A Motor Insurance
B Public Liability Insurance
C Boiler Explosion Insurance
D Contractors All Risk Insurance C10
A I and II only
B II and IV only
C I, II, and III only
D All of the above C9
4 The ................ Motor Policy covers only third party bodily injury or death.
A Comprehensive coverage
B Act only coverage
C Third party coverage
D Third party, fire and theft coverage C10
6 Which of the following statements are correct regarding the general insurance
business?
I)A public liability policy will reimburse the insured for legal costs incurred in
Defending a claim against the insured by a third party.
II) A householders insurance policy is designed to insure the contents of a home
or private dwelling.
III) Money insurance policy provides cover for loss of money belonging to the insured
whilst premises outside business hours.
IV) If there is surplus to the General Takaful Fund after deducting all operational cost,
the surplus shall be shared between the Takaful Company and the participants of the
scheme.
I) General insurance contracts are short-term contracts with usually varying premiums
at renewals
II)General insurance contracts are contracts of indemnity
III)Payment of a claim does not terminate a general insurance contract
IV) The risk to be insured does not necessarily increase with time
9 Which of the following is not a factor in the underwriting of a fire insurance risk ?
A Type of construction
B Type of burglar alarm system
C Nature of goods stored
D Situation of risk C11
11 A Personal Accident policy does not cover death, disablement and / or medical
expenses caused ................
A by suicide
B by childbirth, miscarriage or pregnancy
C while committing an unlawful act
D all of the above C10
12 Which of the following statements are false regarding risk assessment, underwriting
and rating.
A I only
B II and IV only
C I and III only
D II, III and IV only C11
13 Which of the following statements are correct regarding the general insurance
business?
I) Vehicles used on public roads should be insured under a motor insurance policy.
II) Professional indemnity policy covers the policyholders legal liability arising out of
professional negligence committed by him.
III)Nuclear risk is a general exclusion under all general insurance policies.
IV) Workmens compensation insurance provides an employer with the same sort of
cover as would an employers liability insurance.
A I and II only
B I , II and III only
C II, III and IV only
D All of the above only C10
A loss of both eyes and limbs, temporary total disablement from usual occupation
B permanent disablement, temporary disablement
C third party coverage, temporary partial disablement from usual occupation
D permanent disablement, 36 critical illnesses coverage C10
16 ____________ can be defined as a process of assessment and selection of risk, and the
determination of premium, terms and conditions.
A Anti-Selection
B Underwriting
C Subrogation
D Rating C11
A Heading
B Recital Clause
C Conditions
D Attestation Clause C12
18 All benefits under the fire policy will be forfeited in the following situations
EXCEPT ....................
A claim is fraudulent
B false declarations are made to support claim
C the loss is due to the willful act of the insured
D insured does not submit claim form within 14 days of the date of loss
C14
19 This section of the policy sets out the insured and the circumstances in which the
insurer will make payment to the insured.
A Recital Clause
B Operative Clause
C Conditions
D Attestation Clause C12
20 The minimum premium charged under a policy for private car is ..................
A RM 10
B RM 40
C RM 50
D None C11
21 .............. rates are used where there is a lack of large numbers of similarly insured
risks or credible statistics.
A Individual
B Class
C Merit
D Tariff C11
22 Which of the following statements are some factors which may reveal physical
hazards in Fire Insurance.
I) height of building
II) type of occupany
III) age of proposer
IV) hobbies
A I and II only
B II and IV only
C I, II and IV only
D All of the above C11
A I only
B II and III only
C I, III and IV only
D All of the above C11
24 The gross premium rate of general insurance is made up of 4 components. There are :
C11
25 Risks with abnormal hazards are acceptable subject to the following underwriting
measures.
I) Risk Improvement
II) Warranties
III) Excess
IV) Franchise
A PIAM regulations
B Inter-Company Agreement
C Code of practice and conduct
D Utmost good faith and integrity C15
27 Which of the following is not a desirable physical risk factor for fire insurance ?
A Sprinkler system
B Open fire burning in the vicinity
C Fire extinguishers
D Fire proof doors C11
I) Insurers are required by law to provide printed proposal forms to the public
II) Sum insured is the maximum limit of liability under the policy
III) Cover note is evidence that a policy document has been issued
IV) A renewal certificate is sometimes issued where upon renewal there are no
changes to the policy terms and conditions
A Exclusions
B Endorsement
C Conditions
D Modification C12
31 What is Cash-Before-Cover ?
32 In general, all claim forms seek the following information except ..................
33 Under a motor policy, the insurer can repudiate liability for a property damage claim
in the following situations EXCEPT .................
34 Under section I of private motor car policy, the insurer undertakes to indemnify the
insured against loss or damage to the motor vehicle caused by ....................
I) malicious act
II) accidental collision or overturning, collision or overturning as a result of wear and
tear
III) direct sea route across the straits between the island of Penang and the mainland
IV) damage to property belonging to third parties
35 Which is the minimum motor cover made compulsory by the Road Transport Act 1987
for any motorist ?
A Act only
B Third party
C Comprehensive
D Third party, fire and theft C14
36 The insurer normally consider .................... as a last resort and therefore would try to
bring about an out-of-court settlement unless it involves a huge claim or an import
point of principle.
A negotiation
B mediation
C litigation
D arbitration C13
37 When the sum insured under a policy is inadequate as compared to the value of the
property at the time of loss, insurers will involve the ................... condition.
I) reinstatement
II) average
III) subrogation
IV) litigation
A I and II only
B I and IV only
C III only
D II only C13
38 On receipt of an intimation of a fire loss, the insurer need not ascertain ..................
C13
39 This provides for the signature on the policy by an authorized official of the insurer.
A Heading
B Recital Clause
C Declaration
D Attestation Clause C12
40 When informed of a claim by the policyholder, the agent must not ....................
A I and II only
B II and III only
C II and IV only
D IV only C13
A Good faith
B Subrogation
C Litigation
D Reinstatement C13
A provides an independent service for dealing with disputes between insurers and
personal policyholders
B enables insurers to reduce legal and administrative
expenses
C states the new terms and conditions to be imposed by the insurer
D indicates that a valid claim exists C13
43 Arbitration is concerned with dispute between the claimant and the insurer
over .................
A I and II only
B II and IV only
C I, II and III only
D IV only C13
44 Exclusions are inserted into policies for the following reasons except ....................
A I and IV only
B II and III only
C I, II and III only
D All of the above C14
48 Once there is a loss or damage to the property insured, the insurer has the following
right :
49 Under a standard basic fire policy, insurance does not cover .......................
A I and II only
B II and III only
C I and III only
D III and IV only C14
50 If the insured cancels the cover, in which case the insurer has to ......................
52 What is a tariff ?
A to ensure that price competition among insurers will go below the economic
level
B to determine the class rate and then adjust the rate upwards or downwards
depending on the merits of the risk
C to ensure that price competition among insurers will not go below the
economic level
D to set a minimum premium to be charged C11
A Task force
B PIAM
C Inter-Company Agreement on agencies
D Board C15
If an insured cancels his motor policy after the policy has been in force for 1
months, and his annual premium is RM1600, how much premium refund he is entitled
to ?
A RM200
B RM400
C RM600
D RM1000 C11
57 Under motor policy, if any event occurs which could result in claim , the insured
should
58 A claim notification from the insured under a fire policy must be done
within ....................
A 60 days
B 30 days
C 15 days
D 7 days
C13
60 ................. are appointed by insurers to investigate and report on claims which are
large and complicated.
A Insurers
B Agents
C Solicitors
D Loss adjusters C13