Q1.Until liability for any loss under the policy is clearly established, insurers deal with the claim___.

 a) With utmost good faith


 b) Without utmost good faith


 c) Without prejudice


 d) With prejudice


Q2.Award passed by Insurance Ombudsman is only recommendatory and cannot be construed as a judicial instrument. Say whether True or False.

 a) True


 b) False


Q3.Which of the following comes under the Indian Contract Act,1872 of Provisions applicable to Fire insurance contracts?

 a) Offer and acceptance


 b) Legality


 c) Consideration


 d) Indemnity


Q4.What refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power, lower costs of maintenance?

 a) Depreciation


 b) Betterment


 c) Consideration


 d) Value


Q5.Which of the following is applicable to policies in respect of Buildings, Plant, Machinery, and Accessories only, acts as a cushion against the inflationary trend and can be incorporated in the policies on payment of additional premium?

 a) Pro-rata average


 b) Depreciation


 c) Contribution


 d) Escalation clause


Q6.In which of the following Insurable Interest arise?

 a) Lessors and Lessees


 b) Trustees or receivers in bankruptcy


 c) Bailees in the property in their custody and control


 d) All of the above


Q7.The __ is recognized in a marine insurance contract where, if the property is extensively damaged but remains in existence in some form, the insured is entitled to give notice of abandonment of such property to insurers and claim a constructive total loss.

 a) Rights are exercisable until the claim is withdrawn


 b) Right to forfeit policy benefits


 c) Right of abandonment


 d) Rights conferred on insurers


Q8.Which proviso deals with the normal basis of indemnity applies if the insured fails to intimate to insurers within 6 months from the date of loss, his intention to replace or reinstate?

 a) Proviso 1


 b) Proviso 2


 c) Proviso 3


 d) Proviso 4


Q9.It is a requirement of law that in all commercial contracts __ be observed and at law, a commercial contract will be a nullity if one of the parties has committed fraud or deceit.

 a) Positive duty


 b) Fiduciary nature


 c) Good faith


 d) Fraud


Q10.The words _____ would mean that textile machinery cannot be replaced by chemical machinery or if looms are destroyed they cannot be replaced by spinning machinery or winding or warping machinery.

 a) Not superior to or more extensive


 b) Of the same kind or type


 c) Positive and negative factors


 d) None of these

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