IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-55

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Q 1. Which Act governs the provision of lay-off or retrenchment compensation?

a) Industrial Insurance Act, 1947

b) Workers' Compensation Act, 1947

c) Lay-Off and Retrenchment Act, 1947

d) Employee Benefits Act, 1947

e) Industrial Disputes Act, 1947
 
Q 2. What is the typical duration of Customs bonds?

a) A few days

b) A few months

c) Up to one year

d) Up to three years

e) Up to seven years
 
Q 3. What perils are covered under ITC Time Clauses – Hulls for vessel loss or damage?

a) Fire, explosion, and violent theft only

b) Collision with aircraft or similar objects only

c) Perils of the seas, rivers, lakes, or other navigable waters, jettison, and piracy only

d) Earthquake, volcanic eruption, and lightning only

e) All of the above
 
Q 4. What distinguishes "excess" clauses from "compulsory excess" and "voluntary excess"?

a) "Excess" clauses are imposed unilaterally by insurers

b) "Excess" clauses eliminate the need for premium payments

c) "Excess" clauses always result in reduced coverage

d) "Excess" clauses are always optional for the insured

e) "Excess" clauses are designed to increase the insurer's liability
 
Q 5. When must the policy be assigned in the context of the sale of goods?

a) Automatically upon sale

b) At the time of loss

c) At the inception of the policy

d) At the time the insured parts with his interest or by agreement

e) Only after a loss occurs
 
Q 6. In fire insurance, what is the typical basis for settlinbuilding claims?

a) Market value at the time of policy issuance

b) Replacement cost with allowances for wear and tear and depreciation

c) Original purchase price of the building

d) Selling price of the building

e) Intrinsic value of the building at the time of loss
 
Q 7. Why are valued or agreed-value policies issued on cargoes in marine insurance?

a) To minimize the insured value

b) To base claims settlement on market values

c) To account for constant fluctuations in goods prices

d) To reduce uncertainty in claims settlement

e) To exclude freight and insurance charges
 
Q 8. How does the insurance company handle a situation where a building collapses or falls?

a) The policy becomes void, and no claims are payable.

b) The insured must notify the company within seven days for coverage to continue.

c) The insured must immediately evacuate the building to maintain coverage.

d) The policy is automatically renewed for an extended period.

e) The insured must provide proof of the collapse for coverage to apply.
 
Q 9. Under which insurance policy is financial loss indirectly caused by lack of labor not covered?

a) Television Insurance.

b) Marine Cargo Insurance.

c) Poultry Insurance.

d) Plate Glass / Neon Sign Insurance.

e) Institute Strikes Clauses.
 
Q 10. Why should storage areas be located far away from the remaining complex in a petrochemical facility?

a) To minimize transportation costs

b) To optimize access for maintenance personnel

c) To reduce the risk of fire and explosion hazards

d) To improve operational efficiency

e) To facilitate coordination with other facilities
 
Q 11. Which principles are part of common law governing insurance?

a) Insurable interest, utmost good faith, indemnity, subrogation, and contribution

b) Indian Contracts Act, Indian Penal Code, Consumer Protection Act

c) Insurance Act, 1938, and I.R.D.A. Act, 1999

d) Provident Insurance Societies Act V of 1912 and Indian Life Insurance Companies Act VI of 1912

e) Indian Companies Act, 1883
 
Q 12. What does the legality of a contract refer to?

a) The enforceability of the contract

b) The moral implications of the contract

c) The financial viability of the contract

d) The duration of the contract

e) The complexity of the contract
 
Q 13. What is the requirement for acting as a Surveyor or Loss Assessor under Sec64 UM of the Insurance Act 1938?

a) Holding a valid license issued by the Controller

b) Having a degree in any field

c) Being a member of a professional accounting institute

d) Having actuarial qualifications

e) Possessing a diploma in insurance
 
Q 14. What determines a person or corporate entity's competency to enter into an insurance contract?

a) Their social status

b) Their financial wealth

c) Their legal capacity to contract and insurable interest in the subject matter

d) Their employment status

e) Their educational background
 
Q 15. How are marine insurance claims settled in the case of a total or constructive total loss?

a) The insured receives the full sum insured without deductions

b) The insured receives a proportion of the sum insured based on salvage recovery

c) The insured receives compensation equivalent to the gross damaged value

d) The insured receives compensation equivalent to the difference between the gross sound and damaged value

e) The insured receives a fixed percentage of the sum insured


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