ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 02
Fire and marine insurance policies contain provisions that determine liability when multiple policies cover the same property. Surveyors are expected to assess claims fairly, promptly, and professionally while maintaining a conciliatory approach. Insurers reduce misunderstandings by educating policyholders about policy terms and conditions. Information about an insured's background helps evaluate moral hazards during underwriting and policy renewal. Fire insurance also provides supplementary covers, including temporary removal of stocks, while specifying covered property and policy exclusions. Marine collision liability offers limited legal liability coverage. Understanding insurable interest, especially in mortgaged property, and recognizing moral hazards are essential for effective underwriting and claims management.
Q1. According to the clause in the Standard Fire Policy, how is the liability determined when both marine and fire policies cover the same affected item?
A. The marine policy covers the entire loss
B. The fire policy covers the entire loss
C. The marine policy covers the loss up to its sum insured, and the remainder is covered by the fire policy
D. The fire policy covers the loss up to its sum insured, and the remainder is covered by the marine policy
E. Both policies contribute equally to cover the loss
Q2. What attitude should surveyors adopt when dealing with average cases for assessment?
A. Aggressive and confrontational
B. Indecisive and passive
C. Conciliatory and prompt
D. Skeptical and cynical
E. Authoritative and dismissive
Q3. How can insurers address misconceptions about insurance policies?
A. By increasing premiums
B. By providing exaggerated benefits
C. By promoting awareness of policy conditions
D. By offering additional discounts
E. By limiting coverage options
Q4. How does including details of the insured's background benefit the insurer during policy renewal?
A. It increases the workload for the insurer
B. It confuses the insured party
C. It reduces the chances of policy renewal
D. It provides valuable information to assess moral hazards and risks
E. It delays the claims settlement process
Q5. What does the "Temporary Removal" cover provide?
A. Cover for damage caused by the insured's own Rail/Road vehicles
B. Cover for spoilage material damage
C. Cover for stocks temporarily removed for processing, etc.
D. Cover for leakage and contamination of oil/chemicals
E. Cover for loss of rent due to an unfit building
Q6. Which of the following is an example of insurable property typically covered under fire insurance for commercial establishments?
A. Residential furniture
B. Playground equipment
C. Inventory of goods
D. Personal vehicles
E. Swimming pools
Q7. Which of the following is an exclusion under the policy?
A. Reimbursement of funeral expenses
B. Compensation for loss of limb(s)
C. Service in the armed forces
D. War risk cover
E. Compensation for permanent total disablement
Q8. What supplementary cover is provided under Collision Liability?
A. Full reimbursement of collision damages
B. Coverage for damage caused by war and nuclear risks
C. Three-fourths of the legal liability incurred due to collision
D. Coverage for damages caused by natural disasters
E. Coverage for damages caused by the negligence of the Master, Officers, Crew, or Pilots
Q9. In what scenario might moral hazard arise from difficult insured individuals?
A. During times of economic depression
B. When fraudulent claims are made
C. When employees lack understanding of insurance policies
D. When insured individuals deliberately cause losses
E. When insured individuals demand unreasonably high compensation after a loss
Q10. Who has insurable interest in a property when a mortgage is involved?
A. Only the mortgagor
B. Only the mortgagee
C. Both the mortgagor and the mortgagee
D. Neither the mortgagor nor the mortgagee
E. Only the insurer
