IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-48

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Q 1. Which past event is considered a material fact in general insurance?

a) The insured's past vacations

b) The insured's past purchases

c) The insured's past losses sustained

d) The insured's past hairstyles

e) The insured's past meals

Q 2. What is the key characteristic of an employer's liability policies regarding indemnity?

a) Unlimited coverage

b) Limited coverage based on common law

c) No coverage for Workmen's Compensation Act claims

d) Indemnity limited to damages under common law

e) Indemnity capped at a fixed monetary limit

Q 3. Which of the following is an example of a risk that may be excluded due to its high frequency of occurrence?

a) Earthquake peril under a fire policy.

b) Pollution liability cover under a public liability policy.

c) Losses caused by wear and tear under motor policies.

d) Losses caused intentionally, such as suicide under personal accident policies.

e) Losses caused by terrorism under a property insurance policy.

Q 4. What justification was provided for declaring a constructive total loss in Vacuum Oil CovUnion Insurance Society of Canton?

a) The cargo was lost at sea due to unknown reasons.

b) The ship was damaged by a collision with another vessel.

c) The cargo was damaged beyond repair, making it unsalvageable.

d) It was unlikely for any ship owner to carry damaged tins of petroleum, considering the probable cost of transshipment.

e) The ship encountered a mechanical failure, rendering it inoperable.

Q 5. Why is an underground vacuum waste extraction plant recommended in jute mills?

a) To increase jute waste accumulation

b) To reduce housekeeping efforts

c) To control and clean jute fluff accumulations

d) To increase fire hazards

e) To minimize the number of doors in the godown

Q 6. What does the term "proposal form" refer to as per Regulation 4?

a) A form to be filled in by the insurer

b) A form to be filled in by the regulatory authority

c) A form to be filled in by the policyholder

d) A form to be filled in by the insurance agent

e) A form to be filled in by the surveyor

Q 7. Which principle ensures that an insurance policy, as a commercial contract, is subject to the same rules of construction and interpretation as other contracts?

a) Principle of subrogation

b) Principle of good faith

c) Principle of contra proferentem

d) Principle of utmost good faith

e) Principle of indemnity

Q 8. What action should the insurer take if the Controller issues a direction to settle a claim at a figure lower than the amount it has already been settled for?

a) Refuse to comply with the Controller's direction

b) Immediately pay the difference to the insured

c) Demonstrate to the Controller that reasonable steps have been taken to comply with the direction

d) Seek legal recourse against the Controller's decision

e) Ignore the Controller's direction and proceed with the original settlement amount

Q 9. What must existing licensed surveyors and loss assessors do after becoming members of the Institute?

a) Retire from their profession

b) Apply for a new license

c) Apply for a charter status

d) Apply for a modified license indicating their level of Membership

e) Apply for a fellowship grant

Q 10. What is the purpose of the Average Condition clause in insurance policies?

a) To increase premiums for underinsured items

b) To eliminate over-insurance in policies

c) To adjust claims based on the proportion of underinsurance

d) To provide coverage for average daily losses

e) To waive deductibles for certain claims

Q 11. What effect does water damage commonly have on cloth materials?

a) Dissolution

b) Discoloration

c) Flaking

d) Shrinkage

e) Spontaneous combustion

Q 12. Which part of the report should include specific claim-related issues suggested by the surveyor?

a) Loss Adjustment Details

b) Insurer’s Liability / Breach of Warranties

c) Other issues

d) Loss Assessment Details

e) Details of the occurrence

Q 13. Which of the following is an example of an error that may remain undisclosed even if the trial balance agrees?

a) Correct entry in a subsidiary book

b) Posting an item to the correct side but in the wrong account

c) Compensating errors

d) Errors of principle

e) Gains and incomes

Q 14. Which cover is extended to buildings, plants, etc. which the insured may erect or acquire during the period of insurance?

a) Impact Damage

b) Spoilage Material Damage

c) Additions, Alterations, Extensions

d) Temporary Removal

e) Start-up Expenses

Q 15. Which of the following is typically excluded from coverage under an All Risks Insurance Policy?

a) Damage caused by wear and tear

b) Loss or damage caused by accidental external means

c) Theft from any type of vehicle

d) Breakage of fragile articles caused by fire

e) Loss or damage due to mechanical or electrical breakdown


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