ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 03
Insurance contracts impose specific duties on policyholders during underwriting and claim settlement. Fidelity guarantee insurance requires the insured to assist the insurer in recovering losses from defaulting employees. Marine insurance determines insurable value based on agreed policy terms, while fire insurance outlines compensation for property loss or damage. Policyholders must promptly notify insurers and submit claims within prescribed timelines. Industrial risk management emphasizes safe facility layouts to reduce fire hazards. Consumer protection laws ensure the right to choose among products and services. Surveyors play a vital role by verifying policy coverage, investigating losses, determining liability, and accurately assessing damages using practical valuation methods.
Q1. What action is the insured required to take in fidelity guarantee insurance if the insurer makes a payment for an insured act?
A. The insured must reimburse the insurer immediately
B. The insured must waive all rights against the employee
C. The insured should assist the insurer in maintaining claims or rights against the employee
D. The insured must cancel the policy
E. The insured is not required to take any action
Q2. According to Section 29(3) of the Marine Insurance Act, 1963, what is conclusive of the insurable value of the subject intended to be insured?
A. Market value determined by the insurer
B. Agreed value policy
C. Wholesale price of the goods
D. Fixed value by the policy
E. Market value at destination
Q3. What action should the insured take in the event of loss or damage covered by the insurance policy?
A. Notify the company immediately and submit a written claim within 30 days
B. Notify the company within 15 days and provide proof of loss within 30 days
C. Submit a written claim within 15 days and provide details of other insurances
D. Notify the company within 15 days and submit a written statement of the claim within 30 days
E. Submit a claim form provided by the company within 15 days of the loss
Q4. What does the operative clause of the fire policy provide?
A. Replacement value for all damaged or destroyed property
B. Payment of the market value of the property at the time of loss
C. Payment of the actual value of the property before the occurrence of loss
D. Reinstatement value for all damaged or destroyed property
E. Payment of the value of the property at the time of its destruction or the amount of such damage
Q5. Why should loading racks for dispatch of products be located in separate blocks in a petrochemical facility?
A. To optimize transportation routes
B. To facilitate communication between different areas
C. To minimize the risk of fire spreading to storage tanks and process units
D. To reduce construction costs
E. To improve operational efficiency
Q6. Which right ensures the consumer's access to a variety of products and services at competitive prices?
A. The Right to be informed
B. The Right to choose
C. The Right to safety
D. The Right to be heard
E. The Right to redress
Q7. What intent is sufficient to establish the offense of falsification of accounts under Section 477A of the Indian Penal Code?
A. Specific intent to defraud a particular person
B. General intent to commit fraud without specifying a victim or amount
C. Intent to deceive one's employer for personal gain
D. Intent to cause financial loss to competitors
E. Absence of any specific intent
Q8. What significant change was introduced by the Insurance Regulatory and Development Authority (IRDA) in 2000?
A. Introduction of licensing procedures for insurers
B. Implementation of standardized claim settlement processes
C. Formation of a regulatory body for surveyors and loss assessors
D. Establishment of professional requirements and a code of conduct for surveyors
E. None of the above
Q9. What is the first step a surveyor must take before assessing the extent of liability in a claim?
A. Assess the quantum of loss
B. Verify the policy contents
C. Confirm the insured's compliance with policy requirements
D. Investigate the circumstances of the loss
E. Determine the proximate cause of loss
Q10. How can counting be simplified when assessing the quantitative details of a large quantity of items?
A. Weighing each item individually
B. Counting a known unit area and multiplying the result
C. Using volumetric measurements
D. Assessing material balance calculations
E. Analyzing smoke marks on the walls
