IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-21

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Q 1. How is loss assessment conducted under burglary policies?

a) Through examination of the insured's medical records

b) By analyzing historical weather data

c) By estimating repair costs for damaged premises

d) Through examination of records of purchases and sales, stock books, etc.

e) By verifying previous insurance claims

Q 2. Which of the following statements best describes the surveyor's approach to determining depreciation?

a) It is based solely on market value trends

b) It is a linear reduction over time

c) It is influenced by multiple factors related to usage and condition

d) It is standardized across all types of property

e) It is independent of the property's maintenance history

Q 3. How is the rate of turnover calculated for inventory?

a) By dividing the sales by the average inventory

b) By dividing the cost of sales by the average inventory

c) By dividing the expenses by the total inventory

d) By dividing the profit by the inventory value

e) By multiplying the inventory by the sales

Q 4. What is an example of a peril specifically covered under the Standard Fire and Special Perils policy?

a) Earthquake

b) Volcanic eruption

c) Burglary

d) Explosion

e) Vandalism

Q 5. Who is required to execute Customs bonds?

a) Manufacturers of finished products

b) Exporters of essential raw materials

c) Persons or corporate bodies permitted to import specific goods

d) Individuals importing luxury items for resale

e) Travelers importing personal belongings

Q 6. Which section of Shopkeeper’s Insurance provides coverage for personal accidents for insured individuals and their employees?

a) Section 6

b) Section 7

c) Section 8

d) Section 9

e) Section 10

Q 7. In which type of insurance is a warranty about the presence of a watchman often found?

a) Health insurance

b) Home Insurance

c) Marine insurance

d) Motorcycle insurance

e) Burglary insurance

Q 8. Which of the following is an example of a pure risk?

a) Economic recession

b) Market competition

c) Cyclone

d) Technological advancement

e) Social unrest

Q 9. In a leased property, who may typically insure it?

a) Only the lessor

b) Only the lessee

c) Both the lessor and the lessee

d) Only the insurance company

e) Only the property owner

Q 10. In which situation would subrogation arise in marine insurance?

a) When the insured fails to take any action after a loss

b) When the insured cancels the insurance policy

c) When the insured exercises their right to recover from carriers or bailees

d) When the insured voluntarily forfeits their rights against third parties

e) When the insured refuses to cooperate with the insurer

Q 11. In insurance policies, what condition leads to a reduction in the loss amount paid if the sum insured is less than the actual value of the property?

a) Excess

b) Franchise

c) Pro-rata average

d) Salvage

e) Deductible

Q 12. What action does the condition in Burglary insurance require the insured to take upon the happening of a loss?

a) Immediately contact the insurance company.

b) Provide notice to the neighbors.

c) Document the loss for future reference.

d) Take all practicable steps to apprehend the guilty person and recover the lost property.

e) Secure the premises with additional security measures.

Q 13. What is a general guideline for the location of extinguishers for fires in ordinary combustibles?

a) Place extinguishers at points of entrance rather than throughout the area.

b) Locate extinguishers near the hazard to be protected.

c) Distribute extinguishers according to area coverage and maximum travel distance.

d) Store extinguishers where they are likely to be blocked or hidden by stock.

e) Keep extinguishers away from the hazard to be protected.

Q 14. What change does the Insurance Regulatory & Development Authority Act, 1999, introduce regarding the nomenclature of the authority?

a) It changes the name to Insurance Regulatory & Development Corporation of India

b) It changes the name to Insurance Regulatory & Development Authority of India

c) It shortens the name to Regulatory Authority of Insurance

d) It adds "National" to the name

e) It removes "Insurance" from the name

Q 15. Under what circumstances can an insurance contract be discharged?

a) Only by specific performance

b) Only by agreement between the parties

c) By insolvency of the insurer

d) Only by breach of contract

e) By any of the mentioned modes


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