ICS05 - Engineering Insurance (Surveyor) Mock Test 18
Engineering Insurance covers risks associated with machinery, construction, erection, electronic equipment, boilers, and industrial projects. Key concepts include excess, surrounding property, mega risks, maintenance methods, liability covers, premium instalments, business interruption, turnover, and reinsurance. Preventive maintenance aims to identify and address faults before they cause serious consequences. EAR policies may include third-party and cross-liability provisions. Comprehensive Machinery Insurance can provide business interruption cover as an optional benefit. CAR policies commonly use structured premium instalments. Standard turnover is an important concept in loss-of-profit calculations. Excess of Loss reinsurance limits the reinsurer's liability above the underlying loss retention up to a predetermined amount.
Q1. Excess is not applicable in case of
a) EAR Policy
b) EEI Policy
c) Boiler and Pressure Plant Policy
d) MBD Policy
Q2. Surrounding property covers means
a) Property belonging to other than insured
b) Property belonging to and in the custody and control of insured
c) Any property
d) None of the a, b, c
Q3. Which one of the following is a mega risk?
a) A petroleum refinery with sum insured Rs. 3000 crore
b) An organization having 25 different locations with overall SI of Rs. 2000 crore
c) A power plant with sum insured Rs. 2000 crore
d) A fertilizer plant with SI of Rs. 600 crore
Q4. The purpose of which of the following is to look for faults or weaknesses before they have detrimental consequences?
a) Preventive maintenance
b) Corrective maintenance
c) Predictive maintenance
d) None of the above
Q5. W.C Liability is covered under EAR Policy as
a) TPL
b) Cross liability
c) Cannot be covered
d) Add-on cover
Q6. DOS covers fire and allied perils
a) TRUE
b) FALSE
c) Can be covered as additional perils
d) Only fire peril is covered
Q7. In a CAR policy, what is the market practice with respect to instalment of premium?
a) None; all instalments of premium are the same
b) First instalment of premium is the highest
c) Last instalment of premium is the highest
d) Both first and last instalments are the highest
Q8. In a Comprehensive Machinery Insurance policy, which of the following statements is correct with regards to business interruption cover?
a) Business interruption cover is covered under the basic policy itself
b) Business interruption cover is a standard exclusion
c) Business interruption cover can be granted optionally
d) Business interruption cover can be granted for additional fixed premium of 25%
Q9. The __________ during that period in the twelve months immediately before the date of the damage which corresponds with the indemnity period.
a) Rate of gross profit
b) Annual turnover
c) Standard turnover
d) None of these
Q10. What is an arrangement where liability of the reinsurer is limited up to a certain pre-determined amount of loss, in excess of the amount of loss borne by the ceding company which is known as the underlying limit?
a) Excess of Loss Treaty
b) Surplus Treaty
c) Quota Share Treaty
d) None of the above
