IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-53

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Q 1. In insurance, what is the purpose of including a list of hazardous goods in a warranty?

a) To encourage the insured to store hazardous goods for better coverage.

b) To provide guidelines for the insured on how to handle hazardous goods.

c) To specify the types of goods that are not covered by the policy.

d) To ensure that the insured receives a discount on the premium rate.

e) To identify the types of goods that may increase the risk and affect coverage.
 
Q 2. what is an important feature of modern economic enterprise for controlling business risks?

a) Stagnation

b) Diversification

c) Concentration

d) Limitation

e) Centralization
 
Q 3. According to Castellain Preston [1883], what is the primary subject of insurance in a fire policy?

a) The bricks and materials used in building the house

b) The physical structure of the insured property

c) The guarantee against fire accidents

d) The interest of the insured in the subject matter of insurance

e) The intrinsic value of the insured property
 
Q 4. How is the percentage of depreciation determined for partial loss of goods in marine insurance?

a) By the market value of the goods

b) By comparing gross sound and damaged values

c) By the freight charges incurred

d) By the estimated value of the goods

e) By the percentage of freight earned
 
Q 5. Which type of insurance policy contains a provision similar to the contribution condition found in the Industrial Risks public liability policy?

a) Home Insurance

b) Health insurance

c) Travel insurance

d) Commercial property insurance

e) Professional indemnity insurance
 
Q 6. Which type of condition renders the contract voidable from inception if breached?

a) Condition after the contract.

b) Condition precedent of liability.

c) Condition precedent to the contract.

d) Condition after liability.

e) Condition after liability.
 
Q 7. What hazard of height is associated with a fire on a lower floor?

a) Increased accessibility for fire-fighting.

b) Decreased risk of smoke damage.

c) Increased difficulty in water percolation through floors.

d) Rapid spread of fire upwards.

e) Enhanced stability of upper floors.
 
Q 8. If an insurer decides to reject a claim under the policy, within how many days should they communicate this decision to the insured?

a) 15 days

b) 30 days

c) 45 days

d) 60 days

e) 90 days
 
Q 9. How does the use of "without prejudice" in correspondence affect its admissibility in a court of law?

a) It ensures automatic admission as evidence.

b) It makes the letter inadmissible in court unless agreed upon by both parties.

c) It makes the letter admissible only if issued by the insurer.

d) It does not affect its admissibility.

e) It automatically renders the letter admissible as evidence of liability.
 
Q 10. Why might it be useful for a surveyor to develop a checklist or questionnaire during inspection?

a) To increase paperwork

b) To ensure no details are missed during the inspection

c) To confuse the insured

d) To create additional workload for the surveyor

e) To make the inspection process more chaotic
 
Q 11. When was the Institute of Average Staters for Marine Insurance formed?

a) 1761

b) 1666

c) 1869

d) 1941

e) 1780
 
Q 12. What aspect of policy examination focuses on verifying basic details such as who is covered, what is covered, and where it is located?

a) Verification of endorsements

b) Examination of warranties

c) Review of policy limits

d) Verification of policy contents

e) Examination of exclusions
 
Q 13. Which of the following factors is NOT typically considered during loss adjustment?

a) Depreciation/improvement or betterment

b) Salvage recovery

c) Overinsurance / application of average clause

d) Excess/franchise limits

e) Policyholder's occupation
 
Q 14. What does it mean when an item insured is "separately subject to average"?

a) The insured can average out claims across multiple items.

b) Each item's claim is adjusted independently based on its sum insured.

c) The insurer averages the coverage for similar items.

d) The policyholder must pay an average deductible for all items.

e) The insurer provides average coverage for all insured items.
 
Q 15. According to the rules of double-entry bookkeeping, how should transactions be recorded for Real accounts?

a) Debit the receiver and credit the giver

b) Debit what comes in and credit what goes out

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

d) Credit what comes in and debit what goes out

e) Debit the giver and credit the receiver


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