ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 11
These questions cover important concepts from Principles and Practice of Insurance and Survey and Loss Assessment. Key areas include the jurisdiction of consumer commissions, the concept of bailment, procedures followed by surveyors after severe fire losses, deductible and excess provisions, and methods of documenting damage. The questions also cover accounting records such as the Purchase Day Book, insurable industrial property, additional coverage under Plate Glass Insurance, marine insurance open covers, and the Temporary Removal Clause. Understanding these topics helps candidates prepare for insurance examinations by strengthening their knowledge of insurance principles, claims assessment, survey procedures, policy conditions, accounting concepts, and specialized insurance covers
Q1. What type of jurisdiction does the National Commission have over State Commissions?
a) Original
b) Appellate
c) Supervisory
d) Regulatory
e) Advisory
Q2. Which of the following is an example of a bailee?
a) Retailer
b) Manufacturer
c) Supplier
d) Pawn broker
e) Contractor
Q3. In cases of severe fire losses, why might it be advisable to defer detailed inspection to the next day?
a) To allow the surveyor more time to formulate an action plan
b) To avoid excessive loss caused by smoke and water damage
c) To hasten the claim settlement process
d) To prevent further damage to undamaged materials
e) To expedite salvage recovery measures
Q4. When are deductible/excess limits typically specified in an insurance policy?
a) After a claim is filed
b) During the renewal of the policy
c) At the time of purchasing the policy
d) When the policyholder requests a change
e) Only for high-value assets
Q5. How should a surveyor present the qualitative and quantitative details of observed damages?
a) Omit details of damages from the report
b) Present them solely through textual descriptions
c) Use photographs appended to the report and possibly a table of damages
d) Rely on the insured's descriptions of damages
e) Use vague descriptions to confuse the insurer
Q6. How are transactions recorded in the Purchase Day Book?
a) Debit what comes in and credit what goes out
b) Credit what comes in and debit what goes out
c) Debit the receiver and credit the giver
d) Debit all losses and expenses and credit all gains and incomes
e) Debit the giver and credit the receiver
Q7. Which of the following is an example of insurable property related to industrial or manufacturing risks?
a) Residential property
b) Agricultural land
c) Water and effluent treatment plant
d) Public parks
e) Residential furniture
Q8. Which type of glass requires an additional premium to be covered under Plate Glass Insurance?
a) Plain glass
b) Embossed glass
c) Laminated glass
d) Tinted glass
e) Frosted glass
Q9. What is the duration of an open cover in marine insurance?
a) Valid for all voyages
b) Valid for a single voyage or transit
c) Valid for a specified duration, usually twelve months
d) Valid for inland transits only
e) Valid for a specified duration, usually six months
Q10. How much of the total sum insured is covered under the Temporary Removal Clause?
a) Up to 5%
b) Up to 10%
c) Up to 15%
d) Up to 20%
e) Up to 25%
