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Pre-Contract Examination for Insurance Agents: Basic and General Insurance (AB) Free Practice Test

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The AB route combines 50 basic insurance and 50 general insurance questions in two hours, with a 50% pass mark. Confirm current booking arrangements with Aii. Principal appointment and PIAM registration are also required.

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100 real exam Qs120 min exam50% pass mark
Question 1 of 200/0 correct
A shop's covered stock loss is RM18,000. Why does a RM100,000 sum insured not itself justify a RM100,000 payment?

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One complete free lesson for Pre-Contract Examination for Insurance Agents: Basic and General Insurance (AB). No account or payment needed.

Motor Claims: Scope Before Subtraction

Work from permitted use to eligible repair costs, excess and payment limit in a stipulated motor claim, avoiding the comprehensive-cover trap.

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A repair bill is not the payment formula

Aiman's car suffers collision damage and the repair estimate is twelve thousand six hundred ringgit. He says comprehensive cover should pay the entire bill. The assessor identifies six hundred ringgit of unrelated wear and tear. For this original PCEIA general case, assume the collision is covered, the wear item is excluded, the applicable excess is one thousand ringgit and the payment limit is thirty thousand. What is payable? Establish those assumptions before reaching for a calculator.

Resolve permitted use before calculating

There is an earlier question: Aiman recently started paid deliveries. A policy describing private use should not simply be assumed to include that activity. Check the proposal, schedule and any approved endorsement, and refer unclear facts to the insurer. For the calculation that follows, expressly assume the insurer had accepted the delivery use before the accident and all relevant driver conditions were satisfied. Without establishing coverage, subtracting an excess would create a precise answer to an unresolved problem.

Separate covered cost from the customer's share

Remove the excluded wear item from the estimate. Twelve thousand six hundred minus six hundred leaves twelve thousand ringgit of eligible collision repair cost. Apply the stipulated one thousand excess next, leaving eleven thousand. The thirty thousand limit does not reduce this amount further. On these assumptions, the insurer pays eleven thousand ringgit and Aiman bears sixteen hundred: six hundred excluded wear plus one thousand excess. His share is not just the excess printed on the schedule.

The exam trap: turn a product label into unlimited cover

Comprehensive is a description of scope, not a promise that every expense will be paid. Own damage, third-party liabilities, exclusions and extensions still have distinct roles. Routine servicing is not made into accidental damage by appearing on a repair invoice. Equally, do not conclude that a delivery activity automatically defeats every possible claim without examining the actual terms and facts. The disciplined answer identifies the coverage question and states the assumptions supporting the calculation.

Mini-check: change the excess, keep the loss

Now increase only the stipulated excess to two thousand ringgit. Leave the accepted use, excluded wear item and limit unchanged. What does the insurer pay? Eligible collision repairs remain twelve thousand, so payment becomes ten thousand ringgit. Aiman bears two thousand six hundred in total, consisting of the excluded six hundred and the two thousand excess. The eligible loss has not changed; the allocation between insurer and customer has. Do not deduct the wear item twice.

Use the claim sequence on the next problem

Follow four steps: confirm the event and use fall within cover, identify eligible costs, apply the stated customer share, and test the relevant limit in the required order. Preserve evidence and follow reporting and repair procedures rather than promising settlement personally. This sequence applies general-insurance concepts to a concrete motor problem while supporting fair explanations. When a question changes one fact, identify whether it changes coverage, loss amount, cost sharing or the limit before recalculating.

In this lesson

  1. 1.A repair bill is not the payment formula
  2. 2.Resolve permitted use before calculating
  3. 3.Separate covered cost from the customer's share
  4. 4.The exam trap: turn a product label into unlimited cover
  5. 5.Mini-check: change the excess, keep the loss
  6. 6.Use the claim sequence on the next problem

Aligned to the Official programme syllabus. Independent teaching with original examples; this focused lesson does not cover the entire syllabus.

Exam Syllabus

Core Pre-Contract Examination for Insurance Agents: Basic and General Insurance (AB) topics

01

Risk and Insurance Principles

Insurable risks | Indemnity | Subrogation | Contribution

02

General Insurance Contracts and Claims

Disclosure and policy wording | Proximate cause | Claims evidence | Excesses and limits

03

Fire and Property Insurance

Rebuilding values | Average clauses | Named perils | Business interruption

04

Motor Insurance

Third-party liabilities | Own damage | Exclusions | Vehicle use

05

Marine and Liability Insurance

Cargo cover | Insurable transit interests | Public liability | Professional indemnity

06

Accident Health and Professional Conduct

Personal accident benefits | Medical reimbursement | Agency duties | Customer complaints

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Which examination route does this cover?

PCEIA AB combines basic insurance and general insurance. It is distinct from the AC life route.

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No. Examination success is an entry qualification. Appointment by a relevant principal and registration with PIAM, together with applicable requirements, must be completed before transacting business.

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