IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-49

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Q 1. Which policy requires an investigation report or doctor's opinion for claim settlement?

a) Marine Cargo

b) Public, Product liability

c) Mediclaim

d) Householder’s Policy

e) Engineering (CAR, EAR, MBD, EEP etc.)
 
Q 2. Under Sec64 UM, what is the duration for which a license can be renewed?

a) 1 year

b) 2 years

c) 3 years

d) 4 years

e) 5 years
 
Q 3. What is the primary objective of loss adjustment in insurance claims?

a) To arbitrarily adjust the assessed gross loss

b) To determine the net claim amount in accordance with policy conditions

c) To maximize the insurer's profit

d) To minimize the insured's entitlement

e) To complicate the claims process unnecessarily
 
Q 4. In marine insurance, what does Section 61 of The Marine Insurance Act 1963 state regarding abandonment?

a) The insured must abandon all damaged items to the insurer.

b) The insured may treat a constructive total loss as a partial loss or abandon the subject-matter insured to the insurer.

c) The insurer must compensate the insured for any salvage.

d) The insurer has the right to abandon the damaged items to the insured.

e) The insured must dispose of all salvage independently.
 
Q 5. What additional information might be included to support the accuracy of the details of the occurrence?

a) Details of the insured's financial status

b) Details of the insured's background

c) Date and time of occurrence, presence of eyewitnesses, and post-occurrence actions

d) Summaries of previous claims history

e) Surveyor's personal opinions
 
Q 6. In which ledger are transactions posted from the primary books?

a) Sales Ledger

b) Purchase Ledger

c) Cash Ledger

d) General Ledger

e) Journal Ledger
 
Q 7. What is the basis of the sum insured under a standard fire policy?

a) Depreciated value

b) Market value

c) Replacement cost

d) Reinstatement value

e) Actual cash value
 
Q 8. What type of disablement results in the payment of 100% of the capital sum insured according to the policy?

a) Loss of one limb or one eye

b) Permanent total disablement other than specified contingencies

c) Loss of two limbs or both eyes or one limb and one eye

d) Temporary total disablement

e) Permanent partial disablement
 
Q 9. What types of clauses provide cover under an annual policy?

a) Institute Cargo Clauses (AIR)

b) Inland Transit (Rail / Road) Clauses

c) Institute War Clauses

d) Open Cover Clauses

e) Specific Policy Clauses
 
Q 10. When is the Cutting Clause typically used?

a) In policies covering jewellery

b) In policies covering artworks

c) In policies covering pipes or similar items of length

d) In policies covering electronics

e) In policies covering perishable goods
 
Q 11. What role does statistics play in insurance operations?

a) Statistics are used to calculate premiums in life insurance only.

b) Statistics help estimate premiums and revise them based on loss experience in general insurance.

c) Statistics are not relevant in insurance operations.

d) Statistics are used to determine premiums in both life and general insurance.

e) Statistics are only used by the Tariff Advisory Committee.
 
Q 12. How is the consent of insurers to the assignment typically granted?

a) Verbally

b) Through email

c) By way of endorsement

d) Through a separate agreement

e) Automatically upon request
 
Q 13. Which of the following costs are admissible for provisional repairs under civil engineering project insurance?

a) Costs of alterations and improvements

b) Costs of temporary fixes that are not part of the final repairs

c) Costs of repairing damage that exceeds the value of the property

d) Costs of replacing damaged property with new property

e) Costs of enhancing the property's value beyond its original state
 
Q 14. What happens if the insured fails to comply with the condition in Burglary insurance?

a) The insurance company will double the coverage.

b) The insured forfeits the right to make a claim.

c) The insurance premium decreases.

d) The insured receives additional compensation.

e) The insurance company extends the policy term.
 
Q 15. What is the insurer's role in salvage loss settlement?

a) The insurer retains the full proceeds of the sale of damaged goods.

b) The insurer reimburses the insured for the full value of the damaged goods.

c) The insurer approves the sale of damaged goods and allows the insured to retain the sale proceeds less expenses.

d) The insurer refuses to settle the claim for damaged goods.

e) The insurer sells the damaged goods on behalf of the insured.


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