IC56 Mock Test Sample 14
These questions cover important operational and legal aspects of fire insurance such as surveyor reports, claim disputes, and policy conditions. Preliminary reports help insurers guide claim assessment. Principles like utmost good faith and disclosure ensure transparency. Policies such as declaration policies cover fluctuating stocks, while concurrent policies apply when multiple policies cover the same risk. Conditions like cancellation, reinstatement, and disclaimer timelines are crucial. Surveyors, as independent professionals, assess and recommend claims. Ombudsman handles complaint resolution. Pro-rata average applies in underinsurance cases. Challenges in claims include disputes over value, cause, and delays, requiring proper documentation and professional evaluation for fair settlement.
Q1. ___________ are submitted when surveyors need guidance from insurers.
a) On-account payments
b) Preliminary report
c) Preliminary investigation
d) None of these
Q2. Reasonable requirement is decided by:
a) Insurers
b) Surveyors
c) Court of law
d) Customers
Q3. This clause excludes marine policy overlap:
a) Fire clause
b) Marine clause
c) Cancellation condition
d) Recovery clause
Q4. Two main types of fire insurance policies are:
a) Named-peril & all-risk
b) Comprehensive & specific
c) Annual & lifetime
d) Commercial & residential
Q5. Policies covering same stock in same godown are:
a) Concurrent
b) Non-concurrent
c) Semi-concurrent
d) Partial concurrent
Q6. Duty to disclose all material facts is:
a) Material fact
b) Duty of utmost faith
c) Underwriting
d) Settlement
Q7. Condition 5 talks about:
a) Marine clause
b) Contribution
c) Reinstatement
d) Cancellation
Q8. Common challenge in fire claims disputes:
a) Cause of fire
b) Policy coverage
c) Claim value
d) All of these
Q9. Loss limit per location enhanced to:
a) Rs.1000 crores
b) Rs.1500 crores
c) Rs.2000 crores
d) Rs.2500 crores
Q10. Claim is abandoned if no suit filed within:
a) 6 months
b) 12 months
c) 24 months
d) 36 months
Q11. Incorrect statement about Condition 9:
a) Reinstatement at insurer’s option
b) Reinstatement exact
c) Insured has no right
d) Limited to sum insured
Q12. Basis for indemnity in pre-sold goods case:
a) Marginal utility
b) Accrued profit
c) PPP
d) Keynesian
Q13. Policy for fluctuating stock values:
a) Pro-rata policy
b) Declaration policy
c) Independent policy
d) None
Q14. Correct statement for terrorism cover:
a) SI or 1000 cr lower
b) SI or 1000 cr higher
c) SI or 1500 cr lower
d) SI or 1500 cr higher
Q15. Ombudsman handles complaints like:
a) Claim repudiation
b) Delay in settlement
c) Premium disputes
d) All of the above
Q16. In under-insurance, insured bears:
a) Rs.10,000
b) Rs.20,000
c) Rs.50,000
d) Rs.70,000
Q17. Repair cost payable with depreciation if improvement:
a) Full damage
b) Partial damage
c) Permanent damage
d) None
Q18. Under-insurance reduces claim under:
a) Non-current policies
b) Concurrent policies
c) Pro-rata average condition
d) Partial condition
Q19. Independent IRDA licensed professional:
a) Agent
b) Principal
c) Surveyor
d) None
Q20. DISAFER rule standardizes loss computation.
a) True
b) False
