IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-40

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Q 1. In commercial contracts, what principle applies to the seller's obligation to disclose information about the subject matter?

a) Principle of caveat venditor

b) Doctrine of caveat emptor

c) Principle of caveat vendee

d) Doctrine of uberrima fides

e) Principle of caveat vendor
 
Q 2. Which legal document defines insurable interest and its essentials?

a) The Insurance Act of 1938

b) The Marine Insurance Act of 1963

c) The Insurance Regulatory and Development Authority Act of 1999

d) The Contract Act of 1872

e) The Companies Act of 2013
 
Q 3. What is the contribution condition stated in the standard fire policy?

a) Each insurer is liable to pay the full amount of the loss incurred

b) Insurers are not liable to pay any claims if there are other subsisting insurance

c) The insured is only entitled to recover the loss from one insurer

d) Insurers are liable to pay their rateable proportion of the loss if there are other subsisting insurance

e) The insured must forfeit their right to claim if there are multiple policies covering the same risk
 
Q 4. What is the purpose of add-on covers in insurance policies?

a) To exclude risks that are accepted after obtaining more underwriting information.

b) To define and clarify the scope of cover precisely.

c) To eliminate duplication of coverage.

d) To provide coverage for losses of a catastrophic nature.

e) To provide additional coverage for risks not included in the standard policy.
 
Q 5. What does Section 60(2)(ii) of the Act state about the repaired value of a vessel?

a) It is always higher than the insured value.

b) It is based on the estimated market value of the vessel.

c) The shipowner determines it.

d) It is considered irrelevant when determining a constructive total loss.

e) It is taken as the insured value as per clause 19(1) of the I.T.C. (Hulls).
 
Q 6. Why does fire hazard increase with the size of a building?

a) Larger buildings obstruct light and airflow.

b) Larger buildings have fewer internal partitions.

c) There is more value at risk in a large building.

d) Larger buildings are more resistant to fire.

e) Firefighting services are less effective in larger buildings.
 
Q 7. What does the new Section 24A of the General Insurance Business (Nationalisation) Act, 1972, do?

a) Regulates the investment of funds by insurers

b) Enhances penalties for non-compliance with the provisions of the Act

c) Prescribes procedural provisions for investigations

d) Removes the exclusive privilege of the General Insurance Corporation and its subsidiaries to carry on general insurance business

e) Defines the powers of the Authority to make regulations
 
Q 8. Which of the following actions constitutes forgery as per Section 463 of the Indian Penal Code?

a) Accidental creation of false documents

b) Making false documents to support a legitimate claim

c) Making false documents with intent to commit fraud

d) Making false documents for personal use without intent to deceive

e) Making false documents as part of an academic exercise
 
Q 9. What action can a surveyor and loss assessor take if the Institute declines its membership application?

a) Accept the decision without appeal

b) Appeal to the Authority

c) Resign from the profession

d) Apply to a different institute

e) File a lawsuit against the Institute
 
Q 10. What may be prescribed by the Authority upon successful completion of the training period for a license?

a) A mandatory vacation

b) A written examination

c) A fitness test

d) An interview

e) A psychological evaluation
 
Q 11. What is the purpose of the "Average" clause in insurance policies?

a) To encourage underinsurance among policyholders

b) To penalize over insurance and refund excess premiums

c) To discourage underinsurance and ensure fair premiums

d) To offer discounts to policyholders with low-risk profiles

e) To standardize claims processing procedures
 
Q 12. What does the term "adjustment" imply in the context of loss adjustment?

a) Arbitrary manipulation of the assessed loss

b) Determining the net payable claim amount

c) Ignoring policy conditions

d) Maximizing the insured's entitlement

e) Lengthening the claims process
 
Q 13. Which details are typically included in the first part presentation of a motor policy survey report?

a) Details of occurrence and cause of the accident

b) Policy details and instructions for the survey

c) Invoice and bill of entry details

d) Recovery right protection measures

e) Description of the consignment
 
Q 14. Which category of accounts in double-entry bookkeeping relates to gains and losses?

a) Personal Accounts

b) Nominal Accounts

c) Real Accounts

d) Debtor Accounts

e) Asset Accounts
 
Q 15. What types of covers are included in the seven recognized classes for licensing surveyors and loss assessors?

a) Fire, theft, and marine hull

b) Life, travel, and health

c) Fire, loss of profits, and motor

d) Marine cargo, marine hull, and engineering

e) Public liability, employer’s liability, and personal accident


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