IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 10

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Q1.What is the ‘Average Clause’ with respect to consequential loss policy?
   It applies when there is no insurance
  It applies to every insurance
   It applies when there is under insurance
   It applies as per the insurer and the insured’s desire
   It applies when there is over insurance
 
Q2.Arial or space devices includes the following: 1. Balloons 2. Rockets 3. Artificial satellites
   Only 3
   1, 2 and 3
   1 and 3
   2 and 3
   1 and 2
 
Q3.Suggest a condition that is similar in both, a consequential loss policy and a fire policy.
  There is no such condition that is similar in both policies
   If the insured opts for his option to reinstate, the sum insured will stand reduced by the amount of loss
   If the insured opts for his option not to reinstate, the sum insured will stand reduced by the amount of loss
  If the insured opts for his option not to reinstate, the claim will stand reduced by the amount of loss
   If the insured opts for his option to reinstate, the claim will stand reduced by the amount of loss
 
Q4.Describe the concepts of ‘value’ and ‘depreciation’.
   They have highly complex meaning under the insurance law
   They involve great theoretical difficulties while analyzing
   They involve both, theoretical as well as practical difficulties while analyzing
   They are theoretically simple but their application to practical situation involve problems
   They involve great practical difficulties while analyzing
 
Q5.What is frequently difficult to say at once in a business?
  What amount of claim would be
  What amount of loss would be
   What the surveyor’s opinion it would be
   What the gross profit of the business is likely to be
  What length of interruption is likely to be
 
Q6.An insurer, XYZ Ltd. states that it should be in a position to determine the cause of loss and assess the extent of loss under absolute right. Judge whether this is correct.
   Correct, XYZ Ltd. has such right
   Not correct, such a determination of the cause is not at all important
   Not correct, it totally depends on the IRDAI notifications
   Not correct, there is no such right to the insurer
   Not correct, it totally depends on the insurance agreement
 
Q7.One of the duties of surveyors with respect to their knowledge of the markets is_
   To identify the best auctioneer
  To help the insured to save market-related taxes
  To help the insurer to save market-related taxes
   To locate the loopholes where the insured can cheat
   To identify customers for salvage
 
Q8.The information with regards to ‘Previous losses suffered by the insured, whether covered by insurance or not’ is included under:
   Average
   Description of risk
   Insurable interest
   Description of damage
   Cause of loss
 
Q9.ABC Ltd. (an insurer), has proposed property for insurance but could not pay the premiums in advance. Select the correct option with regards to the above situation.
   The property proposed for insurance will not be covered until the premium is paid in advance.
   The property proposed for insurance will not be covered until the premium is paid upto the extent of 50%.
   The property proposed for insurance will not be covered until the premium is paid upto the extent of 25%
   The property proposed for insurance will not be covered until the premium is committed by signing a bond
   The property proposed for insurance will not be covered until the premium is paid upto the extent of 75%
 
Q10.Suggest a valid option, if parties to the insurance want to opt for Litigation instead of referring to the Arbitration process.
   The parties can go ahead since the Arbitration will be less expensive
  IRDAI guidelines do not allow both the options
   The parties should not opt for the same as it will be more expensive
   Both options are not permitted under the Insurance Act 1938
   Insurance disputes can be handled only by high courts having jurisdiction

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