ICS03 - Marine Cargo (Surveyor) Mock Test 04
These questions cover key concepts in Marine Cargo Insurance, Marine Reinsurance, Underwriting, Cargo Containers, Marine Claims and Insurance Institutions. Important areas include factors influencing vessel and fleet underwriting results, moisture-related cargo risks, excess of loss reinsurance agreements, and the principle of utmost good faith in marine insurance contracts. The questions also examine suitable containers for temperature-sensitive cargo such as ice cream, types of letters of credit, sue and labour expenses, package insurance coverage, and the role of insurance education institutions. The Institute Cargo Clauses time limit after arrival is also addressed. These topics are important for ICS03 Marine Cargo (Surveyor) examination preparation.
Q1. The underwriting result of a vessel or fleet is considerably influenced by which of the following?
a) Material used in the making of the vessel
b) Safety equipment installed in the vessel
c) Deductible imposed
d) All of the above
Q2. Which of the following has associated risks where the biggest threat is damage due to moisture because of improper ventilation or water ingress, including rainwater?
a) Aluminium
b) Coal, Coke and Charcoal
c) Rice
d) Asbestos
Q3. Which of the following is true regarding an excess of loss marine reinsurance agreement?
a) Reinsurer pays excess of an ultimate net loss
b) Reinsurer bears the entire loss in case it exceeds an ultimate net loss
c) Reinsurer does not pay anything in case the loss exceeds a specified limit
d) Reinsurer pays a fixed amount irrespective of the size of loss
Q4. A contract of marine insurance is based on the principle of __________, and this means that the proposer has a legal duty to disclose all material facts relating to the proposed insurance.
a) Underwriting
b) Utmost good faith
c) Warranties
d) Representation
Q5. Which among the following containers is best suited for transporting ice cream?
a) Reefer containers
b) Tank containers
c) Ventilated containers
d) Flat track containers
Q6. Which Credit cannot be cancelled by the buyer?
a) Revocable Credit
b) Confirmed Credits
c) Unconfirmed Credits
d) Irrevocable Credit
Q7. Which of the following is the amount recoverable for Sue and Labour expenses?
a) Either the full amount or three-fourth, according to policy conditions
b) The amount as computed in the same way as for GA expenditure
c) The full sum expended, subject to the ship being fully insured
d) None of the above
Q8. A Package Insurance Policy would cover:
a) Property damage
b) Port blockage
c) Liability for Errors and Omission
d) All of the above
Q9. Which aims to serve the learning and developmental needs of emerging markets in the context of their contemporary challenges in the Insurance sector?
a) The Insurance Institute of India
b) The National Insurance Academy
c) The Institute of Insurance and Risk Management
d) The IAI (Institute of Actuaries of India)
Q10. Under Institute Cargo Clause, until the subject-matter insured is sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of __________ after arrival of the subject-matter insured at such port or place, which is applicable?
a) 15 days
b) 30 days
c) 45 days
d) 60 days
