IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-47

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Q 1. Why is promptness in carrying out the survey and submitting a detailed report essential for a surveyor?

a) To maximize personal leisure time

b) To impress the insured party with efficiency

c) To minimize the workload for the insurer

d) To expedite the claims process and reduce delays

e) To allow time for extensive revisions and amendments

Q 2. What additional coverage can be obtained by paying an extra premium under the policy?

a) Coverage for natural disasters

b) Extension to cover interruption of business due to damage to the insured's property at other locations

c) Coverage for personal accidents

d) Extension to cover legal liabilities

e) Coverage for employee theft

Q 3. What type of loss does fire insurance primarily address?

a) Revenue loss

b) Capital loss

c) Operational loss

d) Employee turnover loss

e) Market share loss

Q 4. What is the purpose of obtaining a counter-guarantee from the officer in respect of whom the bond is issued?

a) To provide legal representation in court.

b) To secure a discount on the premium.

c) To ensure the officer's honesty and proper discharge of duties.

d) To obtain financial compensation in case of default.

e) To waive the bond requirement.

Q 5. What determines whether a hull policy is a Time Policy or a Voyage Policy?

a) The type of vessel insured

b) The premium paid by the insured

c) The duration of coverage

d) The location of the insured vessel

e) The cargo being transported

Q 6. What term is used for risks that insurers accept on an "accommodation" basis?

a) Preferred risks

b) Standard risks

c) Uninsurable risks

d) High-risk risks

e) Declined risks

Q 7. When does the duty of disclosure cease during the insurance negotiation process?

a) After the proposal is accepted by the proposer

b) Upon completion of negotiations with the agent

c) When the cover note or policy is issued by the insurer

d) Only when the premium payment is made

e) After the insurer sends a reminder for disclosure

Q 8. In fire insurance claims, if damaged machinery is replaced by better machinery requiring fewer operatives, what contribution may the insured be required to make?

a) No contribution required

b) Partial contribution towards the cost of new property

c) Full contribution towards the cost of new property

d) Reimbursed fully by the insurance policy

e) Not covered under the insurance policy

Q 9. Which of the following is a prerequisite for the application of the principle of contribution?

a) The policies must cover different perils

b) The policies must be legally enforceable

c) The policies must be in force at the time of loss

d) The subject matter must be different in each policy

e) The policies must be terminated before the loss occurs

Q 10. Under what circumstances does insurance coverage cease as per the Material Alteration Condition?

a) Changes in the insured's marital status.

b) Unoccupancy of the building for more than 30 days.

c) Increase in the insured's income.

d) Transfer of insurable interest by the insured.

e) Changes in the weather conditions in the insured location.

Q 11. Under the fire policy, which of the following expenses may be payable apart from total and partial losses?

a) Rental costs for temporary relocation.

b) Utility bills during the repair period.

c) Architect's fees for services.

d) Cost of purchasing new equipment.

e) Employee salaries during the downtime.

Q 12. Why should extinguishers for fires other than in ordinary combustibles be located close to the hazard?

a) To make them accessible during a fire.

b) To block or hide them from view.

c) To distribute them evenly throughout the area.

d) To keep them away from the hazard.

e) To ensure they are not easily accessible during a fire.

Q 13. Which forum is empowered to execute the order or decree of the District Forum?

a) High Court

b) Civil Court

c) State Commission

d) National Commission

e) Supreme Court

Q 14. What does the Inland Steam-Vessels Act, of 1917, as amended in 1977, mandate regarding insurance?

a) Mandatory insurance against natural disasters

b) Mandatory insurance against theft

c) Mandatory insurance against damage caused by weather conditions

d) Mandatory insurance against legal liability for death or bodily injury of third parties or passengers

e) Mandatory insurance against mechanical failures

Q 15. What is the minimum value threshold for a loss occurring in India, requiring a report from an approved Surveyor or Loss Assessor under the Insurance Act?

a) Rs. 10,000

b) Rs. 15,000

c) Rs. 20,000

d) Rs. 25,000

e) Rs. 30,000


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