IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-41

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Q 1. What is No-Fault Liability as per the Motor Vehicles Act, of 1988?

a) Liability imposed on the driver regardless of fault

b) Liability imposed on the vehicle owner without proof of fault

c) Liability imposed on the government for all accidents

d) Liability imposed on third parties for any damages

e) Liability imposed on the insurance company for all claims

Q 2. When can an insurer admit a claim for payment or settlement in India?

a) If the loss exceeds Rs. 10,000 in value

b) If the loss occurs outside of India

c) If the policyholder has not obtained a report from a licensed surveyor

d) If the loss is below Rs. 50,000 in value

e) If the loss is intimated to the insurer during the currency of the policy

Q 3. How long are the Surveyors and Loss Assessors Committee typically in session?

a) One year

b) Two years

c) Three years

d) Four years

e) None of the above

Q 4. What is the primary objective of insurance companies when settling claims?

a) To replace lost property entirely

b) To restore damaged property to its prior condition

c) To pay the cash equivalent of the loss or damage

d) To reduce premiums for the insured

e) To waive the policy deductibles

Q 5. In fire losses, where are the rates/prices for affected items typically taken from to ascertain their value at the time of loss?

a) From previous insurance claims

b) From market projections

c) From recent purchase invoices

d) From government records

e) From surveys conducted by the insurer

Q 6. In what cases does the aspect of providing details of the subject matter of risk assume greater significance?

a) In cases of common consumer durable goods

b) In cases of complex technological equipment/products

c) In cases of furniture and fittings

d) In cases of routine maintenance claims

e) In cases of low-value claims

Q 7. At what stage of financial recording are transactions initially recorded?

a) Preparation of final accounts

b) Analysis of financial ratios

c) Examination of financial statements

d) Recording in books of original entry

e) Reviewing internal controls

Q 8. What is an example of an exclusion specific to the "fire" peril?

a) Damage by pressure waves

b) Damage caused by terrorism

c) Damage by aircraft impact

d) Damage caused by coastal erosion

e) Damage by spontaneous combustion

Q 9. What perils are excluded from coverage under Plate Glass Insurance?

a) Earthquake and flood

b) Fire and explosion

c) Scratching and disfiguration

d) Superficial damage

e) Riot, strikes, war, and related risks

Q 10. What does the sum insured represent in an annual policy?

a) The value of goods at the destination depot

b) The total value of all goods transported during the policy period

c) The value of goods at the specified processing unit

d) The value of goods at any one time during transit

e) The value of goods stored at the railway premises

Q 11. What does the Pair and Set Clause limit the insurer's liability to in case of loss or damage to a part of a pair or set?

a) The special value of the individual part

b) The total insured value of the pair or set

c) The market value of the remaining part or parts

d) The proportionate value of the lost or damaged part

e) The replacement cost of the pair or set

Q 12. How does the law of probability enable insurers to estimate or forecast future loss experience?

a) By analyzing the past loss experience of a small number of instances

b) By examining the past loss experience of a large number of instances over a short period

c) By examining the past loss experience of a small number of instances over a long period

d) By analyzing the past loss experience of a large number of instances over a long period

e) By analyzing the past loss experience of a small number of instances over a short period

Q 13. According to the Assignment clause in the Institute Time clauses (Hulls), when is an assignment of interest in the policy binding on the underwriters?

a) Automatically upon assignment

b) Only with the consent of the previous insured

c) Without the need for underwriter's agreement

d) Only if agreed to by underwriters by an endorsement on the policy

e) Only if agreed to by underwriters in writing

Q 14. Which branch of insurance does contribution arise more commonly in?

a) Life insurance

b) Health insurance

c) Fire insurance

d) Auto insurance

e) Travel insurance

Q 15. How does the condition in Burglary insurance benefit the insured?

a) By providing financial compensation immediately.

b) By allowing the insured to postpone reporting the loss.

c) By minimizing the risk of fraudulent claims.

d) By exempting the insured from any further obligations.

e) By guaranteeing full coverage regardless of circumstances.


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