IC77 ENGINEERING INSURANCE EXAM - 01

Q1.What shall mean by any fired closed vessel or a combined container piping system in which steam is generated under pressure?
   a) Pressure plant
   b) Boiler
   c) Collapse
   d) Flue gas explosion
 
Q2.Which of the following is taken into account in fixing the estimated completely erected value of the contract works under CAR Policy?
   a) Cost of material
   b) Construction costs
   c) Freight and customs duties
   d) All of the above
 
Q3.What is a prior agreement between the ceding company and the reinsurer whereby the ceding company agrees to cede and the reinsurer agrees to accept all business up to a certain limit laid down in the treaty contract upon agreed terms and conditions?
   a) Facultative reinsurance
   b) Treaty reinsurance
 
Q4.In CAR Insurance, the maintenance period is usually ____ but may vary depending on the type of contract work.
   a) 3 months
   b) 6 months
   c) 9 months
   d) 12 months
 
Q5.Which of the following is an example of 'mobile machinery'?
  a) Earthmoving machines
   b) Fixed conveyor systems
   c) Concrete batching plants
   d) Asphalt mixing plants
 
Q6.Which of the following is incorrect with respect to the CAR policy?
   a) CAR policy provides a virtually comprehensive cover for the entire civil engineering projects whilst the work is in progress and also during the maintenance period thereafter.
   b) CAR policy cover is provided on an 'All Risks' basis, i.e. every hazard which is not specifically excluded is covered.
   c) Sudden and unforeseen loss or damage occurring during the period of insurance to the property insured on the construction site is not indemnified in a CAR policy.
   d) In a CAR policy, during the maintenance period, the cover is restricted to loss or damage for which the contractors are liable according to the contract conditions.
 
Q7.An Engineering Policy can be issued to cover:
   a) Moveable equipment
   b) Portable equipment
   c) a) and b)
   d) None of above
 
Q8.The main objective of ____ is to protect the leasing company's interests as the owner of installations and machinery leased for a certain number of years under various leasing contracts.
   a) Contract Works Insurance
   b) Machinery Insurance
   c) Contractor's plant and Machinery Insurance
   d) Machinery leasing insurance
 
Q9.It is a condition precedent under the Deterioration Policy that a claim should be admitted under the Machinery Insurance Policy.
   a) Civil Engineering Completed Risks Insurance Policy
   b) Fire Insurance Policy
   c) Machinery Insurance Policy
   d) Marine Insurance Policy
 
Q10.Risk management includes
   a) Risk reduction
   b) Risk avoidance
   c) Loss minimization
   d) All the above

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