IC56 Mock Test Sample 12
These questions highlight key fire insurance principles such as ignition being essential to define fire, and the importance of insurable interest at both inception and loss. Concepts like depreciation, stock-in-trade, and personal effects define types of insured property. Policy conditions cover misrepresentation, notification of loss, and reinstatement timelines. Surveyors play a key role in loss assessment and interim reporting. Salvage disposal methods include private sale, tender, or through the insured. Contribution and subrogation prevent over-compensation under indemnity. Declaration policies mainly cover fluctuating stocks. Understanding exclusions, especially proximate cause, is critical since losses due to excluded perils are not payable.
Q1. There should be _______, which means the presence of flames is a pre-requisite.
a) Ignition
b) Accident
c) Legal cases
d) Consideration
Q2. How can you resolve delays in fire insurance claim settlements?
a) Ignore the delay
b) Consult a lawyer
c) Contact the insurer
d) Amend the policy
Q3. Transfer of insurable interest does not automatically transfer the policy.
a) True
b) False
Q4. Insurable interest must exist:
a) At inception only
b) At claim only
c) At both inception and claim
d) Either at inception or claim
Q5. Methods of sale of salvage include:
a) Through insured
b) Private sale
c) By tender
d) All of the above
Q6. Policies covering same class of property in same situation are:
a) Concurrent policies
b) Escalation policy
c) Partial policy
d) Non-current policies
Q7. Who submits interim report for on-account payment?
a) Agent
b) Surveyor
c) Principal
d) Commissioner
Q8. Property worth Rs.70,000 insured for Rs.60,000, loss Rs.70,000. Claim?
a) Rs.50,000
b) Rs.60,000
c) Rs.70,000
d) Rs.80,000
Q9. Which condition deals with misrepresentation making policy voidable?
a) Condition 1
b) Condition 2
c) Condition 3
d) Condition 4
Q10. Insurer offering acceptance with terms is called:
a) Offer
b) Acceptance
c) Cover note
d) Counter-offer
Q11. Important part of loss assessment jointly done:
a) Physical inventory
b) Records
c) Assessment
d) Cause
Q12. Reduction in value due to wear and tear is:
a) Consideration
b) Betterment
c) Depreciation
d) Value
Q13. Goods held for sale are called:
a) Partial damage
b) Depreciation
c) Stock-in-trade
d) Betterment
Q14. Under proviso 1, time limit is:
a) 6 months
b) 12 months
c) 18 months
d) 36 months
Q15. Wearing apparel, books, cameras are:
a) Household goods
b) Personal effects
c) Finished goods
d) None
Q16. If loss is caused by ________, there is no liability.
a) Insured perils
b) Excluded perils
c) Both
d) None
Q17. _________ prevents insured from recovering more than loss.
a) Escalation clause
b) Value of salvage
c) Subrogation
d) Contribution
Q18. Extent of indemnity depends on:
a) Value of property
b) Sum insured
c) Only A
d) Both a and b
Q19. Condition 6 provides for:
a) Forfeiture
b) Reinstatement
c) Pro-rata average
d) Notification of loss
Q20. Declaration policy mainly covers:
a) Building
b) Stocks
c) Furniture
d) Fixtures and fittings
