ICS05 - Engineering Insurance (Surveyor) Mock Test 15
Engineering Insurance involves proportional and non-proportional reinsurance, underwriting, risk management, project insurance, and construction risks. Excess of Loss is a non-proportional reinsurance arrangement, while quota share and surplus treaties are proportional arrangements. CECR underwriting considers topography, risk type, condition, age, and wear. EAR policies provide coverage during erection, testing, and maintenance periods, with maintenance often linked to the defects liability period. Delay in Start-Up insurance protects new projects against loss of profits caused by insured damage and consequent delays. Risk management progresses through identification, evaluation, control, and financing. Underwriting also considers operational experience, extensions, job-site conditions, accessibility, and project duration.
Q1. Which of the following is an example of non-proportional reinsurance arrangement?
a) Facultative reinsurance
b) Quota share treaty
c) Surplus treaty
d) Excess of Loss treaty
Q2. Under CECR policy which of the following underwriting aspects are checked?
a) Topography
b) Type and condition of the risk
c) Is it particularly old or worn above average?
d) All of the above
Q3. The basic premium under EAR policy is for period comprising-
a) Two months testing period
b) One month erection and one month testing period
c) Two months erection period
d) Three months erection period including one month's testing period
Q4. If a building is occupied in the ground floor as an Engineering workshop and first floor as a dwelling by different owners
a) First floor are rated at the higher rate for the two
b) Rated at lower rate for the two
c) Rated per se
d) Engineering workshop is rated at the rate of dwelling
Q5. The last stage of Risk Management is __________ and this includes partial risk retention with acceptance limit and risk transfer by way of insurance or otherwise.
a) Risk control
b) Risk identification
c) Risk evaluation
d) Risk financing
Q6. Delay in Start Up insurance cover is granted for the:
a) New projects to cover the loss of profits on account of any delay in start up
b) New projects to cover the loss of profits on account of insured losses and consequent delay in start up
c) Commissioned projects to cover the loss of profits on account of delay in start up after a breakdown of machinery
d) Existing projects, to cover the loss of profits of the future
Q7. Which of the following are underwriting considerations when assessing the risks?
a) Experience of the operations / or Drivers
b) Any Extension of Cover required
c) General condition of Job site and Accessibility
d) All of the above
Q8. Which policy is not issued for a period of more than 12 months?
a) CAR
b) MCE
c) SCE
d) CPM
Q9. In EAR insurance, the contractors may take out cover during the maintenance period, which is also known as __________.
a) Defects Liability Period
b) Testing Period
c) Transition Period
d) Handover Period
Q10. Which of the following is not exclusion under Contractors All Risk Insurance Policy?
a) The first amount of the loss arising out of each and every occurrence shown as 'Excess' in the Schedule
b) Accidental loss/damage during erection of plant and machinery
c) Normal wear and tear, gradual deterioration due to atmospheric conditions or lack of use or obsolescence or otherwise, rust, scratching of painted or polished surfaces or breakage of glass
d) Loss or damage due to faulty design
