ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 16

Q1. What is a recommended precaution for gas and electrical welding operations to mitigate fire risks?

a) Carry out welding operations near sources of ignition.
b) Perform welding operations without adequate ventilation.
c) Conduct welding operations in separate compartments.
d) Use portable equipment for welding operations.
e) Increase the accumulation of flammable vapors near the welding site.

Q2. What statutory law has a direct and indirect bearing on the conduct of insurance business?

a) Indian Contracts Act
b) Indian Penal Code
c) Insurance Act, 1938
d) Consumer Protection Act
e) Indian Evidence Act

Q3. What is designated as "stolen property" according to Section 410 of the Indian Penal Code?

a) Property acquired through inheritance
b) Property obtained through legitimate business transactions
c) Property transferred through legal means
d) Property acquired through theft, extortion, or misappropriation
e) Property entrusted to a public servant

Q4. Which trait is essential for a successful surveyor when dealing with claimants?

a) Aggressiveness
b) Tactfulness and diplomacy
c) Technical expertise
d) Indifference
e) Rigidity

Q5. What action can the Controller take against an approved surveyor or loss assessor found guilty of fraudulent activities?

a) Issue a warning to the surveyor or loss assessor
b) Suspend the surveyor's or loss assessor's license temporarily
c) Cancel the license of the surveyor or loss assessor
d) Impose a fine on the surveyor or loss assessor
e) None of the above

Q6. In the case of a fire policy claim for damage caused during a Bundh, why was the claim denied upon examination of insurable interest?

a) The insured did not have sufficient coverage
b) The insured failed to report the claim on time
c) The insured was not the rightful owner of the property
d) The policy had lapsed
e) The damages were not covered by the policy

Q7. How does the surveyor typically verify the identification of damaged property during inspection?

a) By taking photographs of the entire location
b) By recording details of the observations
c) By drawing minutes of the meeting
d) By conferring with eyewitnesses
e) By taking photographs of the damaged property

Q8. When does segregation in marine losses assume special significance?

a) When dealing with small consignments
b) When dealing with lightweight items
c) When the consignment size is large
d) When the items are easily movable
e) When the items are non-perishable

Q9. Why is it important for a surveyor to have knowledge in both technical and commercial fields?

a) To increase the workload for the insurer
b) To complicate the claim handling process
c) To ensure professionalism in handling claims independently
d) To delay the claims settlement process
e) To confuse the insurer with technical jargon

Q10. What does Loss of Profits insurance aim to provide coverage for?

a) Loss of personal belongings
b) Loss of property due to theft
c) Loss of or damage to buildings and machinery by fire
d) Trading losses due to total or partial stoppage of the business
e) Physical injuries to employees