IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-58

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Q 1. What happens if the insured fails to declare the value of additions within 30 days after the policy expires?

a) The insured is entitled to a refund of the advance premium

b) No action is taken by the insurer

c) The extension clause coverage remains in effect

d) The advance premium collected is refunded to the insured

e) There will be no refund of the advance premium collected
 
Q 2. what factors must insurers take into account when adjusting premium rates?

a) Traffic density and road conditions only.

b) Road conditions, traffic density, population, and enforcement of traffic regulations.

c) Population and pedestrian density.

d) Sudden increases in the number of vehicles and laxity in the enforcement of traffic regulations.

e) Road conditions, traffic density, and population only.
 
Q 3. What is the main reason insurers rely heavily on information provided by the proposer in insurance contracts?

a) To reduce inspection costs

b) To increase the likelihood of claim denial

c) To shift responsibility to the proposer

d) To ensure fairness in risk assessment

e) To expedite the underwriting process
 
Q 4. What is the depreciation rate for painting charges in the case of partial losses?

a) 25%

b) 30%

c) 40%

d) 50%

e) 60%
 
Q 5. In the scenario where burglars took advantage of a blackout during an air raid, why was war not considered the proximate cause?

a) The blackout was caused by an unrelated event.

b) The burglary occurred independently of the war.

c) The air raid did not result in any damage or loss.

d) The burglary occurred after the war had ended.

e) The insurance policy did not cover losses related to war.
 
Q 6. What specific provision does Section 60(2) make regarding constructive total loss?

a) It provides criteria for determining the value of the lost goods.

b) It outlines the procedure for salvaging the subject matter.

c) It specifies conditions for ships but not for goods.

d) It defines the salvaged value of the subject matter.

e) It provides conditions for both ships and goods.
 
Q 7. What is the recommended distance range for fixing outdoor hydrants from the buildings they protect?

a) 5 to 20 meters

b) 10 to 30 meters

c) 2 to 15 meters

d) 1 to 5 meters

e) 15 to 50 meters
 
Q 8. Within what time frame must the insured accept the Ombudsman's recommendations in writing?

a) 7 days

b) 15 days

c) 30 days

d) 45 days

e) 60 days
 
Q 9. When words are defined by statute, what meaning will be used?

a) Legal meaning

b) Technical meaning

c) Ordinary meaning

d) Contextual meaning

e) Statutory meaning
 
Q 10. What is essential for a surveyor's report to be effective?

a) Lengthy explanations of every detail

b) Ambiguous language to allow for interpretation

c) Concise, clear, and unambiguous presentation of factual details

d) Inclusion of personal opinions and biases

e) Factual inaccuracies to simplify the report
 
Q 11. What is a guiding principle for a Surveyor and Loss Assessor in carrying out their work?

a) Maximizing profits for insurance companies

b) Acting with competence, objectivity, and professional integrity

c) Prioritizing the interests of the insured over the insurer

d) Avoiding adherence to the Code of Conduct

e) None of the above
 
Q 12. How is the inventory of affected items typically prepared during inspection for fire losses?

a) By solely relying on stock-related records

b) By verifying recent purchase invoices and preparing a detailed inventory

c) By estimating the value of affected items based on market trends

d) By conducting interviews with eyewitnesses

e) By using predetermined depreciation rates
 
Q 13. What role does the insured play in salvage disposal decisions?

a) The insured has no say in salvage disposal decisions.

b) The insured decides whether to retain the salvage.

c) The insured determines the method of salvage disposal.

d) The insured is responsible for reconditioning salvaged goods.

e) The insured must negotiate salvage value with the insurer.
 
Q 14. How are marine (cargo) and motor survey reports typically structured?

a) In a single comprehensive document

b) With a focus on the personal opinions of the surveyor

c) In two distinct parts, with the first part presenting customary details and the second part providing narrative explanations

d) With no specific structure or format

e) With an emphasis on visual aesthetics rather than content
 
Q 15. Which documents are generally required to be examined in the case of manufacturing and trading enterprises?

a) Bank statements and invoices

b) Social media marketing reports

c) Customer feedback forms

d) Purchase and sales registers, source documents, and financial statements

e) Employee payroll records


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