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Your Result for Mock Test 05

Result Fail
No of Questions 25
Question Attempted 25
Total Marks 25

Your Marks 9
Percentage Obtained 36%

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~ DETAILED RESULT ~

Q (1): While sending a cargo by sea, there is always a possibility of handling and stowage losses.
To avoid such losses, DUNNAGE is used. What does it mean by Dunnage?

1. Palletizing of goods to save space and avoid damage

2. Loose material like wooden planks to support the cargo to avoid contact (This is the correct answer)

Explanation : In order to avoid handling and stowage loss, dunnage is used to give necessary
protection. The term ‘Dunnage’, refers to loose materials like mats, wooden planks etc. used to support
and protect cargo in a ship’s hold to avoid contamination and contact to give necessary protection.

3. Stacking of heavier goods at the bottom and light weight goods on top

4. Stacking goods to save space and avoid damage

5. Spreading the goods throughout the deck of ship to maintain balance (Your answer is incorrect)

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Q (2): __________is defined as the active and efficient cause that sets in motion a train of events
which brings about a result, without the intervention of any force started and working actively from
a new and independent source.

1. Proximate cause (Your answer is correct)

Explanation : Proximate cause is an active and efficient cause that sets in motion a train of events which
brings about a result, without the intervention of any force started and working actively from a new and
independent source. The doctrine also applies on Third Party Claims also.

2. Uberrima Fidae

3. Concurrent cause

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4. Particular average

5. Subrogation

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Q (3): "A person legally holding the goods of another either for payment or gratuitously" is known
as:

1. Executor

2. Bailment (This is the correct answer)

3. Trustee

4. Insured (Your answer is incorrect)

5. None of the Above

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Q (4): A cargo of __________can gain weight in case it is shipped under imperfect condition.

1. Fruits

2. Vegetables

3. Grains (This is the correct answer)

4. Crude Oil (Your answer is incorrect)

5. All of the above

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Q (5): A policy is __________where different species of goods are insured by the same contract.

1. renewable

2. sharable (Your answer is incorrect)

3. acceptable
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4. enforceable

5. apportionable (This is the correct answer)

Explanation : A policy is apportionable where different species of goods are insured by the same
contract, e.g. tobacco and coffee or where separate valuations of the goods are agreed.

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Q (6): An insurer was verifying a proposal for insuring a vessel for hull insurance and the insurer
felt that there was an indication of MORAL HAZARD. What would the insurer do?

1. Proposal would be accepted with strict conditions (Your answer is incorrect)

2. Increase the premium

3. Limit the coverage scope

4. Do a special survey

5. Proposal will be declined by the insurer (This is the correct answer)

Explanation : If there is an indication of moral hazard, the proposal will be declined. Superior or inferior
types of vessels can be rated, but moral hazard cannot be

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Q (7): Describe CASH LESS insurance?

1. It’s an agreement by the insurers with preferred garages to repair the damaged insured vehicles by

charging for the inadmissible costs only and admissible claim costs are paid by insurance company
directly to the repairer
(Your answer is correct)
Explanation : Insurers enter into agreement with preferred garages and authorized service centers to
repair the insured vehicles by charging for the inadmissible costs only and the admissible claim costs are
directly to the repairer.

2. It’s an agreement by the insurers with preferred garages to repair the damaged insured vehicles by
charging both for the inadmissible costs and admissible costs both which paid by insurance company
directly to the repairer

3. It’s an agreement by the insurers with preferred garages to repair the damaged insured vehicles by
bearing on their own by the owner the inadmissible costs and admissible costs both which paid by
insurance company directly to the repairer

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4. It’s an agreement by the insurers with preferred garages to repair the damaged insured vehicles by
charging for the inadmissible costs only and admissible claim costs are paid by insurance company
directly to the repairer from the Solatium Fund

5. None of the above

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Q (8): From the options given below, which one is a feature of Roll on – Roll off (RO-RO) ships?

1. These vessels are specially designed to carry containers

2. These vessels are specially designed to carry liquid likes crude oils etc (Your answer is incorrect)

3. These vessels carry containers in the forms of barges and massive cranes for loading and unloading
operations

4. These vessels are mainly used in transportation of passengers

5. These vessels are specially designed to carry wheeled cargo such as cars, trucks etc. that are driven

on and off the ship on their own wheels

(This is the correct answer)
Explanation : A RO-RO vessel does not have any cranes. The vehicles like lorries, trailers etc. are
driven on board with the cargo and once they reach the destination, they are driven out. Cars and other
vehicles also can be transported by them. These vessels are very useful where there are inadequate
handling facilities.

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Q (9): In India, motor insurance has to be compulsorily taken as per Section _______of the Motor
Vehicles Act 1988.

1. 110

2. 125 (Your answer is incorrect)

3. 138

4. 146 (This is the correct answer)

5. 160

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Q (10): In the case of Neon Sign Insurance, the insurance is in respect of loss or damage to the
neon sign installation by which of the following?

1. External explosion

2. Accidental external means

3. Lightning (Your answer is incorrect)

4. Theft

5. All of the above (This is the correct answer)

Explanation : A Neon Sign Insurance cover applies in respect of loss or damage to the neon sign
installation by accidental external means or fire, lightning, external explosion and theft.

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Q (11): Methods of detecting underwriting fraud in early stage include . 1.Seizure memo 2.64 VB
Compliance Certificate 3.Investigation report 4.Copy of cover produced by the applicant in MACT
in support of the claim

1. 1 and 3

2. 2 and 4 (Your answer is incorrect)

3. 1,2 and 3

4. 1, 2 and 4

5. All 1,2,3 and 4 (This is the correct answer)

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Q (12): Mr. Shyam is seeking indemnity from the insurer under Permanent Total Disability (PTD) for
his cattle as per the Cattle Insurance cover. In cattle insurance, such indemnity is limited
to___________ of Sum Insured.

1. 0.45

2. 0.5 (Your answer is incorrect)

3. 0.6

4. 0.75 (This is the correct answer)

Explanation : In Cattle Insurance, the indemnity is limited

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5. 0.85

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Q (13): Which of these is NOT included in the Survey Report while mentioning the

Policy details ?

1. Networth of the insured (Your answer is correct)

Explanation : The details of policy which are normally included in the Survey Report include all of the
above except the networth of the insured.

2. The validity period of the policy

3. Policy number

4. Name and address of the insurer and insured

5. Particulars of clauses affecting the reported loss

6. None of the Above

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Q (14): Rate of Depreciation Varies from:

1. 5% to 50% (Your answer is correct)

2. 10 to 50%

3. 20-30%

4. All of the Above

5. None of the Above

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Q (15): Sumeet had purchased a car 8 months back and it met with an accident. What depreciation
will be deducted for parts replaced due to the accident?

1. 0.025
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2. 0.05 (Your answer is correct)

Explanation : In case age of vehicle is exceeding 6 months but not exceeding 1 year, there will 5 %
depreciation that will be deducted for parts replaced following an accident. However, there would be 50%
depreciation for rubber parts.

3. 0.1

4. 0.15

5. 0.2

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Q (16): The minimum age of entry for individual in a health policy is _______years

1. 2.5 years

2. 3 years (Your answer is incorrect)

3. 5 years (This is the correct answer)

4. 7 years

5. 10 years

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Q (17): The principle of _______________states that ‘BUYER BEWARE'.

1. Principle of Indemnity (Your answer is incorrect)

2. Principle of Buycare

3. Principle of Caveat Emptor (This is the correct answer)

Explanation : Caveat Emptor' is a Latin term that means "let the buyer beware." As per the principle of
Caveat Emptor, the buyer alone is responsible for checking the quality and suitability of goods before a
purchase is made.

4. Principle of Utmost Good faith

5. Principle of Uniformity

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Q (18): To decide the market value or reinstatement value of goods at the time of loss in Marine
Insurance is a difficult proposition. Why?

1. Because in the Marine Insurance Act, there is no provision for such valuation

2. Because in marine policies, agreed rule concept is adopted

3. Because the insured property in marine insurance is moving property, that is ships and cargoes

(Your answer is correct)

Explanation : It is difficult to decide market value or reinstatement value of goods at the time of loss in
Marine Insurance, as the insured property in marine insurance is moving property, that is ships and
cargoes and the values keeps on fluctuating and the cargo appreciates as it reaches closer to the
destination.

4. Because once a property is insured property it does not have a market value

5. Because the insured property is subjected to only double insurance

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Q (19): What are the rights of the insurer in the event of claims in Plate Glass Insurance? 1.All
salvage glass shall be the property of the insurers 2.The insurers can pay the claim amount in cash
for the intrinsic value of the broken glass 3.The insurers can make replacement by glass of similar
manufacture and quality

1. Only 2

2. Only 3 (Your answer is incorrect)

3. 1 and 2

4. 1 and 3

5. All 1,2 and 3 (This is the correct answer)

Explanation : In the event of a claim, the amount payable under the Plate Glass policy is restricted to the
intrinsic value of the broken glass up to the amount specified in the policy against the relevant item. All
salvage glass shall be the property of the insurers and must be carefully preserved. The insurers have the
option either to pay in cash the amount of the intrinsic value of the broken glass, or to make replacement
by glass of similar manufacture and quality.

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Q (20): What is the advantage of Specific Voyage Policy?

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1. In this policy, the insured has the freedom to select the shipment which is to be insured. He doesn’t

have to insure shipments of less value, thus reducing the cost of premium
(Your answer is correct)
Explanation : Under the Specific Voyage Policy, the insured is not bound insure all his shipments as is
the case under Open Cover. He is free to select the shipment which is to be insured and doesn’t need to
insure shipments of less value, which reduces the cost of premium.

2. In this policy, if the consignment are to be dispatched during holidays then it will be difficult to arrange
for the insurance

3. In this policy, if any insurance is wrongly taken or not taken by mistake, there is no scope for correction

4. In India, where there are many holidays and if the consignment is to be dispatched during holidays it
will be difficult to arrange for the insurance

5. In Specific Voyage Policy, the operational control and administrative cost are high as a new policy is to
be taken for every dispatch

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Q (21): Which all risk are covered in Institute Cargo Clauses(C)?

1. Craft Being stranded

2. Craft Being Grounded

3. Craft Being Sunk

4. Craft Being Capsized

5. All of the Above (Your answer is correct)

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Q (22): Which of the following is not a consequential loss policy?

1. Fire loss of profit (Your answer is correct)

2. Machinery Loss of profit

3. Advance loss of profit

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4. All of the Above

5. None of the Above

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Q (23): Which of the following is not a type of Rural Property Insurance?

1. Salt Works Policy

2. Failed Well Insurance (Your answer is incorrect)

3. Agricultural Pumpset

4. Indemnity Policy (This is the correct answer)

5. Crop Insurance Policy

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Q (24): Which of the following is not an exclusion in Neon Sign Insurance?

1. Fusing or burning out of any bulbs arising out from short circuiting

2. Repair or cleaning (Your answer is incorrect)

3. Damage to tubes unless glass is fractured

4. All of the Above

5. None of the Above (This is the correct answer)

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Q (25): Which of the following is not covered in Television Insurance?

1. Theft

2. Riot and strikes

3. Depreciation (This is the correct answer)

4. Earthquake (Your answer is incorrect)

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5. None of the Above

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