IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 09

 0  0
Q1.The tax authorities permanently confiscated some stocks of Mr. A due to fiscal violations. Judge this example and choose the correct option from below.
   The loss due to confiscation is not at all covered under the policy
   The loss due to confiscation is fully covered under the policy
   The loss due to confiscation should be partially covered under the policy
   A pro-rata inclusion can be made under the policy
   The loss can be covered if the tax authorities permit the same
 
Q2.Mr. X wanted to give a monthly declaration for the purpose of declaration policies. What should be the valid base for it?
   The average value on any day of the month
   Average of the highest value at risk on each day of the month
   The highest value on any day of the month
   All the above
  Options b and c
 
Q3.Which of the below statements is true regarding old machines which perform well and old machines where the rate of technological improvement is high?
   Cost of replacement calculation is not possible for the former one
   Cost of replacement calculation is a complicated task for the former one
  The cost of replacement is always zero for the former one
   Cost of replacement calculation is a complicated task for the latter one
   Cost of replacement calculation is not possible for the latter one
 
Q4.Note down one of the special features under Section IV.
   One industry-One rate
  The dual rate for a single policy
   Per Se rate for all industries
  Single rate for a single policy
  The dual rate for all industries
 
Q5.Which plan of action is helpful in making the task of valuing the stock-in-process easy?
   Improvement in taxation accounting
   Improvement in the financial accounting system
  Improvement in liaisoning with the government agencies like ROC, SEBI, etc.
   Implementation of the techniques of financial management
   Implementation of an efficient cost accountancy method
 
Q6.Under insurance and loss experience, information will relate to whether the insurance was _____________.
   Suggested by some professional advisor
   Offered first by any other insurer
  Declined or canceled or not renewed by other insurers
   Suggested by some government authority
 
Q7.Mr. B’s factory building is about 50 meters away from the next building. State the correct assumption in this case.
   This is not a case of an exposure hazard
   This is clearly a case of an exposure hazard
   There is an exposure hazard as the distance between two buildings has no relevance for spreading the fire
   It cannot be assumed that there is no exposure hazard without consideration of the conditions existing between the buildings.
   It cannot be assumed that there is no exposure hazard without consideration of the conditions existing inside the buildings
 
Q8.Choose from below, the statement which is contrarily related to the depreciation for insurance purposes?
  Depreciation means agreed value to be deducted every year from the cost of the asset
   Depreciation means, depreciation as per the Companies Act
   Depreciation means, actual intrinsic physical depreciation
   Depreciation means, depreciation rates used for accounting purposes
   Depreciation means, depreciation as per the Insurance Act
 
Q9.Identify the variation between the Supervision clause and the Moral Hazard clause.
   Moral Hazard clause requires assessment of housekeeping function
   Supervision clause is easier for assessment
   Supervision clause requires assessment of risk coverage
  The moral Hazard clause is mandatory whereas the former is optional
  The Moral Hazard clause is easier for assessment
 
Q10.ABC Ltd. (a reinsurer), says that there cannot be proportionate sharing of risks in the Excess of loss treaty. State whether ABC ltd. is correct.
   Yes. ABC Ltd. is correct
   Yes, ABC Ltd is correct, but it depends mainly on the agreement
  No, ABC Ltd is incorrect. What it says is about the surplus treaty
   No, ABC Ltd is incorrect. What it says is about quota share
  No, ABC Ltd is incorrect. What it says is about proportional treaties
 

Click Here for Answer Key

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow