IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-56

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Q 1. What is the purpose of a deductible (excess) in insurance policies?

a) To provide coverage for losses of a catastrophic nature.

b) To eliminate relatively small losses and reduce administrative costs.

c) To exclude commercially uninsurable risks.

d) To promote risk improvement, such as safe driving of motor vehicles.

e) To define and clarify the scope of cover precisely.
 
Q 2. What type of expenses are typically considered sue and labor charges?

a) Expenses incurred before the insured peril occurs.

b) Expenses incurred for the common adventure.

c) Expenses incurred after the insured subject matter is destroyed.

d) Expenses incurred by the insurer.

e) Expenses incurred by the insured to avoid or minimize loss.
 
Q 3. Why is fire-fighting rendered more difficult in tall buildings?

a) Due to increased accessibility to upper floors.

b) Due to enhanced stability of the building structure.

c) Due to the decreased danger to firemen.

d) Due to reduction in water pressure.

e) Due to reduced risk of smoke damage.
 
Q 4. What happens if a complaint against an insurer is made after the prescribed time limit?

a) The complaint will be accepted.

b) The complaint will be rejected.

c) The complaint will be pending until further notice.

d) The complaint will be forwarded to the Arbitration.

e) The complaint will be referred to the Consumer forum.
 
Q 5. Who is considered competent to enter into insurance contracts according to the Indian Contract Act?

a) Minors and persons of unsound mind

b) Only persons of sound mind

c) Only persons of the age of majority

d) Persons of sound mind and not disqualified by any law

e) Only persons of unsound mind
 
Q 6. What are the disqualifications mentioned in sub-section (4) of Section 42 for acting as a Surveyor or Loss Assessor?

a) Being a minor

b) Being found guilty of criminal offenses like misappropriation or cheating

c) Found to be of unsound mind by a competent court

d) Involvement in judicial proceedings related to insurance fraud or misrepresentation

e) All of the above
 
Q 7. What remained elusive despite attempts to improve the appointment system for surveyors?

a) Ensuring equal opportunities for all surveyors

b) Achieving consensus among stakeholders

c) Establishing a robust licensing procedure

d) Implementing practical training programs

e) None of the above
 
Q 8. What is the trend in motor loss repairs with the introduction of new-generation vehicles?

a) Repairs are mainly conducted in roadside repair centers

b) Repairs are carried out in non-standardized service centers

c) Repairs are generally undertaken in authorized service centers

d) Repairs are conducted by individual mechanics

e) Repairs are avoided due to the high costs involved
 
Q 9. What is a crucial factor to consider when inspecting perishable materials that have been affected by water damage?

a) The potential for salvage recovery

b) The immediate disposal of the damaged materials

c) The availability of testing facilities for chemical analysis

d) The necessity for olfactory analysis

e) The urgency of proper handling and disposal
 
Q 10. Why is insight into the background of the insured important for a surveyor?

a) To increase the workload for the insurer

b) To expedite the claims settlement process

c) To identify and gauge the nature and legitimacy of the claim

d) To confuse the insurance company

e) To reduce the profitability trend of the insured
 
Q 11. Why is detailed scrutiny of purchase bills necessary?

a) To calculate the claimant's profits accurately

b) To ensure the claimant's compliance with tax regulations

c) To verify the claimant's inventory value

d) To assess the claimant's financial stability

e) To identify potential fraudulent activities
 
Q 12. Which element of turnover represents expenses that are fixed regardless of business volume?

a) Variable charges

b) Standing charges

c) Net profit

d) Gross profit

e) Overhead charges
 
Q 13. Which section of Householders’ Insurance provides coverage for unforeseen and sudden physical damage caused by mechanical or electrical breakdowns of domestic appliances?

a) Section 3

b) Section 4

c) Section 5

d) Section 6

e) Section 7
 
Q 14. What type of risks are covered under package policies?

a) Fire risk only

b) All Risks Clause

c) Theft and pilferage only

d) Natural disasters only

e) War and terrorism risks
 
Q 15. What is the purpose of keeping a complete list of the amount of cash in a safe in Cash-in-Safe insurance?

a) To limit the liability of the insurer to the amount shown in the list

b) To provide evidence of ownership in case of a claim

c) To determine the premium rate for the policy

d) To facilitate faster claim processing

e) To ensure compliance with regulatory requirements


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