ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 12

Q1. How is the loss payable in liability insurance typically determined?

a) By the sentimental value to the insured
b) By the economic value of the property
c) By the amount of monetary compensation awarded at law
d) By the specific sum insured
e) By the reference to the earning capacity of the insured

Q2. What action is expected of the insured under common law throughout the duration of the insurance contract?

a) To increase the risk of loss intentionally
b) To minimize losses and act as if uninsured
c) To conceal information from the insurer
d) To file claims as soon as possible
e) To transfer the insurance policy to another party

Q3. What affects the amount of claim payable under a Fidelity Guarantee policy?

a) The employee's length of service
b) The employee's job title
c) The employee's reputation
d) Any sum of money payable to the employee that would become payable even without fraud or dishonesty
e) The employee's salary history

Q4. In the scenario provided in Tootal Broadhurst Lee Co v London and Lancashire Fire Insurance Co (1908), what was the proximate cause of the fire in the last insured building?

a) Earthquake
b) Oil stove
c) Burning wick
d) Radiated heat
e) Wind

Q5. In the case of Roux v Salvador, what was the outcome regarding the damaged hides?

a) The hides were salvaged and arrived at the destination port intact.
b) The hides were sold at the destination port for a considerable price.
c) The hides were so damaged by sea water that they could not have arrived in the form of hides.
d) The hides were partially damaged but retained their original character.
e) The hides were unaffected by the perils of the sea.

Q6. What is the purpose of enclosing floor openings in a building?

a) To increase usable area.
b) To allow access to various floors.
c) To confine fire to the floor on which it occurs.
d) To prevent damage to machinery and equipment.
e) To facilitate the spread of fire throughout the building.

Q7. What is the main objective of construction in interpreting an insurance policy?

a) To favor the insurer
b) To apply the principles of utmost good faith
c) To ascertain and apply the intention of the parties as expressed in the contract
d) To benefit the reinsurer
e) To avoid indemnification

Q8. How does the fluctuation in assignments impact surveyors?

a) It leads to increased efficiency
b) It has no impact on their workload
c) It creates difficulty in planning and prioritizing
d) It results in higher compensation
e) It encourages continuous professional development

Q9. How many seminars and workshops must a Fellow Member attend as part of their ongoing professional development?

a) 3
b) 5
c) 8
d) 10
e) 12

Q10. What role does the surveyor play in determining the admissibility of a claim?

a) The surveyor decides whether the claim should be settled or repudiated.
b) The surveyor provides legal advice to the insured.
c) The surveyor negotiates the terms of the insurance policy with the insurer.
d) The surveyor submits evidence to support the claim to the insurer.
e) The surveyor recommends to the insurer whether the claim should be admitted or denied based on gathered facts.