IC56 Mock Test Sample 11
These questions focus on key concepts of fire insurance such as indemnity, insurable interest, warranties, and policy conditions. Important principles like contribution, subrogation, and utmost good faith ensure fair claim settlement and prevent over-compensation. Pro-rata average applies when there is underinsurance, reducing claim proportionately. Policies also include clauses like escalation to adjust for inflation and rules of construction to interpret contracts correctly. Surveyors play a vital role in claim assessment, including interim reports. Coverage includes stock types and risks like flood. Proper documentation, truthful disclosure, and adherence to policy conditions are essential for valid claims and smooth insurance operations.
Q1. Under proviso 1, the limit is ___ of further period allowed by insurers in writing.
a) 6 MONTHS
b) 12 MONTHS
c) 18 MONTHS
d) 36 MONTHS
Q2. The stock at manufacturers' premises may consist of:
a) Raw materials
b) Stock-in-progress
c) Financial goods
d) All of the above
Q3. What mean escape from its normal confines of a body of water due to a rise in its level?
a) Fire
b) Explosion
c) Flood
d) Lightning
Q4. According to ___________, if there is under-insurance, loss payable will be proportionately reduced.
a) Non-current policies
b) Concurrent policies
c) Pro-rata average condition
d) Partial condition
Q5. A _________ is an undertaking by the insured regarding certain conditions or facts.
a) Condition
b) Consideration
c) Underwriting
d) Warranty
Q6. Which of the following details is to be included in written notice?
a) Items of property damaged
b) Amount of loss
c) Particulars of other insurances
d) All of the above
Q7. _________________ means the legal right to insure.
a) Warranty
b) Insurable Interest
c) Consideration
d) Regulation
Q8. According to Condition 8, all benefits are forfeited when:
a) Claim is fraudulent
b) False declaration is made
c) Fraudulent means are used
d) All of the above
Q9. Who submits an interim report for on-account payment?
a) Agent
b) Surveyor
c) Principal
d) Commissioner
Q10. Subrogation and contribution are corollaries of:
a) Proximate cause
b) Utmost good faith
c) Insurable interest
d) Indemnity
Q11. Identify the incorrect statement regarding reinstatement policy provisos:
a) Proviso 1 relates to time limits
b) Proviso 2 applies normal indemnity until expenses incurred
c) Proviso 3 relates to pro-rata average
d) Proviso 4 mentions 3 months intimation
Q12. __________ is to ascertain the intention of the parties in a contract.
a) Rules of construction
b) Object of construction
c) Regulations of construction
d) Condition of construction
Q13. Which clause acts as a cushion against inflation?
a) Pro-rata average
b) Depreciation
c) Contribution
d) Escalation clause
Q14. Which of the following comes under Furniture, Fixture and Fittings?
a) Counters, showcases
b) Tables, chairs, safes
c) Business machines
d) All of the above
Q15. The insured's fundamental duty is to observe _________.
a) Common law
b) Content
c) Good faith
d) Misbehaviour
Q16. First step after claim intimation is to verify:
a) Policy is in force
b) Section 64VB compliance
c) Covered peril
d) All of the above
Q17. Under contribution principle, claim is shared:
a) X = Rs.2,500 , Y = Rs.2,000
b) X = Rs.3,500 , Y = Rs.1,000
c) X = Rs.1,500 , Y = Rs.3,000
d) X = Rs.1,000 , Y = Rs.3,500
Q18. Identify the odd one out (Indian Contract Act provisions):
a) Indemnity
b) Consideration
c) Common intention
d) Consideration
Q19. _________ prevents insured from recovering more than loss.
a) Escalation clause
b) Value of salvage
c) Subrogation
d) Contribution
Q20. Which are rules of construction?
a) Document read as a whole
b) Proposal + policy read together
c) Intention from written agreement
d) All of the above
