IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-62

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Q 1. What are the two types of external exposures mentioned?

a) Internal and external.

b) Local and regional.

c) Conflagration and local.

d) Conflagration and internal.

e) Regional and internal.
 
Q 2. Which laws provide a regulatory framework for the conduct of insurance business in India?

a) Insurance Act, 1938, and the I.R.D.A. Act, 1999

b) Indian Contracts Act

c) Indian Penal Code

d) Consumer Protection Act

e) Insurance Laws Amendment Act 2015
 
Q 3. What obligation does the Act impose on shipowners regarding the seaworthiness of their ships?

a) To ensure luxurious accommodations for passengers

b) To provide onboard entertainment facilities

c) To send their ships to sea in a seaworthy and safe condition

d) To offer discounted fares to frequent travelers

e) To maintain a strict dress code for passengers
 
Q 4. What is recommended for a surveyor to carry while visiting the place of occurrence?

a) Sample reports

b) Insurance policy copies

c) Legal documents

d) Surveying equipment

e) Reference books
 
Q 5. What is the role of the Authority in the membership application process?

a) Providing training seminars

b) Conducting examinations

c) Approving membership applications

d) Organizing workshops

e) Issuing licenses
 
Q 6. When must insurable interest exist for a marine cargo policy?

a) At the time of purchasing the policy

b) During the policy renewal period

c) At the time of loss

d) Throughout the policy term

e) At the time of claim settlement
 
Q 7. What is the primary method used for making good the loss suffered in engineering insurance policies?

a) Cash reimbursement

b) Repair or replacement of spares

c) Salvage recovery

d) Full sum insured payment

e) Indemnity based on market value
 
Q 8. In which scenario would it be impractical or uneconomical to survey the whole consignment?

a) When the damage is superficial

b) When the damage is minor

c) When the damage is extensive

d) When the damage is easily identifiable

e) When the damage is large and heavily affected
 
Q 9. What should the surveyor aim to provide in the survey report?

a) Only personal opinions

b) Incomplete information

c) A clear and complete picture for decision-making

d) Complex technical jargon

e) Only the insured party's version of events
 
Q 10. What type of expenses does item 2 coverage in the Gross Fees Policy primarily aim to compensate for?

a) Costs related to legal disputes and settlements

b) Additional expenditure incurred for avoiding or diminishing loss

c) Expenses associated with the fitting up of temporary offices and increased operational costs

d) Compensation for damage to physical assets of the insured

e) Payments made for lay-off and retrenchment compensation
 
Q 11. What additional benefit does the policy provide in the event of the insured person's death due to an accident?

a) Reimbursement of medical expenses

b) Reimbursement of funeral expenses

c) Reimbursement of travel expenses for the carriage of the dead body to the place of residence

d) Education fund for dependent children

e) Compensation for loss of income
 
Q 12. Why do Fidelity Guarantee policies stipulate a time limit for the discovery of loss?

a) To expedite the claims process

b) To increase premiums

c) To discourage employees from committing dishonest acts

d) To ensure that losses are discovered within a reasonable timeframe

e) To make the investigation of losses more troublesome
 
Q 13. What is the War Risks Scheme for hull and machinery coverage?

a) A mandatory scheme for all shipowners

b) A scheme applicable only to foreign-flagged vessels

c) A voluntary scheme for shipowners to opt into

d) A scheme applicable only to ships registered after 1976

e) A scheme applicable only to specific types of vessels
 
Q 14. What measures can be taken to address moral hazard arising from carelessness?

a) Issuing the policy without any adjustments

b) Providing discounts on premiums

c) Offering additional coverage options

d) Imposing excess clauses and restrictive warranties

e) Increasing the sum insured
 
Q 15. In marine insurance, when is insurable interest required according to the Marine Insurance Act, of 1963?

a) Only at the time of taking the policy

b) Only at the time of loss

c) Both at the time of taking the policy and at the time of loss

d) Insurable interest is not required in marine insurance

e) Insurable interest is required after the loss occurs


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