IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-17

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Q 1. What legal principle states that insurance contracts are built on trust and require a higher standard of honesty than regular commercial contracts?

a) Principle of good faith

b) Doctrine of caveat emptor

c) Doctrine of uberrima fides

d) Principle of caveat venditor

e) Principle of caveat vendee
 
Q 2. What constitutes the measure of indemnity for manufacturers' stock in a fire insurance claim?

a) Original purchase price

b) Selling price

c) Cost of raw materials, labor, and overheads excluding profits

d) Replacement cost at the time of loss

e) Market value at the time and place of the fire
 
Q 3. What determines the definition of perils included under an insurance policy?

a) The insurance company's discretion.

b) The insured's preferences.

c) Legal definitions, if relevant, or popular meanings if no definition is provided in the policy.

d) The insurance agent's recommendation.

e) The insured's industry sector.
 
Q 4. Under what circumstances is salvage loss settlement adopted?

a) When goods are lost at sea.

b) When goods are damaged by a peril insured against.

c) When goods are damaged but still reach the final destination port.

d) When goods are abandoned by the insured.

e) When goods are damaged and landed at an intermediate port short of the final destination.
 
Q 5. Why are false ceilings of combustible materials considered unsatisfactory?

a) They increase the risk of fire spread.

b) They minimize the risk of fire damage.

c) They obstruct the movement of smoke.

d) They reduce the risk of smoke inhalation.

e) They provide fuel for a fire and increase the hazard of the cavity behind the ceiling.
 
Q 6. How many times can an insurer request an additional report from the surveyor for a claim?

a) Once

b) Twice

c) Thrice

d) Four times

e) Unlimited times
 
Q 7. Which Act provides for the formation of Tribunals to deal with claims for cargo loss, personal injuries, and refund of excess freight related to railways?

a) The Indian Railways Act, 1989

b) The Carriers Act, 1865

c) The Railways Claims Tribunal Act, 1987

d) The Indian Post Office Act, 1898

e) The Bill of Lading Act, 1855
 
Q 8. How many departments can each surveyor choose to practice under the Regulations?

a) 2 departments

b) 4 departments

c) 3 departments

d) 5 departments

e) Unlimited departments
 
Q 9. What is the primary responsibility of a surveyor and loss assessor during their practical training period?

a) Perform claim settlements

b) Conduct inspections of properties

c) Maintain proper records of training

d) Attend seminars and workshops

e) Develop marketing strategies
 
Q 10. What is the primary responsibility of the surveyor regarding salvage disposal?

a) To negotiate salvage value directly with the insured.

b) To assume ownership of the damaged goods on behalf of the insurer.

c) To obtain quotations from salvage recovery agents.

d) To advise the insured on the best method of salvage disposal.

e) To minimize administrative costs associated with salvage auctions.
 
Q 11. What determines the deductible/excess limits in an insurance policy?

a) The insured's credit score

b) The policyholder's claims history

c) The perceived hazards by the insurer

d) The insured's annual income

e) The insured's occupation
 
Q 12. What is the purpose of preparing a table of damages in classified groups?

a) To delay the claims settlement process

b) To minimize the workload for the insurer

c) To confuse the insured party

d) To provide clarity and organization to the assessment of damages

e) To expedite the policy renewal process
 
Q 13. What type of claims might necessitate the involvement of experts due to their suspicious and complex nature?

a) Routine claims

b) Low-value claims

c) Claims arising from Fire and Miscellaneous branches

d) Claims involving minor damages

e) Claims where evidence of loss is clear and straightforward
 
Q 14. What is the purpose of the indemnity period in a profits policy?

a) To extend the period of insurance beyond a year

b) To determine the maximum coverage amount

c) To represent the longest period during which the business could be affected following a serious fire

d) To calculate the deductible amount

e) To regulate the premium payments
 
Q 15. What types of losses are covered for property described under item (b)?

a) All risks

b) Fire, lightning, explosion, burglary, housebreaking, or theft

c) Water damage only

d) Damage caused by natural disasters

e) Losses incurred during stocktaking


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