IC56 Mock Test Sample 2
Fire insurance claims involve surveyors assessing coverage, property details, and exclusions. Principles like indemnity, contribution, and proximate cause guide claim settlement. Estoppel and waiver arise when insurers knowingly accept risk despite misstatements. Key conditions include limitation periods and communication requirements. Cover notes provide temporary insurance proof. Loss assessment depends on property characteristics, reconstruction cost, and salvage value. Perils like explosion, impact damage, and ignition define coverage, while exclusions like war apply. Surveyors investigate causes and extent of loss but must not encourage loss maximization. Claim sharing occurs under contribution. Disputes may go to arbitration, ensuring fair and legally compliant claim resolution.
Q1. Surveyor should examine which of the following policies?
a) Scope of coverage
b) Property covered
c) Property excluded
d) All of the above
Q2. An insurer, after learning of a misstatement on a proposal, still accepts the insurance. This is an example of:
a) An express estoppel
b) Estoppel by conduct
c) An express waiver
d) Waiver by conduct
Q3. A simple definition of _________ is a sudden violent burst with a loud report.
a) Fire
b) Explosion
c) Lightning
d) Riot
Q4. The second part of Condition 6 is known as __________ condition.
a) Onus of proof
b) Limitation
c) Declaration on oath
d) Consideration
Q5. Issue of a ___________ constitutes acceptance on the part of the insurer and provides provisional cover.
a) Offer
b) Acceptance
c) Cover note
d) Counter-offer
Q6. For determining sound value of a destroyed steel plant, which is useful evidence?
a) Its measurement and construction
b) Its count, weight and measurement
c) Its character
d) Its cost of reconstruction
Q7. What is a corollary of the principle of indemnity to prevent over-compensation?
a) Contribution
b) Escalation clause
c) Depreciation
d) Pro-rata average
Q8. Damage caused due to impact by vehicle or animals is known as:
a) Flood damage
b) Direct damage
c) Indirect damage
d) Impact damage
Q9. Indemnity for buildings is based on cost of ____________.
a) Causes of deterioration
b) Reinstatement or reconstruction
c) Maintenance of the building
d) Partial loss of a building
Q10. The doctrine of proximate cause applies equally to exceptions under which policy?
a) Insured perils
b) Uninsured perils
c) Excluded perils
d) None of these
Q11. __________ is to ascertain and apply the intention of the parties as expressed in the contract.
a) Rules of construction
b) Object of construction
c) Regulations of construction
d) Condition of construction
Q12. Which condition states that every notice and communication must be written or printed?
a) Condition 10
b) Condition 12
c) Condition 14
d) Condition 15
Q13. Which of the following is an example of excluded perils?
a) Fire
b) Lightning
c) Forest fire, war and war-like perils
d) None of these
Q14. Which statement is correct regarding fire policy?
a) Excludes bush fire and forest fire
b) Covers bush fire and forest fire
c) Covers forest fire but excludes bush fire
d) Covers bush fire but excludes forest fire
Q15. Under the principle of Contribution, calculate the claim payable by each policy:
Policy X = ₹4,000
Policy Y = ₹2,000
Total Loss = ₹6,000
a) X = ₹4,000, Y = ₹2,000
b) X = ₹3,000, Y = ₹3,000
c) X = ₹2,000, Y = ₹4,000
d) X = ₹5,000, Y = ₹1,000
Q16. There should be ________, meaning presence of flames is necessary to constitute fire.
a) Ignition
b) Accident
c) Legal cases
d) Consideration
Q17. In some cases, _________ may be available for disposal and deducted from claim amount.
a) Pro-rata average
b) Deduction of excess
c) Value of salvage
d) Extent of indemnity
Q18. Identify the incorrect duty of a surveyor:
a) To investigate causes of loss
b) To ascertain extent of loss
c) To advise insured on loss maximization and destruction of salvage
d) To advise insurers on disposal of salvage
Q19. What is the significance of Condition 11 in a fire insurance policy?
a) Contribution in case of multiple policies
b) Policy voidable due to misrepresentation
c) Communication must be written
d) Disputes referred to arbitration
Q20. Firms engaged in selling salvage on commission are known as:
a) Private sale
b) Sale by Tender
c) Public Auctioneers
d) Through the Insured
