IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 05

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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

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