ICS03 - Marine Cargo (Surveyor) Mock Test 07
These questions cover important concepts in Marine Cargo Insurance, Underwriting, General Average, Incoterms, Cargo Clauses and Special Marine Covers. Key topics include Increased Value Insurance, net retention decisions for poor risks, General Average guarantees, FCA applicability, concealed damage, break-bulk and containerized cargo, customs valuation of uninsured imports, Institute War Clauses and their duration, material circumstances affecting underwriting decisions, and temperature variation risks under frozen food insurance. Understanding these concepts helps candidates learn how marine insurers assess risks, determine retention, apply specialized clauses, and handle cargo losses and claims. These topics are highly relevant for ICS03 Marine Cargo (Surveyor) examination preparation.
Q1. By reason of the market value of the goods at destination on the date of landing being higher than the CIF and Duty value of the cargo, such losses are covered under:
a) Buyers Interest Insurance Clause
b) Sellers Interest Insurance Clause
c) Import Duty Insurance Clause
d) Increased Value Insurance Clause
e) Duration Clause
Q2. M/s. ABC Insurance Company receives a bad risk for underwriting. Considering the premium size, they have decided to underwrite the business. What would be their net retention?
a) Very High
b) High
c) Very Low
d) Low
e) Medium
Q3. The vessel owner and the salvor will have a lien over the cargo and the cargo owner will be required to furnish a guarantee or cash deposit before taking delivery of the cargo. This is a procedure in:
a) Claim settlement
b) Policy issuance
c) Documentation process
d) General Average
e) Reinstatement
Q4. FCA is best suitable for which mode of transit?
a) Road and Rail transit
b) Air and Rail transit
c) Road transit only
d) Rail and Sea transit
e) Sea voyage only
Q5. The containers, cases or packages do not show signs of visible damages and the buyer takes a clean delivery from the carrier. Which clause will provide a solution for this?
a) Label Clause
b) Picking Clause
c) Concealed Damage Clause
d) Country Damage Clause
e) Garbling Clause
Q6. Which among the following is not a break-bulk cargo?
a) Heavy Machinery
b) ODC Cargo
c) Motor Vehicles
d) Containerized Cargo
e) Steel coils in bulk
Q7. In the absence of cargo insurance, the customs authorities would add what percentage of the FOB/CFR invoice value as notional insurance premium?
a) 0.01
b) 0.0125
c) 1–1.25%
d) 0.015
e) 0.0175
Q8. The duration of Institute War (Cargo) Clause terminates, subject to the subject matter insured and as to any part as that part is discharged from an overseas vessel at the final port of discharge, upon expiry of:
a) 15 days
b) 20 days
c) 25 days
d) 30 days
e) 60 days
Q9. A material circumstance that influences the judgment of an underwriter in deciding the following factors:
a) Risk
b) Rating
c) Premium Level and Acceptance of Risk
d) Risk Factor
e) Discounts
Q10. For temperature variation risks, the coverage provided in the Institute Frozen Foods Clause is:
a) All Risk
b) ICC A
c) ICC B Coverage
d) Special Cover
e) Named Peril Cover
