ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 06

Q1. What is the role of the Grievance Redressal Officer (GRO) at the corporate office of an insurer?

A. Handling marketing activities

B. Resolving policyholder complaints

C. Managing financial operations

D. Conducting actuarial analysis

E. Monitoring IT systems

Q2. Which of the following is NOT covered under the Standard Fire and Special Perils Policy?

A. Loss or damage to manuscripts

B. Loss or damage to computer system records

C. Loss or damage to precious stones exceeding Rs. 10,000

D. Loss or damage to business books

E. Loss or damage due to change of temperature in cold storage

Q3. Which type of Rural Insurance policy covers horticulture crops like grapes and plantation crops like rubber against specified perils such as fire, storm, flood, and riot?

A. Livestock

B. Property Insurance

C. Agricultural Pump Set Policy

D. Failed Well Insurance

E. Salt Works Policy

Q4. Which type of policy covers damage sustained by a vessel during the period of charter?

A. Ship Repairers Liability Policy

B. Off-Shore Oil/Gas Units Policy

C. Shipowners Hull and Machinery Policy

D. Charterers' Liability Policy

E. Marine Cargo Insurance

Q5. Which of the following is an example of a physical hazard in Fire Insurance?

A. The insured's credit history

B. The distance from fire-brigade facilities

C. The insured's occupation

D. The insured's age

E. The insured's education level

Q6. According to the judge in Rozanes v. Bowen (1928), why is it the duty of the assured to make a full disclosure to the underwriter?

A. Because the underwriter knows everything

B. Because the underwriter can be easily misled

C. Because the underwriter trusts the representations of the assured

D. Because the underwriter is responsible for assessing the risk

E. Because the underwriter has limited knowledge of the risk

Q7. What is the purpose of the contractual duty of utmost good faith?

A. To maximize profits for the insurer

B. To ensure fairness in premium rates

C. To protect the insured against fraud

D. To emphasize the importance of policy renewal

E. To simplify the claims process for policyholders

Q8. Under the Motor Tariff, what type of policies are allowed for vintage cars?

A. Market value policies

B. Agreed value policies

C. Comprehensive policies

D. Third-party liability policies

E. Excess insurance policies

Q9. What distinguishes "specified perils" insurance policies from "all risks" policies?

A. Specified perils policies cover only specific risks mentioned in the contract, while all risks policies cover all potential risks.

B. Specified perils policies have higher premiums compared to all risks policies.

C. All risks policies have more exclusions compared to specified perils policies.

D. Specified perils policies are only available for commercial properties, while all risks policies are for personal properties.

E. Specified perils policies have shorter policy terms compared to all risks policies.

Q10. How are losses, sacrifices, and contributions distributed according to the general average adjustment?

A. Equally among all parties involved in the voyage

B. Based on the discretion of the captain

C. Over the ship, freight, and cargo in a rateable manner

D. Only among the cargo owners

E. As per the decision of the insurance company