IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-57

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Q 1. What is the primary objective of loss assessment?

a) Identifying potential liabilities

b) Calculating the precise equivalent cash value of physical loss

c) Assessing the insurance premium

d) Estimating future damages

e) Determining the cause of the incident
 
Q 2. In the example provided, how much will Policy A pay for the loss?

a) Rs. 20,000

b) Rs. 25,000

c) Rs. 30,000

d) Rs. 35,000

e) Rs. 40,000
 
Q 3. What information should be included in a preliminary survey report?

a) Detailed analysis of policy exclusions

b) Extensive background information on the insured party

c) Preliminary estimate of loss, details of occurrence, location, cause of loss, and any other relevant details

d) A summary of past claim settlements

e) Personal opinions and biases of the surveyor
 
Q 4. In which types of claims do surveyors rarely require accounting assistance?

a) Marine and motor claims

b) Fire and flood claims

c) Medical and health claims

d) Legal and contractual claims

e) Environmental and pollution claims
 
Q 5. What is the condition for covering theft during or after the occurrence of any insured peril?

a) It is automatically covered under the basic policy

b) It is covered only if reported within 24 hours

c) It is covered under the basic policy without any conditions

d) It is not covered under any circumstances

e) It is covered if theft occurs within 7 days after the occurrence of an insured peril
 
Q 6. What type of loss is covered when money and securities are in transit?

a) Losses due to natural disasters

b) Trading losses incurred by the bank

c) Losses due to theft or misappropriation, even if caused by the insured's employees' negligence or fraud

d) Losses due to earthquake or flood

e) Losses caused by faulty computer programming
 
Q 7. What do Duty and Increased Value Insurance policies provide coverage for?

a) Loss or damage during transit

b) Increased value of cargo due to customs duty payment

c) Theft and pilferage during storage

d) Loss of profits due to delayed delivery

e) Liability for injuries to third parties
 
Q 8. What is the purpose of the Label Clause?

a) To limit coverage for tinned or bottled goods

b) To extend coverage for damaged labels

c) To exclude coverage for perishable goods

d) To specify coverage for electronic goods

e) To waive coverage for certain types of damage
 
Q 9. What is the significance of having a large number of risks available for insurance?

a) It allows insurers to charge higher premiums.

b) It increases the likelihood of small volumes of business.

c) It ensures accurate estimates of underlying probability and reduces the difference between actual and estimated future losses.

d) It decreases the accuracy of probability estimates.

e) It reduces the need for historical data in underwriting.
 
Q 10. In marine insurance, what are some examples of insurable interests held by a shipowner?

a) Only in the ship itself

b) Only in the cargo being transported

c) Only in the ship's crew

d) Only in the profits from freight

e) Both in the ship itself and other associated aspects like freight and liabilities
 
Q 11. Why is reinstatement not required in motor insurance policies?

a) Because the insurer is not liable for losses

b) Because motor policies have unlimited coverage

c) Because the sum insured is the maximum limit per accident

d) Because there are no repair claims in motor insurance

e) Because motor policies have fixed premiums
 
Q 12. Which party benefits from the condition in Burglary insurance requiring the insured to take all practicable steps to apprehend the guilty person?

a) Only the insured

b) Only the insurance company

c) Both the insured and the insurance company

d) Only the police

e) Neither the insured nor the insurance company
 
Q 13. What is the principle of general average contribution?

a) Only the ship owner is liable for any losses incurred during a voyage

b) All losses are borne solely by the cargo owner

c) All interests at risk, including ship, cargo, and freight, contribute rateably to make good the sacrifice and expenditure

d) The insurance company bears all the losses

e) The captain of the ship is solely responsible for any damages
 
Q 14. What precautions should be taken regarding the storage of combustible material in bulk?

a) Stocks should be inaccessible for safety.

b) Stocks should be piled as high as possible for maximum storage capacity.

c) Stocks should be piled with no clear spaces and gangways around them.

d) Stocks should be kept wholly accessible with small individual stocks and clear spaces around them.

e) Stocks should be piled beyond the easy reach of the fire brigade.
 
Q 15. What amendment was made to the Consumer Protection Act in 2002?

a) Amendment for better protection of consumer interests

b) Amendment for inclusion of insurance as a service

c) Amendment for settlement of consumer disputes

d) Amendment for broader definition of consumer rights

e) Amendment for the establishment of consumer courts


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