IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-32

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Q 1. Which factor affects physical hazard in Personal Accident Insurance?

a) The insured's occupation

b) The insured's favorite color

c) The insured's shoe size

d) The insured's preferred mode of transportation

e) The insured's taste in music
 
Q 2. According to the text, who is deemed to have an unlimited financial interest in their own life?

a) Parents

b) Spouses

c) Employers

d) Insurers

e) Individuals themselves
 
Q 3. What type of facts is the proposer not obligated to disclose if the insurer appears indifferent or has waived information?

a) Facts diminishing the risk

b) Facts known only to the proposer

c) Facts that could be ascertained from the information supplied by the proposer

d) Matters of law

e) Facts discovered during a risk inspection
 
Q 4. What does the contribution condition in a motor insurance policy entail?

a) The insurer is liable to pay the entire compensation regardless of other insurance

b) The insurer is not liable to pay if there are other insurance policies covering the same liability

c) The insurer contributes only if the loss exceeds a certain amount

d) The insurer contributes pro-rata with any other insurance covering the same liability

e) The insurer contributes only if the insured holds a specific type of policy
 
Q 5. What is the primary purpose of exclusions in insurance policies?

a) To increase profits for insurers.

b) To complicate the claims process for insureds.

c) To limit coverage to normal risks required by the average insured.

d) To provide coverage for all possible risks.

e) To discourage individuals from purchasing insurance.
 
Q 6. What distinguishes sue and labor charges from particular charges?

a) Sue and labor charges are incurred by the insurer, while particular charges are incurred by the insured.

b) Sue and labor charges are incurred during salvage operations, while particular charges are incurred for safety measures.

c) Sue and labor charges are included in the particular average, while particular charges are not.

d) Sue and labor charges are related to legal actions, while particular charges are related to physical preservation.

e) Sue and labor charges are covered under the general average, while particular charges are not.
 
Q 7. Why are partitions of combustible material not recommended from a fire viewpoint?

a) They hinder the spread of fire.

b) They provide fuel for a fire.

c) They increase the effectiveness of firefighting services.

d) They obstruct material movement.

e) They reduce the risk of total loss.
 
Q 8. What does the Insurance (Amendment) Act, 2002, regulate regarding commission, brokerage, or fee to intermediaries or insurance intermediaries?

a) It sets a minimum commission rate

b) It prohibits any payment of commission

c) It restricts the amount of brokerage or fee paid

d) It mandates payment of a fixed fee

e) It does not regulate commission or brokerage
 
Q 9. Which of the following actions constitutes an offense under Section 268 of the Indian Penal Code?

a) Conducting regular maintenance of public parks

b) Blocking a public road without authorization

c) Organizing a community health awareness program

d) Planting trees along sidewalks

e) Volunteering at a local charity event
 
Q 10. Under what circumstances can the Controller direct a claim of less than twenty thousand rupees to be reported upon by an approved surveyor or loss assessor?

a) If the insurer requests the Controller's intervention

b) If the claimant insists on involving a surveyor or loss assessor

c) If the claim has not been or is not proposed to be reported upon by a surveyor or loss assessor

d) If the claim involves a dispute between the insurer and the insured

e) If the claim is related to marine insurance
 
Q 11. What is the responsibility of insurers regarding the utilization of surveyors, according to the regulations?

a) Maintain a register of surveyors

b) Submit quarterly reports on surveyor utilization

c) File annual statements with the Authority

d) Conduct examinations for surveyors

e) Enroll trainees as Student Members of the Institute
 
Q 12. What is the purpose of specifying deductible/excess limits in insurance policies?

a) To increase the insurer's liability

b) To reduce the insured's premium

c) To discourage policyholders from filing claims

d) To provide coverage for all types of losses

e) To transfer risk from the insurer to the insured
 
Q 13. What does economic obsolescence consider when determining the value of an item?

a) Technological advancements

b) Legislative changes

c) Production rates

d) Material composition

e) Market demand
 
Q 14. What role does the survey report play for individuals far removed from the scene of survey or occurrence?

a) It serves as the only evidence for decision-making on liability

b) It increases confusion among stakeholders

c) It expedites the claims settlement process

d) It delays policy renewal

e) It decreases the workload for the insurer
 
Q 15. Which account signifies a net profit if it has a credit balance?

a) Trading Account

b) Profit and Loss Account

c) Balance Sheet

d) Sales Returns Account

e) Purchases Returns Account


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