ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 09
Insurance claim assessment follows a systematic process that includes investigation, evidence collection, loss evaluation, and preparation of the final survey report. Surveyors rely on independent observations and authenticated records to determine the cause and extent of loss. Fire insurance claims have evolved from traditional methods to modern professional assessment practices. Deductible clauses reduce the insurer's liability by a specified amount, while open marine policies automatically cover declared consignments. Transit insurance excludes certain specified losses, and lay-off compensation insurance is limited to statutory liabilities. Mortgage clauses safeguard lenders' interests, allowing insurers to recover payments made where no liability exists to the property owner.
Q1. What is the final step in the claim assessment process before submission to the insurer?
A. Negotiating settlement terms with the insured
B. Preparing the final survey report
C. Capturing evidences of damages
D. Organizing immediate disposal of affected items
E. Creating additional paperwork
Q2. What was the claims procedure like in the early decades of fire insurance?
A. Simple and straightforward
B. Involving consultation with priests
C. Required swearing on oath before a judge
D. Exclusively handled by insurance agents
E. Not documented
Q3. What is a common method used for disposing of damaged articles or materials?
A. Through auction houses
B. Through insurance brokers
C. Through the insured
D. Through government agencies
E. Through charitable organizations
Q4. How does the deductible clause affect the insurer's liability in case of a loss?
A. Increases the insurer's liability by a fixed amount
B. Reduces the insurer's liability by a fixed amount
C. Adjusts the insurer's premium based on claim history
D. Transfers the insured's liability to the insurer
E. Provides full coverage regardless of the deductible amount
Q5. What should a surveyor rely on primarily when presenting details of the occurrence?
A. Details furnished by the insured
B. Independent observation and investigation
C. Eyewitness accounts provided by the insured
D. Physical observations only
E. Visual observations only
Q6. What is one of the real difficulties faced by surveyors in analyzing sets of records?
A. Identifying the appropriate statutory requirements
B. Determining the exact amount of loss
C. Substantiating or disproving the authenticity or completeness of records
D. Ensuring compliance with tax regulations
E. Communicating findings to the insurer
Q7. How is the insurance under the Lay-Off / Retrenchment Compensation cover limited?
A. It covers all expenses incurred by the employer during industrial disputes
B. It covers only the legal fees associated with lay-off or retrenchment cases
C. It is limited to the amount the insured becomes legally liable to pay as per the Industrial Disputes Act, 1947
D. It covers all costs associated with employee healthcare
E. It covers the entire salary of employees during lay-off or retrenchment periods
Q8. What is excluded from coverage under transit insurance?
A. Losses due to error or omission
B. Losses caused by natural disasters
C. Losses resulting from employee negligence
D. Losses due to late delivery
E. Losses arising from mechanical breakdown
Q9. How are consignments declared under an open policy handled?
A. Each consignment requires a specific policy
B. Automatically covered by the insurer
C. Excluded from coverage
D. Issued a cover note
E. Covered only after approval by the insurer
Q10. What happens if the company pays a claim to the bank when there is no liability to the mortgagor or owner?
A. The bank retains the claim payment
B. The company has no rights against the mortgagor or owner
C. The company is entitled to recover the payment from the mortgagor or owner
D. The company becomes legally subrogated to all the rights of the bank
E. The claim payment is refunded to the company
