IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 02
| Q1.In the format of the policy schedule, which of the following data will be included under “Risk Description”? |
| Risk code |
| Description of property |
| Claim Experience Discount |
| Name and address of insured and insurer |
| Rates for Building, Contents, etc. |
| Q2.Which of the following refers to the merchandise (articles and commodities) which are held for sale in retail shops or in wholesale establishments, factories? |
| Ready stock |
| Raw materials |
| Finished goods |
| Stock-in- process |
| Stock-in-trade |
| Q3.Which of the following policies shall be issued for stocks which are subject to frequent fluctuations in value, or in quantity? |
| Local Authority policy |
| National Authority policy |
| Agreed bank policy |
| Family floater policy |
| Declaration policy |
| Q4.In which of the following cases, the declaration policy cannot be issued? |
| Stocks at railway sidings |
| Insurance required for a short period |
| Stocks undergoing process |
| All of the above |
| None of the above |
| Q 5. Turnover consists of three elements: variable charges, standing charges, and net profit. ‘Salaries to permanent staff’ will be included under which element? |
| Standing charges |
| Net profit |
| Gross Profit |
| Variable charges |
| If it is less than 10% of turnover then under variable charges else understanding charges. |
| Q6.Under which of the following sections, rates are provided for utilities located outside the industrial / manufacturing risks? |
| Simple risks ( Section III) |
| Industrial manufacturing risks (Section IV) |
| Utilities (Section V) |
| Storage risks (Section VI) |
| Tank Gasholders (Section VII) |
| Q7.Which of the following is an example of bad housekeeping? |
| Regular maintenance of the building, electrical installation, plant and machinery, and fire extinguishing appliances |
| Segregation of hazardous processes and hazardous goods |
| The presence of defective windows, trap doors |
| Separate storage of oils, paints, and petrol |
| The clean, neat and tidy appearance of premises |
| Q8.In the format of the policy schedule, which of the following data will be included under “identification details”? |
| Claim Experience Discount |
| Name and address of insured and insurer |
| Description of property |
| Risk code |
| Insurance code |
| Q9.Mr. X has a value of the property of Rs 1,00,000. Sum insured is Rs. 75,000. Loss incurred due to fire is Rs. 35,000. Determine the amount of claim payable under a fire insurance contract. |
| Rs. 75,000 |
| Rs. 52,300 |
| Rs. 26,250 |
| Rs. 35,000 |
| Rs. 46,667 |
| Q10.In which of the reinsurance methods, each risk is reinsured individually? |
| Treaty |
| Proportional Treaty |
| Surplus |
| Facultative |
| Quota share |