Q1.Under the __, the payment to be made is the cost of reinstatement of the building or the cost of replacement of the machinery to a condition equal to its condition when new.

 a) Declaration policy


 b) Floater policy


 c) Reinstatement value policy


 d) Property policy


Q2.______is defined as the voluntary relinquishment of a known right.

a) Abandonment


 b) Repudiation


 c) Renunciation


 d) Waiver


Q3.The payment made to the insured on the basis of the interim report of the surveyor is known as_____.

 a) On account payment


 b) Interim payment


 c) Advance payment


 d) Pre-payment


Q4.In the case of finished goods, according to the modern way,_____would provide real indemnity.

 a) Market value of goods


 b) Cost of production of goods


 c) Cost of production of goods plus excise duty, if any


 d) Market value of goods storage cost


Q5.Both parties to the contract must have a common intention or should be of the same kind. Say whether True or False.

 a) True


 b) False


Q6.The term ____ is used to denote the broad principles and specific practices adopted by insurers to conduct their business along sound scientific lines to produce a reasonable profit on their operations?

 a) Contract


 b) Underwriting


 c) Settlement of claims


 d) Fire insurance


Q7.Which act was enacted in 1986 to provide the protection of the interest of the consumers and to make provision for the establishment of the Consumer councils?

 a) Grievance Act


 b) Consumer Forum act


c) Ombudsman act


 d) None of these


Q8.An ____ to enter into a contract of insurance usually comes from the proposer.

 a) Offer


 b) Acceptance


 c) Cover note


 d) Counter-offer


Q9.How to calculate Pro-rate Average if sum insured = Rs. 30,000 Value of property = Rs.40,000 Loss = Rs. 16,000

 a) Rs.5,000


 b) Rs.10,000


 c) Rs.12,000


 d) Rs.15,000


Q10.Who deals with complaints in respect of personal line of insurance and is empowered to decide complaints where the value complained, does not exceed___.

 a) Rs.20 lakhs


 b) Rs.30 lakhs


 c) Rs.40 lakhs


 d) Rs.50 lakhs

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