IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-4

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Q 1. What is the purpose of the preamble or recital clause in an insurance policy?

a) To specify the perils insured under the policy.

b) To outline the insurer's name and address.

c) To introduce the parties to the contract and reference the premium payment.

d) To list the exceptions applicable to the whole policy.

e) To detail the sum insured and limits of liability.
 
Q 2. In case the vehicle is disabled by loss or damage covered by the policy, what is the maximum amount for protection, removal to the nearest repairer, and redelivery to the insured, as mentioned in the policy?

a) Rs. 1000/-

b) Rs. 2000/-

c) Rs. 1500/-

d) Rs. 500/-

e) None of the above
 
Q 3. What rate of premium is charged for utilities located outside the compound of the manufacturing premises?

a) The lowest rate of premium.

b) The highest rate of premium.

c) No premium is charged.

d) Variable rates based on the hazard.

e) Premium rates are not affected by the location of utilities.
 
Q 4. What can a Consumer Forum order if it finds negligence on the part of the opposite party?

a) Issue an order to increase the prices of goods.

b) Provide compensation to the consumer for any loss or injury suffered.

c) Discontinue the complaint without any action.

d) Provide free goods to the opposite party.

e) Direct the complainant to pay a penalty.
 
Q 5. What constitutes dacoity under Section 391 of the Indian Penal Code?

a) Theft committed by a group of five or more individuals

b) Robbery committed by five or more persons, regardless of their presence or involvement

c) Extortion committed by a large group of individuals

d) Robbery committed in a public place

e) Theft committed with the use of firearms
 
Q 6. What is the final step in the claim assessment process before submission to the insurer?

a) Negotiating settlement terms with the insured

b) Preparing the final survey report

c) Capturing evidence of damages

d) Organizing immediate disposal of affected items

e) Creating additional paperwork
 
Q 7. What was the claims procedure like in the early decades of fire insurance?

a) Simple

b) Involving consultation with priests

c) Required swearing on oath before a judge

d) Exclusively handled by insurance agents

e) Not documented
 
Q 8. What is a common method used for disposing of damaged articles or materials?

a) Through auction houses

b) Through insurance brokers

c) Through the insured

d) Through government agencies

e) Through charitable organizations
 
Q 9. How does the deductible clause affect the insurer's liability in case of a loss?

a) Increases the insurer's liability by a fixed amount

b) Reduces the insurer's liability by a fixed amount

c) Adjusts the insurer's premium based on claim history

d) Transfers the insured's liability to the insurer

e) Provides full coverage regardless of the deductible amount
 
Q 10. What should a surveyor rely on primarily when presenting details of the occurrence?

a) Details furnished by the insured

b) Independent observation and investigation

c) Eyewitness accounts provided by the insured

d) Physical observations only

e) Visual observations only
 
Q 11. What is one of the real difficulties faced by surveyors in analyzing sets of records?

a) Identifying the appropriate statutory requirements

b) Determining the exact amount of loss

c) Substantiating or disproving the authenticity or completeness of records

d) Ensuring compliance with tax regulations

e) Communicating findings to the insurer
 
Q 12. How is the insurance under the Lay-Off / Retrenchment Compensation cover limited?

a) It covers all expenses incurred by the employer during industrial disputes

b) It covers only the legal fees associated with lay-off or retrenchment cases

c) It is limited to the amount the insured becomes legally liable to pay as per the Industrial Disputes Act, of 1947

d) It covers all costs associated with employee healthcare

e) It covers the entire salary of employees during lay-off or retrenchment periods
 
Q 13. What is excluded from coverage under transit insurance?

a) Losses due to error or omission

b) Losses caused by natural disasters

c) Losses resulting from employee negligence

d) Losses due to late delivery

e) Losses arising from mechanical breakdown
 
Q 14. How are consignments declared under an open policy handled?

a) Each consignment requires a specific policy

b) Automatically covered by the insurer

c) Excluded from coverage

d) Issued a cover note

e) Covered only after approval by the insurer
 
Q 15. What happens if the company pays a claim to the bank when there is no liability to the mortgagor or owner?

a) The bank retains the claim payment

b) The company has no rights against the mortgagor or owner

c) The company is entitled to recover the payment from the mortgagor or owner

d) The company becomes legally subrogated to all the rights of the bank

e) The claim payment is refunded to the company



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