IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-18

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Q 1. What is the most satisfying moment for a surveyor?

a) When encountering technical challenges

b) When receiving appreciation from the insurer only

c) When receiving appreciation from both the insured and the insurer

d) When submitting the report to the insurer

e) When validating legal scrutiny

Q 2. Which organization in Australia was formed in 1961?

a) Institute of Fire Loss Assessors of Australia

b) Australian Division of the C.I.L.A.

c) Loss Assessors Council of Australia

d) Association in Western Australia

e) None of the above

Q 3. What is one of the primary purposes of the surveyor's immediate inspection at the place of occurrence?

a) Acquiring instructions from the insurer

b) Identifying damaged property and assessing the extent of damage

c) Formulating an action plan with the insured

d) Developing an action plan

e) Drawing minutes of the meeting

Q 4. How is indemnification calculated in case of partial loss in marine insurance?

a) Based on the gross damaged value

b) Based on the full sum insured

c) Based on the difference between gross sound and damaged value

d) Based on the percentage of loss compared to the total value

e) Based on the market value at the place of arrival

Q 5. Which type of survey is generally conducted at the spot of an accident for motor policies?

a) Preliminary survey

b) Final survey

c) Joint survey

d) Detailed survey

e) Spot survey

Q 6. What is the purpose of the Cash Book?

a) To record goods bought on credit

b) To record sales on credit

c) To record all cash transactions

d) To record bills payable

e) To record sales returns

Q 7. What are the two sections of cover granted under the Industrial All Risks Policy?

a) Material Damage and Personal Injury

b) Material Damage and Loss of Profit

c) Material Damage and Theft

d) Business Interruption and Loss of Profit

e) Fire and Flood Damage

Q 8. What is the main advantage of a Positions Policy over a Collective Policy?

a) It covers the entire staff without specifying names.

b) It provides broader coverage.

c) It covers top-level executives only.

d) It ensures a specific position rather than individuals.

e) It is more cost-effective.

Q 9. When is Special Storage risk insurance typically granted?

a) In conjunction with marine insurance policies

b) In conjunction with open policies or special declaration policies

c) As a standalone policy for inland transit

d) For goods in storage facilities only

e) For goods in transit by air only

Q 10. Under the Institute Replacement Clause, what is the maximum amount payable for repair or replacement of damaged parts?

a) The insured value of the entire machinery

b) Double the insured value of the damaged parts

c) The actual cost of repair or replacement plus charges for forwarding and refitting

d) The insured value of the damaged parts

e) A fixed amount determined by the insurer

Q 11. How is the "mathematical value" of a risk determined?

a) By using past loss experience and expressing it as a percentage of the total value of the insured property

b) By using mathematical formulas to calculate the potential loss of the insured property

c) By using past loss experience and expressing it as a fixed amount per unit of the insured property

d) By using past loss experience and expressing it as a percentage of the total number of insured units

e) By using past loss experience and expressing it as a percentage of the total number of claims filed

Q 12. Which type of facts are insurers presumed to know in the ordinary course of their business?

a) Facts diminishing the risk

b) Facts known only to the proposer

c) Facts that could be ascertained from the information supplied by the proposer

d) Matters of law

e) Facts discovered during a risk inspection

Q 13. What is the objective of the principle of indemnity?

a) To maximize profits for the insured

b) To prevent the insured from recovering any losses

c) To ensure the insured benefits financially from a loss

d) To place the insured in the same financial position as before the loss

e) To encourage deliberate causing of loss or damage

Q 14. What is the significance of the legal doctrine of proximate cause in loss assessment?

a) It determines the exact time of the loss occurrence.

b) It identifies all the possible causes of the loss.

c) It determines whether the loss is payable under the policy based on the specified perils.

d) It decides the compensation amount to be provided to the insured.

e) It assesses the financial status of the insured.

Q 15. Under what circumstances are salvage charges incurred in connection with an insured peril recoverable under insurance policies?

a) Only if the assured or their agents incur them

b) Only if they are incurred by the insurer directly

c) Only if they are incurred independently of contract by a salvor

d) Only if they are incurred to prevent a loss by perils insured against

e) None of the above


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