ICS05 - Engineering Insurance (Surveyor) Mock Test 17
Engineering Insurance includes construction-phase and operational-phase covers for civil engineering, machinery, and industrial projects. CAR policies protect the interests of principals, contractors, and subcontractors involved in construction projects. EAR policies cover erection risks and distinguish between cold testing and other testing stages. Reinsurance arrangements include surplus treaties, where surplus beyond net retention is ceded subject to an agreed maximum capacity. Proposal forms collect common information such as name, address, and location details. Project policies are generally issued for the project duration, while operational policies may be annual. DSU means Delay in Start-Up insurance, protecting against financial consequences of insured project delays.
Q1. Which of the following is not true regarding CAR policy?
a) Earthquake cover cannot be opted mid-term
b) CAR rate does not get reduced, if AOG perils other than Earthquake are excluded.
c) For mid-term increase in Sum Insured pro-rata premium is to be charged.
d) All are true.
Q2. The proposal form normally deals with common types of information like which of the following?
a) Name
b) Address
c) Location details
d) All of the above
Q3. What is an arrangement whereby the ceding company cedes the surplus in excess of its net retention and priority cessions like Quota Share Cession subject to an agreed maximum limit?
a) Surplus treaty
b) Quota Share Treaty
c) Excess of Loss Reinsurance
d) None of the above
Q4. Under EAR Policy Cold Testing means
a) Plant is situated at cold place
b) Checking of parts under cold condition
c) Testing of parts under "No Load" condition
d) Testing of parts under full load conditions
Q5. In EAR policy, Testing period is divided into how many categories?
a) One
b) Two
c) Three
d) Four
Q6. It is therefore, essential that a __________ must be effected and kept in force with the same insurer that is underwriting the Stocks Deterioration policy for potatoes.
a) Moral hazard
b) Pre-Insurance inspection
c) Concurrent machinery breakdown insurance policy
d) Maintenance of log book
Q7. CAR policy covers whose interest?
a) Principals
b) Contractors
c) Sub Contractors
d) All of the above
Q8. Which Insurance is a specially designed insurance policy to protect the interest of the principals and contractors engaged in civil engineering projects like construction of warehouses, hospitals?
a) Material Insurance
b) Operational Phase Insurance
c) Contractor's All Risks Insurance
d) Engineering Insurance
Q9. DSU stands for
a) Delay in Start Up Insurance
b) Derivatives Stock Units
c) Dead Stock Under Insurance
d) Diluted Stock Undertaking
Q10. Which phase Insurance Policies are normally period or one-time policies, i.e., they are issued for the period of the project?
a) Operational Phase Insurance
b) Construction Phase Insurance
