IC56 Mock Test Sample 15
Fire insurance involves principles like insurable interest, indemnity, and utmost good faith. The Ombudsman handles complaints up to ₹20 lakhs for personal insurance. Surveyors play a key role in investigating loss, assessing damage, and advising on mitigation. Policy conditions define rights of insurers, arbitration, cancellation, and reinstatement. Concepts like implosion, exclusions, and assignment of claim proceeds are important. Different policies such as reinstatement and concurrent/non-concurrent policies determine claim settlement. Legal capacity and doctrines like waiver and estoppel affect contract validity. Claims are processed “without prejudice” until liability is confirmed, ensuring fairness and proper evaluation of losses.
Q1. The ombudsman deals with complaints in respect of personal line of insurance and empowered to decide complaints where the value complained, does not exceed Rs._____________.
a) 5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
Q2. Which of the following are Surveyor's Primary duties?
a) To investigate into the cause of loss
b) To ascertain the extent of loss
c) To advise the insured on loss minimization measures and protection of salvage
d) All of the above
Q3. According to analysis of the condition 7, which of the following rights are conferred on the insurers?
a) To enter, take and keep possession of the premises
b) To take possession of insured property
c) To deal with such property by removal, sorting, examination, etc.
d) All of the above
Q4. What means bursting inward or sudden collapse inwards due to external pressure?
a) Explosion
b) Riot
c) Fire
d) Implosion
Q5. _________________, in simple terms, means the legal right to insure.
a) Warranty
b) Insurable Interest
c) Consideration
d) Regulation
Q6. What is the significance of Condition 15 in a fire insurance policy?
a) Misrepresentation clause
b) Arbitration clause
c) Pro-rata premium deduction
d) Cancellation clause
Q7. If the stock, which is totally damaged, is replaceable:
a) Loss assessed on replacement cost less discounts
b) Cost of reconditioning
c) Sound value basis
d) Replacement cost from wholesaler/manufacturer
Q8. The ____________ of the policy may be made either before or after the occurrence of the claim.
a) Rules of construction
b) Object of construction
c) Regulations of construction
d) Assignment of claim proceeds
Q9. Under which policy, payment is cost of reinstatement or replacement as new?
a) Reinstatement value policy
b) Fire insurance policy
c) Life insurance policy
d) General insurance
Q10. If parties cannot agree upon a single arbitrator within ________, the matter goes to a panel of three arbitrators.
a) 7 days
b) 15 days
c) 30 days
d) 45 days
Q11. _________ policies cover part only of property covered by other policies.
a) Concurrent Policies
b) Non Concurrent Policies
c) Semi Concurrent Policies
d) Partial Concurrent Policies
Q12. Which statement regarding exclusions in Standard Fire Policy is correct?
a) Curios fully excluded
b) Curios above ₹10,000 excluded
c) Curios above ₹10,000 covered
d) Covered up to base sum insured
Q13. Who has capacity to enter into a contract?
a) Unsound mind person
b) Minor
c) Person of majority age
d) None
Q14. Insurers deal with claims __________ until liability is established.
a) Estoppel
b) Waiver
c) Insured peril
d) Without prejudice
Q15. Acceptance of insurance despite knowing misstatement is:
a) Express estoppel
b) Estoppel by conduct
c) Express waiver
d) Waiver by conduct
Q16. How to calculate Pro-rata Average if
Sum insured = Rs. 40,000
Value = Rs. 40,000
Loss = Rs. 18,000
a) Rs.18,000
b) Rs.23,000
c) Rs.28,000
d) Rs.30,000
Q17. __________ machinery used for grinding or mixing tends to wear out fast.
a) Electrical installation
b) Wood working machinery
c) Heavy machinery
d) Boilers, Pipes, Pumps
Q18. Insurable contracts are of a fiduciary nature.
a) True
b) False
Q19. Who must take steps to minimize loss during fire?
a) Insurer
b) Insured
c) Insurance company
d) Agent
