Que. 1 : Q1) Loss of profits cover under Fire Insurance policies compensates
1. a) Loss of standing charges
2. b) loss due to interruption caused by fire
3. c) Only B is True
4. d) Both of the above
Que. 2 : Q2) Each members contribution to the pool is known as____________________.
1. a) Premium
2. b) Contribution
3. c) Allocation
4. d) Payment
Que. 3 : Q3) David and Anthony are brothers going for a picnic on their bikes with their spouses. Both have taken insurance for their bikes. Due to Anthonys negligent driving both the brothers bang into each other and Davids bike is damaged. How will the insurance claim be settled?
1. a) Davids insurance company will settle the claim and Anthony will get away with his negligent driving as he is Davids brother
2. b) Davids insurance company will settle the claim and recover the money from Anthony as he was responsible for the accident due to negligent driving
3. c) The Insurance company will not interfere as it is a family matter
4. d) Anthony will take the money from his insurance company and pay for the repairs of his brothers bike
Que. 4 : Q4) An underwriter, who is considering the insurers exposure under a policy, is calculating the
1. a) perils insured under the policy.
2. b) hazards a risk would attract.
3. c) number of losses that the policy should experience in a term.
4. d) sum total of values insured under a policy
Que. 5 : Q5) Insurance works on the principle of
1. a) trust
2. b) randomness
3. c) sharing
4. d) all of the above