100+ Free Assam ASSEB HS Class 11-12 Insurance Practice Questions

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2026 Statistics

Key Facts: Assam ASSEB HS Class 11-12 Insurance Exam

1999

Year IRDAI Act was enacted establishing statutory insurance regulation in India

Government of India / IRDAI

₹30 Lakhs

Maximum claim compensation limit under Insurance Ombudsman Scheme 2017

Insurance Ombudsman Rules

3 Years

Strict incontestability period under Section 45 of Insurance Act 1938

Insurance Law Amendment

150%

Minimum Solvency Ratio mandated for insurance companies by IRDAI

IRDAI Solvency Regulations

100

Total practice questions in this dedicated OpenExamPrep bank

OpenExamPrep

Assam ASSEB HS Insurance assesses Class 11-12 students on foundational risk concepts, insurance legal principles (indemnity, insurable interest, subrogation, proximate cause), life & general insurance policies, IRDAI regulations, and numerical claim/premium computations.

Sample Assam ASSEB HS Class 11-12 Insurance Practice Questions

Try these sample questions to test your Assam ASSEB HS Class 11-12 Insurance exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which legal principle of insurance requires both the insured and the insurer to disclose all material facts fully and accurately before entering into an insurance contract?

A.Principle of Subrogation

B.Principle of Utmost Good Faith (Uberrimae Fides)

C.Principle of Contribution

D.Principle of Causa Proxima

Explanation: The principle of Utmost Good Faith (Uberrimae Fides) mandates that both parties to an insurance contract must disclose all material facts honestly. Non-disclosure or misrepresentation of a material fact makes the contract voidable at the option of the aggrieved party.

2What is defined as a 'material fact' in an insurance proposal?

A.Any detail that would influence a prudent underwriter in deciding whether to accept a risk and at what premium

B.The insured's personal religious beliefs and political opinions

C.Information that is already a matter of common public knowledge

D.Any fact that reduces the risk of loss below zero

Explanation: A material fact is any fact that would affect the judgment of a prudent underwriter in deciding whether to accept the risk and determining the premium rate or policy terms. Failure to disclose material facts breaches the principle of utmost good faith.

3According to the principle of Insurable Interest, when must insurable interest exist in a Life Insurance contract in India?

A.Only at the time when the loss/death occurs

B.At the time of taking the policy, but not necessarily at the time of claim

C.Continuously at every monthly premium payment date

D.Insurable interest is not required at all for life insurance

Explanation: In life insurance, insurable interest must exist at the time when the contract is entered into (when taking the policy). It is not required to exist at the time of maturity or death claim settlement.

4When must insurable interest exist in a Fire Insurance contract?

A.Only at the time of taking the policy

B.Both at the time of taking the policy and at the time of loss

C.Only at the time when the fire loss occurs

D.Only when the policy is renewed

Explanation: In fire insurance contracts, insurable interest must be present both at the inception of the policy contract and at the time when the property suffers loss or damage by fire.

5Which insurance principle ensures that the insured does not make a profit from a loss and is placed in the same financial position after a loss as immediately before it?

A.Principle of Indemnity

B.Principle of Subrogation

C.Principle of Insurable Interest

D.Principle of Uberrimae Fides

Explanation: The Principle of Indemnity states that insurance is meant to compensate the insured for the actual financial loss suffered, restoring them to their pre-loss position without allowing any profit. It applies to property and general insurance, but not life insurance.

6Why does the Principle of Indemnity NOT apply to Life Insurance contracts?

A.Because life insurance premiums are too low

B.Because human life has infinite or non-measurable monetary value, so actual financial loss cannot be precisely measured

C.Because IRDAI has prohibited indemnity in life insurance

D.Because life insurance policies are always short-term contracts

Explanation: Human life cannot be measured in exact monetary terms. Therefore, life insurance contracts are valued contracts (paying a pre-agreed sum assured upon death or maturity) rather than indemnity contracts.

7An owner insures a warehouse worth ₹10,000,000 for ₹6,000,000 under a policy containing an Average Clause. A fire causes a partial loss of ₹2,000,000. How much claim amount will the insurer pay?

A.₹2,000,000

B.₹1,200,000

C.₹6,000,000

D.₹1,000,000

Explanation: Under the Average Clause, when property is under-insured, the claim is calculated as: Claim = Loss × (Sum Insured / Actual Value) = ₹2,000,000 × (₹6,000,000 / ₹10,000,000) = ₹1,200,000. The insured bears the remaining ₹800,000 loss as a co-insurer.

8A factory owner insures machinery worth ₹500,000 with Insurer A for ₹300,000 and with Insurer B for ₹200,000. A fire causes a covered loss of ₹100,000. Under the Principle of Contribution, how much will Insurer A pay?

A.₹60,000

B.₹100,000

C.₹50,000

D.₹40,000

Explanation: Under the principle of contribution, multiple insurers share the loss in proportion to their sum insured. Total sum insured = ₹300,000 + ₹200,000 = ₹500,000. Insurer A's share = (₹300,000 / ₹500,000) × ₹100,000 = ₹60,000. Insurer B pays the remaining ₹40,000.

9What is the primary objective of the Principle of Subrogation in general insurance?

A.To allow the insured to collect claims from both the insurer and the negligent third party

B.To transfer the insured's right of recovery against a negligent third party to the insurer after the claim is settled

C.To cancel the insurance policy after a major claim

D.To force the insured to pay double premiums following an accident

Explanation: Subrogation allows the insurer, after indemnifying the insured for a loss, to step into the shoes of the insured and recover damages from the third party responsible for causing the loss, preventing double recovery by the insured.

10An insurer settles a car crash claim of ₹80,000 with the car owner. The insurer then sues the negligent third-party driver who caused the crash and recovers ₹90,000. Who is entitled to the extra ₹10,000?

A.The insurer keeps the entire ₹90,000 as profit

B.The insured car owner is entitled to the excess ₹10,000

C.The third-party driver gets the ₹10,000 back

D.The amount must be deposited with IRDAI

Explanation: Under subrogation, an insurer cannot profit from recovery. The insurer can retain only up to the indemnity paid (₹80,000 plus expenses). Any excess amount recovered (₹10,000) belongs to the insured.

About the Assam ASSEB HS Class 11-12 Insurance Exam

The ASSEB Higher Secondary Insurance curriculum equips Class 11 and 12 students with essential theoretical knowledge and analytical skills in risk management, fundamental legal principles of insurance, life assurance, non-life insurance (fire, marine, motor, health), IRDAI legal framework, and practical claim settlement procedures.

Assessment

The ASSEB Higher Secondary Insurance examination is a 3-hour written paper worth 100 marks, evaluating theoretical conceptual knowledge, legal principles, policy provisions, and practical numerical claim/premium computations.

Time Limit

3 hours

Passing Score

30% aggregate

Exam Fee

Standard ASSEB board examination fee (Assam State School Education Board (ASSEB))

Assam ASSEB HS Class 11-12 Insurance Exam Content Outline

25%

Unit 1: Fundamental Principles of Insurance

Risk and uncertainty, risk pooling, insurance vs wagering, Utmost Good Faith (Uberrimae Fides), Insurable Interest, Indemnity, Subrogation, Contribution, Proximate Cause (Causa Proxima), and Mitigation of Loss.

25%

Unit 2: Life Insurance & Actuarial Basics

Life insurance products (Term, Endowment, Whole Life, Money-Back, ULIPs, Annuities), Riders, Paid-up value calculations, Surrender value, Nomination vs Assignment (Sec 38 & 39), Mortality tables, and Level premium.

20%

Unit 3: Fire Insurance & Marine Insurance

Standard Fire and Special Perils (SFSP) policy, Fire policy types (Valued, Specific, Declaration, Reinstatement), Average clause claim calculations, Marine Hull and Cargo insurance, Implied warranties, and Marine losses (General Average vs Particular Average).

15%

Unit 4: Motor, Health & Miscellaneous Insurance

Motor Vehicles Act statutory Third Party liability, Comprehensive motor policy, No Claim Bonus (NCB) calculations, Health Insurance (Mediclaim, Cashless, Deductibles, Co-pay, Pre-existing conditions), PMFBY crop insurance, and Fidelity Guarantee.

15%

Unit 5: Insurance Regulation, Underwriting & Claim Settlement

IRDAI Act 1999 duties and powers, Insurance Act 1938 (Sec 41, Sec 45, Sec 64UM), Insurance Ombudsman Scheme 2017 (₹30 Lakhs limit), Proposal form, Cover note, Endorsement, Surveyors & Loss Assessors, TPA, and Solvency ratio.

How to Pass the Assam ASSEB HS Class 11-12 Insurance Exam

What You Need to Know

Passing score: 30% aggregate
Assessment: The ASSEB Higher Secondary Insurance examination is a 3-hour written paper worth 100 marks, evaluating theoretical conceptual knowledge, legal principles, policy provisions, and practical numerical claim/premium computations.
Time limit: 3 hours
Exam fee: Standard ASSEB board examination fee

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Assam ASSEB HS Class 11-12 Insurance Study Tips from Top Performers

1Master the 6 core principles of insurance (Utmost Good Faith, Insurable Interest, Indemnity, Subrogation, Contribution, Proximate Cause) with real-life case examples.

2Practice numerical calculations for Average Clause in fire insurance, Paid-up Value in life assurance, No Claim Bonus (NCB) discounts, and Health Deductibles/Co-pay.

3Understand statutory legal provisions such as Insurance Act 1938 Sections 38, 39, 41, 45, and 64UM, as well as the IRDAI Act 1999.

4Differentiate clearly between pairs of insurance terms: Term vs Endowment, Nomination vs Assignment, General Average vs Particular Average, and Deductible vs Co-payment.

5Review claim settlement workflows including notice of loss, proposal form declarations, cover notes, loss assessment by IRDAI licensed surveyors, and discharge vouchers.

Frequently Asked Questions

What topics are covered in the Assam ASSEB Higher Secondary Insurance syllabus?

The syllabus covers 5 main areas: (1) Fundamental Principles of Insurance (Good Faith, Indemnity, Subrogation, Contribution, Proximate Cause), (2) Life Insurance (Term, Endowment, Money-Back, ULIPs, Paid-up Value, Nomination/Assignment), (3) Fire & Marine Insurance (Average clause, Hull/Cargo, General/Particular Average), (4) Motor, Health & Misc Insurance (NCB, Deductibles, Co-pay, PMFBY), and (5) Insurance Regulation & Claims (IRDAI Act 1999, Ombudsman, Surveyors).

What is the pass mark for ASSEB HS Insurance?

Students must secure a minimum of 30% marks overall in the board examination to pass the subject.

Are premium and claim calculation numericals included in ASSEB HS Insurance?

Yes, numerical problems involving Average Clause in fire claims, Pro-rata Contribution among multiple insurers, Reduced Paid-up Value in life policies, No Claim Bonus (NCB) in motor insurance, and Deductible/Co-pay in health claims are frequently examined.

What is the monetary limit for filing a claim complaint with the Insurance Ombudsman in India?

Under the Insurance Ombudsman Rules 2017, the Ombudsman can entertain complaints where the total compensation claimed does not exceed ₹30 Lakhs.

What is the difference between Nomination and Assignment in a life insurance policy?

Nomination (Section 39 of Insurance Act 1938) authorizes a nominee to collect claim proceeds on the policyholder's death without transferring policy ownership title. Assignment (Section 38) completely transfers legal ownership title and policy rights to the assignee.

100+ Free Assam ASSEB HS Class 11-12 Insurance Practice Questions

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