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