ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 04
Insurance claim assessment requires accurate depreciation methods, detailed survey reports, and compliance with policy conditions. Survey reports provide essential evidence for insurers when determining liability, especially for those not present at the loss site. Policyholders must be informed about grievance redressal mechanisms, including the Insurance Ombudsman. Business interruption insurance may cover wages on a pro-rata basis, while crime insurance protects against financial losses from forged instruments. Export package policies provide inland transit coverage under specified clauses. Insurance agents have a duty of utmost good faith by disclosing all material facts. Breach of warranty can invalidate coverage, while the Marine Insurance Act recognizes the insurer's right of subrogation.
Q1. What practical complications arise in applying percentage depreciation?
A. Lack of understanding of depreciation concepts by the insured
B. Variation in depreciation rates across different asset classes
C. Disagreements between the insurer and the surveyor
D. Difficulty in assessing the cost of replacing damaged property
E. Inconsistencies in insurance policy wording
Q2. What purpose does the survey report serve for individuals distant from the survey scene?
A. It increases confusion among stakeholders
B. It serves as a source of workload for the insurer
C. It provides the only evidence for decision-making on liability
D. It delays the claims settlement process
E. It expedites the policy renewal process
Q3. What details should the insurer provide to the policyholder if the grievance is not resolved in their favor?
A. Name of the CEO
B. Name and address of the insurance agent
C. Details of the insurance policy
D. Name and address of the Insurance Ombudsman of competent jurisdiction
E. Contact information of the insurer's legal department
Q4. What does the "Pro-rata" basis method of insuring wages involve?
A. Insuring wages for a shorter indemnity period than the gross profit cover
B. Insuring wages for the full indemnity period, but with certain limitations
C. Insuring wages based on specific employee categories
D. Insuring wages separately from the gross profit cover
E. Insuring wages without any limitations
Q5. What does Depositors' Forgery Coverage in Crime Insurance protect against?
A. Losses due to natural disasters
B. Losses from instruments like fraudulent cheques
C. Losses from employee theft
D. Losses due to computer fraud
E. Losses due to accidental damage
Q6. What are the risks covered during inward transit under Section I of the Package Policy for Exporters?
A. Only theft and pilferage
B. Only natural disasters
C. As per Inland Transit (Rail/Road) Clause
D. A specified list of risks
E. All risks, including those excluded in other sections
Q7. What action is taken before granting inland transit cover on goods imported from abroad?
A. Inspection of the goods to check for damages
B. Loading of premium
C. Survey before acceptance
D. Incorporation of specific clauses
E. None of the above
Q8. What duty does an agent have when placing insurances on behalf of the proposer?
A. Only disclose material circumstances known to the proposer
B. Only disclose material circumstances known to the agent
C. Make a full disclosure of all material facts known to the proposer and agent
D. Disclose only those material facts requested by the underwriter
E. Avoid disclosing any material facts unless specifically asked by the underwriter
Q9. In insurance contracts, what is the consequence of breaching a warranty?
A. The insured receives compensation
B. The policy is renewed automatically
C. The insurer must provide additional coverage
D. The aggrieved party can repudiate the contract
E. The insurer adjusts the premium rates
Q10. What provision of the Marine Insurance Act, 1963, deals with the right of subrogation?
A. Section 75
B. Section 77
C. Section 79
D. Section 81
E. Section 83
