ICS05 - Engineering Insurance (Surveyor) Mock Test 19
Engineering Insurance includes erection, machinery, project delay, testing, maintenance, and loss-of-profit concepts. Cold testing involves checking insured property under no-load conditions, while hot testing involves normal or simulated operating conditions. Erection All Risks insurance relates to installation of plant and machinery. CPM policies contain specific exclusions, including certain inventory-related losses. Engineering terminology includes boiler, collapse, chemical explosion, and flue gas explosion. Loss-of-profit calculations involve rate of gross profit and turnover concepts. EAR policies allow escalation provisions and maintenance periods subject to policy terms. Time Excess represents the period of delay borne by the insured. Policy schedules contain important contract-specific information such as policy number, insured details, period, and sum insured.
Q1. Cold testing is the checking of parts and elements of the insured property by mechanical or other forms of testing under __________ conditions.
a) Full load
b) Partial load
c) No load
d) Extreme Load
Q2. Which insurance relates to the installation of plant or machinery?
a) Computer Insurance
b) Erection All Risks Policy
c) Machinery Breakdown
d) Electronic Equipment Insurance
Q3. Losses discovered only at the time of taking inventory are not covered under the CPM policy. Say whether True or False.
a) TRUE
b) FALSE
c)
d)
Q4. Match the correct option:
- Boiler — a) An explosion of ignited gases in the furnaces or flue of the Boiler
- Collapse — b) An explosion arising out of chemical reaction in any plant
- Chemical Explosion — c) Any fired closed vessel or a combined container
- Flue Gas Explosion — d) Sudden and dangerous distortion of any part of a boiler or pressure plant
a) 1-a, 2-b, 3-c, 4-d
b) 1-c, 2-d, 3-b, 4-a
c) 1-b, 2-c, 3-d, 4-a
d) 1-d, 2-c, 3-a, 4-b
Q5. The rate which would have been earned, had the accident not occurred, on the turnover during the Indemnity period?
a) Annual turnover
b) Rate of gross profit
c) Annual gross profit
d) Turnover
Q6. An insured desires to have a maintenance period of 8 months, for which the annual rate is Rs. 0.50 per mille and half-year rate is Rs. 0.25 per mille. You will charge from the insured a premium rate of
a) Rs. 0.25 per mille
b) Rs. 0.33 per mille
c) Rs. 0.40 per mille
d) Nil
Q7. __________ is the period within the period of delay for which loss is borne by the insured.
a) Period of indemnity
b) Commercial operation period
c) Testing period
d) Time Excess
Q8. Maximum permissible escalation under an EAR policy is
a) 0.25
b) 0.5
c) 0.75
d) None
Q9. Silent Risks means more than 30 days under
a) No Risk
b) No manufacturing activity including storage
c) No manufacturing activity excluding storage
d) Annual over handling of machines / plants
Q10. __________ containing information applicable to the particular contract, e.g. Policy number, name of the insured, address and business, period of insurance, sum insured for each item if separately insured against, the description of such item, amount etc.
a) Attestation or Signature Clause
b) Schedule
c) Conditions
d) The Preamble or Recital Clause
