IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-26

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Q 1. What is the purpose of the new Section 114A introduced by the amendments?

a) To regulate the investment of funds by insurers

b) To enhance penalties for non-compliance with the provisions of the Act

c) To prescribe procedural provisions for investigations

d) To define the powers of the Authority to make regulations

e) To issue licenses to insurance intermediaries
 
Q 2. What does the Workmen’s Compensation Act, of 1923, provide for?

a) Compensation for damage to property during work hours

b) Compensation for injury or disease arising out of and in the course of employment

c) Compensation for accidents during transportation

d) Compensation for injuries caused by natural disasters

e) Compensation for loss of employment due to economic downturns
 
Q 3. What is the primary purpose of developing flexibility in the claim assessment procedure?

a) To create confusion

b) To increase the workload for the surveyor

c) To adapt to any problem that may arise during the survey

d) To entertain the insured

e) To complicate the process unnecessarily
 
Q 4. Why was the rotation system for appointing surveyors considered inadequate?

a) It favored trained personnel over unqualified individuals

b) It didn't consider the lobbying capacity of surveyors

c) It failed to address the multifaceted responsibilities of surveyors

d) It discouraged surveyors from seeking licenses

e) None of the above
 
Q 5. What is one purpose of physical inspection during a survey?

a) To determine salvage recovery options

b) To optimize insurance premiums

c) To facilitate policy renewal

d) To assess the insurer's liability

e) To negotiate claim settlements
 
Q 6. How is the basis of valuation typically determined for marine losses?

a) Replacement cost

b) Original purchase price

c) Market value at the time of loss

d) Cost, Insurance & Freight + 10%

e) Average market price
 
Q 7. Why is it important for a surveyor to confirm the clear identification of the subject matter of risk?

a) To minimize the workload for the insurer

b) To confuse the insured party

c) To expedite the claims processing

d) To establish the insurer's liability

e) To increase the complexity of the claim
 
Q 8. Why do insurers prefer to appoint qualified surveyors with accounting knowledge for certain claims?

a) To complicate the claim handling process

b) To delay the claims settlement process

c) To increase the workload for the insurer

d) To ensure accuracy in assessing claims based on professional examination of books of accounts

e) To confuse the insured with technical jargon
 
Q 9. What does fire insurance primarily cover?

a) Loss of profits

b) Material damage to property

c) Personal injuries

d) Theft of goods

e) Loss of machinery
 
Q 10. What is the purpose of a "first loss" policy in burglary insurance?

a) To maximize the coverage for high-value properties

b) To minimize the premium cost for low-risk properties

c) To waive the need for a sum insured declaration

d) To ensure coverage for all types of losses

e) To eliminate the need for pro-rata average calculation
 
Q 11. When does the cover under Special Storage Risks Insurance terminate?

a) Upon loading of goods onto the carrier's vehicle

b) Upon arrival of goods at the destination depot

c) Upon clearance by the consignees

d) Upon termination of the open policy

e) Upon expiry of 12 months
 
Q 12. When should the Agreed Bank Clause be incorporated into a fire policy?

a) When the policyholder is a bank

b) When the policyholder is a mortgagor

c) When the policyholder is a government agency

d) When the policyholder has a mortgage with a financial institution

e) When the policyholder has a mortgage with a government-owned institution
 
Q 13. In the hypothetical example provided, what is the rate of premium that a motorcycle owner pays?

a) Rs.500 per year

b) Rs.250 per year

c) Rs.50 per year

d) Rs.300 per year

e) Rs.100 per year
 
Q 14. Who typically has an insurable interest in the risks they accept, according to the text?

a) Policyholders

b) Insurance brokers

c) Reinsurers

d) Banks

e) Employers
 
Q 15. What is the purpose of an "excess" or deductible in insurance policies?

a) To reduce the sum insured

b) To increase the claim amount

c) To limit the liability of the insurer

d) To provide full loss coverage

e) To waive the salvage value


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