IC74 LIABILITY INSURANCE - 11
| Q1.Directors and officers may be liable to Members of the public for which of the following? |
| a) For breach of legislation |
| b) For unfair dismissal |
| c) For misrepresentation of financial conditions |
| d) For financial loss following reliance on the incorrect or inadequate or negligent statements of financial conditions. |
| Q2.The premium normally applies to the indemnity limit and the turnover. Say whether True or False. |
| a) True |
| b) False |
| Q3.Professionals are liable on the basis of the principle of___liability for the negligence of their employees arising in the course of their employment. |
| a) Indemnity |
| b) Vicarious |
| c) Equal |
| d) Contractual |
| Q4. The first of the Operative Clause makes reference to which of the following: |
| a) The parties to the contract |
| b) Business carried on by the insured owner and specified in the schedule |
| c) Payment of premium |
| d) All of the above |
| Q5.Which Section provides that in contracts of sale by sample, the goods shall, not only correspond with the sample in quality but shall also be free from defects? |
| a) Section 15 |
| b) Section 17 |
| c) Section 19 |
| d) Section 59 |
| Q6.What are medical research studies involving people and what is done to test the efficacy and safety of a drug on humans? |
| a) Clinical trials |
| b) Accident trials |
| c) Regular trials |
| d) None of these |
| Q7.The limits of indemnity apply to the total of: |
| a) Claimant's cost, investigation costs, and compensation |
| b) Compensation, Defence Cost |
| c) Claimant's cost, compensation and defense costs |
| d) Defence cost, investigation costs, and compensation |
| Q8.Complains can be filed to the state commission if the value of goods/services and compensation claimed is: |
| a) Less than 100 lakhs |
| b) More than 10 lakhs but less than 20 lakhs |
| c) More than 20 lakhs but less than 1 crore |
| d) More than 1 crore |
| Q9.Which method is used if proposals, where indemnity required, is relatively small and layering of the program is cumbersome and it also used to provide coverage for a certain parts of the risk which the primary insurer is not comfortable with? |
| a) Co-insurance |
| b) Facultative reinsurance |
| c) Layered program |
| d) None of these |
| Q10.In the case of cybercrime liability, the policy coverage is on the lines of which of the following? |
| a) Public liability policy |
| b) Professional liability policy |
| c) Error and omissions policy |
| d) liability policy |