IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-1

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Q 1. In what circumstances may insurers allow assignment of the "death benefit"?

a) Only to charitable organizations

b) Only to business partners

c) Only to creditors

d) Only to specific near relatives

e) Only to the insured's estate
 
Q 2. What is the insured's duty in cargo insurance policies regarding loss or damage?

a) To avoid filing claims against carriers or bailees

b) To refrain from taking any measures to minimize losses

c) To preserve and exercise their rights against carriers, bailees, or other third parties

d) To immediately give clean receipts for goods in doubtful condition

e) To waive all rights against carriers or bailees
 
Q 3. What determines the damages awarded under the Workmen's Compensation Act?

a) Employer's discretion

b) Scale prescribed in the policy

c) Legal fees

d) Scale prescribed in the Act

e) Workmen's Compensation insurance premium
 
Q 4. How long does the insurer have the right to exercise the "right of entry" under the insurance policy?

a) Until the insured submits a written claim.

b) Until the insured gives notice of no claim or the claim is determined or withdrawn.

c) Until the insured files a lawsuit.

d) Until the insured receives compensation for the loss.

e) Until the insured completes repairs to the damaged property.
 
Q 5. How are tanks grouped in a tank farm according to their hazards?

a) Based on their proximity to roads

b) According to their chronological order of installation

c) Randomly to optimize space utilization

d) According to their distance from utilities and auxiliaries

e) Based on the similarity of hazards they possess
 
Q 6. What is the Insurance (Amendment) Act, 2002, defined as an "Insurance Co-operative Society"?

a) An organization formed by insurance agents

b) A society providing insurance to its members

c) A government regulatory body for the insurance sector

d) A corporation offering insurance policies to the public

e) An association of insurance companies
 
Q 7. What constitutes the offense of falsification of accounts under Section 477?A of the Indian Penal Code?

a) Accidental misplacement of accounting records

b) Intentional destruction or alteration of employer's records with the intent to defraud

c) Honest error in accounting entries

d) Unauthorized access to accounting software

e) Unintentional omission of material particulars from accounting documents
 
Q 8. Which action constitutes "housebreaking" involving entering or leaving by force?

a) Climbing over a wall or building

b) Not intended for human entrance

c) Opening a lock to enter or leave

d) Exiting through a passage made by the offender

e) Breaking open a window to gain entry
 
Q 9. Under what circumstance would the Controller not issue a direction for the payment of a lesser sum?

a) If the insured refuses to cooperate with the investigation

b) If the insurer can prove that the excess payment would cause undue hardship to the insured

c) If the loss occurred due to an excluded peril

d) If the insurer has already paid the claim in full

e) If the insured's policy has expired
 
Q 10. According to the clause in the Standard Fire policy, how is the liability determined when both marine and fire policies cover the same affected item?

a) The marine policy covers the entire loss

b) The fire policy covers the entire loss

c) The marine policy covers the loss up to its sum insured, and the remainder is covered by the fire policy

d) The fire policy covers the loss up to its sum insured, and the remainder is covered by the marine policy

e) Both policies contribute equally to cover the loss
 
Q 11. What attitude should surveyors adopt when dealing with average cases for assessment?

a) Aggressive and confrontational

b) Indecisive and passive

c) Conciliatory and prompt

d) Skeptical and cynical

e) Authoritative and dismissive
 
Q 12. How can insurers address misconceptions about insurance policies?

a) By increasing premiums

b) By providing exaggerated benefits

c) By promoting awareness of policy conditions

d) By offering additional discounts

e) By limiting coverage options
 
Q 13. How does including details of the insured's background benefit the insurer during policy renewal?

a) It increases the workload for the insurer

b) It confuses the insured party

c) It reduces the chances of policy renewal

d) It provides valuable information to assess moral hazards and risks

e) It delays the claims settlement process
 
Q 14. What does the "Temporary Removal" cover provide?

a) Cover for damage caused by the insured's own Rail / Road vehicles

b) Cover for spoilage material damage

c) Cover for stocks temporarily removed for processing, etc.

d) Cover for leakage and contamination of oil/chemicals

e) Cover for loss of rent due to unfit building
 
Q 15. Which of the following is an example of insurable property typically covered under fire insurance for commercial establishments?

a) Residential furniture

b) Playground equipment

c) Inventory of goods

d) Personal vehicles

e) Swimming pools


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