IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-46

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Q 1. What is the purpose of the new Sections 32B and 32C introduced by the amendments?

a) To regulate the investment of funds by insurers

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

c) To prescribe procedural provisions for investigations

d) To mandate insurers to participate in rural insurance business

e) To issue licenses to insurance intermediaries

Q 2. What is the essential consideration in a contract of insurance according to the Indian Contract Act?

a) Premium

b) Deductible

c) Policy limits

d) Exclusions

e) Underwriting

Q 3. What is one of the challenges faced by surveyors in the technical element of their work?

a) Lack of communication skills

b) Rapid technological changes

c) Limited knowledge of the claimant

d) Overreliance on common sense

e) Small size of losses

Q 4. What is the minimum period of continuous service required for an individual to qualify as a Fellow Member?

a) 4 years

b) 8 years

c) 12 years

d) 16 years

e) 20 years

Q 5. What is the significance of examining the shipping documents in a marine insurance claim?

a) To determine the cost of the claim

b) To establish the timing and cause of the loss

c) To assess the credibility of the insured

d) To verify the insurer's liability

e) To determine the policy coverage

Q 6. What is the basis of indemnity in a Fire Policy?

a) Replacement cost at the time of the loss

b) Original purchase price of the property

c) Current market value of the property

d) Value of the property at the time of the loss

e) Sum insured plus depreciation

Q 7. How does the sequence of adjustment and factors considered vary in individual claims?

a) It remains constant for all claims

b) It depends solely on the insurer's preferences

c) The insured's occupation determines it

d) It depends on the specific policy conditions

e) It is decided by the insured's location

Q 8. What should be brought out in the report regarding compliance with warranties?

a) Details of the occurrence

b) Loss Adjustment Details

c) Discussions held with the insured

d) Any breach observed during the survey

e) Insurer’s Liability / Breach of Warranties

Q 9. What is the minimum sum insured required under the Floating Policy?

a) Rs. 10 lakhs in one location

b) Rs. 1 crore in one or more locations

c) Rs. 50 lakhs in at least one location

d) Rs. 25 lakhs in one or more locations

e) Rs. 5 crores in one or more locations

Q 10. Under Shopkeeper’s Insurance, which section typically covers loss or damage to the building and contents due to fire and allied perils?

a) Section 1

b) Section 2

c) Section 3

d) Section 4

e) Section 5

Q 11. Which profession is covered under Chartered Accountants indemnities?

a) Engineers

b) Architects

c) Chartered Accountants

d) Interior Decorators

e) Advocates

Q 12. When are hull policies issued to cover vessels in the course of construction?

a) After the ship is completed

b) From the time the ship is laid

c) Only during trials leading to delivery

d) After the ship is delivered to the shipowners

e) After the ship has been at sea for a year

Q 13. What action can insurers take when faced with a bad moral hazard?

a) Charge a higher premium

b) Refuse to issue a policy

c) Ignore the hazard and issue the policy

d) Increase the sum insured

e) Provide additional coverage options

Q 14. How does a breach of a warranty differ from a breach of representation?

a) A breach of warranty requires materiality, while any breach of representation allows repudiation.

b) A breach of warranty allows policy cancellation, while a breach of representation leads to premium adjustments.

c) A breach of warranty leads to automatic compensation, while a breach of representation requires legal action for damages.

d) A breach of warranty is enforceable only if explicitly written into the policy, while a breach of representation is implied by law.

e) A breach of warranty affects the validity of the entire policy, while a breach of representation affects only specific clauses.

Q 15. What is subrogation in insurance?

a) It allows the insured to recover more than the actual loss

b) It transfers the rights and remedies of the insured to the insurer after indemnification

c) It cancels the insurance contract

d) It increases the premium amount

e) It provides unlimited coverage


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