Que. 1 : Q1) DOS covers fire and allied perils
1. a) True
2. b) False
3. c) can be covered as additional perils
4. d) only fire peril is covered
Que. 2 : Q2) In a CAR policy, what is the market practice with respect to instalment of premium?
1. a) None; all instalment of premium are the same
2. b) First instalment of premium is the highest
3. c) Last instalment of premium is the highest
4. d) Both first and last instalments are the highest.
Que. 3 : Q3) In a Comprehensive Machinery Insurance policy, which of the following statements is correct with regards to business interruption cover?
1. a) Business interruption cover is covered under the basic policy itself
2. b) Business interruption cover is a standard exclusion
3. c) Business interruption cover can be granted optionally
4. d) Business interruption cover can be granted for additional fixed premium of 25%
Que. 4 : Q4) The __________ during that period in the twelve months immediately before the date of the damage which corresponds with the indemnity period.
1. a) Rate of gross profit
2. b) Annual turnover
3. c) Standard turnover
4. d) None of these
Que. 5 : Q5) What is an arrangement where liability of the reinsurer is limited up to a certain pre-determined amount of loss, in excess of the amount of loss borne by the ceding company which is known as the underlying limit?
1. a) Excess of loss treaty
2. b) Surplus treaty
3. c) Quota share Treaty
4. d) None of the above