IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 05
| Q 1. Verification that the interest involved is the same as referred to in the policy is ___. |
| the sole responsibility of the actuary |
| the sole responsibility of the re-insurer |
| the sole responsibility of the co-insurer |
| one of the first steps on receipt on claim intimation |
| the job of the engineer and architect of the insurer |
| Q2.Standard Fire and Special Perils Policy can be issued to cover - 1. Urea / Ammonia synthesis plants 2. Petrochemical plants 3. LPG bottling plants located outside the refinery premises |
| Only 1 |
| Only 3 |
| 1 and 2 |
| 2 and 3 |
| All 1, 2 and 3 |
| Q3.Warranties are linked to the ___. |
| The premiums which are mentioned in the policy |
| Risk as mentioned in the assessment report |
| Classification of goods into various categories |
| Rates charged under the policy |
| The risks mentioned in the policy |
| Q4.Identify the contrast between old machinery and new machinery for determining the cost of replacement less depreciation for total loss claims – |
| Cost of replacement less depreciation is always nil for old machinery |
| Cost of replacement less depreciation cannot be calculated for new machinery |
| Cost of replacement less depreciation can be calculated easily on new machinery |
| Cost of replacement less depreciation cannot be calculated for old machinery |
| Cost of replacement less depreciation can be calculated easily on old machinery |
| Q5.Which of these policies can be classified as the ‘Consequential Loss’ policy? |
| Loss due to floods |
| Loss due to lightening |
| Damage by the water sprayed fire brigade |
| Loss due to aircraft damage |
| Loss of profit |
| Q6.Mr. Amit is the insured who has approached MMM Insurance Company through a broker Mr. Jayant. MMM Insurance Company is thinking of re-insuring the risk with QQQ Insurance Company. Mr. Satish, an underwriter, is investigating the case. Identify who among these can fix the sum insured? |
| Mr. Amit |
| MMM Insurance Company |
| Mr. Jayant |
| QQQ Insurance Company |
| Mr. Satish |
| Q7.Identify the correct option with reference to the Final Survey Report. |
| The Description of Risk section contains the measures taken by the insured at the recommendation of the surveyor to prevent further damage are described |
| In the Loss Minimisation section, the measures taken by the insured at the recommendation of the surveyor to prevent further damage are described |
| In the Circumstances and Cause of Loss section, the measures taken by the insured at the recommendation of the surveyor to prevent further damage are described |
| In the Surveyor’s recommendation section, the measures taken by the insured at the recommendation of the surveyor to prevent further damage are described |
| The Surveyor’s final report contains the measures taken by the insured at the recommendation of the surveyor to prevent further damage are described |
| Q8.Add-on covers are extensions of the fire policy relating to ___. |
| Disputed perils |
| Special perils |
| Irreversible perils |
| Transferable perils |
| Combined perils |
| Q9.A reinsurer, PPP Ltd., wants to have a regular flow of business. It believes that treaties help achieve this. Discuss if the belief of PPP Ltd. is correct or not. |
| Business depends on the economic conditions and not on treaties etc. |
| Yes, this is correct but it is based on the clauses of the treaty |
| Yes, it's correct and it also gives it a good spread of risks |
| No, it's not correct as there is no link between treaties and business flow |
| No, it's not correct and can also damage the business reputation |
| Q10.What is the difference between the terms ‘Retention’ and ‘Net holding’? |
| Retention is the exact opposite of Net holding |
| Retention is the same as Net holding and these terms are used alternatively |
| Only 'Retention' is used for sound underwriting |
| Only 'Net holding' is used for sound underwriting |
| Retention is a much broader term than Net holding |