IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-10

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Q 1. What is the implication of breaching a warranty in an insurance policy?

a) The insurer may offer a partial settlement of the claim.

b) The insurer must compensate the insured regardless of the breach.

c) The insurer can avoid the claim entirely.

d) The insurer may request additional information from the insured.

e) The insurer may increase the premium for future coverage.

Q 2. How do higher deductible/excess limits affect the insured's premium?

a) Increase the premium

b) Decrease the premium

c) Do not affect the premium

d) Adjust the premium based on claim history

e) Provide additional coverage options

Q 3. What role does the surveyor play during a public auction?

a) Negotiating prices with prospective buyers

b) Representing the insured's interests

c) Advising the auctioneers and assisting bidders

d) Ensuring the terms and conditions of sale are met

e) Overseeing the financial transactions

Q 4. What should a surveyor mention at the beginning of a survey report?

a) Personal opinions on the case

b) Detailed financial analysis of the loss

c) Background information on the surveyor's qualifications

d) Date, time, and name of the official authorizing the survey

e) Information unrelated to the insurance company's instructions

Q 5. Which system should insurers necessarily be part of, as per the regulations, to facilitate registering and tracking complaints online by policyholders?

a) Claims management system

b) Investment tracking system

c) Integrated Grievance Management System (IGMS)

d) Underwriting assessment system

e) Actuarial modeling system

Q 6. What does the indemnity period in a profits policy aim to cover?

a) Loss of gross profit only

b) Loss of standing charges only

c) Loss of variable expenses only

d) Losses incurred during the period of insurance

e) Losses incurred during the reinstatement period

Q 7. What does the Failed Well insurance policy provide indemnity for?

a) Loss or damage to livestock

b) Loss of horticulture crops

c) Civil construction costs if the well fails to yield a specified water quantity

d) Damage to agricultural pump sets due to mechanical breakdown

e) Damage to salt works due to storm and flood

Q 8. What is the significance of the limits per sending and per location in the Package Policy for Exporters?

a) They determine the duration of coverage

b) They specify the types of goods covered

c) They determine the maximum amount payable for a single shipment and at a single location

d) They establish the premium rates

e) They dictate the deductible amount for each claim

Q 9. When is an extra premium typically charged in cargo insurance?

a) When the cargo is shipped by an under-tonnaged vessel

b) When the cargo is shipped by an overaged vessel

c) When the cargo is shipped by an adequately tonnage vessel

d) When the cargo is shipped by a new vessel

e) When the cargo is shipped by a vessel with full insurance coverage

Q 10. What is the fundamental principle underlying insurable interest?

a) Guaranteeing the prevention of insured perils

b) Ensuring the intrinsic value of the insured property

c) Promising to make good the financial loss caused by insured perils

d) Providing a guarantee against accidents

e) Exempting the insured from financial losses

Q 11. According to the doctrine of subrogation, when does the right of the insurer arise?

a) Before payment of the claim

b) Only if the insured agrees

c) After payment of a loss

d) Immediately after the loss occurs

e) When the third party admits fault

Q 12. What should the consignee do if packages are outwardly sound but deficient in weight?

a) Accept the packages without any further action

b) Document the deficiency in weight and issue notice of claims against the carriers

c) Refuse to accept the packages

d) File a claim against the insurer

e) Request compensation from the carriers or bailees

Q 13. How can implied conditions be modified in an insurance policy?

a) By making them legally enforceable.

b) By removing them from the policy altogether.

c) By adding additional conditions to the policy.

d) By including a provision in the policy that modifies or overrides them.

e) By ignoring them during the claims process.

Q 14. In which case was an attempt to recover under a fire policy for additional loss of trade not successful?

a) Wright v. Pole (1834)

b) Menzies v. N.B. & M (1847)

c) Smith v. Johnson (1855)

d) Brown v. Thompson (1872)

e) Taylor v. Williams (1860)

Q 15. Why is it recommended to avoid the accumulation of packing material such as straw in buildings?

a) To provide insulation against fire.

b) To facilitate easy access for firefighting.

c) To increase the risk of fire spread.

d) To improve ventilation within the building.

e) To minimize the risk of machinery damage.


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