IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-69

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Q 1. Which of the following is excluded from coverage under an All Risks Insurance Policy regarding theft?

a) Theft from any type of vehicle

b) Theft from a fully enclosed saloon-type car securely locked and properly fastened

c) Theft from any building or premises

d) Theft of money and securities

e) Theft of jewelry and watches

Q 2. What does a warranty regarding the use of a vessel typically specify?

a) The color of the vessel

b) The number of crew members onboard

c) The specific trade or trades for which the vessel can be employed

d) The date of manufacture of the vessel

e) The brand of the vessel's engine

Q 3. what principle lies at the basis of the modern joint stock company?

a) Limited liability

b) Spreading risks over a wider field

c) Sole proprietorship

d) Partnership agreements

e) Profit maximization

Q 4. Are marine hull policies assignable without the insurer’s agreement?

a) Yes, always

b) Yes, but only after loss

c) No, never

d) Only with the insurer's agreement

e) Only with the insured's consent

Q 5. In the scenario provided, if the total loss is Rs60,000 and the total sum insured is Rs3,00,000, how much does each insurer pay?

a) Insurer A: Rs. 10,000, Insurer B: Rs. 20,000, Insurer C: Rs. 30,000

b) Insurer A: Rs. 20,000, Insurer B: Rs. 30,000, Insurer C: Rs. 40,000

c) Insurer A: Rs. 5,000, Insurer B: Rs. 10,000, Insurer C: Rs. 15,000

d) Insurer A: Rs. 15,000, Insurer B: Rs. 25,000, Insurer C: Rs. 20,000

e) Insurer A: Rs. 25,000, Insurer B: Rs. 35,000, Insurer C: Rs. 40,000

Q 6. Why does contribution not typically apply in personal accident insurance?

a) Personal accident insurance policies do not cover any liabilities

b) Personal accident insurance is considered a contract of indemnity

c) Personal accident insurance policies have unlimited coverage

d) Personal accident insurance does not involve third-party claims

e) Personal accident insurance policies are not subject to any regulations

Q 7. Which type of condition prevents the insured from recovering a particular claim, while the policy remains otherwise valid?

a) Condition after the contract.

b) Condition precedent of liability.

c) Condition precedent to the contract.

d) Condition after liability.

e) Condition after liability.

Q 8. What increases the risk of fire transmission between two buildings across an enclosed gangway?

a) Enclosing the gangway with fire-resistant materials.

b) Reducing the height of the buildings.

c) Constructing perfect party walls.

d) Using non-combustible construction for the gangway.

e) Building open spaces between buildings.

Q 9. What action should a general insurer take upon receiving communication of a loss from the insured, according to Regulation 9?

a) Wait for 30 days before responding

b) Respond immediately and provide a clear indication of claim procedures

c) Reject the claim without investigation

d) Ignore the communication

e) Ask for additional premiums

Q 10. In fire insurance, how are the last three words interpreted in the phrase "Machinery and plant and all other contents"?

a) Confined to items of the same type as machinery and plant

b) Limited to items of high value and small bulk

c) Broadly covering general contents

d) Exclusively applying to works of art

e) Restricted to jewelry

Q 11. How should a surveyor react to the initial reaction of the insured?

a) Trust the insured's assessment immediately

b) Document the insured's assessment as the final report

c) Investigate thoroughly before making any conclusions

d) Ignore the insured's assessment and proceed independently

e) Reject the insured's claims outright

Q 12. Which organization in Australia is affiliated with the Loss Assessors Council of Australia?

a) Institute of Insurance Assessors of New Zealand

b) Institute of Fire Loss Assessors of Australia

c) Australian Division of the C.I.L.A.

d) Association formed in Western Australia

e) None of the above

Q 13. What happens to the insurance policy when there is a transfer of insurable interest, such as in the sale of goods?

a) The policy is automatically transferred to the new owner

b) The policy remains with the original owner

c) The policy is canceled

d) The policy is modified

e) The policy becomes void

Q 14. Which of the following is NOT a factor influencing depreciation?

a) Frequency of repairs or part replacements

b) Climate conditions

c) Retail value of the property

d) Usage intensity

e) Age when acquired

Q 15. What is the key responsibility of the surveyor regarding salvage recovery?

a) Organizing protective measures

b) Reviewing stock-related books

c) Capturing still photographs

d) Optimizing salvage recovery

e) Discussing with eyewitnesses



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