ICS07 - Miscellaneous Insurance (Surveyor) Mock Test 15

1. Which of the following factors is NOT considered when determining the premium rate for Plate Glass Insurance?

A) Previous experience of the insured
B) Neighborhood's condition and crime rate
C) Type of glass and fittings
D) Distance to the nearest hospital
E) Situation of the insured property

2. Which of the following is NOT a factor that governs the determination of the maximum amount of risk which an insurer retains on their books?

A) The nature of the risk
B) Location of the risk
C) The insurer's capacity to bear the loss
D) The insurer's marketing strategies
E) The nature of the perils covered

3. Which type of bond is issued by insurers in favor of the court to guarantee the proper discharge of duties by the administrator and the proper accounting of the estate of the deceased?

A) Employee Bond
B) Fidelity Bond
C) Administration Bond
D) Court Bond
E) Government Bond

4. Why is domiciliary hospitalization benefit not commonly available in health insurance policies?

A) It is too expensive for insurers to offer
B) It is not effective for treating medical conditions
C) It is only suitable for outpatient care
D) It is unpopular among policyholders
E) It is only available for specific age groups

5. What is the additional cover available under the Rural Accident Package Policy for hospitalization expenses arising out of accidents?

A) Up to 5% of the Capital Sum Insured
B) Up to 10% of the Capital Sum Insured
C) Up to 15% of the Capital Sum Insured
D) Up to 20% of the Capital Sum Insured

6. The Missing Documents Indemnity can be issued for a period of ______.

A) 3 months
B) 6 months
C) 1 year
D) 2 years
E) Several years

7. Mr. Mahesh has taken Commercial Fidelity Guarantee to cover any direct financial loss which he may suffer as a result of employee dishonesty. He also takes an 'Infidelity of Employees' extension. Identify the benefit of this extension.

A) Due to this extension, the damage caused due to earthquakes is also covered.
B) Due to this extension, 'money in till' in the insured's premises can be covered.
C) Due to this extension, infidelity is covered even if discovered after the specified number of hours.
D) Due to this extension, disbursement risk is also covered under the policy.
E) Due to this extension, money in a burglar-resisting safe in the insured's premises can be covered for a period in excess of 48 hours.

8. Pick the correct statement with respect to Treaty Reinsurance.

A) Companies cede a particular percentage of their premium to a pool formed by a group of companies or by the regulators, for better management of risk.
B) The ceding company is bound to cede and the reinsurers are bound to accept each and every cession which falls within the scope of the treaty.
C) The risks are shared by the ceding company and its reinsurers in some predetermined proportion.
D) The ceding company reinsures with the treaty reinsurers surpluses over and above its retention in terms, and within the size of, the treaty.
E) Each risk is proposed separately and individually to the reinsurer and the reinsurer decides whether to accept the same or not.

9. Cancellation of the Overseas Health Policy may be done ______.

A) Not less than 10 days after the first day of insurance as indicated in the policy schedule
B) When the journey is not undertaken due to ill health or flight cancellation
C) When the insured person gives an undertaking in writing that the journey has not been undertaken
D) In cases where a journey is not undertaken and only on production of the insured person's passport as proof that the journey has not been undertaken
E) Overseas health policy cannot be cancelled

10. Identify the true statement with respect to insurance of zoo animals.

A) Sum insured is based on valuation done by curator and health certificate by veterinary doctor
B) Sum insured is based on valuation done by curator only
C) Sum insured is based on valuation done by veterinary doctor only
D) Sum insured is based on valuation done by the zoo authorities
E) Zoo animals cannot be insured