ICS05 - Engineering Insurance (Surveyor) Mock Test 08
Engineering Insurance provides protection for construction, erection, machinery, storage, and project-related risks. Erection All Risk (EAR) policies generally cover risks during erection and commissioning, while third-party liability is separately addressed within the policy structure. Hot testing involves testing under full or partial load and normal or simulated operating conditions, whereas cold testing is conducted under no-load conditions. Comprehensive Project Insurance can combine construction and erection risks. Contractor All Risk policies may be extended for unfinished project portions subject to policy conditions. Reinsurance methods include facultative reinsurance, quota share, surplus treaties, and excess of loss. Understanding premium adjustments, underinsurance, project extensions, and policy coverage is essential for ICS05.
Q1. The standard Erection All Risk insurance policies does not cover:
a) Fire risk
b) Negligence
c) Storm caused damages
d) Removal of debris
Q2. The checking of parts, elements and/or production lines of insured property under full or partial load and normal or simulated operating conditions including the use of feedstock or other material for normal processing or other media for load stimulation is known as:
a) Hot testing
b) Cold testing
c)
d)
Q3. Industrial All Risk policy allows under insurance up to
a) 15% of Sum Insured
b) 20% of Sum Insured
c) No allowance for under insurance
d) Under insurance to be computed as per fire tariff
Q4. In an Erection All Risk (EAR) Insurance Policy, the provisions related to third party liability are covered under __________.
a) Section I
b) Section II
c) Section III
d) Section IV
Q5. Which policy is suitable for storage of potatoes under engineering departments?
a) CPM
b) BE
c) EAR
d) DOS
Q6. In EAR policy
a) Prime cost of materials is subject to premium adjustment
b) Freight and handling charges, customs dues and construction cost is not subject to premium adjustment
c) Prime Cost of materials is not subject to premium adjustment
d) None of the above is correct
Q7. Which policy covers both erection and construction risks?
a) Comprehensive Project Insurance
b) Comprehensive Machinery Insurance
c) Construction Annual Policies (Floaters)
d) Machinery Leasing Insurance
Q8. Under a Contractor All Risk policy issued for construction of a road project, is to be extended for a further period
a) Can be done only for the full sum insured
b) Can be extended for the balance sum insured excluding the completed portion which is not put into service
c) Cannot be extended
d) Can be extended for value of remaining project completion + 50% of SI for the completed portion
Q9. In __________ method, the ceding company offers each and every risk in excess of its own retention capacity for reinsurance and the reinsurer examines each risk according to its merit.
a) Facultative reinsurance
b) Quota share treaty
c) Surplus treaty
d) Excess of loss reinsurance
Q10. Project Policies are
a) All risk
b) Named Perils
c) Consequential Loss
d) Agreed Value
