IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-34

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Q 1. What are examples of "source documents" required for examination?

a) Staff training manuals

b) Utility bills

c) Material Receipt Notes and Purchase Invoices

d) Internal meeting minutes

e) Personal correspondence
 
Q 2. Which peril is specifically excluded from the basic cover but can be added as an "add-on" cover?

a) Theft during or after the occurrence of any insured peril

b) Consequential losses

c) Earthquake

d) Spoilage from the retardation or interruption of any process or operation

e) Damage to electrical machines by short-circuiting
 
Q 3. What additional risk may be covered under Neon Sign Insurance for an extra premium?

a) Damage caused by mechanical breakdown

b) Damage due to wear and tear

c) Loss due to overrunning or overheating

d) Riot and strike risks

e) Damage to tubes without glass fracture
 
Q 4. What distinguishes an open policy from an open cover in marine insurance?

a) The duration of coverage

b) The nature of documentation

c) The necessity of issuing specific policies for each declaration

d) The availability of coverage for inland transit

e) The provision of a sum insured
 
Q 5. What does the extension clause cover in the policy?

a) Stocks stored at the insured premises

b) Machinery and plant only

c) Buildings and stocks at factories

d) Buildings, machinery, plant, and other contents for use as factories

e) Stocks stored at factories
 
Q 6. How are probabilities associated with events expressed?

a) As percentages only.

b) As fractions and percentages.

c) As decimals only.

d) As fractions only.

e) As whole numbers.
 
Q 7. What happens if the insured fails to notify the insurer of any changes specified in the policy conditions?

a) The insurer automatically adjusts the premium

b) The policy remains unaffected

c) The insured may face legal consequences

d) The insurer terminates the policy immediately

e) The insured receives additional coverage
 
Q 8. What does the measure of indemnity include in consequential loss fire insurance claims?

a) Loss of net profits and standing charges only

b) Additional expenditure incurred by the insured only

c) Loss of net profits, standing charges, and additional expenditure incurred by the insured

d) Covered fully by the insurance policy

e) Not covered under the insurance policy
 
Q 9. In Ionides vUniversal Marine Insurance Co(1863), what was deemed to be the proximate cause of the ship running aground?

a) War perils

b) Loss of course

c) Bad seamanship

d) Failure of the lighthouse

e) Hostilities
 
Q 10. What term is used to describe the type of loss when cargo is practically impossible to save due to the sinking of the vessel?

a) Impossibility loss

b) Salvage loss

c) Irretrievable loss

d) Annihilated loss

e) Vessel loss
 
Q 11. What is the purpose of separating the flare system from the processing unit in a petrochemical facility?

a) To minimize transportation costs

b) To optimize access for maintenance personnel

c) To reduce the risk of fire or explosion hazards affecting the processing unit

d) To improve operational efficiency

e) To facilitate coordination with other facilities
 
Q 12. Which of the following is NOT a possible directive that a Consumer Forum can issue?

a) Replace defective goods with new ones.

b) Refund the price paid by the complainant.

c) Discontinue unfair trade practices.

d) Repeat hazardous goods for sale.

e) Provide compensation for any loss or injury suffered by the consumer.
 
Q 13. What principle ensures that both parties in a contract agree to the same thing in the same sense?

a) Principle of utmost good faith

b) Principle of subrogation

c) Principle of indemnity

d) Principle of consensus ad idem

e) Principle of insurable interest
 
Q 14. What details are usually furnished by the insurer to the surveyor for conducting the survey?

a) The insured's favorite food

b) The brand of the insured's clothing

c) Details of the insured's pets

d) Claim number, insured's particulars, and brief details of the loss

e) The insured's hobbies and interests
 
Q 15. What authority does the Controller have regarding the settlement of a claim based on the report received?

a) The Controller can only provide recommendations

b) The Controller has no authority in settlement matters

c) The Controller can issue directions to settle the claim at the assessed amount

d) The Controller can issue directions to settle the claim at a figure less than or more than the assessed amount

e) The Controller can reject the claim outright


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