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Category: IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE – 01

IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE – 01

Que. 1 : Q1) A machine worth Rs.40,000/- insured for Rs.30,000/- under Fire Policy. It was damaged due to fire and the amount assessed in Rs.16,000/- The claim payable is:

   1.  a) Rs.30,000/-

   2.  b) Rs.12,000/-

   3.  c) Rs.16,000/-

   4.  d) Rs.40,000/-

Que. 2 : Q2) The minimum retention of premium under fire declaration policy is ___% of the annual premium

   1.  a) 10%

   2.  b) 25%

   3.  c) 50%

   4.  d) 75%

Que. 3 : Q3) Under which of the following conditions the fire policy will cease

   1.  a) Changes in trade or manufacture activities

   2.  b) Unoccupancy of the building for more than 30 days

   3.  c) Transfer of insurable interest unless by will or operation of law

   4.  d) All of the above.

Que. 4 : Q4) Minimum Sum Insured under Fire Floater Declaration and declaration policy are respectively

   1.  a) Rs.2 crores & Rs1 cr

   2.  b) Rs.1 crores & Rs2 cr

   3.  c) Rs.2 crores & Rs2 cr

   4.  d) Rs.1 crores & Rs1 cr

Que. 5 : Q5) Unless specified, Fire insurance policy covers works of Art up to limit of

   1.  a) Rs. 10,000

   2.  b) Rs. 15,000

   3.  c) Rs. 5000

   4.  d) None