IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 11
| Q1.If ABC Ltd. has received a claim of Rs. 300000 and there is a salvage of Rs. 50000, what is the net amount of the claim? |
| Rs 20000 |
| Rs 50000 |
| Rs 250000 |
| Rs 350000 |
| Rs 300000 only |
| Q2.Which of the following statement is true? |
| Tariff schedule is of the same type for all policies |
| Endorsements are common for all policies |
| Common warranties are used for all policies |
| Policy schedule is commonly used for all policies |
| All policies have common add-ons |
| Q3.When the service of a workman is terminated because of continued ill health, it is excluded under the definition of ____. |
| Suspension |
| Voluntary Retirement |
| Dismissal |
| Lay-off |
| Retrenchment |
| Q4.General observations made in respect of past failures in business would help in the evaluation of ____hazard. |
| Intentional |
| Moral |
| Failure |
| Criminal |
| Loss experience |
| Q5.Choose from below one of the important factors which enter underwriting: |
| Fire resistance check |
| Add-on evaluations |
| Risk evaluation report |
| Reinsurance of the surplus |
| Declaration policy requirements |
| Q6.Mr. A has a sum assured of Rs.100000 and his risk is rated under ‘materials stored in godown’. In this case what is the Maximum incidental open storage is allowed up to? |
| Rs.20000 |
| 0.01 |
| Rs.200 |
| Rs.2000 |
| Such open storage is not allowed at all |
| Q7.Choose the correct statement with regards to, “Verifying whether the interest involved is same as referred to in the policy.” |
| It is the responsibility of the co-insurer |
| It is the task of the engineer and architect of the insurer |
| It is the responsibility of the reinsurer |
| It is one of the first steps on receipt of claim intimation |
| It is the job of the actuary |
| Q8.A Chartered Accountant (Mr. X), wanted a loss of product policy. His advisor suggested him a revenue policy. Is this the right suggestion? |
| No, this is a wrong suggestion |
| Yes, this is a right suggestion |
| Yes, this is the right suggestion but the Gross fees policy would have been better |
| Yes, this is the right suggestion but dual insurance would have been better |
| It depends on the requirements and financial position of Mr. X |
| Q9.The fact that reinstatement value is the basis of fire insurance is an important segment of _____details. |
| Inspection |
| Risk |
| Property |
| Exposure |
| Coverage |
| Q10.Which of the following should be followed (as far as possible) in claim settlement under Reinstatement Policy? |
| The new machinery should be of the same production capacity |
| The new machinery should be Imported, as the original was an imported one |
| The new machinery should be of the same weight |
| The new machinery should be of the same make |
| The new machinery should be from the same manufacturer |