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Final account of insurance company

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

General insurance is defined by

a)

Section 5 (6C) of Insurance Act

b)

Section 2 (6B) of Insurance Act

c)

Section 11 (6D) of Insurance Act

d)

Section 1 (6A) of Insurance Act

2.

General Insurance includes

a)

Marine insurance

b)

Miscellaneous insurance

c)

Fire insurance

d)

All A B and C

3.

The insured is not allowed to make any profit is

a)

Life Insurance

b)

Fire Insurance

c)

Life and fire Insurance

d)

None of the above

4.

Fire insurance is subject to

a)

Average clause

b)

Risk clause

c)

Escalation clause

d)

None of the above

5.

The policy in which the liability of the insurer is limited is

a)

Floating policy

b)

Valued policy

c)

Comprehensive policy

d)

Specific policy

6.

When more than one policy is taken to cover the same ricks it is called

a)

Marine Insurance

b)

Double Insurance

c)

Reinsurance

d)

All of the above

7.

The insurer who agrees to insure is called

a)

Over writer

b)

Underwriter

c)

Insurance

d)

B and C only

8.

The policy which insurer the regular matter of for a specific period is called

a)

Time policy

b)

Valued policy

c)

Voyage policy

d)

Floating policy

9.

General insurance companies must comply with the requirement of schedule

a)

A

b)

B

c)

C

d)

D

10.

Schedule B is divided into _________ parts

a)

5 parts

b)

6 parts

c)

10 parts

d)

8 parts

11.

Revenue account is prepared in the form

a)

RA

b)

B-RA

c)

C-RA

d)

D-RA

12.

The policy in which the insurer agrees to pay a fixed amount is

a)

Valued policy

b)

Specific policy

c)

Floating policy

d)

Replacement policy

13.

General Insurance business includes fire insurance only

a)

True

b)

False

14.

Share transfer fees received is show under other income in profit and loss account of general insurance company

a)

False

b)

True

15.

Provision for unexpired risk in case of marine insurance is (a)   % of net premium

16.

Fire insurance policies are always subject to average close

a)

True

b)

False

17.

Premium on reinsurance ceded is deducted from

a)

Premium for direct business

b)

Interest

c)

Discount

d)

Commission

18.

Claim on reinsurance accepted is added to

a)

Premium earned

b)

Commission received

c)

Claims incurred

d)

None of the above

19.

Share premium is disclosed under

a)

Provisions

b)

Reserves and surplus

c)

Borrowings

d)

Share capital

20.

Fire insurance policies are always subject to (a)   .