IC77 ENGINEERING INSURANCE EXAM - 04

Que. 1 : Q1) In EAR policy

   1.  a) Prime cost of materials is subject to premium adjustment

   2.  b) Freight and handing charges, customs dues and construction cost is not subject to premium adjustment

   3.  c) Prime Cost of materials is not subject to premium adjustment

   4.  d) None of the above is correct

Que. 2 : Q2) Which policy covers both: erection and construction risks?

   1.  a) Comprehensive Project Insurance

   2.  b) Comprehensive Machinery Insurance

   3.  c) Construction Annual Policies (Floaters)

   4.  d) Machinery Leasing Insurance

Que. 3 : Q3) Under a contractor all risk policy issued for construction of a road project, is to be extended for a further period

   1.  a) Can be done only for the full sum insured

   2.  b) Can be extended for the balance sum insured excluding the completed portion which is not put into service

   3.  c) Cannot be extended

   4.  d) Can be extended for value of remaining project completion + 50% of SI for the completed portion

Que. 4 : Q4) In _________ method, the ceding company offers each and every risk in excess of its own retention capacity for reinsurance and the reinsurer examines each risk according to its merit.

   1.  a) Facultative reinsurance

   2.  b) Quota share treaty

   3.  c) Surplus treaty

   4.  d) Excess of loss reinsurance

Que. 5 : Q5) Project Policies are

   1.  a) All risk

   2.  b) Named Perils

   3.  c) Consequential Loss

   4.  d) Agreed Value