IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-63

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Q 1. What assistance might a surveyor enlist from a qualified professional during the verification process?

a) Legal advice

b) Medical consultation

c) Financial audit

d) Engineering expertise

e) Customer service support
 
Q 2. How are physically verified quantities generally validated in medium and large loss cases?

a) By calculating the percentage depreciation

b) By verifying stock records

c) By assessing the insurance premium

d) By estimating future damages

e) By determining potential liabilities
 
Q 3. Why should a surveyor avoid expressing opinions not supported by factual information in the report?

a) To increase the complexity of the report

b) To expedite the policy renewal process

c) To confuse the insurer

d) To ensure accuracy and reliability

e) To delay the claims settlement process
 
Q 4. What distinguishes a Reinstatement Value Policy from a standard fire policy?

a) It offers lower premiums

b) It settles losses based on market value

c) It covers the special requirements of the insured

d) It provides coverage for only specific perils

e) It includes the reinstatement value clause
 
Q 5. Which class of general insurance typically covers medical, surgical, or hospital expenses?

a) Fire insurance

b) Marine insurance

c) Health insurance

d) Miscellaneous insurance

e) Travel insurance
 
Q 6. What type of insurance policy addresses first-party losses, including consequential and third-party losses arising from cyber-related incidents?

a) Public Liability Insurance

b) Products Liability Insurance

c) Professional Indemnity Insurance

d) Employees Compensation Insurance

e) Cyber Liability Insurance
 
Q 7. What does Collision Liability cover under a Hull policy?

a) Damages to cargo during loading and unloading

b) Damages to the vessel caused by a collision

c) Legal liability incurred due to collision with other vessels

d) Damage caused by fire and explosion

e) Damage caused by piracy and theft
 
Q 8. What is an example of moral hazard arising from carelessness?

a) Deliberate staging of a loss

b) Fraudulent claims

c) Poor maintenance of a motor vehicle

d) Excessive demands for compensation after a loss

e) Lack of understanding between employers and employees
 
Q 9. Which of the following facts does the proposer NOT have an obligation to disclose to underwriters?

a) Facts that diminish the risk

b) Facts known or presumed to be known to the insurer

c) Facts that could be ascertained from the information supplied by the proposer

d) Matters of law

e) Facts discovered during a risk inspection
 
Q 10. In marine insurance, what principle governs the contribution between insurers in the case of double insurance?

a) Principle of equity

b) Principle of indemnity

c) Principle of subrogation

d) Principle of proportionality

e) Principle of utmost good faith
 
Q 11. Why is the principle of indemnity necessary from a public interest perspective?

a) To encourage deliberate causing of loss or damage

b) To maximize profits for insurance companies

c) To prevent the destruction of national wealth

d) To ensure insurance companies make more profits

e) To discourage people from purchasing insurance policies
 
Q 12. What happens to the insurance policy in the event of the insured's death or bankruptcy?

a) The policy is automatically renewed.

b) The policy becomes void, and no claims are payable.

c) The policy vests in the legal heirs named in the will.

d) The policy is terminated immediately.

e) The insured's estate assumes responsibility for the policy.
 
Q 13. Under which section of the Electronic Equipment policy is consequential loss cover provided?

a) Section 1: Loss of or Damage to Equipment.

b) Section 2: External Data Media.

c) Section 3: Increased Cost of Working.

d) Section 4: Deterioration of Stock.

e) Section 5: Advance Loss of Profits.
 
Q 14. Why should loading racks be limited in size in a petrochemical facility?

a) To optimize land utilization

b) To reduce construction costs

c) To improve employee morale

d) To facilitate communication between different areas

e) To control hazard concentration in a limited manner
 
Q 15. Which provision of the IRDA Act, 1999, allows the Authority to control and regulate the rates, advantages, terms, and conditions offered by insurers in respect of general insurance business?

a) Section 64 UC of the Insurance Act, 1938

b) Section 45 of the Insurance Act, 1938

c) Section 64 VB of the Insurance Act, 1938

d) Section 14 of the IRDA Act, 1999

e) Section 34 of the IRDA Act, 1999


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