IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-19

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Q 1. How long is money retained in a burglar-resistant safe typically covered under Money Insurance?

a) 24 hours

b) 48 hours

c) 72 hours

d) 96 hours

e) 120 hours

Q 2. What is the nature of an open cover in terms of documentation?

a) It is a stamped document

b) It is a specific policy issued for each shipment

c) It is a cover note

d) It is an unstamped document

e) It is an electronic document only

Q 3. What is the purpose of the Omission to Insure Additions, Alterations, and Extensions Clause?

a) To automatically insure any additions, alterations, and extensions

b) To exclude coverage for any additions, alterations, and extensions

c) To ensure that any changes to the insured property are promptly reported

d) To waive the requirement of updating the policy for changes in the insured property

e) To limit coverage for any additions, alterations, and extensions to a specific percentage

Q 4. Why is professional indemnity insurance typically limited to protecting against claims for professional negligence and not for professional misconduct or malpractice?

a) Because professional misconduct or malpractice is not covered by the Indian Penal Code

b) Because professional misconduct or malpractice is not considered a risk

c) Because professional misconduct or malpractice is covered by personal accident policies

d) Because professional misconduct or malpractice is contrary to public policy

e) Because professional misconduct or malpractice is covered by motor vehicle insurance policies

Q 5. What does the Change of Ownership clause in the Institute Time clauses (Hulls) stipulate?

a) Automatic transfer of policy upon change of ownership

b) Policy cancellation and refund of premium upon change of ownership unless approved by underwriters

c) Continuation of policy regardless of change of ownership

d) Immediate termination of policy upon change of ownership

e) Transfer of policy only after loss occurs

Q 6. What does "gross value" refer to in marine insurance?

a) Market value with duty paid beforehand

b) Estimated value without freight charges

c) Cost of repairs for damaged goods

d) Wholesale price of the goods

e) Estimated value with duty paid beforehand

Q 7. In the scenario of Harris vPoland (1941), why was the claim allowed under the fire insurance policy?

a) The insured deliberately set fire to the money and jewelry.

b) The fire resulted from an intentional act of the insured.

c) The insured accidentally lit a fire, causing damage to the hidden items.

d) The fire was started by an external source unrelated to the insured.

e) The insured failed to disclose important information about the hidden items.

Q 8. What principle defines an actual total loss when a vessel founders at sea?

a) Principle of salvage

b) Principle of intact cargo

c) Principle of irretrievable deprivation

d) Principle of contractual obligation

e) Principle of impossibility of arrival

Q 9. What is the purpose of providing adequate spacing between two loading racks in a petrochemical facility?

a) To optimize land utilization

b) To improve employee morale

c) To enhance aesthetic appeal

d) To facilitate fire emergency control and protection against exposure fires

e) To reduce noise pollution

Q 10. Which act was used for the regulation of insurance business in India before the enactment of specific regulatory acts?

a) Indian Companies Act, 1883

b) Provident Insurance Societies Act V of 1912

c) Indian Life Insurance Companies Act VI of 1912

d) English Insurance Companies Act 1909

e) Insurance Act, 1938

Q 11. What is the purpose of constituting Motor Accidents Claims Tribunals (MACT) under the Motor Vehicles Act, 1988?

a) To penalize drivers involved in accidents

b) To speed up the vehicle registration process

c) To ensure speedy settlement of claims of persons involved in motor vehicle accidents

d) To regulate the insurance industry

e) To impose higher fines on traffic violators

Q 12. What are the functions and obligations of a surveyor in claim settlement?

a) Assessing policyholder's financial status

b) Investigating criminal activities

c) Providing legal advice

d) Assessing losses and damages

e) Marketing insurance products

Q 13. In which chapter of the revamped regulations are the duties and responsibilities of a surveyor outlined?

a) Chapter 1: Preliminary

b) Chapter 2: Licensing Procedures

c) Chapter 3: Constitution & Functions of Committee

d) Chapter 4: Duties & responsibilities of a surveyor

e) Chapter 5: Regulatory Compliance

Q 14. What should the surveyor do after identifying which named peril caused the reported loss or damage in a named perils policy?

a) Advise the insured to cancel the policy

b) Recommend additional coverage to the insured

c) Confirm the admissibility of the claim, subject to policy exclusions or exceptions

d) Reject the claim outright

e) Inform the insurer of the insured's previous claims history

Q 15. What is the relationship between depreciation and betterment in insurance claims?

a) They are unrelated concepts

b) Betterment increases depreciation

c) Betterment reduces depreciation

d) Depreciation and betterment are interchangeable terms

e) Betterment and depreciation have no impact on claim settlements


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