ICS05 - Engineering Insurance (Surveyor) Mock Test 14

Q1. The aim of an insurer should be to devise an optimal __________ so as to achieve a balance between the risk of incurring a retained loss or an accumulation of losses and the cost of the required reinsurance.

a) Retention
b) Reinsurance programme
c) Automatic reinsurance capacity
d) None of the above

Q2. Which of the following statements is True?

Statement 1: Machinery Loss of Profits policy is granted only if there is Machinery Breakdown policy covering the machinery.
Statement 2: Loss under Machinery Loss of Profits is payable if the material damage under Machinery Breakdown is admissible.

a) Statement 1 is True
b) Statement 2 is True
c) Both are true
d) Both are false

Q3. The Engineers make inspections for different purposes including

a) Risk improvements
b) Loss Prevention Programmes
c) Pre-acceptance inspections
d) All of the above

Q4. Marine and transit risks can be extended under which of the two engineering policies?

a) CAR and CPM
b) EAR and CECR
c) CAR and EAR
d) CAR and MB

Q5. Mobile construction equipment can be covered under

a) Motor Policy
b) CAR Policy
c) CPM Policy
d) Both a and c

Q6. CPM is

a) Coverage all risk policy with inclusion of Breakdown
b) All risk policy with exclusion of breakdown
c) Self-propelled machineries on Public / Private Road
d) None of the above

Q7. Project Policies are

a) All risk policy
b) Named Perils
c) Consequential Loss
d) Agreed Value

Q8. Under which Act, the government has provided for Inspectors who have powers to enter any factory and make examination of plant and machinery?

a) Indian Factories Act, 1948
b) Safety Rules of Plant and Machinery
c) The Indian Mines Act, 1923
d) The Indian Boiler Act, 1923

Q9. Which section(s) of the EEI policy indemnifies the additional costs which the insured shall incur to ensure continued data processing on substitute equipment?

a) Section 1: Material Damage
b) Section 2: External Data Media
c) Section 3: Increased Cost of Working (ICOW)
d) All sections

Q10. The amount of the excess should be sufficient to

a) Eliminate the cost of repairing routine minor accidents
b) Pay routine losses
c) Avoid insurance claim payment
d) Pay only losses smaller than premium