IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-54

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Q 1. What is the purpose of incorporating the words "without prejudice" in correspondence related to insurance claims?

a) To admit liability

b) To reject the claim outright

c) To conduct negotiations and correspondence without affecting the question of liability

d) To shift the burden of proof to the insured

e) To expedite the claim process
 
Q 2. What is one of the primary challenges surveyors face in their professional work?

a) Dealing with animals

b) Handling technical equipment

c) Managing interpersonal relationships

d) Navigating through legal documents

e) Understanding weather patterns
 
Q 3. What is the requirement for every surveyor and loss assessor who is an employee of an insurer regarding claim settlement?

a) They must solely handle claim settlements.

b) They must avoid involvement in claim settlements.

c) They must provide legal advice during claim settlements.

d) They must negotiate claim settlements with insured parties.

e) They must oversee claim settlements for accuracy.
 
Q 4. What types of losses are typically considered uninsurable?

a) Losses due to wear and tear

b) Losses due to accidents

c) Losses due to natural disasters

d) Losses due to theft

e) Losses due to vandalism
 
Q 5. What is the consequence of underinsurance according to the Average Condition clause?

a) Insured receives full compensation regardless of the sum insured.

b) Insurer refunds the premium paid by the insured.

c) Insured must bear a proportionate share of the loss.

d) Insurer increases the sum insured retroactively.

e) The insurer waives the deductible requirement for the insured.
 
Q 6. How should surveyors balance the need for details with the insured's perception of the assessment process?

a) By ignoring the insured's concerns

b) By avoiding communication with the insured

c) By requesting only minimal information

d) By adopting a professional and respectful approach

e) By rushing through the assessment process
 
Q 7. What should be the primary focus of a surveyor when drafting a survey report?

a) Creating contradictory statements to confuse stakeholders

b) Providing incomplete information to increase ambiguity

c) Ensuring the report contains accurate and factual details

d) Using technical jargon to complicate the content

e) Emphasizing the insured party's version of events over facts
 
Q 8. What is the primary advantage of a declaration policy compared to a standard fire policy?

a) It requires less administrative work for both the insurer and the insured

b) It offers higher coverage limits

c) It guarantees fixed premiums throughout the policy period

d) It covers a wider range of perils

e) It provides coverage for longer policy terms
 
Q 9. Under which category can group personal accident policies be issued?

a) Individuals with no common relationship

b) Members of any social media group

c) Employer-Employee relationship including dependants of the employee

d) Unrelated individuals sharing a common interest

e) Anyone with an internet connection
 
Q 10. Which type of liability is excluded from coverage under the Commercial General Liability (CGL) policy?

a) Legal liability for injury or damage to property arising out of defects in specified products

b) Legal liability for libel and slander under the advertising liability section

c) Legal liability for injury or damage to property caused by pollution

d) Legal liability for injury or damage to property during transportation

e) Legal liability for injury or damage to property caused by product defects
 
Q 11. What types of risks are covered under Institute Clauses for Builders Risks?

a) Only specific perils

b) Only risks related to the shipbuilder's operations

c) Only natural disasters

d) All risks

e) Only third-party liabilities
 
Q 12. Why is moral hazard considered inherently difficult to mitigate?

a) It arises from individual or general social and economic conditions

b) It can be easily assessed through inspection reports

c) It is not influenced by human behavior

d) It is tangible and easily measurable

e) It can be addressed by charging higher premiums
 
Q 13. How is the insurable interest of banks and financial institutions typically protected in property insurance?

a) By excluding them from the policy

b) By having separate policies for the banks and financial institutions

c) By attaching a Mortgage clause to the policy

d) By making the owner solely responsible for any damages

e) By not acknowledging their interest in the property
 
Q 14. What is the basis for determining the indemnity in the event of a total loss or constructive total loss of the vehicle?

a) Market value of the vehicle

b) Insured’s Declared Value (IDV) of the vehicle

c) Cost of retrieval and repair of the vehicle

d) Original purchase price of the vehicle

e) Salvage value of the wreck
 
Q 15. What are ex-gratia payments in insurance?

a) Payments made by the insured without any liability

b) Payments made by the insurer as a matter of goodwill

c) Payments made to settle disputes between the insured and the insurer

d) Payments made by the insurer for claims outside the policy coverage

e) Payments made by the insured to the insurer as a penalty



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