IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-33

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Q 1. What is the requirement regarding advice to prospects according to Regulation 3 of the I.R.D?ARegulations, 2002?

a) Prospects must make decisions without any advice

b) Insurers or their agents must provide biased advice

c) Prospects must seek advice from multiple sources

d) Insurers or their agents must advise prospects dispassionately

e) Prospects must rely solely on their intuition
 
Q 2. What is meant by the personal nature of an insurance contract?

a) It covers only personal belongings.

b) It follows the person rather than the property concerned.

c) It is tailored to the individual's preferences.

d) It requires personal attendance at all meetings.

e) It is enforceable only against individuals, not businesses.
 
Q 3. What is the significance of human feelings and emotions in a surveyor's work?

a) They have no significance

b) They make the job easier

c) They play a significant part and require marked ability for handling people

d) They are irrelevant to the surveyor's job

e) They only affect the claimant's experience
 
Q 4. How long does a surveyor have to submit an additional report if the insurer finds the original survey report incomplete?

a) 1 week

b) 2 weeks

c) 3 weeks

d) 4 weeks

e) 5 weeks
 
Q 5. What is the first step a surveyor typically takes during an assessment of an average value loss?

a) Organizing segregation of affected items

b) Discussing with eyewitnesses

c) Capturing still photographs of the observed damages

d) Reviewing stock-related books

e) Conferring with the insured
 
Q 6. In cases of partial losses where repair or reconditioning is possible, what additional aspect does the surveyor need to consider?

a) The cause of the incident

b) The total loss value

c) The qualitative extent of damage

d) The insurance premium

e) None of the above
 
Q 7. How does the text suggest a surveyor can gauge the effectiveness of their work and reporting?

a) By receiving praise from the insured party

b) By the absence of queries from the insurer post-report submission

c) By the length and complexity of the report

d) By the number of disputes generated by the report

e) By the speed at which the claim is settled without investigation
 
Q 8. According to the text, what is calculated to determine the gross profit when examining final accounts?

a) Average gross profit of the last year

b) Average gross profit of the last two years

c) Average gross profit of the last three years

d) Average gross profit of the last four years

e) Average gross profit of the last five years
 
Q 9. What is the condition for receiving insurance under item 3 of the Gross Fees Policy?

a) The insured must demonstrate a loss of net profit

b) The insured must provide evidence of the damage to their physical assets

c) The insured must have a record of under-insurance under fire policies

d) The insured must incur legal, clerical, and other charges in the replacement of important documents

e) The insured must suffer a loss of goodwill
 
Q 10. What must be provided in the proposal form for Baggage Insurance?

a) Information about the insured's medical history

b) Details of the insured's family members

c) Description, contents, and value of each package

d) Details of the insured's travel itinerary

e) Information about the insured's profession
 
Q 11. What is the period of an annual policy in Special Storage Risks Insurance?

a) 6 months

b) 9 months

c) 12 months

d) 18 months

e) 24 months
 
Q 12. What is the purpose of the Institute Replacement Clause in marine cargo insurance?

a) To limit the liability of the insurer

b) To provide coverage for temporary removal of goods

c) To determine the insured value of machinery

d) To specify the rights of the bank in claim settlements

e) To restrict claims for loss or damage to parts of insured machinery
 
Q 13. What principle allows insurers to predict or forecast future losses accurately?

a) The principle of causation

b) The principle of compensation

c) The principle of large numbers or the law of probability

d) The principle of indemnity

e) The principle of insurable interest
 
Q 14. Why is the method of blank endorsement commonly adopted for the assignment of marine policies?

a) To make the policy non-transferable

b) To complicate the assignment process

c) To prevent subsequent assignment

d) To facilitate subsequent assignments by mere delivery of the policy

e) To make the policy a negotiable instrument
 
Q 15. What option do insurers have instead of making a cash payment for property damage?

a) Providing additional coverage for future losses

b) Issuing a temporary policy extension

c) Offering a discount on future premiums

d) Reinstating, replacing, or repairing the property or premises

e) Initiating legal proceedings against the guilty party


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