Sample GEN 1B

1

• Sample GEN 1B
• Questions

2
Sample Question
Standard cover under a theft policy will
indemnify a shop owner in respect of theft losses
resulting from A a break-in B a key being
left on the premises C pilfering by employees D
shoplifting
3
Answer
Standard cover under a theft policy will
indemnify a shop owner in respect of theft losses
resulting from A a break-in B a key being
left on the premises C pilfering by employees D
shoplifting ANSWER A
4
Sample Question
Which policy can normally be extended to cover
libel and slander? A Employers
liability B Products liability C Professional
indemnity D Public liability
5
Answer
Which policy can normally be extended to cover
libel and slander? A Employers
liability B Products liability C Professional
indemnity D Public liability ANSWER C
6
Sample Question
If an insurer operates a legal costs service in
association with household insurance policies, to
whom is legal advice provided? A Loss
adjusters B Policyholders C Policyholders
brokers D Third party
7
Answer
If an insurer operates a legal costs service in
association with household insurance policies, to
whom is legal advice provided? A Loss
adjusters B Policyholders C Policyholders
brokers D Third party ANSWER B
8
Sample Question
The primary reason that an underwriter needs to
be aware of material facts is because this
information enables him to A analyse the
frequency and severity of the risk B arrange
suitable reinsurance C establish the most
suitable policy for the proposer D rate the risk

9
Answer
The primary reason that an underwriter needs to
be aware of material facts is because this
information enables him to A analyse the
frequency and severity of the risk B arrange
suitable reinsurance C establish the most
suitable policy for the proposer D rate the
risk ANSWER D
10
Sample Question
George has a personal accident policy which
provides a benefit of 100 per week. A 14 day
excess applies. George breaks his leg and cannot
work for 5 weeks. How much, if anything can he
claim? A Nil B 200 C 300 D 500
11
Answer
George has a personal accident policy which
provides a benefit of 100 per week. A 14 day
excess applies. George breaks his leg and cannot
work for 5 weeks. How much, if anything can he
claim? A Nil B 200 C 300 D 500 ANSWER C

12
Sample Question
There are standard compulsory excesses under a
comprehensive private motor insurance policy.
What determines the level of the excess? A The
type of vehicle B The age and experience of the
driver C The area of use D The use to which the
vehicle is put
13
Answer
There are standard compulsory excesses under a
comprehensive private motor insurance policy.
What determines the level of the excess? A The
type of vehicle B The age and experience of the
driver C The area of use D The use to which the
vehicle is put ANSWER B
14
Sample Question
Which part of an insurance policy incorporates
the proposal form into the policy? A Standard
conditions B Operative clause C Policy
schedule D Recital clause
15
Answer
Which part of an insurance policy incorporates
the proposal form into the policy? A Standard
conditions B Operative clause C Policy
schedule D Recital clause ANSWER D
16
Sample Question
In the context of risk management, what are the
two main categories of risk control? A Physical
and Moral B Physical and Financial C Financial
and Moral D          Pre- and Post-loss
17
Answer
In the context of risk management, what are the
two main categories of risk control? A Physical
and Moral B Physical and Financial C Financial
and Moral D          Pre- and Post-loss ANSWER
B
18
Sample Question
The purpose of the Data Protection Act 1988 is to
protect A computer software developers from
software pirates and hackers B computer systems
manufacturers against misuse of their products
by third parties C individuals on whom data is
held D public companies which hold data
concerning clients
19
Answer
The purpose of the Data Protection Act 1988 is to
protect A computer software developers from
software pirates and hackers B computer systems
manufacturers against misuse of their products
by third parties C individuals on whom data is
held D public companies which hold data
concerning clients ANSWER C
20
Sample Question
The role of the Motor Insurers Bureau of Ireland
has been defined in a number of agreements. What
important amendment was made to the Bureaus role
by the agreement effective 1 January 1989? A The
inclusion of third party property damage
claims B Unlimited personal injury
cover C Inclusion of hit and run
situations D The ability to recover from the
government amounts paid under the terms of the
agreement
21
Answer
The role of the Motor Insurers Bureau of Ireland
has been defined in a number of agreements. What
important amendment was made to the Bureaus role
by the agreement effective 1 January 1989? A The
inclusion of third party property damage
claims B Unlimited personal injury
cover C Inclusion of hit and run
situations D The ability to recover from the
government amounts paid under the terms of the
agreement ANSWER A
22
Sample Question

• What scope of cover is usually provided by the
  driving other vehicles extension of a
  comprehensive private motor insurance policy?
• A Third party personal injury only
• B Third party only
• C Third party, fire and theft only
• D Comprehensive

23
Answer

• What scope of cover is usually provided by the
  driving other vehicles extension of a
  comprehensive private motor insurance policy?
• A Third party personal injury only
• B Third party only
• C Third party, fire and theft only
• D Comprehensive
• ANSWER B

24
Sample Question

• A sports equipment section of a household policy
  covers
• A a pair of trainers used whilst playing golf
• B golf balls
• C a golf trolley
• D a motorised golf cart

25
Answer

• A sports equipment section of a household policy
  covers
• A a pair of trainers used whilst playing golf
• B golf balls
• C a golf trolley
• D a motorised golf cart
• ANSWER C

26
Sample Question

• Which of the following is an exclusion usually
  found in a personal accident and sickness
  insurance policy?
• A Carelessness
• B Occupational accident
• C Pre-existing physical defects
• D Unintentional self-inflicted injury

27
Answer

• Which of the following is an exclusion usually
  found in a personal accident and sickness
  insurance policy?
• A Carelessness
• B Occupational accident
• C Pre-existing physical defects
• D Unintentional self-inflicted injury
• ANSWER C

28
Sample Question

• Which of the following forms part of the
  standard cover provided by a Private Medical
  Insurance policy for treatment as an in-patient?
• A Convalescence fees and consultations
• B Transport costs to and from hospital
• C Emergency treatment following a motor
  accident
• D Pre-existing conditions for which recent
  treatment has been given

29
Answer

• Which of the following forms part of the
  standard cover provided by a Private Medical
  Insurance policy for treatment as an in-patient?
• A Convalescence fees and consultations
• B Transport costs to and from hospital
• C Emergency treatment following a motor
  accident
• D Pre-existing conditions for which recent
  treatment has been given
• ANSWER A

30
Sample Question

• What is community rating in relation to Private
  Medical Insurance?
• A Discrimination between sectors of the community
  to provide a range of rates according to age of
  entry
• B Rating that is geographic in its nature
  treating different communities separately
• C A restriction placed upon insurers so that they
  do not discriminate by age between different
  proposers
• D Insurers cooperating together to provide
  consistent rates

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Answer

• What is community rating in relation to Private
  Medical Insurance?
• A Discrimination between sectors of the community
  to provide a range of rates according to age of
  entry
• B Rating that is geographic in its nature
  treating different communities separately
• C A restriction placed upon insurers so that they
  do not discriminate by age between different
  proposers
• D Insurers cooperating together to provide
  consistent rates
• ANSWER C

32
Sample Question

• Which of the following WOULD NOT be found in the
  definition of money under a standard money
  policy?
• A Lottery tickets
• B Luncheon vouchers
• C Postage stamps
• D Postal orders

33
Answer

• Which of the following WOULD NOT be found in the
  definition of money under a standard money
  policy?
• A Lottery tickets
• B Luncheon vouchers
• C Postage stamps
• D Postal orders
• ANSWER A

34
Sample Question

• Credit insurance is designed to cover
• A a buyer who is unable to pay debts
• B a buyer who has resold goods purchased on
  credit
• C a seller who cannot recover amounts owed by a
  buyer
• D a seller for the results of political and
  economic factors affecting credit provided

35
Answer

• Credit insurance is designed to cover
• A a buyer who is unable to pay debts
• B a buyer who has resold goods purchased on
  credit
• C a seller who cannot recover amounts owed by a
  buyer
• D a seller for the results of political and
  economic factors affecting credit provided
• ANSWER C

36
Sample Question

• A tree crashes through a bedroom window late on
  Christmas Eve. What is the earliest time that
  this can be reported to the claims helpline?
• A Immediately
• B St. Stephens Day
• C Any time on the first day after the bank
  holiday
• D During office hours after the bank holiday

37
Answer

• A tree crashes through a bedroom window late on
  Christmas Eve. What is the earliest time that
  this can be reported to the claims helpline?
• A Immediately
• B St. Stephens Day
• C Any time on the first day after the bank
  holiday
• D During office hours after the bank holiday
• ANSWER A

38
Sample Question

• Which of the following types of insurance policy
  DO NOT provide telephone help-line and advice
  facilities?
• A Household contents
• B Caravan
• C Private motor
• D Travel

39
Answer

• Which of the following types of insurance policy
  DO NOT provide telephone help-line and advice
  facilities?
• A Household contents
• B Caravan
• C Private motor
• D Travel
• ANSWER B

40
Sample Question

• An insurer quotes for a motor insurance risk.
  The quotation is accepted by the customer and
  premium paid. Prior to inception the insurer
  increases all of its rates. The insurer is
• A entitled to charge the new rate
• B obliged to accept the old rate
• C obliged to negotiate only a partial increase
• D entitled to withdraw the old quote entirely

41
Answer

• An insurer quotes for a motor insurance risk.
  The quotation is accepted by the customer and
  premium paid. Prior to inception the insurer
  increases all of its rates. The insurer is
• A entitled to charge the new rate
• B obliged to accept the old rate
• C obliged to negotiate only a partial increase
• D entitled to withdraw the old quote entirely
• ANSWER B

42
Sample Question

• Which question would you expect to find in a
  personal accident insurance proposal form?
• A Details of any cars owned
• B Ages of children
• C Proposers sporting activities
• D Proposers occupation

43
Answer

• Which question would you expect to find in a
  personal accident insurance proposal form?
• A Details of any cars owned
• B Ages of children
• C Proposers sporting activities
• D Proposers occupation
• ANSWER D

44
Sample Question

• A breach of a policy condition which is
  precedent to liability comes to light at the time
  a claim is made. How does this affect the policy
  and claim?
• A The policy is rendered void from inception and
  no claim is responded to
• B The policy is voidable by the insurers from
  the date of breach
• C The insurer can repudiate the claim to which
  the breach relates
• D The insurer is bound to respond to the claim
  but may void the policy thereafter

45
Answer

• A breach of a policy condition which is
  precedent to liability comes to light at the time
  a claim is made. How does this affect the policy
  and claim?
• A The policy is rendered void from inception and
  no claim is responded to
• B The policy is voidable by the insurers from
  the date of breach
• C The insurer can repudiate the claim to which
  the breach relates
• D The insurer is bound to respond to the claim
  but may void the policy thereafter
• ANSWER C

46
Sample Question

• Which of the following is an effective means of
  controlling the cost of the claims operation, as
  distinct from individual claims costs, of a
  general insurer?
• A Greater use of review processes
• B Increased use of Information Technology
• C Increased supervision of staff
• D Increased training

47
Answer

• Which of the following is an effective means of
  controlling the cost of the claims operation, as
  distinct from individual claims costs, of a
  general insurer?
• A Greater use of review processes
• B Increased use of Information Technology
• C Increased supervision of staff
• D Increased training
• ANSWER B

48
Sample Question

• Once an insurer has admitted liability under a
  policy any dispute over the amount is determined
  by
• A an arbitrator
• B an ombudsman
• C a loss adjuster
• D a loss assessor

49
Answer

• Once an insurer has admitted liability under a
  policy any dispute over the amount is determined
  by
• A an arbitrator
• B an ombudsman
• C a loss adjuster
• D a loss assessor
• ANSWER A

50
Sample Question

• Under the terms of the Motor Insurers Bureau of
  Ireland (MIBI) Agreement 2004 which of the
  following was an additional requirement that must
  be met by claimants?
• A The claimant must report the claim to the
  Gardaí within 2 days
• B The claimant must make a statutory declaration
  about the truth of statements
• C The claimant must appoint a solicitor to act
  for them
• D The claimant must pay the legal costs

51
Answer

• Under the terms of the Motor Insurers Bureau of
  Ireland (MIBI) Agreement 2004 which of the
  following was an additional requirement that must
  be met by claimants?
• A The claimant must report the claim to the
  Gardaí within 2 days
• B The claimant must make a statutory declaration
  about the truth of statements
• C The claimant must appoint a solicitor to act
  for them
• D The claimant must pay the legal costs
• ANSWER A

52
Sample Question

• Under a business interruption policy, the
  indemnity period is the period of time
• A for which the policy must be in force before a
  claim can be considered
• B for which the policy pays out in respect of a
  claim
• C it takes for the insurer to settle a claim
• D that must elapse between separate losses in
  order that a claim can be considered

53
Answer

• Under a business interruption policy, the
  indemnity period is the period of time
• A for which the policy must be in force before a
  claim can be considered
• B for which the policy pays out in respect of a
  claim
• C it takes for the insurer to settle a claim
• D that must elapse between separate losses in
  order that a claim can be considered
• ANSWER B

54
Sample Question

• Mr OGrady is injured when he opens a defective
  tin of paint, which explodes in his face. He
  submits a claim to the manufacturer. Under which
  type of cover will this claim be considered?
• A Personal accident
• B Products liability
• C Professional indemnity
• D Public liability

55
Answer

• Mr OGrady is injured when he opens a defective
  tin of paint, which explodes in his face. He
  submits a claim to the manufacturer. Under which
  type of cover will this claim be considered?
• A Personal accident
• B Products liability
• C Professional indemnity
• D Public liability
• ANSWER B

56
Sample Question

• A broker approaches a fire insurer to quote on a
  large manufacturing plant. Which of the following
  documents will normally be provided?
• A Loss assessors report
• B Fire Certificate
• C Presentation prepared by the broker
• D Title deeds of the premises

57
Answer

• A broker approaches a fire insurer to quote on a
  large manufacturing plant. Which of the following
  documents will normally be provided?
• A Loss assessors report
• B Fire Certificate
• C Presentation prepared by the broker
• D Title deeds of the premises
• ANSWER C

58
Sample Question

• A policy is subject to a premium clause stating
  50,000 minimum and deposit premium adjustable
  on expiry at 10 of actual turnover, the
  turnover being 600,000. What is the total
  premium due for that policy period?
• A 10,000
• B 50,000
• C 60,000
• D 110,000

59
Answer

• A policy is subject to a premium clause stating
  50,000 minimum and deposit premium adjustable
  on expiry at 10 of actual turnover, the
  turnover being 600,000. What is the total
  premium due for that policy period?
• A 10,000
• B 50,000
• C 60,000
• D 110,000
• ANSWER C

60
Sample Question

• Which of the following is LEAST LIKELY to be
  included in a commercial package?
• A Business interruption
• B Motor insurance
• C Goods in transit
• D Legal expenses

61
Answer

• Which of the following is LEAST LIKELY to be
  included in a commercial package?
• A Business interruption
• B Motor insurance
• C Goods in transit
• D Legal expenses
• ANSWER B