Model paper for ICFAI MBA Group B

I need ICFAI University MBA group B exam question paper, will you please provide here???

[Arun Vats]

You are looking for ICFAI University MBA group B exam question paper, i am giving here:

1. Which of the following are not man made calamities?
I. Traffic accidents in which passengers or pedestrians are injured or dead, in addition to damage to vehicle
involved and other properties.
II. Industrial accidents in factories, petrochemical plants, thermal power stations, etc.
III. Natural calamities which are termed as pure risks are also of contingent nature. Floods and cyclone have
caused extensive damage and adversely affected the financial condition of those parts of the country.
IV. Earthquakes also have had similar effects.
V. Terrorist attack (on WTC) is the most recent example of contingent risk that produced losses of different
descriptions affecting the financial system of that part.
(a) Both (I) and (II) above
(b) Both (III) and (IV) above
(c) (II), (III) and (IV) above
(d) (III), (IV) and (V) above
(e) (I), (II), (III) and (IV) above.

2. Financial system is defined as
I. Set of institutions.
II. Set of instruments.
III. Set of markets.
IV. Fostering savings.
V. Allocating the savings among competing users.
(a) (I), (II) and (III) above
(b) (I), (II), (III) and (IV) above
(c) (I), (II), (III) and (V) above
(d) (I), (III), (IV) and (V) above
(e) All (I), (II), (III), (IV) and (V) above.

3. Which of the following is not common to risks that are classified as pure, static, fundamental and particular?
(a) Their capacity to produce loss and suffering to persons and possibility of some gain
(b) Their uncontrollability once they occur
(c) Another feature is their un-predictability
(d) Their impact on a large section of people or geographical area
(e) They all have financial consequences.

4. Which of the following is false regarding group Personal Accident policy?
(a) The number of persons and the sum insured in each class should be specified when the cover is taken
(b) Only members of an Institution/Association/Club/Society etc., wherever the group is well defined and a
register of membership is maintained and it is possible to find out the number of members at any given
time, can be covered
(c) The employees working in Institution/Association/Club/Society etc. can also be covered
(d) Issue of group policies for public places like hostel, cinema, or for specified short duration for covering
visitors at exhibition, conference etc. is not permissible
(e) A declaration policy can be issued whether by addition/alteration could be effected by charging
additional premium or allowing as refund, a prorata premium for the unexpired period of insurance.
However the refund will be allowed only if there is no claim in respect of the particular insured person.
But no alteration is permitted in the group discount.

5. Which of the following is not an advantage under Griha Raksha Policy?

1
i.exe
(a) Choice of selecting from twelve alternative packages
(b) Fixed liability limit provides cover on first loss basis
(c) No under insurance
(d) Convenient lump sum premium ranges from Rs.200 to 2500 depending on the sum insured and type of
policy
(e) No compulsion of opting for minimum number of sections to avail discounts.
6. Both risk management and insurance help society and individual?
(a) By managing risks in a most economic and efficient manner in the society
(b) By encouraging people to lead a carefree and at times even a careless life enjoying all modern
technological advancements
(c) By helping them to satisfy all their desires that require money
(d) By removing difficulties faced by them in solving social problems
(e) By establishing a socialistic pattern of society or capitalist society as per their wishes.

7. Which of the following classes of business is/are covered by market agreements?
I. Tea crop insurance.
II. Cattle insurance.
III. Agricultural pump set insurance.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.

8. Which of the following is not a measure to improve the risk?
(a) Installation of sprinklers and fire extinguishers reduces the risk of fire damage
(b) Segregation of hazardous processes and construction of perfect party walls to provide effective fire
brakes
(c) Improvements are effected by the fitting of additional locks and bolts and installation of alarm system
reduces the risk in burglary insurance
(d) Warranties are incorporated to improve risk by the insurer
(e) Suggest better method of supervision of accounts or a system of audit which would render defalcations
most difficult in fidelity guarantee insurance.

9. Which of the following is not true with regard to Tariff rules under Workmen’s Compensation Cover?
(a) Any risk, for which no rate has been provided in the Tariff is to be submitted to the Tariff Advisory
Committee for fixing a rate for such a risk
(b) No minimum premiums are stipulated in the Tariff
(c) Policies cannot be issued to cover liabilities in excess of that provided by the tariff forms of policies and
endorsements
(d) All policies are to be issued for 12 months. However short period policies may be issued in cases of
specific contracts which will be completed in less than 12 months provided the policies are written for
the full period of the contract
(e) A special rate may be fixed by the Tariff Advisory Committee for any risk the wages of which are
estimated to exceed Rs. 50,000 per annum.

10.In case of death, the liability of the insurer is restricted to sum insured under which of the following policy(ies)?
I. Liability policy.
II. Personal accident policy.
III. Life insurance policy.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.

11.Which of the following statements is false?

(a) Marine insurance is the oldest form of insurance. All other branches of insurance have gradually
developed out of practices followed by marine insurers and policyholders to solve their problems under
Judiciary guidance
(b) Fire insurance was developed out of great fire of London city, the same principles were applied
successfully to the issues arising in fire insurance
(c) Accident or miscellaneous insurance is the outcome of industrialization and rapid advancement of trade
and commerce
(d) Life insurance has been developed subsequently with suitable modifications
(e) Core of the common law principles on insurance have no relevance to the principles laid down by the
law of contract.
12.Which of the following is not a risk management technique?
(a) Risk avoidance
(b) Risk protection
(c) Risk spreading
(d) Risk prevention and minimization
(e) Risk transfer.

13.There is a lot of difference between selling and marketing and the insurance industry is quite often concentrated
on selling at the expense of marketing. Which of the following is/are true regarding marketing?
I. Marketing is more focused on the customer.
II. It satisfies the customer needs at an economic cost and providing service in that process.
III. The insurer divides the market into various segments to identify the opportunities and to provide services.
IV. It carries out research to find out from the types of policies and at the price and characteristics required.
V. It creates an organization to make the product or service available to the customer at a proper time, place
and price.
(a) (I), (II) and (III) above
(b) (I), (II) and (IV) above
(c) (I), (III) and (IV) above
(d) (I), (II), (III) and (IV) above
(e) All (I), (II), (III), (IV) and (V) above.

14.Which of the following is false with regard to insurance brokers?
(a) Whenever standard products are not adequate, they prepare a manuscript policy and negotiate with the
insurer to optimize satisfaction of their clients
(b) As the brokers negotiate with many insurance companies, they do not act as catalysts of competition in
the insurance market
(c) Brokers provide link between the insured and the insurer
(d) Unlike agents who are retained on behalf of insurers, the primary responsibility of brokers is towards the
insured
(e) The insured, especially corporate clients do need the services of a broker to buy their insurance
requirements.

15.Proper settlement of claims requires
I. A sound knowledge of the law, principles and practice of which govern insurance contracts.
II. A thorough knowledge of the terms and conditions of the standard policies, various extensions and
modifications there under.
III. It is equally important that in claims, negotiations should be on the basis of the insured’s patience, fact and
understanding of the situation.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above.

16.Which of the following are advantages of standardization of fire policy?
I. Guards against misuse or fraud by either the issuing company or the agents.
II. Avoids competition between the companies.
III. Simplifies the training of agents and thus results in better public awareness.
IV. With the rapidly changing field like insurance, more frequent revisions are necessary, which is not feasible
in case of standardized fire policy.

(a) Both (I) and (II) above
(b) Both (II) and (III) above
(c) Both (III) and (IV) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
17.Which of the following is not true about leading underwriter in aviation insurance?
(a) He should have sufficient experience and expertise in the aviation industry
(b) He has no role to play in claims settlement
(c) It is his duty to set the insurance coverage terms and agree upon a policy wording on behalf of the
market
(d) Earlier, leading underwriters were responsible for setting the terms and other underwriters would follow
the same terms. But now with larger placements, leading underwriters set premiums which they require
for their personal participation, and other underwriters will then participate in a variety of premium terms
at a considerable discount to the leader’s terms
(e) The leading underwriters receive a fee from other underwriters because of the various additional work
and responsibilities taken by them.

18.Which of the following points should be taken note by the insurers with regard to claims settlement?
I. The aircraft was the one which was insured under the policy.
II. The policy was in force when the accident occurred.
III. The pilot was the permitted pilot under the policy.
IV. The accident occurred within the geographical limits of the policy.
V. The purpose for which the aircraft was used at the time of the accident was the purpose of use covered by
the policy.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) (I), (II) and (III) above
(d) (II), (III), (IV) and (V) above
(e) All (I), (II), (III), (IV) and (V) above.

19.In Erection All Risks Policy, what is minimum value of insurance which ranks for a discount in premium?
(a) Rs.100 cr.
(b) Rs.150 cr.
(c) Rs.200 cr.
(d) Rs.250 cr.
(e) Rs.300 cr.

20.Which of the following is/are excluded risk(s) under poultry insurance policy?
I. Accidents or diseases.
II. Unknown diseases or natural mortality.
III. Theft and clandestine sale of birds.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (I) and (III) above
(e) Both (II) and (III) above.

21.Which of the following statements is false?
Season Crops Premium Rate
(a) Kharif Bajra and oil seeds 2.5% of sum insured or actuarial rate whichever is less
(b) Kharif Other crops Same as above
(c) Rabi Wheat 1.5% of S.I, or actuarial rate whichever is less
(d) Rabi Other crops like pulses 2.0% of S.I, or actuarial rate, whichever is less
(e) Kharif/Rabi Annual commercial &
horticultural crops
Actuarial rated

22.Which of the following is not an objective of Pilot Scheme on Seed Crop Insurance?

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(a) To provide cover against the risks which are beyond the control of the insured, like failure of seed crop
field either in full or in part due to perils
(b) To provide financial security and income stability to the Seed Growers in the event of failure of seed
crop
(c) To build confidence in the existing seed growers and stimulate participation of new growers to undertake
seed production program of newly released hybrid/improved varieties
(d) To provide stability to the infrastructure established by the State owned Seed Corporations/State Farms
(e) To give a boost to the modern seed industry to bring it under scientific principles.
23.All of the following are the limiting features of warranties in a marine insurance policy except
(a) Change of port of departure
(b) Change of destination
(c) Deviation from voyage
(d) Change of weather
(e) Delay in voyage.

24.Which among the following are the classifications of marine insurance depending upon the nature of interest
covered?
I. Policies covering damages or loss to mode of conveyance.
II. Policies offering protection against liabilities to third parties.
III. Policies covering loss or damage to Cargo shipments.
IV. Policies covering credit related risks.
V. Policies covering various freight interests.
(a) Both (I) and (II) above
(b) Both (II) and (III) above
(c) (I), (II) and (III) above
(d) (I), (II), (III) and (IV) above
(e) (I), (II), (III) and (V) above.

25.Which of the following salient features of workmen’s compensation policy is not true?
(a) This policy covers statutory liability of an employer for the death of or body injuries or diseases exposed
due to occupation by the workmen arising out of and in the course of employment
(b) The Act provides very wide meaning for the term “arising out of and in the course of employment”
Death of or injuries arising out of an employee’s own negligence are also treated as arising out of
employment
(c) This being a legal liability, the claim amount payable is the amount of compensation awarded by a court
of law. A workman engaged for casual duties by his employer are also covered along with those
workman engaged in the insured’s business, profession or occupation
(d) This class of insurance is controlled by the Tariff which provides the rate of premium for various
categories of trades and occupations as also rules and regulations governing the business practices
(e) The rate of premium depends upon the nature of works of the insured. Separate rates for each trade or
occupation of the insured are provided by the Tariff. Each division of trade or occupation may contain
different sub-divisions with different rates, if there are significant variations in the hazards.

26.In product liability and professional indemnity policies, claim is paid subject to excess. Who bears this amount?
(a) Insured
(b) Insurer
(c) Beneficiary
(d) Insured and Beneficiary on agreed proportion
(e) Insured and Insurer on equal basis.

27.Which of the following insurance policies protect the banks from losses if the borrower defaults on repayment?
(a) Municipal bond insurance
(b) Mutual fund insurance
(c) Export credit insurance
(d) Mortgage guarantee insurance
(e) Deposit guarantee insurance.

28.Which of the following features of contract surety bonds is false?

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(a) Facilitates the use of competitive bids resulting in lower costruction costs
(b) Reduces the possibility of a contractor diverting funds from the project
(c) Contract surety bond does not give guarantee that the project will be completed as per the terms and at
the determined contract price
(d) Relieves the owner from the risk of financial loss arising from liens filed by unpaid laborers, suppliers
and sub-contractors
(e) Smoothens the transition from construction to permanent financing by eliminating liens.
29.Which of the following is not covered under money insurance policy?
(a) Loss occurring at the premises after business hours unless money is locked in a safe or strong room
(b) Loss of cash withdrawn for the payment of wages, salaries, other payments or petty cash in direct transit
from the bank to the premises of the insured
(c) Loss of cash in personal custody of the insured or his authorized employees in direct transit between the
bank and the premises of the insured
(d) Loss of cash collected by and in the custody of the insured or his authorized employees in transit
between the bank and the premises of the insured within a period not exceeding 48 hours from the time
of collection
(e) Loss of cash on the premises during business hours.

30.Which of the following statements is not true?
(a) Risk management assumes significance in insurance business as it can diminish the effect of loss
(b) The major steps involved in risk management are risk identification, risk analysis and risk control
(c) Rate making involves the selection of classes of exposure units on which to collect statistics regarding
the probability of loss
(d) Gross premiums calculated equals historical premium and expenses experience
(e) The basic components of insurance premium are claim payments and cost, general operating expenses of
the insurance company and underwriting profit or loss.

END OF SECTION A
Section B : Problems (50 Marks)
•This section consists of questions with serial number 1 – 4.
•Answer all questions.
•Marks are indicated against each question.
•Detailed workings should form part of your answer.
•Do not spend more than 110 - 120 minutes on Section B.
6
Family Risk Management:
From time immemorial human beings have been concerned with the search for security against future
uncertainty which may result in financial loss. The future uncertainty may take the form of untimely
death, loss of possessions due to accidental events like fire, theft, etc., and body injury due to accident,
illness, etc. Throughout the known history, human beings have been developing techniques and
strategies for managing the risk element. Till recently, the joint family system was considered a bulwark
against such contingencies. In addition, most religious minded people turned to Lord Almighty and pray
for protection against calamities, disasters, misfortunes, accidents and other types of difficulties. The
concept of paying for protection through the mechanism of insurance is only a recent phenomenon
which has caught the imagination of the people only during the later part of the 20th Century.
In spite of the insurance mechanism being available, people believed or still believe in self-insurance
and risk management through other methods and techniques. For example, appointment of security
staff for preventing theft, losses, undergoing periodical medical check-ups to control sickness. Risk
management developed as a separate discipline in relation to corporate management in business,
industry and commerce. But, as far as the individual is concerned, he relies more on self-insurance,
risk avoidance, loss prevention and minimization. The process and techniques of risk management
can also be applied to family risk management with suitable modifications.
You are required:

a. Identify areas of potential Losses. ( 5 marks)
b. How do you measure the loss potential? ( 5 marks)
c. What strategies need to be adopted to control the risk element? (10marks)
2.Insurance business manages risks through risk transfer. Spreading the risks that are accepted
geographically, functionally and chronologically is one of the main methods it employs. The
insurance device or mechanism has various facets- legal, financial, marketing and personnel. But all
these aspects should culminate in the technical foundation of the whole enterprise. As ably expressed
by Walter Karten, “The basic product of an insurance company is protection”. The insurer binds
himself by the contract to make a conditional payment which would serve as a compensation for
certain economic disadvantages suffered by the insured resulting from an accidental occurrence. The
insured event and the contractual obligations are well defined in the insurance contract to determine
clearly the nature and extent of insurance protection. Protection for the insured is provided against
fluctuations in the amount of possible loss and the frequency of the underlying random events
triggering such losses (the insured events). The insured event (and the way of evaluating its
consequences) should be closely defined in the insurance contract in terms of cause, consequences,
actual relation, region and time.
In the light of the above passage, you are required to discuss the need for Risk Assessment. (10marks)

3.A warranty is defined as an “undertakings by the insured that a certain state of affairs will, or will not,
continue, or that something shall, or shall not be done, throughout the duration of the contract”. For
example, in fire insurance there will be a warranty on a policy to the effect that no liquids with flash
point below a specific level are stored. This ensures that extremely hazardous inflammable liquids are
not kept and so this warranty obviously maintains a reduced fire risk.
You are required:

a. In what way the warranties in fire insurance differ from the concept applicable in the law of
contract? ( 5 marks)
b. Explain the features of warranties in fire insurance. ( 5 marks)
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4.Following a serious fire in a flat on 4th floor on account of explosion of a gas cylinder used for
cooking purposes, the insured lodges a claim with the insurance company for the following items. He
has insured his flat, furniture, personal effects, wearing apparel and other contents under Standard
Fire and Special Perils Policy with extension of Earthquake (Fire and Shock). There is no under
insurance.
Cost of repairs to a printer brought from office for use with his home computer, to do certain
pending work at the weekend. Rs 1000.
Cost of repairing the two-in-one set damaged due to being dropped down from the stairs, out
of anxiety while shifting the things from this flat to a safe place Rs.2500.
Cost of repairing the doors, windows, electrical fittings damaged Rs.5000.
An oil painting by a famous artist hung on the wall Rs. 12000.
Loss of woolen garments, and sarees Rs.20000.
Fire spread to the opposite flat and damaged their contents and he filed a case and the cost of
defending the case Rs.3000.
Insured’s pet dog suffered burn injuries and medical bill of Veterinary Doctor and the
medicines Rs.500.
Cash kept in the table drawer which was charred Rs.1000.
You are required to:

a. Explain with reasons the losses payable and adjust the ultimate liability. ( 6 marks)
b. Explain features of floater policy? ( 4 marks)
END OF SECTION B
Section C : Applied Theory (20 Marks)
•This section consists of questions with serial number 5 - 6 .
•Answer all questions.
•Marks are indicated against each question.
•Do not spend more than 25 - 30 minutes on Section C.
Fire insurance is a tariff business and with effect from 1st May, 2001 the revised All India Fire Tariff came into existence.
Briefly describe the changes brought about by the revised new tariff as far as an individual is concerned. ( 10 marks)

service can be defined as “any act or performance that one party can offer to another that is essentially intangible and does
not result in ownership of any thing. Its production may or may not be tied to a physical product”. Since there is no transfer of
ownership of any physical product in insurance it is classified as a service. It is a financial service because it indemnifies the
customer against the financial losses and thus offers financial assistance to the customer.

Name the four commonly distinguished characteristics of any service that makes it different from goods. ( 2 marks)
Briefly discuss these characteristics in relation to the insurance sector. ( 8 marks)

Hey it’s Archit from Nagpur I want the model question of ICFAI MBA Group B so please brother provide it to me?

[sumit]

Hello friend as you ask for the model question of ICFAI MBA Group B here on your request I am providing to you……..

1. The evolution of sales can be divided into seven generations. Which of the following statements
relates to
fourth generation of sales?
(a) Selling took place in the form of exchange of goods
(b) Goods were stored for sale at one place fro m where the buyers could purchase whatever they
required
(c) The emphasis o f the trader in this generation of sales was to identify the customer’s need and fulfill it with a product or service
(d) Traders realized that certain customers purchased goods from them repetitively and at regular
intervals
(e) The salesperson assumes the role of a moderator, his aim being to make the customer realize the
implications of bu ying the product or service.

2. Performance standards help sales personnel to know the level of performance they are expected to achieve.
Quality standard s are one of the types of performance standard. Which of the following is true about
quality
standard?
(a) These standards include all the aspects that can be measured directly without any complex
calculations
(b) These standards include all the aspects which are subjective in nature and are measured by
interpretation
(c) These standards include all the aspects involved in the selling activity that can be measured relative
to
the factor of time
(d) These standards include all the selling activities that are linked to organizational expenses
(e) These standards include all the aspects which are related to the organizational profitability.

3. In a line and staff organization, reporting relationships vary accord ing to the importance of staff
activities.
Which of the following are the advantages of line and staff organization?
I. The presence of staff personnel adds expertise and a staff perspective to strategic decisions made by
sales
managers.
II. Generally, organizations that have more products and product lines opt for this structure.
III. Each function in the structure may try to further it s own obj ectives.
IV. This type of structure is suited for organizations operating in a stable environment because any
change
that is initiated will take place very slowly.
(a) Both (I) and (II) above
(b) Both (I) and (IV) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

4. Which of the following is the function of dispatching material to meet the user requirements and
involves
activities such as matching the material with the order requisition and checkin g the material for
packaging and
any damage?
(a) Material handling
(b) Warehousing
(c) Stock control
(d) Outward transport
(e) Physical distribution management.

5. The quality of a sales organization is directly dependent on how well its sales managers fulfill their
responsibilities. Which of the following is a responsibility of a sales manager?
(a) Deciding upon the priority and frequency of making calls
(b) Deciding upon the selling approach
(c) Administering the sales order
(d) Information gathering and reporting
(e) Organizing the sales effort.

6. Depending on the number of intermediaries and the degree of market exposure sought at each level,
manufacturers can choose from various distribution strategies available to them. Which of the following
statements relates to exclusive distribution, one of the distribution strategy?
(a) Companies pro vide time and p lace utility for customers
(b) It is driven b y the belief that every exposure to a customer is an opportunity to buy
(c) The image of the outlet occupies less prominence in the customer’s mind compared to the utility
offered by the prod uct
(d) It allo ws manufacturer greater control over intermediaries in the areas of price, credit and
promotion
(e) It is adopted when the manufacturer lacks the resources to adequately influence the policies of all
intermediaries who can carry a particular product.

7. Non-visual clarification is one of the techniques used by salesperson to make sales presentation.
Which of the
following is/are the technique(s) included in non-visual clarification?
I. Questioning.
II. Showmanship.
III. Demonstrating.
IV. Comparisons.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

8. In Vertical Marketing Systems (VMS), channel members work for a specified benefit common to the
whole
channel system. Corporate VMS is one of the types of VMS. Which of the following is/are true about
corpo rate VMS?
I. One company owns and operates the other channel members at different chan nel levels.
II. A company develops a corporate VMS, when it intends to p roduce nearly all of its internal
requirements
through this system.
III. In this system, the level of control is less than that of administered vertical marketing system.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.

9. Non-tariff barriers are the indirect means of restrictin g the entry or sale of foreign goods in the
domestic
market. Regulatory barriers are the non-tariff barriers which may be direct or indirect in nature. Indirect
regulations is/are the regulation(s) imposed in the name of
I. National security.
II. Environmental protection.
III. Profit repatriation.
IV. Quotas.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

10.The various criteria for selecting channel members are sales, product, experience, administrative and
risk
factors. Which of the following is a risk factor that need to be considered while selecting a channel
member?
(a) The channel member’s ability to sell the company’s products in the market
(b) The channel members ability to handle pro ducts effectively
(c) The types of customers handled in the past by a channel member and their satisfaction levels
(d) The amount of work a channel member is handling
(e) The channel member’s commitment to the organization’s progress.