1. Using the example table in Chapter 4, what was the Turnover Before Fire?
a) Rs.35,00,000
b) Rs.17,50,000
c) Rs.10,00,000
d) Rs.5,00,000
e) Rs.50,00,000
2. What must be coded into the insurer's information system when recording a new policy?
a) Only the premium amount and payment date
b) Only the applicant's name and address
c) Only the type of coverage issued
d) Only the agent's commission details
e) The policy and applicant information for accounting, statistical and monitoring purposes - data entry personnel enter essential information into the insurer's information system and it must be coded so that the insurer and the industry can evaluate and accumulate information on all accounts for ratemaking, statutory filing and financial accounting
3. How is the Indemnity Period of an ALOP/DSU policy to be determined according to the chapter?
a) Based on the average industry repair time for similar projects
b) The indemnity period should be selected by the insured based on the longest replacement time required for critical items - includes time required for items made to order, transportation time, commissioning time. The extent of the maximum likely period must be assessed from possible scenarios and resultant financial impact
c) Based on the project completion schedule only
d) Based on the insurer's assessment of risk at inception
e) Based on the minimum time required for repairs
4. What is the Average Clause (Under Insurance condition) in the context of an insurance claim assessment?
a) A clause that averages the claims over the policy period
b) Most of the Policies issued in India are not agreed value policies. The Policies envisage that the sum insured should be equal to the value of the complete insured property as on date of loss. If the collective value of the property insured under the policy is more than the sum insured, the insured is deemed a self insurer and required to bear the loss in proportion to the difference in sum insured. The deduction on account of this difference is called Under Insurance
c) A clause averaging the salvage value across all damaged items
d) A clause that limits the surveyor's fee to average industry rates
e) An average of 3 surveyors' assessments for large claims
5. In the 21st century, which factors have influenced the interest and further development of Business Interruption Insurance?
a) Only terrorism events
b) Only natural catastrophe events
c) Only cyber security risks
d) Increased dependence on electronic data and cyber security risk, terrorism events, and increased frequency and size of natural catastrophe events
e) Only globalization of industry
6. What is stated about eliminating business risk through planning?
a) A single plan can eliminate all risks completely
b) There is no single plan that can eliminate risk, but with proper planning, companies can anticipate risks and respond appropriately
c) Risk management is only needed for large companies
d) Risk management strategies are always provided by the government
e) Risk management is only relevant for financial institutions
7. In Case Study 10 (Effect of External Factors on the Claim), what external factor affected the claim during the 6-month factory closure?
a) A state government lockdown for elections for 30 days
b) During the indemnity period, there was a lockdown for 45 Days on account of COVID-19 restrictions. During the lockdown period the factory would have been closed anyway and no business revenue would have been generated even if there was no fire. The loss of revenue will be considered for 6 months less 45 Days during the lockdown period
c) An earthquake that destroyed 20% of the factory premises
d) A flood that disrupted raw material supply for 2 months
e) A power utility failure lasting 30 days in the industrial area
8. In Case Study 1, how long did it take to restore the premises and restart the business, and how long before it was completely restored?
a) 2 months to restore; 1 month to full restoration
b) It took 4 Months to restore the premises and restart the business. Even after the business is restarted it takes 2 months before the business is completely restored
c) 3 months to restore; 3 months to full restoration
d) 6 months to restore; 2 months to full restoration
e) 1 month to restore; 4 months to full restoration
9. Which company first attempted to introduce consequential costs coverage in 1797?
a) Lloyd's of London
b) Minerva Universal
c) Hamburg Fire Office
d) AIG Insurance
e) Allianz General Insurance
10. For claims pertaining to loss of property covered under Marine Insurance (Inland Transit), which court document is specifically required?
a) No court document is required for marine transit claims
b) Copy of Regd. A.D. letter lodging claim on carrier along with monetary claim bill and A.D. card of claim lodging letter on carrier
c) Arbitration award from shipping tribunal
d) Port health authority clearance certificate
e) Custom duty exemption certificate
