IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-16

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Q 1. What should be the sequence of adjustment for loss based on?

a) The surveyor's personal preference

b) The insurer's preference

c) What is stated in the policy

d) The insured party's preference

e) The surveyor's methodology

Q 2. How should insurers receive and deal with various kinds of calls, including voice and email, related to grievances?

a) Ignore the calls and emails

b) Outsource call handling to third-party agencies

c) Respond promptly and effectively through a designated system

d) Forward calls to regulatory authorities

e) Store calls and emails without action

Q 3. What happens if the resultant premium is less than the provisional premium under a declaration policy?

a) The insurer keeps the difference as profit

b) The insured receives a refund of the entire provisional premium

c) The insurer repays the difference to the insured, not exceeding 50% of the provisional premium

d) The insured is required to pay an additional premium to cover the difference

e) The policy is automatically canceled

Q 4. What does the term "pro-rata average" mean in burglary insurance?

a) The average amount of claims paid out by the insurer

b) The proportionate reduction in the claim amount based on the insured's contribution

c) The average premium paid by policyholders for burglary coverage

d) The calculation used to determine the total value of insured property

e) The adjustment made to the claim payout when the sum insured is less than the actual value

Q 5. What does Marine Hull insurance typically cover?

a) Only ocean-going ships

b) Only fishing vessels

c) Ocean-going ships and other vessels such as fishing vessels, sailing vessels, and inland vessels

d) Only sailing vessels

e) Only inland vessels

Q 6. In personal accident insurance, why might the premium be loaded?

a) To encourage safer behavior

b) To provide discounts to certain occupations

c) To adjust for changes in market conditions

d) If the occupation of the proposer is considered extra-hazardous

e) If the proposer has a history of accidents

Q 7. What is the primary distinction between concealment and misrepresentation in insurance contracts?

a) Concealment occurs when the proposer unintentionally fails to disclose material facts, while misrepresentation involves intentional false statements.

b) Concealment involves providing evasive answers to insurer queries, while misrepresentation arises from the silence of the insured.

c) Concealment renders the contract voidable, while misrepresentation makes the contract void.

d) Concealment is suggestive of an intent to deceive, while misrepresentation may be either innocent or fraudulent.

e) Concealment occurs when the insurer fails to make specific inquiries, while misrepresentation arises from inaccurate statements made during negotiations.

Q 8. How are claims settled for damage to premises if the insured is responsible?

a) Based on the insurer's valuation

b) On the repairer’s estimate, strictly confined to the damage caused by forcible entry

c) By replacing the damaged premises entirely

d) By reimbursing the insured for the full cost of repairs

e) By providing a lump sum payment irrespective of the damage

Q 9. What type of insurance is burglary insurance classified as under miscellaneous insurance?

a) Life insurance

b) Health insurance

c) Property Insurance

d) Liability insurance

e) Automobile insurance

Q 10. Which of the following is an implied condition in insurance contracts?

a) Payment of premiums by the insured.

b) Notification of claims within a specified time frame.

c) Insurable interest in the insured subject matter.

d) Maintenance of detailed records by the insured.

e) Performance of regular safety inspections by the insured.

Q 11. Under Contractors' All Risks and Erection All Risks policies, what does the Basis of Loss Settlement Clause provide?

a) The cost of repairs necessary to restore the property to its condition before the damage, less salvage.

b) The actual value of the property before the occurrence of loss, less salvage.

c) The replacement cost of the damaged property.

d) The market value of the property at the time of loss.

e) The current value of the property.

Q 12. Why is the layout or arrangement of premises considered critical for hazard assessment and control?

a) To increase the combined hazard of manufacturing blocks.

b) To decrease the rate of premium for utilities.

c) To ensure separate rates for each manufacturing block.

d) To attract the lowest rate of premium for warehouses.

e) To minimize risk exposure and ensure efficient control of hazards.

Q 13. What is the nature of the provisions under the Consumer Protection Act?

a) Preventive

b) Compensatory

c) Punitive

d) Regulatory

e) Advisory

Q 14. In insurance policies, technical terms are given what meaning?

a) Ordinary meaning

b) Legal meaning

c) Contextual meaning

d) Technical meaning

e) Ambiguous meaning

Q 15. What is one of the criteria used for categorizing surveyors and loss assessors?

a) Age

b) Height

c) Professional qualifications

d) Favorite color

e) Number of social media followers


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