Que. 1 : Q1) What is the difference between representation and warranty?
1. a) A representation need only be substantially correct while a warranty must strictly and literally be complied with
2. b) An insurer cannot repudiate its liability against an improper representation, unless that is proved to be a material one while anything wrong in the warranty is sufficient to avoid the liability
3. c) A representation does not lead to any risk to the policyholder while a warranty may lead to serious contingency to the policyholder.
4. d) Both (a) and (b) above
Que. 2 : Q2) __________ is the maximum limit of liability of insurer under the policy
1. a) Sum insured
2. b) Premium
3. c) Surrender value
4. d) Amount of loss
Que. 3 : Q3) ____________cannot be an intermediary.
1. a) Bank
2. b) Insurer
3. c) Agent
Que. 4 : Q4) Which of these policies do not specify any sum assured ?
1. a) Professional indemnity policy
2. b) Personal accident insurance
3. c) Product liability policy
4. d) Employers liability policy
Que. 5 : Q5) The authority responsible in the redressal of disputes between the insurer and the insured is known as
1. a) Ombudsman
2. b) Arbitrator
3. c) Judge
4. d) advocate