IC56 FIRE INSURANCE CLAIMS - 07
| Q1.Which of the following are salient features of condition 9? |
| a) Reinstatement is at the option of the insurer and the insured has no right to claim reinstatement |
| b) Reinstatement shall not be exact or complete but shall be in a reasonably sufficient manner |
| c) It is the duty of the insured to furnish, at his expense, the insurer with all plans and such other particulars as may be required |
| d) All of the above |
| Q2.Which of the following is the role of insurer? |
| a) Insurer should take timely action in respect of claims |
| b) Insurer should take timely action in respect of Surveyor's appointment and submission of a report |
| c) Repudiation letter from the insurer should be clear, reasoned, and transparent |
| d) All of the above |
| Q3.If the Total Sum insured is more than the value at the time of loss. Then calculate Total Loss. [Mark: 1] |
| a) X Pays =RS.3,70,000 , Y Pays = Rs.80,000 |
| b) X Pays =RS.2,70,000 , Y Pays = Rs.1,80,000 |
| c) X Pays =RS.3,00,000 , Y Pays = Rs.2,50,000 |
| d) X Pays =RS.2,50,000 , Y Pays = Rs.2,00,000 |
| Q4.Express condition 9 in a fire insurance policy provides? |
| a) Forfeiture of policy benefits |
| b) Pro-rata Average |
| c) Re-instatement of replacement of property |
| d) Contribution |
| Q5.__, in simple terms, means the legal right to insure. |
| a) Consideration |
| b) Insurable interest |
| c) Underwriting |
| d) Indemnity |
| Q6.The escalation clause, applicable to policies in respect of Buildings, plants, machinery, and accessories only, acts as a cushion against inflationary trends and can be incorporated in the policies on payment of additional premiums. This clause allows an automatic regular increase in sum Insured throughout the period of the policy not exceeding_____of Sum Insured |
| a) 6.25% |
| b) 12.5% |
| c) 25% |
| d) 37.5% |
| Q7.The liability of each insurer is ascertained independently of the other, and this is called the ______. |
| a) Concurrent liability method |
| b) Independent liability method |
| c) Insured liability method |
| d) None of these |
| Q8.There is a ____ to a contract to prevent a loss or to minimise the loss if it occurs and there is no need for such a duty to be expressly incorporated in the policy as a condition. |
| a) Duty of the insured |
| b) Contents |
| c) Duty of good faith |
| d) Common law duty on each party |
| Q9.Architects, Surveyors and Consulting Engineering fees in excess of __ of claim amount but it is understood that this does not include any cost in connection with the preparation of the insured's claim. |
| a) 1% |
| b) 2% |
| c) 3% |
| d) 4% |
| Q10.What was defined as an impediment or bar arising out of one's own conduct whereby one is prohibited from averring or proving anything in contradiction to what one has either expressly averred or has by one's conduct led others to consider to be the case? |
| a) Waiver |
| b) Without prejudice |
| c) Underwriting |
| d) Estoppel |