IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 03

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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

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