IC67 MARINE INSURANCE EXAM - 14
| Q1.A valued policy has the words, - “100 bales of cotton insure for Rs. 8,00,000 so valued”. Calculate the amount payable to the insured if 50 bales of cotton are lost in transit? |
| Rs. 800000 |
| Rs. 400000 |
| Rs. 200000 |
| Rs. 100000 |
| Rs. 600000 |
| Q2.The 'line' in a Surplus Treaty Reinsurance represents the ___. |
| The bottom line of the reinsurance company |
| Reinsurance company’s risk-bearing capacity |
| Ceding company’s retention capacity |
| The maximum amount of business underwritten by the primary insurer |
| Geographical coverage as per the Surplus treaty |
| Q3.An insurer was verifying a proposal for insuring a vessel for hull insurance and the insurer felt that there was an indication of MORAL HAZARD. What would the insurer do? |
| The proposal would be accepted with strict conditions |
| Increase the premium |
| Limit the coverage scope |
| Do a special survey |
| The proposal will be declined by the insurer |
| Q4.A Hull Policy which is issued on a timely basis cannot be issued for a longer period than ___. |
| 1 month |
| 3 months |
| 6 months |
| 12 months |
| 15 months |
| Q5.Which is NOT an example of hull risk with adverse underwriting features? |
| Shipbreaking Risks |
| Ships made of fiberglass |
| Small boats and Yachts |
| Older country crafts |
| Vessels over 20 years old |
| Q6.When should the value of fishing nets be ascertained if they are covered along with the vessel? |
| The value of fishing nets should be ascertained at the inception of the policy |
| The value of fishing nets should be ascertained at the time of registration of the vessel |
| The value of fishing nets should be ascertained at the time of any loss to the vessel |
| The value of fishing nets should be ascertained at the time of paying the premium |
| The value of fishing nets should be ascertained at the time the policy ends |
| Q7.____ is a pro-rata reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage. |
| Surplus Treaty |
| Pooling arrangement |
| Quota share reinsurance |
| Treaty reinsurance |
| Excess of loss reinsurance |
| Q8.Identify the CORRECT statement with respect to Double Insurance. |
| In Double Insurance, even if the property suffers loss before the assured acquires his interest, he is still protected by the policy |
| In Double Insurance, in case the assured receives any sum in excess of the indemnity, he is deemed to hold such sum in trust for the insurers, according to their right of contribution among themselves |
| In Double Insurance, in case recovery from a third party is based on a value lower than the insured value, then the insured cannot participate in the recovery until the insurers have been fully reimbursed |
| In Double Insurance, the assured cannot claim under any circumstances, payment from the insurers in such order as he may think fit |
| None of the above |
| Q9.When the fishing vessels are laid-up for repair or painting, cover for fishing nets on board the vessel will be ____. |
| reduced by 50% |
| canceled |
| suspended |
| continue |
| enhanced to accommodate the net |
| Q10.ITC Hulls – clauses ___ are used in India. |
| Dated 1.11.95 |
| Dated 1.10.83 |
| Dated 1.11.85 |
| Dated 1.06.90 |
| Dated 07.03.91 |