IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-37

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Q 1. What type of liability is NOT covered under the Public Liability Policy?

a) Liability arising from personal injuries

b) Liability for damages due to infringement of copyright or trademark

c) Liability assumed by the insured by agreement

d) Liability for damages resulting from the use of motor vehicles

e) Liability for fines or penalties
 
Q 2. What is the purpose of warranties in insurance contracts?

a) To provide additional coverage to the insured at no extra cost.

b) To allow the insured to modify the terms of the policy during the policy term.

c) To ensure that the risk remains the same throughout the policy.

d) To offer discounts on premium rates based on specific conditions.

e) To guarantee a fixed sum payout to the insured in case of loss.
 
Q 3. What is identified as the reward for uncertainty-bearing in economic enterprises?

a) Loss

b) Progress

c) Innovation

d) Stability

e) Profit
 
Q 4. Why is insurable interest required at the time of loss in marine insurance?

a) To complicate the claims process

b) Due to age-old customs of maritime trading

c) To discourage insurance claims

d) To limit the number of insured parties

e) To increase the insurer's profit margin
 
Q 5. How is subrogation addressed in burglary insurance policies?

a) It is not addressed in burglary policies

b) The insured is solely responsible for recovering any losses

c) The insured must execute assurances and take actions to discover and punish guilty parties

d) The insurer assumes all liability without seeking subrogation

e) The insured must bear all expenses related to subrogation
 
Q 6. Which of the following types of insurance is NOT subject to the principle of indemnity?

a) Fire insurance

b) Personal accident insurance

c) Health insurance

d) Life insurance

e) Travel insurance
 
Q 7. What is the significance of the notice requirement in insurance policies?

a) It ensures that all communication between the insured and the insurer is verbal.

b) It eliminates the need for written documentation in the claims process.

c) It allows for the swift resolution of disputes without formal notice.

d) It ensures that all communication between the insured and the insurer is documented in writing.

e) It imposes additional obligations on the insured without any benefits.
 
Q 8. What does exposure hazard reflect in terms of premises or buildings?

a) Proximity to residential areas.

b) Closeness to natural disaster-prone areas.

c) Contiguity to adjoining or neighboring premises or buildings.

d) Accessibility to transportation routes.

e) Availability of parking space for employees.
 
Q 9. According to the Insurance (Amendment) Act, 2002, what is the minimum paid-up capital required for an Insurance Co-operative Society?

a) Rs. 10 crore

b) Rs. 50 crore

c) Rs. 75 crore

d) Rs. 100 crore

e) Rs. 200 crore
 
Q 10. Which section of the Indian Penal Code deals with dishonest misappropriation of movable property?

a) Section 401

b) Section 402

c) Section 403

d) Section 404

e) Section 405
 
Q 11. What primarily influences the purchase of insurance policies in the Indian general insurance market?

a) Government regulations

b) Financial institutions' recommendations

c) Social media advertisements

d) Corporate discounts

e) Peer recommendations
 
Q 12. What were independent surveyors primarily involved in during the eighteenth century?

a) Land agency

b) Risk survey and rating classification

c) Underwriting insurance policies

d) Handling claims for damage to buildings

e) None of the above
 
Q 13. Under which policy would losses due to faults or defects existing at the time of commencement of the policy and known to the insured but not disclosed to the insurer be excluded?

a) Marine Cargo Policy

b) Property Insurance Policy

c) Life Insurance Policy

d) Machinery Insurance Policy

e) Liability Insurance Policy
 
Q 14. When should a surveyor consider involving an expert during an inspection?

a) When the damage is easily identifiable

b) When the damage is extensive

c) When the damage is superficial

d) When the insurer suggests it

e) When the damage is minor
 
Q 15. What determines the amount each insurer pays under the "contribution" clause?

a) The insured's claim history

b) The insured's credit score

c) The order in which the policies were purchased

d) The proportion of the sum insured to the total sum insured

e) The insured's annual income


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