IC-57 Optional · Optional General Insurance

Fire and Consequential Loss Insurance — Mock Tests & Exam Prep

Fire and consequential (business interruption) loss insurance — perils, policy structures, rating and claims.

Try 5 questions free → Create free account
586
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
30
Credit points

Try IC-57 free — 5 real questions

These are 5 of the 586 IC-57 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.

Question 1
In insurance, a hazard is:
  1. AThe financial consequence of the loss to the insured
  2. BThe event that directly causes the loss to the property
  3. CThe value of the property that is exposed to the loss
  4. DA condition that creates or increases the chance of loss
  5. EA clause that restricts the insurer's liability under the policy
Show answer & explanation

Answer: D. A condition that creates or increases the chance of loss

A hazard is a condition that creates or increases the chance of loss; hazards are not themselves the cause of loss but increase or decrease its effect when a peril operates.

Question 2
Which principle governs delegation of authority in underwriting?
  1. AEvery decision, however large its effect on exposure, should be taken by one senior officer alone, to ensure speed
  2. BAuthority should be shared equally by all officers irrespective of their experience
  3. CA decision with a significant effect on exposure should be taken by at least two competent persons in consultation
  4. DAuthority should depend on seniority rather than technical competence
  5. EThe person who develops business should also hold final underwriting authority
Show answer & explanation

Answer: C. A decision with a significant effect on exposure should be taken by at least two competent persons in consultation

Three principles apply: authority commensurate with technical competence; significant decisions by consultation among at least two competent persons; and no unsupervised underwriting by a person responsible for business development.

Question 3
A fire, which is an insured peril, causes pollution damage to the insured property. How is this treated under the pollution and contamination exclusion?
  1. AExcluded, because all pollution damage is excluded by the policy
  2. BCovered only if extra premium has been paid for pollution
  3. CExcluded unless notified to the insurer within 7 days
  4. DExcluded unless the pollutant is in the form of a gas leak
  5. ECovered, as pollution from an insured peril is excepted
Show answer & explanation

Answer: E. Covered, as pollution from an insured peril is excepted

The exclusion does not apply to pollution that itself results from an insured peril, or to an insured peril that results from pollution.

Question 4
Information about goods held in trust and contractual agreements with third parties belongs to which category of PML assessment factors?
  1. AInsurance Information
  2. BFinancial Information
  3. CTechnical Information
  4. DCauses of Loss Information
  5. EThird Party Information
Show answer & explanation

Answer: E. Third Party Information

Third Party Information relates to the insured's obligations to other parties, goods held in trust and contractual agreements with third parties.

Question 5
_________________ refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power and lower costs of maintenance.
  1. ASalvage value
  2. BBetterment
  3. CDepreciation
  4. DDeterioration
Show answer & explanation

Answer: B. Betterment

Betterment refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power and lower costs of maintenance.

581 more verified IC-57 questions, timed 100-question mock papers, and your weak areas are in the app — create a free account.

What you'll practise

📝
Real exam-style MCQs
Question bank aligned to the III syllabus for IC-57.
⏱
Timed mock exams
Full 100-question, 2-hour papers that mirror the real III format.
💡
Instant explanations
Every question includes a clear explanation of why the answer is correct.
🔁
Spaced repetition
Missed questions resurface at the right time so you retain them.

Frequently asked questions

What is IC-57?
IC-57 (Fire and Consequential Loss Insurance) is an optional Optional-level examination offered by the Insurance Institute of India (III). Fire and consequential (business interruption) loss insurance — perils, policy structures, rating and claims.
How many questions are in the IC-57 exam?
The IC-57 exam has 100 MCQs to be answered in 120 minutes (2 hours). All questions must be attempted — there is no negative marking.
What is the pass mark for IC-57?
You need to score at least 60% to pass IC-57. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-57 carry?
IC-57 carries 30 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-01
Principles of Insurance
IC-11
Practice of General Insurance
IC-45
General Insurance Underwriting
IC-46
General Insurance Accounts Preparation & Regulation of Investment
IC-14
Regulations of Insurance Business
IC-27
Health Insurance

Ready to prepare for IC-57?

All 586 verified IC-57 questions, timed mock papers and spaced repetition. Free to start — no payment required for practice questions.

Start Free Practice →