IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE – 02

Q1.In the format of the policy schedule, which of the following data will be included under “Risk Description”?
 

 Risk code

 

 Description of property

 

 Claim Experience Discount

 

 Name and address of insured and insurer

 

 Rates for Building, Contents, etc.

 

Q2.Which of the following refers to the merchandise (articles and commodities) which are held for sale in retail shops or in wholesale establishments, factories?
 

 Ready stock

 

 Raw materials

 

 Finished goods

 

 Stock-in- process

 

 Stock-in-trade

 

Q3.Which of the following policies shall be issued for stocks which are subject to frequent fluctuations in value, or in quantity?
 

 Local Authority policy

 

 National Authority policy

 

 Agreed bank policy

 

 Family floater policy

 

 Declaration policy

 

Q4.In which of the following cases, the declaration policy cannot be issued?
 

 Stocks at railway sidings

 

Insurance required for a short period

 

 Stocks undergoing process

 

 All of the above

 

 None of the above

 

Q 5. Turnover consists of three elements: variable charges, standing charges, and net profit. ‘Salaries to permanent staff’ will be included under which element?
 

 Standing charges

 

 Net profit

 

 Gross Profit

 

 Variable charges

 

If it is less than 10% of turnover then under variable charges else understanding charges.

 

Q6.Under which of the following sections, rates are provided for utilities located outside the industrial / manufacturing risks?
 

 Simple risks ( Section III)

 

 Industrial manufacturing risks (Section IV)

 

 Utilities (Section V)

 

 Storage risks (Section VI)

 

Tank Gasholders (Section VII)

 

Q7.Which of the following is an example of bad housekeeping?
 

Regular maintenance of the building, electrical installation, plant and machinery, and fire extinguishing appliances

 

 Segregation of hazardous processes and hazardous goods

 

 The presence of defective windows, trap doors

 

 Separate storage of oils, paints, and petrol

 

The clean, neat and tidy appearance of premises

 

Q8.In the format of the policy schedule, which of the following data will be included under “identification details”?
 

 Claim Experience Discount

 

 Name and address of insured and insurer

 

 Description of property

 

 Risk code

 

 Insurance code

 

Q9.Mr. X has a value of the property of Rs 1,00,000. Sum insured is Rs. 75,000. Loss incurred due to fire is Rs. 35,000. Determine the amount of claim payable under a fire insurance contract.
 

 Rs. 75,000

 

 Rs. 52,300

 

 Rs. 26,250

 

 Rs. 35,000

 

 Rs. 46,667

 

Q10.In which of the reinsurance methods, each risk is reinsured individually?
 

 Treaty

 

 Proportional Treaty

 

 Surplus

 

 Facultative

 

 Quota share

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