IC77 ENGINEERING INSURANCE EXAM - 09

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Q1.A special Contractors All Risk Insurance policy was created in ___ in 1934.
   a) London
  b) the U.S.A
   c) Germany
   d) Britain
 
Q2.The turnover which would have been achieved, had the accident not occurred, during the ____ after the planned date of completion of the insured works.
   a) 3 months
   b) 6 months
   c) 12 months
   d) 18 months
 
Q3.____is an arrangement where the liability of the reinsurer is limited up to a certain pre-determined amount of loss, in excess of the amount of loss borne by the ceding company which is shown as the Underlying Limit.
   a) Facultative reinsurance
   b) Quota share treaty
   c) Surplus treaty
   d) Excess of Loss treaty
 
Q4.Which testing is also known as operational and commissioning tests?
   a) Hot testing
   b) Cold testing
 
Q5.Failure of mechanical components can occur due to which of the following?
   a) Lack of lubrication
   b) Vibration
  c) Open circuiting/ short-circuiting
   d) All of the above
 
Q6.Which of the following risks is a pressure plant exposed to?
   a) Distortion or breakage of the crankshaft
   b) Explosion due to internal pressure and collapse
   c) Mechanical and electrical breakdown
   d) Cracking of cylinder heads due to overheating
 
Q7.Which is also known as Limited Maintenance cover?
   a) Maintenance visits cover
   b) Extended maintenance cover
 
Q8.Endorsements are issued on standard forms and must be carefully drafted to make the intention quite clear. Say whether True or False.
   a) True
   b) False
 
Q9.The New India Assurance Co.Ltd. started transacting engineering Insurance on a modest scale in ____ with the technical assistance of Munich Reinsurance Co.
   a) 1923
   b) 1933
   c) 1943
   d) 1953
 
Q10.A client approaches you and asks for coverage of External Data Media (without any backup) along with his electronic equipment, you will:
  a) Accept the proposal by charging a normal premium.
  b) Accept the proposal by charging an additional premium.
   c) It is not permitted to issue EEI policy in this case.
   d) None of the above.

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