IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-2

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Q 1. What intent is sufficient to establish the offense of falsification of accounts under Section 477?A of the Indian Penal Code?

a) Specific intent to defraud a particular person

b) General intent to commit fraud without specifying a victim or amount

c) Intent to deceive one's employer for personal gain

d) Intent to cause financial loss to competitors

e) Absence of any specific intent

Q 2. What significant change was introduced by the Insurance Regulatory and Development Authority (IRDA) in 2000?

a) Introduction of licensing procedures for insurers

b) Implementation of standardized claim settlement processes

c) Formation of a regulatory body for surveyors and loss assessors

d) Establishment of professional requirements and a code of conduct for surveyors

e) None of the above

Q 3. What is the first step a surveyor must take before assessing the extent of liability in a claim?

a) Assess the quantum of loss

b) Verify the policy contents

c) Confirm the insured's compliance with policy requirements

d) Investigate the circumstances of the loss

e) Determine the proximate cause of loss

Q 4. How can counting be simplified when assessing the quantitative details of a large quantity of items?

a) Weighing each item individually

b) Counting a known unit area and multiplying the result

c) Using volumetric measurements

d) Assessing material balance calculations

e) Analyzing smoke marks on the walls

Q 5. What practical complications arise in applying percentage depreciation?

a) Lack of understanding of depreciation concepts by the insured

b) Variation in depreciation rates across different asset classes

c) Disagreements between the insurer and the surveyor

d) Difficulty in assessing the cost of replacing damaged property

e) Inconsistencies in insurance policy wording

Q 6. What purpose does the survey report serve for individuals distant from the survey scene?

a) It increases confusion among stakeholders

b) It serves as a source of workload for the insurer

c) It provides the only evidence for decision-making on liability

d) It delays the claims settlement process

e) It expedites the policy renewal process

Q 7. What details should the insurer provide to the policyholder if the grievance is not resolved in their favor?

a) Name of the CEO

b) Name and address of the insurance agent

c) Details of the insurance policy

d) Name and address of the insurance ombudsman of competent jurisdiction

e) Contact information of the insurer's legal department

Q 8. What does the "Pro-rata" basis method of insuring wages involve?

a) Insuring wages for a shorter indemnity period than the gross profit cover

b) Insuring wages for the full indemnity period but with certain limitations

c) Insuring wages based on specific employee categories

d) Insuring wages separately from the gross profit cover

e) Insuring wages without any limitations

Q 9. What does Depositors’ Forgery Coverage in Crime Insurance protect against?

a) Losses due to natural disasters.

b) Losses from instruments like fraudulent cheques.

c) Losses from employee theft.

d) Losses due to computer fraud.

e) Losses due to accidental damage.

Q 10. What are the risks covered during inward transit under Section I of the Package Policy for Exporters?

a) Only theft and pilferage

b) Only natural disasters

c) As per Inland Transit (Rail / Road) Clause

d) A specified list of risks

e) All risks, including those excluded in other sections

Q 11. What action is taken before granting inland transit cover on goods imported from abroad?

a) Inspection of the goods to check for damages

b) Loading of premium

c) Survey before acceptance

d) Incorporation of specific clauses

e) None of the above

Q 12. What duty does an agent have when placing insurance on behalf of the proposer?

a) Only disclose material circumstances known to the proposer

b) Only disclose material circumstances known to the agent

c) Make full disclosure of all material facts known to the proposer and agent

d) Disclose only those material facts requested by the underwriter

e) Avoid disclosing any material facts unless specifically asked by the underwriter

Q 13. In insurance contracts, what is the consequence of breaching a warranty?

a) The insured receives compensation

b) The policy is renewed automatically

c) The insurer must provide additional coverage

d) The aggrieved party can repudiate the contract

e) The insurer adjusts the premium rates

Q 14. What provision of the Marine Insurance Act, of 1963, deals with the right of subrogation?

a) Section 75

b) Section 77

c) Section 79

d) Section 81

e) Section 83

Q 15. What are implied conditions in insurance contracts?

a) Conditions that are explicitly stated in the policy.

b) Conditions that are not legally enforceable.

c) Conditions that apply to all contracts whether specifically mentioned or not.

d) Conditions that can be modified by conditions expressed in the policy.

e) Conditions that are optional for the insured to follow.


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