ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 10
Insurance principles emphasize effective risk management, policy interpretation, and fair claim settlement. Business risks may arise from production issues such as labour disputes, while marine insurance assignments must follow legal requirements. The principle of contribution ensures that multiple insurers share liability proportionately, and the doctrine of proximate cause determines the effective cause of loss for claim decisions. Constructive total loss provisions require specific actions by the insured under marine insurance law. Fire safety highlights structural hazards like floor openings that encourage fire spread. Regulations govern policy cancellation, surveyor licensing, and professional fees. Surveyors must also review policy documents to assess claims accurately and fairly.
Q1. What is an example of a risk related to production as outlined?
A. Decrease in consumer spending power
B. Changes in exchange controls
C. Labour problems such as strikes or work-to-rule tactics
D. Increase in market interest rates
E. Changes in fashion and consumer preferences
Q2. When must assignment be made?
A. Before the insured parts with his interest in the subject-matter
B. After the insured parts with his interest in the subject-matter
C. At the discretion of the insurer
D. Only after a claim has been filed
E. At any time during the policy period
Q3. What is the insurer entitled to under the principle of contribution?
A. The insurer is entitled to recover double the amount of the loss from other insurers
B. The insurer is entitled to recover the full amount of the loss from the insured
C. The insurer is entitled to recover a proportionate amount from other insurers who are liable for the loss
D. The insurer is entitled to refuse payment of the claim
E. The insurer is entitled to terminate the policy immediately
Q4. What role does the doctrine of proximate cause play in maintaining balance between insureds and insurers?
A. It favors insurers over insured parties
B. It allows insured parties to manipulate the scope of coverage
C. It imposes restrictions on both insureds and insurers
D. It prevents insurers from providing coverage
E. It enables common-sense interpretation of insurance contracts to the mutual advantage of both parties
Q5. What action is required to prevent a constructive total loss according to Section 60(1)(b)?
A. The insured must abandon the subject matter
B. The insured must seek additional insurance coverage
C. The insured must make necessary repairs immediately
D. The insured must take actions exceeding the saved value
E. The insured must file a claim with the insurer
Q6. What is the risk associated with well holes in floors?
A. They allow free passage for fire and smoke
B. They facilitate the spread of fire between floors
C. They provide access to various floors
D. They increase the usable area of the building
E. They obstruct the movement of fire
Q7. According to Regulation 7, what provision must be made for cancellation of the policy?
A. Misrepresentation
B. Fraud
C. Non-disclosure of material facts
D. All of the above
E. None of the above
Q8. Which action does NOT constitute "housebreaking" under Section 445 of the Indian Penal Code?
A. Entering or leaving through a passage opened by the occupier of the house
B. Scaling or climbing over a wall or building to enter or leave
C. Using a passage not intended for human entrance
D. Entering or leaving through a passage made by the offender or an abettor of the offense
E. Opening a lock to commit theft or to leave after committing house trespass
Q9. What is the purpose of obtaining a copy of the current insurance policy with all relevant endorsements?
A. To learn about the insured individual's favorite movies
B. To establish the cause of loss or damage
C. To verify the insured individual's hobbies and interests
D. To understand the specific policy conditions relevant to the claim
E. To assess the insured individual's family history
Q10. What is the maximum fee for making an application to act as a Surveyor or Loss Assessor under Section 64UM?
A. Rupees 100
B. Rupees 200
C. Rupees 250
D. Rupees 500
E. Rupees 1000
