IC56 Mock Test Sample 13
These questions cover important fire insurance concepts such as oxidation as a slow combustion process, and the requirement of common intention for a valid contract. Consumer forums handle claims based on financial limits. Policy conditions like Condition 1 (misrepresentation) and Condition 7 (insurer’s rights after loss) are crucial. Indemnity ensures the insured does not profit, supported by subrogation and contribution. Surveyors assess losses scientifically, sometimes using chemical analysis. Coverage includes fees for professionals and terrorism limits. Risks like unoccupied buildings affect coverage. Claim disputes can be resolved through independent assessment or legal help, while incorrect estimates remain a common issue in claim settlement.
Q1. During a claim investigation, fire may be a slow process of:
a) Fermentation
b) Pigmentation
c) Oxidation
d) Corrosion
Q2. When is a fire insurance contract considered valid?
a) Premium not paid
b) Person under 18
c) Different intentions
d) Common intention
Q3. In District Forum, claim amount payable is less than:
a) Rs.5 lakhs
b) Rs.10 lakhs
c) More than Rs.5 lakhs but less than Rs.20 lakhs
d) Exceeds Rs.20 lakhs
Q4. Under proviso 1, the time limit is:
a) 6 months
b) 12 months
c) 18 months
d) 36 months
Q5. Subrogation rights arise in ex-gratia payments.
a) True
b) False
Q6. __________ is subjected to greater wear and tear.
a) Electrical installation
b) Heavy machinery
c) Wood working machinery
d) Boilers, Pipes, Pumps
Q7. Condition 7 provides:
a) Pro-rata Average
b) Rights of insurers
c) Reinstatement
d) Notification of loss
Q8. Principle of indemnity has how many corollaries?
a) One
b) Two
c) Three
d) Four
Q9. Significance of Condition 7:
a) Rights of insurers after loss
b) Fraud forfeiture
c) Notice of loss
d) Misrepresentation
Q10. Market value not appropriate in total destruction.
a) True
b) False
Q11. Architects & Engineers fees covered up to:
a) 1%
b) 3%
c) 5%
d) 7.5%
Q12. Terrorism cover limit per location:
a) Rs.500 crores
b) Rs.1000 crores
c) Rs.1500 crores
d) Rs.2500 crores
Q13. How to resolve disputes over claim value?
a) Ignore dispute
b) Independent appraiser/legal help
c) Cancel policy
d) Escalate to government
Q14. Condition 1 applies to:
a) Misrepresentation
b) Misdescription
c) Non-disclosure
d) Any of the above
Q15. Principle ensuring no excess recovery:
a) Consideration
b) Insurable interest
c) Underwriting
d) Indemnity
Q16. Major event in 1992:
a) Basel Committee formed
b) BIS formed
c) LSE legislation
d) COSO formed
Q17. Problem with damage estimates:
a) Overestimation
b) Underestimation
c) Lack of clarity
d) No problem
Q18. Explosion damage is known as:
a) Lighter damage
b) Concussion damage
c) Exclusion damage
d) Heavier damage
Q19. Building unoccupied for more than:
a) 7 days
b) 15 days
c) 30 days
d) 45 days
Q20. Identify odd one out:
a) Indemnity
b) Consideration
c) Common intention
d) Consideration
