IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 03
| Q 1. An insurer is of the belief that a condition in the fire policy can modify the applications of contribution and subrogation. Is this true? |
| No, it's not true |
| Yes, it's true |
| No, it's not true. Insurance policies cannot be made functional without the applications of contribution and subrogation. |
| Earlier it was true but now, with a change in rules, it's not true |
| Yes, it's true as by inserting a special clause, this can be validated |
| Q2.When should the Insurable Interest exist in fire insurance? |
| Insurable interest should exist at the time of taking the policy, continue throughout its currency but may not exist at the time of a loss |
| Insurable interest may not exist at the time of taking the policy, but it should be there throughout its currency and should exist at the time of a loss |
| Insurable interest should exist at the time of taking the policy, may not continue throughout its currency but should exist at the time of a loss |
| Insurable interest should not exist at the time of taking the policy, not continue throughout its currency, and should not exist at the time of a loss |
| Insurable interest should exist at the time of taking the policy, continue throughout its currency, and should exist at the time of a loss |
| Q3.If an insurer, on the receipt of a survey report, finds that it is incomplete in any respect, he shall require the surveyor under intimation to the insured, to furnish an additional report on certain specific issues as may be required by the insurer. Such a request may be made by the insurer _____. |
| within 3 days of the receipt of the original survey report |
| within 7 days of the receipt of the original survey report |
| within 15 days of the receipt of the original survey report |
| within 21 days of the receipt of the original survey report |
| within 31 days of the receipt of the original survey report |
| Q4.What is the advantage of a Declaration policy to an insurer? |
| Irrespective of the premium eventually paid on expiry of the policy, the liability under the policy remains up to the sum insured at all times during the currency of the policy |
| Irrespective of the premium eventually paid on expiry of the policy, the liability is restricted to 75% of the sum assured at all times during the currency of the policy |
| Irrespective of the premium eventually paid on expiry of the policy, the liability is restricted to 65% of the sum assured at all times during the currency of the policy |
| Irrespective of the premium eventually paid on expiry of the policy, the liability is restricted to the cost of the asset |
| Irrespective of the premium eventually paid on expiry of the policy, the liability is restricted to sum assured except during the currency of the policy |
| Q5.The premium ultimately payable under a Declaration Policy is ___. |
| limited to the actual amount at risk irrespective of the sum insured |
| limited to the average amount of risk irrespective of the sum insured |
| limited to the actual amount of risk irrespective of the cost of the asset |
| limited to the latest amount of risk irrespective of the market value of an asset |
| equal to the actual amount of risk irrespective of the market value of an asset |
| Q6.As per the Claims Procedure, all expenses for submission of proof in respect of claim should be ___. |
| equally shared by the insurer and insured |
| reimbursed by the insurer to the insured |
| reimbursed to the insurer by IRDA / SEBI |
| borne by insurer |
| borne by insured |
| Q7.Which important part of the policy provides for items insured under the policy and the relative sums insured? |
| Definitions |
| Specification |
| Schedule |
| Material Damage Proviso |
| Coverage |
| Q8.Which of these statements is inappropriate with respect to the cost of debris removal? |
| The cost of debris removal in excess of 5% can be considered on the addition of an extension clause |
| The cost of debris removal in excess of 7.5% can be considered on the addition of an extension clause |
| The cost of debris removal in excess of 10% can be considered on the addition of an extension clause |
| The cost of debris removal in excess of 2% can be considered on the addition of an extension clause |
| The cost of debris removal in excess of 20% can be considered on the addition of an extension clause |
| Q9.When is the calculation of loss by ‘Output Basis’ adopted in C L Policies? |
| The output basis is adopted where loss measurement under turnover basis provides a fair indemnity to the insured, as when accumulated stocks are used by the insured to maintain turnover in which case there will be a reduction in turnover although there is no reduction in output. |
| The output basis is adopted where loss measurement under turnover basis does not provide a fair indemnity to the insured, as when accumulated stocks are used by the insured to maintain turnover in which case there will be no reduction in turnover although there is the reduction in output. |
| The output basis is adopted where loss measurement under turnover basis provides a fair indemnity to the insured, as when accumulated stocks are used by the insured to maintain turnover in which case there will be a reduction in turnover although there is the reduction in sales. |
| The output basis is adopted where loss measurement under turnover basis provides a fair indemnity to the insured, as when accumulated stocks are used by the insured to maintain turnover in which case there will be a reduction in turnover although there is a reduction in output |
| The output basis is adopted where loss measurement under turnover basis provides a fair indemnity to the insured, as when accumulated stocks are used by the insured to maintain turnover in which case there will be no reduction in turnover although there is the reduction in output |
| Q10.The subject matter of fire insurance may be ___. |
| any kind of movable property |
| any kind of immovable property |
| any kind of both movable and immovable property |
| any kind of both movable, immovable, and intangible property |
| any kind of both movable and immovable property having pecuniary value |