IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-59

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Q 1. What is the maximum percentage of capital that a body corporate, whether incorporated or not, can hold in an Insurance Co-operative Society according to the Act?

a) 10 percent

b) 20 percent

c) 26 percent

d) 50 percent

e) 75 percent

Q 2. What is the compensation fixed for death claims under the Solatium Fund?

a) Rs. 10,000

b) Rs. 15,000

c) Rs. 20,000

d) Rs. 25,000

e) Rs. 30,000

Q 3. Why is the process of claim assessment not as simple as it appears in practice?

a) Because surveyors prefer complexity

b) Because the insured individuals are uncooperative

c) Because each loss is unique, and conditions and personalities vary, requiring flexibility in the procedure

d) Because surveyors lack the necessary skills

e) Because the insurance company adds unnecessary complications

Q 4. Who bears the cost of obtaining an independent report from another approved Surveyor or Loss Assessor?

a) The insured

b) The Controller

c) The government

d) The insurer

e) The Surveyor or Loss Assessor

Q 5. What guideline does the surveyor follow to assess common types of causes responsible for losses/damages?

a) Annexure II

b) Appendix A

c) Schedule I

d) Annexure I

e) Addendum B

Q 6. What is the primary reason for applying depreciation to property in insurance claims?

a) To lower the claim amount

b) To reflect the original purchase price

c) To account for wear and tear and obsolescence

d) To expedite the claims process

e) To discourage insurance claims

Q 7. When might a surveyor show details of material, labor, and overhead costs in a tabular form?

a) Only when repairs are not carried out

b) Only when repairs are carried out

c) When the items involved are few

d) When the loss assessment is complex

e) When the insured party requests it

Q 8. In what situations does the claimant often declare that the books of accounts are lost?

a) Motor vehicle accidents

b) Burglary cases

c) Fire losses

d) Health insurance claims

e) Travel insurance claims

Q 9. What does the extension for Supplier's and Customer's Premises cover?

a) Loss of profits due to employee absenteeism

b) Damage to property at the insured's premises

c) Consequential loss arising from damage to property at supplier's premises

d) Medical expenses for employees

e) Loss of profits due to natural disasters

Q 10. What does the television insurance policy indemnify the insured against?

a) Loss of or damage to the insured's property

b) Loss of or damage to the neighbor's property

c) Legal liability for accidents caused by or through the television apparatus

d) Legal expenses incurred during a lawsuit

e) Medical expenses for the insured's family

Q 11. What is the duration of cover under Inland Transit (Rail / Road) Clause "B"?

a) Until the goods reach the destination railway station

b) Until the goods reach the final destination point

c) Until the goods are transshipped

d) Until the goods are unloaded from the carrying vehicle

e) Until the goods are loaded onto the carrying vehicle

Q 12. What is implied in a time policy regarding the ship's seaworthiness?

a) A warranty that the ship shall be seaworthy at all times

b) A warranty that the ship shall be seaworthy only at certain stages

c) A warranty that the ship shall be seaworthy in all respects

d) A warranty that the ship shall never be seaworthy

e) A warranty that the ship's seaworthiness is irrelevant

Q 13. suggest the relationship between the degree of hazard and the premium charged in insurance.

a) There is no relationship between the degree of hazard and the premium charged.

b) The degree of hazard has a minimal impact on the premium charged.

c) The degree of hazard determines the premium charged; properties with higher hazards attract higher premiums.

d) The degree of hazard is inversely proportional to the premium charged.

e) The degree of hazard is directly proportional to the premium charged.

Q 14. Which duty applies uniquely to insurance contracts, surpassing the duty of good faith in commercial contracts?

a) Duty of uberrima fides

b) Duty of caveat venditor

c) Duty of caveat emptor

d) Duty of disclosure

e) Duty of care

Q 15. Why are agreed-value policies customary in marine insurance?

a) Because they provide strict indemnity

b) Because they are contrary to the Marine Insurance Act

c) Because they allow for fair value to the insured

d) Because they are required by law

e) Because they provide for fluctuating market values


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