IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 12
| Q1.Example of Risk improvement in an inspection report can be illustrated as follows: |
| Recommendation to eliminate constructional defects such as imperfect openings |
| Recommendation to improve materials quality |
| Recommendation to change the authorized signatory |
| Recommendation to change the supplier |
| Recommendation to change the location |
| Q2.Which activity is used as the index of business activity in the great majority of consequential loss insurances? |
| Gross profit |
| Asset employed |
| Net profit |
| Turnover |
| Capital employed |
| Q3.Common sense and ability to take initiative |
| Technical knowledge, good physical stamina, and above-average logical thinking |
| Common sense, imagination, and technical knowledge |
| Imagination and logical thinking |
| Leadership and logical thinking |
| Q4.The Tariff provides a _______ classification of earthquake zones. |
| State-wise and District wise |
| area and locality wise |
| rural and urban areas wise |
| district collector power based |
| municipal limits based |
| Q5.Discover the proximate cause of damage in the below situation. ‘A bomb is dropped by enemy aircraft and a factory building catches fire due to this, during a war’. |
| The enemy action |
| The war |
| Ties between the countries |
| The fire itself |
| The factory building |
| Q6.Differentiate between the Contract price insurance clause and the Spontaneous combustion clause. |
| The contract price insurance clause is related to inflammable goods only while the Spontaneous combustion clause is related to non-combustible commodities. |
| Contract price insurance clause is related to manufactured goods only while the Spontaneous combustion clause to natural goods. |
| Contract price insurance clause is related to imported goods only while Spontaneous combustion clause to internally combustible commodities |
| The contract price insurance clause is related to hazardous goods only but the Spontaneous combustion clause is related to internally combustible commodities. |
| Contract price insurance clause is related to non-inflammable goods only |
| Q7.What is mentioned in condition 6? |
| Condition 6 excludes wars and kindred perils |
| Condition 6 may include wars and kindred perils |
| Condition 6 includes wars and kindred perils |
| Condition 6 says that wars and kindred perils should be mentioned in the schedule for them to be included |
| Condition 6 includes certain categories of kindred perils |
| Q8.A lower premium for silent risk has been agreed by an insurer, XYZ Ltd. Judge this statement. |
| XYZ Ltd has done the right thing. |
| If approval from the company’s auditor is already taken, XYZ Ltd is right. |
| XYZ Ltd is right, provided a warranty is inserted. |
| If approval is already taken from IRDAI, XYZ Ltd has taken the right step. |
| XYZ Ltd is not right in its approach. |
| Q9.The risk industrial policy rates are based on the following factors: 1. Detailed risk assessment report of the engineer 2. Claims experience 3. Deductible opted by the insured |
| Only 1 |
| 1, 2 and 3 |
| 1 and 2 |
| 2 and 3 |
| Only 2 |
| Q10.‘Maximum probable loss’ is the term that relates to the insurer's estimate of potential liability___ |
| In an unpredictable event |
| In a predictable event |
| In the easiest of circumstances |
| In the most difficult of circumstances |
| In the worst event |