IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-27

Find More Mock Tests Here


Q 1. What information is typically included in the background details of a marine (cargo) survey report?

a) Details of insurable interest

b) Physical observations of damages

c) Cause of accident

d) Reference to spot/preliminary survey report

e) Details of the subject matter insured

Q 2. In the Profit and Loss Account, where are gains and incomes usually shown?

a) Debit side

b) Credit side

c) Assets side

d) Liabilities side

e) Trading side

Q 3. Which of the following losses is NOT payable under the Gross Fees Policy?

a) Under-insurance against property damage under fire policies

b) Depreciation of undamaged stock after a fire

c) Failure to recover book debts owing to destruction of records

d) Loss of goodwill

e) Fines and penalties payable due to delayed fulfillment or cancellation of sale/service contracts

Q 4. Under which coverage does Crime Insurance traditionally cover loss of money or securities while being transported?

a) Employee Theft Coverage

b) Premises Coverage

c) Transit Coverage

d) Depositors’ Forgery Coverage

e) Computer Fraud Coverage

Q 5. Who can avail special arrangements of open cover or open policies?

a) Individuals sending occasional shipments

b) Merchants engaged in regular import and export trade or sending consignments regularly by inland transit

c) Individuals sending parcels through registered postal services

d) Corporations involved in air cargo transportation

e) Government agencies involved in maritime operations

Q 6. Under the Temporary Removal Clause, what is the status of coverage for stocks if they are otherwise insured?

a) They are covered under the policy

b) They are not covered under the policy

c) They are covered but subject to a deductible

d) They are covered but subject to a higher premium

e) They are covered but subject to a lower sum insured

Q 7. What numerical values are assigned to events in probability theory?

a) Events with higher likelihood are assigned values between 1 and 100.

b) Impossible events are assigned a value of 1 and inevitable events a value of 0.

c) Events with higher likelihood are assigned values closer to 100.

d) Impossible events are assigned a value of 0 and inevitable events a value of 1.

e) Events with higher likelihood are assigned values between 0 and 1.

Q 8. What does the presence of insurable interest ensure regarding the enforceability of an insurance contract?

a) It guarantees the insurer's liability regardless of the insured's interest

b) It renders the contract void due to lack of legal basis

c) It exempts the insured from fulfilling contractual obligations

d) It prevents the insurer from indemnifying the insured against financial losses

e) It supports the contract's enforceability at law

Q 9. What does a cargo policy in marine insurance allow the merchant to insure?

a) Only the actual cost price of the goods

b) Only the profit from the goods

c) Both profit and actual cost price of the goods

d) Only the freight charges

e) The hull of the ship

Q 10. In Everett vLondon Assurance Co(1865), why was the damage to the premises not covered by the fire insurance policy?

a) The fire was too remote from the insured premises.

b) The insured failed to report the explosion to the insurance company.

c) The damage occurred due to an explosion caused by an unrelated fire.

d) The insured intentionally caused the explosion.

e) The insurance policy did not cover fire-related damages.

Q 11. what is the obligation of the underwriters regarding the arrival of the subject of insurance?

a) They are obliged to ensure the subject arrives at the destination regardless of perils.

b) They are only obliged if the subject is partially damaged.

c) They are obliged if the subject is salvageable.

d) They are obliged if the subject is unaffected by the perils of the sea.

e) They are obliged if the subject is retrievable after the voyage.

Q 12. What is the purpose of segregating and maintaining separating distances between hazardous installations in the layout of a plant?

a) To increase construction costs

b) To comply with local laws and regulations

c) To facilitate collaboration between different departments

d) To reduce insurance premiums

e) To improve employee morale

Q 13. Which of the following disputes can be considered by the Ombudsman?

a) Dispute related to the color of the insurance document.

b) Dispute regarding the shape of the insurance document.

c) Delay in the settlement of claims.

d) Dispute regarding the font size of the insurance document.

e) Dispute about the weight of the insurance document.

Q 14. What offense is outlined in Section 411 of the Indian Penal Code?

a) Robbery

b) Theft

c) Embezzlement

d) Receiving or retaining stolen property dishonestly

e) Forgery

Q 15. What complicates the identification of the subject matter insured, particularly in engineering and fire policies?

a) Lack of communication between insurers and surveyors

b) Deliberate misrepresentation by insurers

c) Rapid technological changes

d) Inadequate training of surveyors

e) Anomalies in policy description and identification



Find More Mock Tests Here