IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-23

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Q 1. What responsibility does the insured have concerning the provision of information for reinstatement?

a) The insured must pay for all costs associated with reinstatement.

b) The insured must conduct the reinstatement process independently.

c) The insured must furnish the insurer with all plans and necessary particulars at their own expense.

d) The insured is not required to provide any information to the insurer.

e) The insured must only provide information if requested by the insurer.
 
Q 2. How can water used in extinguishing a fire on upper floors damage property on lower floors?

a) By reducing the risk of collapse on lower floors.

b) By obstructing the flow of smoke.

c) By percolating through floors or flowing through floor openings.

d) By enhancing the stability of lower floors.

e) By reducing the risk of smoke damage.
 
Q 3. What is the main purpose of the Insurance Act, of 1938?

a) To regulate the stock market

b) To consolidate and amend the law relating to the business of insurance

c) To control the banking sector

d) To manage the real estate industry

e) To oversee the telecommunications sector
 
Q 4. What does the Marine Insurance Act, of 1963, primarily codify?

a) Laws related to land transportation

b) Laws related to air transportation

c) Laws related to marine insurance

d) Laws related to property insurance

e) Laws related to health insurance
 
Q 5. How does the insured typically communicate a notice of loss or damage to the insurer?

a) Through social media platforms

b) Via telegraph

c) By sending a letter

d) Using carrier pigeons

e) Primarily through phone, email, or fax
 
Q 6. What is a key feature introduced in Chapter II of the regulations?

a) Definition of surveyor and loss assessor roles

b) Formation of a surveyors and loss assessors committee

c) Introduction of categorization of surveyors based on financial limits

d) Licensing procedure including mandatory practical training

e) None of the above
 
Q 7. What distinguishes concealment from misrepresentation in insurance?

a) Concealment is unintentional, while misrepresentation is intentional

b) Concealment involves innocent mistakes, while misrepresentation involves deliberate actions

c) Concealment involves providing incorrect information, while misrepresentation involves omitting information

d) Concealment leads to an automatic claim denial, while misrepresentation leads to an investigation

e) Concealment is allowed under certain circumstances, while misrepresentation is always prohibited
 
Q 8. What effect does water damage commonly have on materials like zinc sulfate and salt?

a) Dissolution

b) Discoloration

c) Flaking

d) Shrinkage

e) Spontaneous combustion
 
Q 9. How do deductible/excess limits vary across different types of insurance policies?

a) They remain constant for all policies

b) They are adjusted based on the insured's preferences

c) They increase with the insured's age

d) They are specified based on the type of insured property and associated risks

e) They are regulated by government agencies
 
Q 10. What is common in spot survey reports, particularly for motor policies?

a) Detailed analysis of policy exclusions

b) Comprehensive background checks on the insured party

c) Utilization of printed formats

d) Extensive documentation of previous claims

e) Excessive speculation on the cause of loss
 
Q 11. What does the sum insured represent in a Gross Fees Policy?

a) The total amount of standing charges for the insured business

b) The standard gross revenue expected during the indemnity period

c) The amount of money paid or payable to the insured for services rendered

d) The additional expenditure incurred by the insured to avoid or diminish loss

e) The maximum limit of compensation payable for any single claim
 
Q 12. Which policy uses the principle of indemnity to ensure fair compensation?

a) Standard fire policy

b) Reinstatement Value Policy

c) Flood insurance policy

d) Earthquake insurance policy

e) Terrorism insurance policy
 
Q 13. Which of the following is excluded from coverage under Jewelers Block Insurance?

a) Losses noticed during stocktaking

b) Theft from vehicles while under the insured's control

c) Damage caused by atmospheric conditions

d) Losses during business hours

e) Losses due to faulty machinery
 
Q 14. What is included in the definition of "freight" according to the Marine Insurance Act, of 1963?

a) Only the cost of shipping goods

b) Only the profit derived from carrying the shipowner's goods

c) The profit from employing the ship to carry goods and freight payable by a third party

d) Money paid by passengers

e) None of the above
 
Q 15. What distinguishes moral hazard from physical hazard?

a) Moral hazard arises from material features of the subject matter of insurance

b) Physical hazard arises from the carelessness of the insured

c) Moral hazard arises from individual or general social and economic conditions

d) Physical hazard involves fraud and dishonesty

e) Moral hazard is more tangible than physical hazard


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