IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-35

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Q 1. How is the market value of stocks determined in fire insurance claims?

a) Selling price of the stocks

b) Replacement cost of the stocks

c) Cost of raw materials and labor

d) Price at which the goods can be replaced

e) Intrinsic value of the stocks

Q 2. What is the outcome if the chain of events is interrupted by the intervention of a new and independent cause?

a) Liability remains with the insurer regardless of the new cause.

b) Liability depends on whether the new cause is an insured or excepted peril.

c) Liability is transferred to the insured.

d) The claim becomes partially valid.

e) The claim becomes invalid.

Q 3. What constitutes an actual total loss according to the Marine Insurance Act, of 1963?

a) destruction of the subject matter insured

b) Partial damage to the subject matter insured

c) Irretrievable deprivation of the subject-matter insured

d) Any damage to the subject matter insured

e) Any loss incurred by the insured

Q 4. What is the primary reason for charging the highest rate of premium for utilities situated within the compound of manufacturing premises?

a) To encourage the integration of utilities with manufacturing blocks.

b) To minimize the risk of exposure to manufacturing blocks.

c) To ensure consistent premium rates.

d) To deter the establishment of utilities.

e) To account for the combined hazard posed by utilities and manufacturing blocks.

Q 5. What does Section 64 UM of the Insurance Act, of 1938, specify?

a) Prohibition of Rebates

b) Powers of Investigation

c) Advance payment of premium

d) Compulsion to maintain, audit, and submit returns

e) Need for a survey of losses

Q 6. What characteristic of insurance contracts means that they depend on a contingency for their fulfillment?

a) Voluntary

b) Executory

c) Synallagmatic

d) Aleatory

e) Conditional

Q 7. What typically happens once the insurer instructs the surveyor to proceed with the survey?

a) The insured receives a cash payment

b) The surveyor receives detailed documents from the insurer

c) The surveyor immediately proceeds to the scene of the loss

d) The insurer files a lawsuit against the insured

e) The surveyor sends a report to the government

Q 8. When was fire insurance introduced on buildings and household goods?

a) 16th century

b) 17th century

c) 18th century

d) 19th century

e) 20th century

Q 9. What could have prevented the damages to the sinter bushes in the first example from being covered by the policy?

a) Adequate primary packing

b) Tighter security during transit

c) Shorter transportation distance

d) Advanced warning of potential damage

e) Compliance with customs regulations

Q 10. What is the focus of activities predominantly carried out by a surveyor at the place of occurrence or loss?

a) Obtaining the insured's consent for claim submission

b) Adjusting the claim for depreciation

c) Working out the gross loss suffered in conformity with specific policy conditions

d) Negotiating with the insurer for a higher settlement

e) Salvaging damaged goods

Q 11. What is the purpose of including instructions at the beginning of a survey report?

a) To confuse the reader

b) To provide background information on the insured party

c) To explain the methodology of loss assessment

d) To record the details of the instructions received from the insurance company

e) To delay the claims settlement process

Q 12. Why are books of accounts not considered conclusive evidence in assessing losses?

a) They are often tampered with by the claimant

b) They may not accurately represent the actual items lost or destroyed

c) They are difficult to analyze

d) They are not legally admissible in court

e) They are only used for tax purposes

Q 13. How should the sum insured be computed in a profits policy?

a) Based on government estimates

b) Using industry benchmarks

c) From the insured's accounts such as Trading and Profit & Loss Accounts

d) According to the insurer's guidelines

e) Using a fixed formula

Q 14. What does Employee's Compensation Insurance provide indemnity for?

a) Legal liability to pay compensation to contractors

b) Compensation for diseases mentioned in Schedule III of the Workmen Compensation Act

c) Legal liability to pay compensation to employees for personal injury by accident or disease arising out of employment

d) Legal liability to pay compensation to customers

e) Compensation for damages caused by cyber attacks

Q 15. How long is the period of cover after unloading of cargo from the aircraft at the final place of discharge under Institute Cargo Clauses (AIR)?

a) 15 days

b) 30 days

c) 45 days

d) 60 days

e) 90 days


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