IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-52

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Q 1. What action can a surveyor take if complications arise during the assessment process?

a) Proceed with the assessment independently

b) Refer the matter to the insured for resolution

c) Seek advice from the insurer for a compromise or arbitration

d) Abandon the assessment and withdraw from the case

e) Ignore the complications and proceed with the assessment
 
Q 2. Why is it important to segregate damp items from the undamaged lot immediately after an incident?

a) To speed up the insurance claim process

b) To ensure all items are accounted for

c) To prevent further damage to undamaged items

d) To determine the cause of the incident

e) To identify salvageable items
 
Q 3. What does rapid turnover at an average profit indicate when assessing stock turnover?

a) Well-selected merchandise

b) Slow-moving items

c) Decline in market demand

d) Overpriced goods

e) Unsold inventory
 
Q 4. What types of contents are commonly covered under fire insurance for buildings?

a) Clothing and personal items

b) Machinery and equipment only

c) Furniture, fixtures, and fittings

d) Electronics and appliances

e) Food and perishable goods
 
Q 5. How is the compensation for specified contingencies increased with each renewal of the policy?

a) By 2%

b) By 10%

c) By 5%

d) By 20%

e) By 8%
 
Q 6. What does Marine Cargo Insurance cover?

a) Goods and merchandise in transit by sea only

b) Goods and merchandise in transit by air only

c) Goods and merchandise in transit by sea, air, road, rail, or registered post

d) Goods and merchandise in transit by road only

e) Goods and merchandise in transit by rail only
 
Q 7. In insurance proposal forms, what declaration is typically included regarding the accuracy of the information provided?

a) The answers are suggested but not guaranteed to be true

b) The answers are warranted to be true and complete

c) The answers are irrelevant to the contract

d) The answers are not legally binding

e) The answers are subject to interpretation by the insurer
 
Q 8. What distinguishes pure risks from speculative risks?

a) Pure risks result in losses, while speculative risks may result in either loss or profit.

b) Pure risks are caused by human behavior, while speculative risks are caused by natural events.

c) Pure risks are predictable, while speculative risks are unpredictable.

d) Pure risks are avoidable, while speculative risks are unavoidable.

e) Pure risks occur independently of dynamic risks, while speculative risks are influenced by dynamic factors.
 
Q 9. What duty rests on the underwriters according to the principle established in Carter vBoehm (1766)?

a) To withhold information from the proposer

b) To mislead the proposer to secure a favorable contract

c) To make untrue statements during negotiations

d) To disclose information to the proposer for a less favorable contract

e) To accept unenforceable insurance contracts
 
Q 10. What does the amount payable under liability policies include?

a) Only damages awarded to the third party

b) Only legal costs and expenses incurred by the insured

c) Both damages awarded to the third party and legal costs and expenses

d) Only damages awarded to the third party and legal costs awarded to the third party

e) Only legal costs and expenses incurred by the insured with the written consent of the insurer
 
Q 11. What is the maximum limit of liability per casualty in marine hull insurance?

a) The sum insured

b) The deductible

c) The premium amount

d) The salvage value

e) The reinstatement value
 
Q 12. In the case of George Cohen Son & Cov Standard Marine (1925), why was there a constructive total loss declared?

a) The ship was destroyed in a storm.

b) The ship encountered pirates and was captured.

c) The vessel went aground and could not be moved due to restrictions by Dutch authorities.

d) The ship's cargo was damaged during a fire onboard.

e) The ship's engine malfunctioned, causing it to drift at sea.
 
Q 13. What is a recommended layout factor to control fire hazards in jute mills?

a) Installation of automatic fire alarm system

b) Use of highly combustible materials

c) Lack of housekeeping in controlling jute fluff accumulations

d) Absence of doors in the godown

e) Uncontrolled accumulation of jute waste
 
Q 14. What is the duty of an insurer according to Regulation 4, within 30 days of the acceptance of a proposal?

a) To issue a policy immediately

b) To provide a copy of the proposal form to the insured free of charge

c) To process the proposal form again

d) To notify the regulatory authority

e) To survey the insured property
 
Q 15. What does Section 163 of the Act allow the Central Government to establish?

a) A compensation fund for all types of accidents

b) A rehabilitation center for accident victims

c) A medical facility for accident victims

d) A Solatium Fund to compensate victims of hit-and-run accidents

e) A legal aid center for accident-related cases


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