IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 07

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Q1.Rohit has taken a regular fire policy and he claims that 'Loss of Market' is covered under such policy. The insurer claims that 'Loss of Market' is not included. What are the correct view and the solution?
   Rohit is absolutely right as a regular fire policy allows for 'Loss of Market'
   The insurer is right as a regular fire policy only allows for material damage
   Both, Rohit and the insurer can approach a court of law to seek a solution
   Both, Rohit and the insurer can approach an arbitrator to seek a solution
   Both, Rohit and the insurer can approach IRDA to seek a solution
 
Q2.Fire insurance rates are determined on the assumption that property ___.
   has never been insured before
   has been insured before
   is insured for its full value
   is insured for its half value.
   could be under some dispute
 
Q3.The Fire Tariff rules and wordings are applicable to ___.
   Standard Fire and Special Perils Policies
   Standard Fire Policies
   Standard Motor Policies
   Only Special Perils Policies
   Long Period Policies
 
Q4.Investigation into the ____ requires common sense, imagination, and technical knowledge
   drafting of policy
   genuineness of the claim
   disputes between the insurer and the insured
   cause of loss
   underwriting functions
 
Q5.What is the difference between - Contract price insurance clause and the Spontaneous combustion clause?
   The former is applicable to inflammable goods only while later to imported goods
   The former is applicable to non-inflammable goods only
   The former is applicable to hazardous goods only while later to imported goods
   The former is applicable to manufactured goods only while later to natural goods
   The former is applicable to imported goods only while later to internally combustible commodities
 
Q6.What is the similarity between Acceptance cum Receipt and Cover Note?
   Both are same
   Pending preparation of the policy, insurers can issue either of them
   Both are completely different
   Both are not acceptable in the court of law
   Both are regularly amended
 
Q7.What is the difference between a Quota share treaty and the Surplus treaty?
  In a Quota share treaty, there is the binding agreement of ceding and accepting all the risks underwritten
  In a Surplus treaty, there is a binding of ceding and accepting
  The surplus treaty is a type of non-proportional treaty insurance
  A quota share treaty is a type of non-proportional treaty insurance
  A quota share treaty is a type of facultative reinsurance
 
Q8.'Fire Load' is most suitable to measure ease of ignition. Discuss -
   Yes, Fire Load is most suitable to measure ease of ignition
   No, Flash Point is most suitable to measure ease of ignition
   No, Explosion Point is most suitable to measure ease of ignition
   No, Fire Resistance is most suitable to measure ease of ignition
   No, Resistance Point is most suitable to measure ease of ignition
 
Q9.What is the 'True and Fair view’ with respect to accounts of the insurer?
  All appropriate estimates of premium gains should be placed as of 31st March in accounts
  All appropriate estimates of accumulated gains should be placed as of 31st March in accounts
  All appropriate estimates of losses should be placed as of 31st March in accounts
  Contingent assets of the insurer must be shown on the liabilities side of the balance sheet
  Contingent liabilities must be shown on the liabilities side of the balance sheet
 
Q10.What is the role of ‘Adjustment Clause’?
   By using the Adjustment Clause, any deduction may be made to the pre-fire figures taken to calculate the loss
   By using the Adjustment Clause, any addition may be made to the post-fire figures taken to calculate the loss
   By using the Adjustment Clause, any increment may be made to the post-fire figures taken to calculate the loss
   By using the Adjustment Clause, any adjustment may be made to the pre-fire figures taken to calculate the loss
   By using the Adjustment Clause, any adjustment may be made to the post-fire figures taken to calculate the loss

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