ICS07 - Miscellaneous Insurance (Surveyor) Mock Test 13
This set of questions covers important concepts under ICS07 – Miscellaneous Insurance (Surveyor), including treaty reinsurance, burglary insurance, Student Safety Insurance, Pet Dog Insurance, customs and excise bonds, intellectual property insurance, cattle insurance, travel insurance plans, hut insurance, and first loss policies. The questions examine obligations under treaty agreements, the purpose of inventory and valuation clauses, premium calculation, policy extensions and exclusions, differences between customs and excise bonds, protection against intellectual property infringement, eligibility of animals under cattle schemes, worldwide travel coverage, aggregate claim limits under hut insurance, and the meaning of sum insured under first loss policies. These topics strengthen understanding of specialized insurance coverage and underwriting practices.
1. Which statement is false regarding treaty reinsurance?
A) It is obligatory for the ceding company to cede all risks within the scope of the treaty
B) It is obligatory for the reinsurer to accept any risk within the scope of the treaty
C) It is not obligatory for the ceding company to cede any risk, but the reinsurer has to accept all the cessions
D) Both the reinsurer and the ceding company are bound by the treaty agreement
2. What is the purpose of the "Inventory and Valuation Clause" in a Burglary Insurance policy?
A) To increase the sum insured for the policy
B) To ensure that all claims are fully adjusted
C) To allow the insurer to revalue the insured property at any time
D) To require the insured to provide a personal valuation
E) To establish a fixed value for the insured property
3. How is the premium for Student Safety Insurance usually calculated?
A) Based on the institution's net worth
B) Based on the number of registered students only
C) Based on the institution's location
D) Based on the institution's academic performance
E) Based on the age of the registered students
4. What is NOT a covered extension available under Pet Dog Insurance?
A) Death by accident in transit
B) Death by accidental poisoning
C) Loss of value due to illness
D) Liability for third-party personal injury and damage
E) Loss of show entry fee
5. Which statement accurately describes the difference between customs bonds and excise bonds?
A) Customs bonds are executed by importers, while excise bonds are executed by manufacturers
B) Customs bonds are simple contracts, while excise bonds are complex contracts
C) Customs bonds have a longer duration of validity, while excise bonds are mostly annual contracts
D) Customs bonds require a counter guarantee, while excise bonds do not
E) Customs bonds are executed for goods imported for personal use, while excise bonds are executed for goods to be exported
6. Intellectual Property Insurance coverage protects companies for __________ infringement claims.
A) Patent
B) Copyright
C) Trademark
D) All of the above
E) None of the above
7. Which of the following animals is covered under the scheme animals category for Cattle Insurance?
A) Exotic animals
B) Indigenous and crossbred animals
C) Animals used for agricultural purposes only
D) Animals above a certain age
8. Under which plan would a policyholder be covered for worldwide travel excluding the U.S.A. and Canada?
A) Plan A
B) Plan B
C) Plan C
D) Plan D
E) Plan E
9. What is the maximum aggregate claim limit per event under Hut Insurance?
A) Rs. 1 crore
B) Rs. 2 crores
C) Rs. 5 crores
D) Rs. 10 crores
10. Under a First Loss Policy, what does the sum insured represent?
A) The full value of the property covered
B) The average loss amount
C) The maximum probable loss on any one occasion
D) The total loss of the property
E) The sum insured is not specified in a First Loss Policy
