IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-64
IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-64
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Q 1. Under what circumstance is a Picking clause typically incorporated into cargo policies on cotton?
a) To increase the insured value of the cotton
b) To reduce the premium cost
c) To minimize damage by paying for picking off damaged cotton from the bales
d) To exclude certain perils from coverage
e) To extend coverage to additional goods
Q 2. What does a policy condition typically state regarding the insurer's recognition of claims or interests in the policy?
a) The insurer must recognize all claims and interests in the policy.
b) The insurer may recognize equitable claims but not other interests.
c) The insurer is bound to recognize any notice of trust, charge, or lien.
d) The insurer is entitled to treat the insured as the absolute owner and may not recognize any other claims or interests.
e) The insurer must recognize assignments but not other types of claims.
Q 3. Why is the duty of disclosure essential in insurance contracts?
a) To mislead the underwriter
b) To conceal information from the underwriter
c) To shift responsibility to the underwriter
d) To ensure fairness and accuracy in risk assessment
e) To avoid claims processing
Q 4. What is the significance of the insured's cooperation in enforcing subrogation rights in fire insurance?
a) It reduces the premium amount
b) It helps the insurer avoid paying claims
c) It ensures the insured receives compensation
d) It assists the insurer in recovering payments made to the insured
e) It allows the insured to transfer their rights to the insurer
Q 5. What is the legal significance of conditions in an insurance contract?
a) Conditions serve as guidelines for the insured but are not legally enforceable.
b) Conditions provide underwriters with defense against claims in case of breach by the insured.
c) Conditions are optional terms that insured parties can choose to follow.
d) Conditions regulate the operation of the contract but do not affect claim payments.
e) Conditions are legally binding only if explicitly mentioned in the policy.
Q 6. Which of the following is NOT considered in determining the liability of the insurance company for total loss or constructive total loss of the vehicle?
a) Insured Declared Value (IDV)
b) Value of the wreck
c) Current market value of the vehicle
d) Original purchase price of the vehicle
e) None of the above
Q 7. Why is it desirable to house grinding equipment in separate compartments segregated from other areas?
a) To increase the risk of dust explosions.
b) To facilitate easy access to the equipment.
c) To reduce ventilation near the equipment.
d) To minimize the accumulation of combustible dust.
e) To decrease the risk of ignition near the equipment.
Q 8. What is NOT included in the contents of a general insurance policy according to Regulation 7?
a) Premium payable
b) The insured's favorite song
c) The address of the insurer for communications
d) Proforma of any communication the insurer may seek from the policyholders
e) The details of the riders attaching to the main policy
Q 9. According to the Indian Penal Code, what is the main distinction between theft and robbery?
a) Theft involves taking property without consent, while robbery involves violence or threats during the theft
b) Theft involves taking property in broad daylight, while robbery occurs at night
c) Theft always involves a group of people, while robbery can be committed by an individual
d) Theft involves only movable property, while robbery can involve both movable and immovable property
e) Theft is a civil offense, while robbery is a criminal offense
Q 10. What criticism was raised regarding the licensing procedure for surveyors?
a) Lack of eligibility criteria
b) Too much emphasis on practical training
c) Licensing based solely on qualifications without practical training
d) Excessive focus on apprenticeship programs
e) None of the above
Q 11. What role did the General Adjustment Bureau play in the U.S.A.?
a) It provided educational services to insurance adjusters.
b) It published a quarterly magazine for independent adjusters.
c) It established state-specific licensing and examination standards.
d) It was originally set up by insurance companies but later became commercially owned.
e) None of the above
Q 12. What method is typically used to ascertain the quantitative details of a large quantity of powdered or granulated commodities?
a) Weighing each individual unit
b) Counting the units
c) Volumetric measurements
d) Material balance calculations
e) Simulating storage based on smoke marks
Q 13. What is considered when determining the applicable depreciation for stock in trade?
a) Market demand only
b) Shelf life of the item
c) Type of building material
d) Average employee turnover
e) Brand popularity
Q 14. Why is it important for a surveyor to confirm the verification of insurable interest?
a) To minimize the insurer's liability
b) To expedite the claims settlement process
c) To confuse the insured party
d) To ensure the claim's admissibility
e) To increase the complexity of the claim
Q 15. What is the regulatory body responsible for overseeing the grievance redressal process in the insurance sector in India?
a) RBI
b) SEBI
c) IRDAI
d) NABARD