IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-5

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Q 1. When are deductible/excess limits typically specified in an insurance policy?

a) After a claim is filed

b) During the renewal of the policy

c) At the time of purchasing the policy

d) When the policyholder requests a change

e) Only for high-value assets
 
Q 2. How should a surveyor present the qualitative and quantitative details of observed damages?

a) Omit details of damages from the report

b) Present them solely through textual descriptions

c) Use photographs appended to the report and possibly a table of damages

d) Rely on the insured's descriptions of damages

e) Use vague descriptions to confuse the insurer
 
Q 3. How are transactions recorded in the Purchase Day Book?

a) Debit what comes in and credit what goes out

b) Credit what comes in and debit what goes out

c) Debit the receiver and credit the giver

d) Debit all losses and expenses and credit all gains and incomes

e) Debit the giver and credit the receiver
 
Q 4. Which of the following is an example of insurable property related to industrial or manufacturing risks?

a) Residential property

b) Agricultural land

c) Water and effluent treatment plant

d) Public parks

e) Residential furniture
 
Q 5. Which type of glass requires an additional premium to be covered under Plate Glass Insurance?

a) Plain glass

b) Embossed glass

c) Laminated glass

d) Tinted glass

e) Frosted glass
 
Q 6. What is the duration of an open cover in marine insurance?

a) Valid for all voyages

b) Valid for a single voyage or transit

c) Valid for a specified duration, usually twelve months

d) Valid for inland transits only

e) Valid for a specified duration, usually six months
 
Q 7. How much of the total sum insured is covered under the Temporary Removal Clause?

a) Up to 5%

b) Up to 10%

c) Up to 15%

d) Up to 20%

e) Up to 25%
 
Q 8. How is the loss payable in liability insurance typically determined?

a) By the sentimental value to the insured

b) By the economic value of the property

c) By the amount of monetary compensation awarded at law

d) By the specific sum insured

e) By the reference to the earning capacity of the insured
 
Q 9. What action is expected of the insured under common law throughout the insurance contract?

a) To increase the risk of loss intentionally

b) To minimize losses and act as if uninsured

c) To conceal information from the insurer

d) To file claims as soon as possible

e) To transfer the insurance policy to another party
 
Q 10. What affects the amount of claim payable under a Fidelity Guarantee policy?

a) The employee's length of service

b) The employee's job title

c) The employee's reputation

d) Any sum of money payable to the employee that would become payable even without fraud or dishonesty

e) The employee's salary history
 
Q 11. In the scenario provided in Tootal Broadhurst Lee CovLondon and Lancashire Fire Insurance Co(1908), what was the proximate cause of the fire in the last insured building?

a) Earthquake

b) Oil stove

c) Burning wick

d) Radiated heat

e) Wind
 
Q 12. In the case of Roux vSalvador, what was the outcome regarding the damaged hides?

a) The hides were salvaged and arrived at the destination port intact.

b) The hides were sold at the destination port for a considerable price.

c) The hides were so damaged by sea water that they could not have arrived in the form of hides.

d) The hides were partially damaged but retained their original character.

e) The hides were unaffected by the perils of the sea.
 
Q 13. What is the purpose of enclosing floor openings in a building?

a) To increase usable area.

b) To allow access to various floors.

c) To confine fire to the floor on which it occurs.

d) To prevent damage to machinery and equipment.

e) To facilitate the spread of fire throughout the building.
 
Q 14. What type of jurisdiction does the National Commission have over State Commissions?

a) Original

b) Appellate

c) Supervisory

d) Regulatory

e) Advisory
 
Q 15. What is the main objective of construction in interpreting an insurance policy?

a) To favor the insurer

b) To apply the principles of utmost good faith

c) To ascertain and apply the intention of the parties as expressed in the contract

d) To benefit the reinsurer

e) To avoid indemnification


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