IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-50

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Q 1. What does an overseas medical policy typically cover?

a) Reimbursement of pregnancy-related expenses

b) Payment of medical expenses for illness or accident during overseas travel

c) Coverage for pre-existing diseases

d) Coverage for venereal diseases and AIDS

e) Reimbursement of expenses for spectacles and hearing aids
 
Q 2. Which clause allows for the coverage of risks like theft, pilferage, and non-delivery by paying an extra premium?

a) Institute Cargo Clauses (I.C.C. a)

b) Institute Cargo Clauses (I.C.C. b)

c) Institute Cargo Clauses (I.C.C. c)

d) Extraneous Risks Clause

e) General Average Clause
 
Q 3. What action is required if the insured erects or acquires additional property covered by the extension clause?

a) No action is required

b) Notify the insurer and pay an additional premium from the inception date

c) Wait until the end of the policy term to declare the addition

d) Notify the insurer within 60 days

e) No notification is required, but an additional premium should be paid at the next renewal
 
Q 4. Under what circumstances can goods in transit by sea or air be covered against war and kindred risks?

a) Goods in transit by sea or air are always covered against war and kindred risks

b) Goods in transit by sea or air are never covered against war and kindred risks

c) Goods in transit by sea or air can be covered against war and kindred risks if the cargo is of low value

d) Goods in transit by sea or air can be covered against war and kindred risks because they are considered low catastrophic risks

e) Goods in transit by sea or air can be covered against war and kindred risks because the catastrophic element on land risks is not present in sea or air transit
 
Q 5. What is the legal effect of the declaration in a proposal form?

a) It ensures automatic policy renewal

b) It guarantees compensation for the insured

c) It converts representations into warranties

d) It extends the coverage period of the policy

e) It allows the insured to cancel the policy anytime
 
Q 6. What is the basis for determining the Insured’s Declared Value (IDV) of a vehicle in motor insurance?

a) Manufacturer's warranty

b) Market demand

c) Vehicle's mileage

d) Manufacturer’s listed selling price

e) Previous insurance premium
 
Q 7. What is the practical effect of the doctrine of proximate cause in insurance?

a) It allows insurers to reject every claim made by the insured.

b) It enables insured parties to enlarge the scope of insurance coverage.

c) It helps define the scope of coverage intended by the parties.

d) It prevents insured parties from making any claims under the insurance contract.

e) It imposes restrictions on insurers, limiting their ability to provide coverage.
 
Q 8. Under what circumstances does a constructive total loss occur according to Section 60(1)?

a) When the subject matter is destroyed

b) When the subject matter is only partially damaged

c) When actual total loss appears unavoidable

d) When the subject matter is abandoned by the insured

e) When the subject matter is not damaged at all
 
Q 9. What is the recommended distance between a solvent extraction plant and any residential occupancy or public thoroughfare?

a) 20 meters

b) 25 meters

c) 30 meters

d) 35 meters

e) 40 meters
 
Q 10. Within how many hours should a surveyor be appointed to assess a loss/claim, as per Regulation 9?

a) 24 hours

b) 48 hours

c) 72 hours

d) 1 week

e) 1 month
 
Q 11. When might surveyors proceed with the survey "without prejudice"?

a) When the insured admits liability

b) When the insurer admits liability

c) When there is no dispute about the cause of loss

d) When there is a breach of warranty or disagreement about facts or the amount of loss

e) When the insured provides all necessary documents
 
Q 12. What factors are considered during the adjustment of loss in the final survey report?

a) The insured individual's hobbies

b) The weather conditions during the loss

c) The surveyor's favorite movie

d) Conditions of the policy regarding depreciation, salvage recovery, adequacy of sum insured, and application of excess/franchise limits

e) The insured individual's favorite song
 
Q 13. What dilemma do surveyors often face regarding their reports?

a) Whether to express personal opinions on claim admissibility

b) Whether to disregard the insurer's instructions

c) Whether to prioritize the insured's interests over the insurer's

d) Whether to interpret policy conditions independently

e) None of the above
 
Q 14. How can the degree of heat exposure to a machine be approximated during a survey?

a) By checking the color of nearby walls

b) By observing the condition of nearby wood

c) By inspecting the condition of grease cups and bearings

d) By examining the paint on the damaged machine

e) By assessing the extent of warping in adjacent parts
 
Q 15. What practice helps in correlating details in the purchase invoices with relevant records?

a) Reviewing customer complaints

b) Consulting legal experts

c) Cross-referencing with inventory logs

d) Analyzing market trends

e) Ignoring additional records


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