IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-60

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Q 1. What is the purpose of preparing final accounts from the trial balance?

a) To test the arithmetical accuracy of the books

b) To identify errors in the subsidiary books

c) To show the business result over some time

d) To indicate the cost of goods produced

e) To record manufacturing expenses
 
Q 2. When is a Floating Policy useful?

a) When the insured needs coverage for only one specified location

b) When the insured requires coverage for stocks in different specified locations but cannot provide separate values for each location

c) When the insured needs coverage for movable property

d) When the insured operates in a single warehouse

e) When the insured has a large-scale industrial operation
 
Q 3. How is the insurable value of works of art determined in an All Risks Insurance Policy?

a) Based on the purchase price of the item

b) By the insured's estimation of the value

c) Through professional valuation reports

d) According to the policy's predetermined value

e) By assessing the replacement cost of the item
 
Q 4. Which risks are covered under Institute Cargo Clauses (I.C.C- C)?

a) Fire or explosion only

b) Fire or explosion, vessel being stranded, grounded, sunk, or capsized

c) Fire or explosion, collision with external objects, washing overboard

d) Fire or explosion, collision or contact with external objects, jettison

e) Fire or explosion, general average sacrifice, theft or pilferage
 
Q 5. What is the legal consequence of inaccuracies or misrepresentations in insurance proposal forms?

a) They have no impact on the contract

b) They render the contract voidable at the option of the proposer

c) They make the contract voidable at the option of the insurer

d) They result in immediate policy cancellation

e) They require renegotiation of the contract terms
 
Q 6. What term is used to describe events outside human control or intervention?

a) Acts of God

b) Acts of Nature

c) Acts of Government

d) Acts of Humanity

e) Acts of Fate
 
Q 7. What functions do brokers have regarding the disclosure of material facts?

a) Limited involvement in risk management philosophy

b) No role in providing underwriting information to insurers

c) Solely responsible for obtaining detailed information of the client's business

d) Responsible for familiarizing themselves with the client's business and underwriting information

e) Exclusively focused on explaining the client's business to competitors
 
Q 8. What happens if repairs to premises result in a betterment or improvement?

a) The insurer bears the full cost of repairs

b) The insurer declines the claim

c) Insured must bear a proportionate cost of the improvement

d) The insurer provides additional compensation for the improvement

e) Repair costs become the responsibility of the repairer
 
Q 9. What is the significance of employer's liability policies regarding negligence claims?

a) They exclude coverage for negligence claims

b) They limit coverage for negligence claims

c) They provide unlimited coverage for negligence claims

d) They offer coverage only for intentional acts

e) They require additional premiums for negligence claims
 
Q 10. What are "Extra Charges" in the context of insurance claims?

a) Charges incurred for vehicle maintenance

b) Charges for legal representation

c) Charges for survey fees to ascertain the extent of loss or damage

d) Charges for policy issuance

e) None of the above
 
Q 11. What is a recommended measure for ensuring the accessibility of extinguishers during a fire in an unattended warehouse?

a) Place extinguishers at points of entrance rather than throughout the area.

b) Store extinguishers where they are likely to be blocked or hidden by stock.

c) Distribute extinguishers evenly throughout the area.

d) Store extinguishers away from the hazard to be protected.

e) Install extinguishers indoors without any additional precautions.
 
Q 12. What is the jurisdiction of a district forum in entertaining complaints under the Consumer Protection Act?

a) Less than Rs. 5 lakhs

b) Less than Rs. 10 lakhs

c) Less than Rs. 15 lakhs

d) Less than Rs. 20 lakhs

e) Less than Rs. 25 lakhs
 
Q 13. What does the Carriage by Air Act, 1972, define the liability of the air carrier for?

a) Only for damage to registered luggage

b) Only for damage to cargo

c) Only for injury to passengers

d) For death or injury to passengers and loss or damage to registered luggage and cargo

e) For delays in flight schedules
 
Q 14. What role does an in-house surveyor typically play in insurance claims?

a) Processing paperwork for claims

b) Conducting legal investigations

c) Providing technical support for motor claims

d) Selling insurance policies

e) Negotiating settlements with policyholders
 
Q 15. In what area will the license be granted to an applicant based on their training?

a) Any area specified by the Authority

b) An area chosen by the applicant

c) A particular area for which the applicant has been trained

d) A random area selected by lottery

e) An area with the most demand for surveyors and loss assessors


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