ICS05 - Engineering Insurance (Surveyor) Mock Test 04
Engineering Insurance covers construction, erection, machinery, project risks, and consequential losses. CAR policies are generally suitable for civil engineering projects, while EAR or MCE policies are designed for plant and machinery erection contracts. Important concepts include Contract Works Insurance, maintenance cover, debris removal, escalation, time excess, and project commencement. Reinsurance arrangements such as surplus treaties provide capacity based on an agreed multiple of the reinsurer’s own retention. Boiler and pressure plant definitions distinguish fired and unfired vessels. Time excess depends on factors such as equipment type, critical replacement time, and site location. Understanding these concepts is essential for Engineering Insurance Surveyor examinations.
Q1. The __________ during the twelve months immediately before the date of damage.
a) Rate of gross profit
b) Standard turnover
c) Annual turnover
d) None of these
Q2. Which of the following reinsurance methods provides reinsurance capacity up to a certain number of lines i.e. an agreed multiple of the reinsured's own net retention?
a) Facultative reinsurance
b) Quota share treaty
c) Surplus treaty
d) Excess of Loss treaty
Q3. In a Comprehensive Project Insurance policy, which of the following statements is correct with regards to sum insured or limits for debris removal?
a) Debris removal is covered in the basic sum insured
b) Sum insured or limits for debris removal are fixed separately
c) Debris removal is a standard exclusion and hence there is no sum insured or limit for it
d) It is at the discretion of the insured whether he wants to include it in the basic sum insured or fix a separate limit for it
Q4. Which of the following statements is incorrect?
a) The term Contract Works insurance is used in different insurance markets for different types of policies.
b) The European market normally uses the term 'contract works' for open Annual Floater policies for contractors who normally undertake construction works of similar nature in sufficiently large numbers.
c) A CAR policy would be most suited for contracts predominantly involving civil engineering works.
d) An EAR or MCE policy would cater to plant / machinery erection contracts.
Q5. In CAR policy which of the following is true?
a) Extended maintenance is wider cover than maintenance visit cover
b) Maintenance visit cover is wider than extended maintenance cover
c) Extended maintenance cover and maintenance visit covers are identical
d) None of the above
Q6. What shall mean an explosion of ignited gases in the furnaces or flues of the boilers economizers and super heaters?
a) Chemical explosion
b) Flue gas explosion
c) Boiler
d) Collapse
Q7. __________ is an unfired closed container under steam, gas, or fluid pressure.
a) Boiler
b) Pressure plant
c) Container
d) Tanker
Q8. The Time Excess period depends on which of the following?
a) The type of plant/equipment
b) The replacement time for critical items
c) The location of site
d) All of the above
Q9. In case of EAR/CAR Policy the risk commences from the
a) Date of Unloading of 1st consignment AT SITE
b) Date of Proposal
c) Date of Shipments/Despatch of Project Material
d) None
Q10. Which of the following policy normally covers Lift Cranes, Material Handling Plant and Equipment in the construction and project sites?
a) Contractor Plant and Machinery
b) Contractor All Risk
c) Marine Cum Erection Policy
d) Erection All Risk
