ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 01

Q1. In what circumstances may insurers allow assignment of the "death benefit"?

A. Only to charitable organizations

B. Only to business partners

C. Only to creditors

D. Only to specific near relatives

E. Only to the insured's estate

Q2. What is the duty of the insured in cargo insurance policies regarding loss or damage?

A. To avoid filing claims against carriers or bailees

B. To refrain from taking any measures to minimize losses

C. To preserve and exercise their rights against carriers, bailees, or other third parties

D. To immediately give clean receipts for goods in doubtful condition

E. To waive all rights against carriers or bailees

Q3. What determines the damages awarded under the Workmen's Compensation Act?

A. Employer's discretion

B. Scale prescribed in the policy

C. Legal fees

D. Scale prescribed in the Act

E. Workmen's Compensation insurance premium

Q4. How long does the insurer have the right to exercise the "right of entry" under the insurance policy?

A. Until the insured submits a written claim

B. Until the insured gives notice of no claim or the claim is determined or withdrawn

C. Until the insured files a lawsuit

D. Until the insured receives compensation for the loss

E. Until the insured completes repairs to the damaged property

Q5. How are tanks grouped in a tank farm according to their hazards?

A. Based on their proximity to roads

B. According to their chronological order of installation

C. Randomly to optimize space utilization

D. According to their distance from utilities and auxiliaries

E. Based on the similarity of hazards they possess

Q6. In which type of policy is the "Duty of Assured Clause" typically found?

A. Marine Policies

B. Engineering Policies

C. Motor Policies

D. Fire Policies

E. Liability Policies

Q7. What does the Insurance (Amendment) Act, 2002, define as an "Insurance Co-operative Society"?

A. An organization formed by insurance agents

B. A society providing insurance to its members

C. A government regulatory body for the insurance sector

D. A corporation offering insurance policies to the public

E. An association of insurance companies

Q8. What constitutes the offense of falsification of accounts under Section 477A of the Indian Penal Code?

A. Accidental misplacement of accounting records

B. Intentional destruction or alteration of employer's records with the intent to defraud

C. Honest error in accounting entries

D. Unauthorized access to accounting software

E. Unintentional omission of material particulars from accounting documents

Q9. Which action constitutes "housebreaking" when it involves entering or leaving by force?

A. Climbing over a wall or building

B. Entering through an opening not intended for human entrance

C. Opening a lock to enter or leave

D. Exiting through a passage made by the offender

E. Breaking open a window to gain entry

Q10. Under what circumstance would the Controller not issue a direction for the payment of a lesser sum?

A. If the insured refuses to cooperate with the investigation

B. If the insurer can prove that the excess payment would cause undue hardship to the insured

C. If the loss occurred due to an excluded peril

D. If the insurer has already paid the claim in full

E. If the insured's policy has expired