IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-42
IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-42
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Q 1. Which types of businesses are revenue policies most suitable for?
a) Manufacturing businesses with significant raw material expenses
b) Service-oriented businesses such as clubs, hotels, and hospitals
c) Retail businesses with large inventories of finished goods
d) Agricultural businesses with extensive land holdings
e) Financial institutions such as banks and investment firms
Q 2. What does a Commercial General Liability (CGL) policy cover?
a) Only product liability
b) Only public liability
c) Both general public liability and product liability
d) Only automobile liability
e) Only the employer’s liability
Q 3. What information is typically included in a marine policy form?
a) Name of the Insured and policy number only
b) Name of the Insured, policy number, and premium
c) Name of the Insured, policy number, sum insured, premium, and stamp duty
d) Policy number, sum insured, and premium only
e) Name of the Insured, premium, and voyage or journey details
Q 4. How much of the sum insured does the extension clause cover for each item?
a) 1%
b) 3%
c) 5%
d) 7%
e) 10%
Q 5. Why are war and kindred risks and nuclear risks typically excluded from property insurance policies on land?
a) Because these risks are covered by personal accident policies
b) Because these risks are not considered catastrophic
c) Because loss or damage caused by these risks is considered to be beyond the capacity of commercial insurance
d) Because these risks are not considered high catastrophic losses
e) Because these risks are covered by professional indemnity insurance
Q 6. What happens to the motor policy in the event of the death of the sole insured?
a) It immediately lapses
b) It remains valid for three months
c) It is transferred to the legal heirs automatically
d) It becomes void
e) It requires reapplication for transfer
Q 7. What does the operative clause of a fire policy state regarding the payment of indemnity?
a) The insured must provide proof of loss before receiving any payment
b) The insurer is not liable for any losses caused by natural disasters
c) The insurer must pay the market value of the property at the time of policy issuance
d) The insurer shall pay the insured the value of the property at the time of loss or damage
e) The insurer has the option to refuse payment for certain types of damages
Q 8. According to Roth South Easthope Farmers’ Mutual Insurance Co(1918), what was considered the proximate cause of the damage caused by the weakened wall?
a) Lightning
b) High winds
c) Both lightning and high winds
d) A dropped match
e) None of the above
Q 9. According to Section 58 of the Act, when is a ship presumed to be an actual total loss?
a) If it encounters a severe storm but manages to return safely to port
b) If it is damaged but still afloat
c) If no news has been received after a reasonable period
d) If it suffers minor damages during the voyage
e) If it is captured by pirates but later released
Q 10. What is the recommended arrangement for warehouses about manufacturing blocks?
a) Warehouses should be integrated with manufacturing blocks.
b) Warehouses should offer exposure to manufacturing blocks.
c) Warehouses should be separate from manufacturing blocks.
d) Warehouses should be adjacent to manufacturing blocks.
e) Warehouses should be located on higher floors of manufacturing blocks.
Q 11. Which provision removes the exclusive privilege of carrying on life insurance business in India by the Life Insurance Corporation?
a) Section 30A of the Insurance Act, 1938
b) Section 32B of the Insurance Act, 1938
c) Section 42D of the Insurance Act, 1938
d) Section 30A of the Life Insurance Corporation Act, 1956
e) Section 24A of the General Insurance Business (Nationalisation) Act, 1972
Q 12. When does the ejusdem generis rule not apply according to the given rules?
a) When the wording indicates that the other causes are not limited to those mentioned before
b) When there is an ambiguity in the wording
c) When there is inconsistency in the policy drafting
d) When there is a contradiction between the standard printed policy form and the handwritten parts
e) When there is a contradiction between the printed wording and the typewritten wording
Q 13. What determines the sequence and methodology of claim assessment during a survey?
a) The insured individual's preferences
b) The weather conditions during the loss
c) The size of the loss/damage, type of policy, and nature of affected items
d) The surveyor's favorite color
e) The insurer's instructions
Q 14. What development opened up new avenues of activities for fire loss assessors in the late nineteenth century?
a) Introduction of personal accident insurance
b) Expansion of fire insurance coverage
c) Emergence of motor insurance
d) Establishment of fidelity guarantee policies
e) None of the above
Q 15. Why is expertise required in interpreting exclusions in insurance policies?
a) To increase the complexity of claims processing
b) To minimize the number of admissible claims
c) To ensure fairness in claims assessment
d) To make the claims process faster
e) To discourage policyholders from filing claims
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