IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-6

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Q 1. Why is a system of classification of risks adopted in insurance?

a) To confuse policyholders

b) To increase administrative complexity

c) To minimize the impact of hazards

d) To facilitate proper assessment of common hazards and reasonable forecast of future losses

e) To reduce the amount of claims
 
Q 2. Under a Hire Purchase Agreement, who typically holds insurable interest in a motor vehicle?

a) Only the owner

b) Only the insurer

c) Only the lessee

d) Only the lessor

e) Both the owner and the party with the Hire Purchase Agreement
 
Q 3. How can subrogation rights arise under a fidelity guarantee policy?

a) By denying the claim

b) By paying the loss

c) By canceling the policy

d) By refusing to negotiate with the third party

e) By increasing the premium amount
 
Q 4. In a scenario involving concurrent causes with both an insured peril and an excepted peril, what is the claim's status under the policy?

a) The claim is valid under all circumstances.

b) The claim is valid only if the excepted peril has a minor influence.

c) The claim is outside the scope of the policy.

d) The claim is valid if the insured peril has a minor influence.

e) The claim is valid if both perils are of equal influence.
 
Q 5. what determines the applicability of losses payable under a marine policy?

a) The age of the insured vessel

b) The nationality of the claimant

c) The type of cover granted under the policy and its clauses

d) The location of the loss occurrence

e) None of the above
 
Q 6. What is the main risk when buildings of the same height adjoin each other?

a) Risk of structural collapse.

b) Risk of roof exposure.

c) Risk of fire spreading through windows.

d) Risk of exposure to heat radiation.

e) Risk of fire spreading through doors.
 
Q 7. How long does a surveyor have to furnish an additional report upon receiving a request from the insurer?

a) 1 week

b) 2 weeks

c) 3 weeks

d) 4 weeks

e) 1 month
 
Q 8. In what circumstances does an assembly become an "unlawful assembly" according to the Indian Penal Code?

a) When individuals gather for a religious ceremony

b) When three or more persons gather for any common purpose

c) When five or more persons gather without lawful authority and commit certain acts

d) When individuals gather for a peaceful protest authorized by the government

e) When two or more persons gather for socializing
 
Q 9. What is the purpose of verifying the details of the preferred claim submitted by the insured during claim assessments?

a) To increase the workload of the surveyor

b) To entertain the insured

c) To create unnecessary paperwork

d) To sort out any issues of variances between submitted details and observed losses/damages

e) To determine the insured's favorite food
 
Q 10. According to Chapter II, what role does the Authority play in the licensing procedure?

a) Setting fees for license issuance

b) Ensuring applicants meet technical qualifications

c) Providing practical training to applicants

d) Approving insurance claims

e) None of the above
 
Q 11. Which policy excludes damages caused by over-running, excessive pressure, short-circuiting, or self-heating of electrical and electronic machines?

a) Standard Fire and Special Perils Policy

b) Marine Cargo Policy

c) Homeowners Insurance Policy

d) Automobile Insurance Policy

e) Machinery Insurance Policy
 
Q 12. What does the sum insured represent in valued policies?

a) The maximum limit of payment

b) The minimum coverage amount

c) The deductible amount

d) The average market value

e) The replacement cost
 
Q 13. What are the main issues of interest for an insurer in a survey report?

a) Detailed history of the insured party

b) Speculation on future risks

c) Cause of loss, breach of warranties, methodology of loss assessment, loss adjustment details, and concluding remarks

d) Personal opinions of the surveyor

e) Visual appeal of the report layout
 
Q 14. What is the source document for recording goods returned to the supplier in the Purchase Returns Book?

a) Invoice

b) Debit Note

c) Credit Note

d) Cash Receipt

e) Payment Voucher
 
Q 15. Which extension applies if the insured building becomes unfit for occupation due to damage by an insured peril?

a) Spoilage Material Damage

b) Leakage and Contamination

c) Start-up Expenses

d) Loss of Rent

e) Additional expenses for Alternate accommodation


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