IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-25

Find More Mock Tests Here

Q 1. What type of premises may constitute a bad physical hazard in Burglary Insurance?

a) Premises with high-quality security systems

b) Premises with ground-floor access

c) Premises with limited windows and doors

d) Premises with good lighting

e) Premises with security cameras installed

Q 2. According to the Marine Insurance Act, what defines a material fact?

a) Any fact related to the insured's personal life

b) Any fact that influences the insured's decision-making process

c) Any fact that affects the judgment of a prudent insurer

d) Any fact disclosed by the underwriter

e) Any fact related to the insured's financial status

Q 3. What term describes statements made during insurance negotiations about material facts?

a) Endorsements

b) Warranties

c) Representations

d) Declarations

e) Stipulations

Q 4. What does baggage insurance provide indemnity for?

a) Selling price of the baggage

b) Replacement cost of the baggage

c) Market value of the baggage

d) Intrinsic value of accompanied personal baggage

e) Total loss of the baggage

Q 5. What is the rationale behind the practice of excluding certain risks from insurance policies?

a) To maximize profits for insurers.

b) To discourage individuals from purchasing insurance.

c) To limit coverage to only the most common risks.

d) To enable a large number of insureds to buy insurance at reasonable premiums.

e) To complicate the claims process for insureds.

Q 6. Under what condition is a vehicle-treated as a Constructive Total Loss (CTL) according to the policy?

a) If the vehicle is stolen and not recovered

b) If the vehicle sustains extensive damage, and the cost of retrieval and/or repair exceeds 75% of the Insured Declared Value (I.D.V.)

c) If the vehicle is involved in an accident causing minor damage

d) If the vehicle is found to have manufacturing defects

e) None of the above

Q 7. Why are large stocks of coal more susceptible to spontaneous combustion?

a) Because they are less likely to undergo spontaneous heating.

b) Because they contain a higher moisture content.

c) Because they are less likely to contain mixed sizes of coal.

d) Because they provide better ventilation for heating.

e) Because they contain a higher percentage of uniformly fine coal.

Q 8. How often is the Ombudsman required to prepare a report of his activities?

a) Biannually

b) Quarterly

c) Annually

d) Every two years

e) No specific frequency

Q 9. Which entities contribute to the Solatium Fund as decided by the Central Government?

a) General Insurance Industry, State Governments, and Judiciary

b) General Insurance Industry, Central Government, and Local Authorities

c) General Insurance Industry, Central Government, and State Governments

d) Central Government, Local Authorities, and Private Organizations

e) Central Government, State Governments, and NGOs

Q 10. In the eighteenth century, what practice replaced the Church certificates for fire insurance claims?

a) Swearing on oath before a judge

b) Certificate from reputable householders

c) Obtaining approval from architects

d) Providing documentation from insurance agents

e) None of the above

Q 11. What is the purpose of maintaining a register of survey work by a surveyor or loss assessor?

a) To showcase their skills to potential clients

b) To keep track of their favorite projects

c) To comply with regulatory requirements

d) To avoid paying taxes

e) To publish in academic journals

Q 12. What is the procedure followed by surveyors in cases of large losses to verify the preferred loss by the insured?

a) Immediate claim settlement without verification

b) Scrutiny of financial records without item inspection

c) Joint inspection with the insured to verify item by item

d) Reliance solely on the insured's claim details

e) Delayed verification process to extend the claim period

Q 13. What determines the maximum limit of payment in an insurance policy?

a) The depreciation rate

b) The sum insured

c) The deductible amount

d) The policy premium

e) The replacement cost

Q 14. What prompts a surveyor to proceed to the place of occurrence, according to the text?

a) A request from the insured party

b) Preliminary details of the loss received from the insurance company

c) Personal interest in the case

d) Pressure from external stakeholders

e) Internal policies of the surveying firm

Q 15. Where are the total amounts from the Sales Day Book and Purchase Day Book posted to complete the double entry?

a) Sales Ledger

b) Purchase Ledger

c) General Ledger

d) Cash Ledger

e) Journal Ledger


Find More Mock Tests Here