is cancelled on payment of a claim.
(Under a collective policy, the name of the defaulting employee is deleted and under a floating
policy, the cover ceases so far as the defaulting employee is concerned)

Question36 What all does the Farmers’ package insurance policy cover?
1. Bullock cart 2. Cattle 3. Dwelling hut
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Farmers’ package insurance policy covers -
Explanation
1. Dwelling hut / house and contents
2. Cattle
3. Agricultural Pumpset
4. Bullock Cart
5. Gramin Personal Accident
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question37 The Employment and Study policy is designed for :

1. Indian citizens temporarily posted abroad in a sedentary non-manual work
2. Students undertaking studies outside India
3. Students engaging in research activities abroad
(a) All 1, 2 and 3
(b) 1 and 2
(c) 2 and 3
(d) Only 2
(e) Only 3

Correct Answer All 1, 2 and 3

Answer Employment and Study policy is designed for Indian citizens temporarily posted abroad in a
Explanation sedentary non-manual work or students undertaking studies or engaging in research activities
abroad.

Question38 In Administration bonds, the premium is charged as a .

1. Rate per cent of the amount of the debenture
2. Rate per cent of the amount of the bond
3. Rate per cent of the amount of the claim amount
(a) Only 1
(b) Only 2
(c) Only 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer Only 2

Answer The bond issued by insurers in favour of the court guaranteeing the proper discharge of duties
Explanation by the administrator and the proper accounting of the estate of the deceased is known as an
administration bond.
The premium is charged as a rate per cent of the amount of the bond. The rate per cent is
based on the value of the estate to be administered, the duration of the administration and
the complexities involved.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question39 Which of these statement(s) is/are CORRECT with respect to Personal Accident insurance
covers?
1. Personal Accident insurance cover is a policy of Indemnity
2. The policy basically covers ‘Death’ and ‘Disablement’ sustained in an accident
3. A fixed compensation is paid for death or disablement arising out of an accident
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer 2 and 3

Answer Under Personal Accident insurance, the policy basically covers ‘Death’ and ‘Disablement’
Explanation resulting solely and directly from bodily injuries sustained in an accident, caused by external
violent and visible means. A fixed compensation is paid for death or disablement arising out of
an accident.
The principle of indemnity basically means that an insured is not allowed to make profit out of
his insurance.
Personal accident policies are contracts which are not strictly subject to the principle of
indemnity. This is so because life is invaluable and no amount of money can compensate the
death or disablement of a human being.

Question40 The maximum age limit for availing Overseas Health policy is .
(a) 50 years
(b) 55 years
(c) 60 years
(d) 65 years
(e) 70 years

Correct Answer 70 years

Answer The maximum age limit for availing overseas health policy is 70 years.
Explanation
However, cover beyond 70 years is permissible with loading in premium at the discretion of
insurance company.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question41 Which of these is/are NOT covered under Domiciliary Hospitalisation benefits?
1. Expenses incurred for treatment of Hypertension
2. Expenses incurred for treatment of Bronchitis / Asthma
3. Expense incurred for pre and post hospital treatment
(a) Only 3
(b) 1 and 2
(c) 1 and 3
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer Domiciliary hospitalisation means, medical treatment for a period exceeding three days for
Explanation such illness which in the normal course would require care and treatment at the hospital but
actually taken whilst confined at home in India.
These benefits shall not cover:
i. Expense incurred for pre and post hospital treatment and
ii. Expenses incurred for treatment for certain diseases Asthma,
Hypertension, Epilepsy, Influenza etc.

Question42 Jewellers block insurance CANNOT be used to cover –

1. Goldsmiths and Cutters
2. Jewellers in retail market
3. Jewellers in wholesale market
(a) Only 1
(b) Only 2
(c) Only 3
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer Only 1

Answer Jewellery block insurance cannot be used to cover goldsmiths and cutters whose work is
Explanation predominantly manufacturing. It covers jewellers in retail market or jewellers in wholesale
market.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question43 To which of these wells do the 'Failed Well' Insurance apply to ?

1. Dug Wells 2. Bore Wells 3. Jack Wells

(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 2

Answer To protect farmers who incur huge losses due to failure of bore wells etc., a insurance
Explanation coverage is provided to wells in order to mitigate distress when the well failed.
The insurance applies to:
- Dug wells,
- Bore Wells or
- Dug-cum-Bore wells

Question44 Who are Third Party Administrators?

1. They are independent entities who are appointed for processing and finalising health claims
2. They are licensed and regulated by IRDA and mandated to provide health services
3. They are appointed for a fee or remuneration by an insurance company for the provision of
health insurance
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1,2 and 3

Correct Answer All 1,2 and 3

Answer Third party administrators or TPA is a major development in the field of health insurance. Third
Explanation party administrators enter into an MOU with hospitals or health service providers and ensure
that any person who undergoes treatment in the network hospitals is given a cashless service.
They are the intermediaries between the insurer(s) and the insured(s), who co-ordinate with
the hospitals and finalise health claims.
TPA are appointed for a fee or remuneration by an insurance company for the provision of
health insurance, are independent entities that are appointed for processing and finalizing
health claims and are licensed and regulated by IRDAI and mandated to provide health
services.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question45 Which of these risks can be covered on payment of additional premium in the Honey bee
insurance cover?
1. Accidental loss or damage to the hive
2. Accidental loss or damage to the bee colony
3. Theft Risk
(a) Only 1
(b) Only 3
(c) 1 and 2
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer Only 3

Answer Honey bee insurance cover is in respect of all accidental loss or damage to the hive and / or
Explanation bee colony.
To cover the risk of theft, one has to pay additional premium.

Question46 Which of these statements is / are TRUE?

1. The commercial guarantee is subject to conditions the breach of which may renderthe
policy void or void able
2. In a commercial guarantee the insured is not a party to the contract
3. Commercial guarantees are normal annual contracts which the insurers may renew at their
option
(a) All 1, 2 and 3
(b) 1 and 2
(c) 1 and 3
(d) Only 2
(e) Only 1

Correct Answer All 1, 2 and 3

 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question47 The Poultry Insurance policy provides indemnity against death of birds due to –
1. Accident (including fire, lightning, flood etc)
2. Transit by any mode of transport
3. Disease contracted or occurring during the period of insurance
(a) Only 1
(b) Only 2
(c) 1 and 3
(d) 1 and 2
(e) All 1,2 and 3

Correct Answer 1 and 3

Answer The Poultry Insurance policy provides indemnity against death of birds due to:
Explanation
- Accident (including fire, lightning, flood, cyclone / storm / tempest/ earthquake, strike, Riot,
act of terrorism) or
- Disease contracted or occurring during the period of insurance
There are many exclusions like -
i. Malicious / willful injury, neglect
ii. Transit by any mode of transport
iii. Improper management like over-crowding etc.

Question48 Which of these statements are correct with respect to Tertiary Care insurance for a group
policy?
1. Unnamed policy cannot be issued
2. Only one group policy is to be issued covering all eligible members
3. For group policies the minimum number of persons would be 20
(a) Only 2
(b) 1 and 2
(c) 2 and 3
(d) 1 and 3
(e) All 1, 2 and 3

Correct Answer 1 and 2

Answer Tertiary care insurance is a major ailments hospitalisation/domiciliary hospitalisation expenses
Explanation reimbursement policy for individuals and group.
For group policies the minimum number of persons would be 51 and only one group policy is
to be issued covering all eligible members of the group. Unnamed policy cannot be issued.
 IC 78 – MISCELLANEOUS INSURANCE
PRACTICE TEST . 3

Question49 The rate of premium in Plate Glass insurance depends on the –

1. Neighborhood
2. Type of glass
3. Previous experience
(a) Only 2
(b) Only 3
(c) 1 and 2
(d) 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer The rate of premium in Plate Glass insurance depends on the type of glass, situation, previous
Explanation experience and neighborhood.

Question50 Mr. Soham has taken a pedal cycle insurance cover and as per this cover his legal liability for
damage to the property of the public is covered as well as loss to the pedal cycle due to
burglary / theft or housebreaking is also covered. Which type of cover has Mr. Soham opted
for?
1. Dual Liability Cover
2. Comprehensive Cover
3. Third Party Liability Cover
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1 and 3
(e) All 1,2 and 3

Correct Answer Only 2

Answer A Comprehensive Cover involves cover for -
Explanation
a) Loss of or damage to the pedal cycle described in the schedule of the policy:
- Resulting from fire, lightning, explosion,
- Resulting from burglary, housebreaking, theft, or
- By accidental external means

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