IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-8

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Q 1. How are interruptions in business due to damage at the supplier's premises covered under the policy?

a) The policy does not cover interruptions caused by damage at the supplier's premises

b) Interruptions at supplier's premises are covered as a standard feature of the policy

c) A separate policy is required to cover interruptions at the supplier's premises

d) Interruptions at the supplier's premises are covered with a relevant endorsement

e) Only partial coverage is provided for interruptions at the supplier's premises

Q 2. What is the purpose of Court Bonds issued by insurers?

a) To guarantee the honesty of court judges.

b) To ensure fair trial proceedings.

c) To secure the proper discharge of duties by court-appointed officers.

d) To provide financial compensation to plaintiffs.

e) To cover legal fees for court cases.

Q 3. What is NOT excluded under the Products Liability Policy?

a) Costs of repair or replacement of defective product

b) Claims for the failure of products to fulfill their purpose

c) Legal liability for injury or damage to property arising out of defects in specified products

d) Product Guarantee

e) Legal liability for injury or damage to property during transportation

Q 4. What is the consequence of breaching a warranty in insurance?

a) The insurer must offer a premium refund to the insured.

b) The contract becomes voidable from inception.

c) The insured is entitled to double the coverage amount.

d) The insurer is obligated to renegotiate the terms of the policy.

e) The insured may request a policy extension.

Q 5. How are business risks typically managed?

a) Through insurance policies

b) By avoiding or controlling them through general and functional management strategies

c) By transferring them to insurers

d) By accepting them as inevitable

e) By investing in high-risk ventures

Q 6. Which of the following is an example of a bailee?

a) Retailer

b) Manufacturer

c) Supplier

d) Pawnbroker

e) Contractor

Q 7. According to the principle of indemnity, how should a loss be made good under an insurance policy?

a) By maximizing the insured's profit

b) By ensuring the insured is worse off financially

c) By fully compensating the insured for the loss

d) By ignoring the loss completely

e) By making the insured financially better off

Q 8. What type of contracts are Fidelity Guarantee insurances?

a) Contracts of suretyship

b) Contracts of speculative investment

c) Contracts of partial indemnity

d) Contracts of liability insurance

e) Contracts of indemnity

Q 9. How does the pro-rata average condition affect the insured in case of under-insurance?

a) The insured receives compensation equivalent to the full value of the property regardless of the sum insured.

b) The insured is exempt from bearing any portion of the loss.

c) The insured is penalized by having their claim reduced proportionately.

d) The insured is reimbursed for any additional premium paid due to under-insurance.

e) The insured is not required to pay any premium for underinsured property.

Q 10. What aspects are considered for analyzing risk factors arising from the layout?

a) Aesthetic appeal and architectural design.

b) Employee satisfaction and workplace comfort.

c) Location of premises, size of the building, segregation of hazardous processes, and distribution of fire fighting equipment.

d) Production efficiency and machinery maintenance.

e) Cost of construction and building materials.

Q 11. Which of the following is NOT a salient feature of the Consumer Protection Act?

a) Compensatory nature of provisions

b) Establishment of Consumer Protection Councils

c) Exemption by the Central Government for certain goods and services

d) Establishment of a three-tier quasi-judicial machinery

e) Applicability to all sectors - private, public, or cooperative

Q 12. What punishment does Section 409 of the Indian Penal Code prescribe for a public servant or a banker who commits a criminal breach of trust?

a) Imprisonment for life

b) Imprisonment for ten years

c) Imprisonment for seven years

d) Imprisonment for three years

e) Fine only

Q 13. What is the primary focus of conferring with the insured or their authorized representative during a claim assessment?

a) Planning future vacations for the insured

b) Collecting information needed for future use in the loss assessment

c) Discussing unrelated topics to build rapport

d) Negotiating settlement terms with the insured

e) Recording details of the insurer's liabilities

Q 14. What responsibility does a Surveyor and Loss Assessor primarily hold?

a) Marketing insurance policies to potential clients

b) Investigating, managing, and quantifying losses arising from contingencies

c) Conducting market research for insurance companies

d) Providing legal advice to policyholders

e) None of the above

Q 15. Which of the following is NOT a factor affecting the admissibility of a claim?

a) Verification of policy contents

b) Verification of multiple coverage by different policies

c) Operation of exclusions

d) Examination of warranties

e) Calculation of depreciation


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