IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-31

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Q 1. Under what circumstances is the insurer's liability limited in terms of reinstatement?

a) If the insured refuses to cooperate with the reinstatement process.

b) If the property cannot be reinstated due to municipal or other regulations.

c) If the insured fails to submit a claim within the specified time frame.

d) If the insurer exceeds the sum insured during reinstatement.

e) If the insured fails to provide accurate information for reinstatement.

Q 2. How many hydrant points are required for every 30 to 45 meters of building/plant/storage periphery protected?

a) One

b) Two

c) Three

d) Four

e) Five

Q 3. What is the maximum amount of commission, fee, or remuneration that an intermediary or insurance intermediary can be paid under the regulations specified by the Authority?

a) 20% of the premium payable

b) 25% of the premium payable

c) 30% of the premium payable

d) 35% of the premium payable

e) 40% of the premium payable

Q 4. What is defined as forgery according to Section 463 of the Indian Penal Code?

a) Unauthorized possession of documents

b) Altering existing documents

c) Making false documents with intent to cause damage or injury

d) Destruction of documents

e) Public disclosure of confidential documents

Q 5. What action should a surveyor take if they encounter damages requiring expertise beyond their familiarity?

a) Proceed with the assessment independently

b) Seek assistance from the insured

c) Inform the insurer and obtain expert assistance

d) Delay the assessment until gaining familiarity

e) Ignore the damages

Q 6. What is the fee for obtaining a duplicate license if the original license issued under Sec64 UM is lost or destroyed?

a) Rupees 10

b) Rupees 50

c) Rupees 100

d) Rupees 250

e) Rupees 5

Q 7. What is the main objective when analyzing named perils policies?

a) To verify the insurer's liability

b) To assess the credibility of the insured

c) To determine if the loss is covered under an "all-risk" policy

d) To identify which named perils caused the reported loss or damage

e) To examine the insured's insurable interest

Q 8. What factor often leads to detailed negotiations during the assessment of losses for commercial heavy vehicles and luxury supercoaches?

a) High depreciation rates

b) Standardized repair costs

c) Non-negotiable spare parts prices

d) Complex damage to nature

e) Rapid repair process

Q 9. How does the insured credit the amount received from salvage sales against the loss?

a) By retaining the money received

b) By donating the money to charity

c) By investing the money in new equipment

d) By deducting it from the cost of selling

e) By transferring it to a separate account

Q 10. What is the primary purpose of ascertaining the admissibility of a claim and the extent of liability through a survey?

a) To expedite the claim settlement process

b) To maximize profits for the insurer

c) To minimize the insured party's losses

d) To ensure compliance with regulatory requirements

e) To determine the insurer's obligations under the policy

Q 11. What is the basis for determining and measuring loss of profits in insurance policies?

a) Reduction in capital investments

b) Increase in variable charges

c) Reduction in turnover

d) Increase in standing charges

e) Decrease in net profit

Q 12. Which type of insurance primarily covers risks associated with personal injury?

a) Motor insurance

b) Marine insurance

c) Engineering Insurance

d) Personal accident insurance

e) Public liability insurance

Q 13. Which of the following is not excluded from coverage under the Bankers Indemnity Policy?

a) Losses due to the dishonest acts of appraisers or Janata agents

b) Losses due to faulty computer programming

c) Losses caused by earthquake or flood

d) Losses due to fraudulent use of computer programs

e) Losses caused by riots and strikes

Q 14. How can freight be insured?

a) Only voyage by voyage

b) Only concurrently with the hull policy

c) Both voyage by voyage and concurrently with the hull policy

d) Only for a fixed period

e) Only by third-party insurers

Q 15. Why is moral hazard difficult to assess compared to physical hazard?

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

b) Moral hazard is more tangible than physical hazard

c) No amount of extra premium can adequately cover moral hazard

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

e) Moral hazard is easily mitigated by imposing excess clauses


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