IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 07
| Q1.Rohit has taken a regular fire policy and he claims that 'Loss of Market' is covered under such policy. The insurer claims that 'Loss of Market' is not included. What are the correct view and the solution? |
| Rohit is absolutely right as a regular fire policy allows for 'Loss of Market' |
| The insurer is right as a regular fire policy only allows for material damage |
| Both, Rohit and the insurer can approach a court of law to seek a solution |
| Both, Rohit and the insurer can approach an arbitrator to seek a solution |
| Both, Rohit and the insurer can approach IRDA to seek a solution |
| Q2.Fire insurance rates are determined on the assumption that property ___. |
| has never been insured before |
| has been insured before |
| is insured for its full value |
| is insured for its half value. |
| could be under some dispute |
| Q3.The Fire Tariff rules and wordings are applicable to ___. |
| Standard Fire and Special Perils Policies |
| Standard Fire Policies |
| Standard Motor Policies |
| Only Special Perils Policies |
| Long Period Policies |
| Q4.Investigation into the ____ requires common sense, imagination, and technical knowledge |
| drafting of policy |
| genuineness of the claim |
| disputes between the insurer and the insured |
| cause of loss |
| underwriting functions |
| Q5.What is the difference between - Contract price insurance clause and the Spontaneous combustion clause? |
| The former is applicable to inflammable goods only while later to imported goods |
| The former is applicable to non-inflammable goods only |
| The former is applicable to hazardous goods only while later to imported goods |
| The former is applicable to manufactured goods only while later to natural goods |
| The former is applicable to imported goods only while later to internally combustible commodities |
| Q6.What is the similarity between Acceptance cum Receipt and Cover Note? |
| Both are same |
| Pending preparation of the policy, insurers can issue either of them |
| Both are completely different |
| Both are not acceptable in the court of law |
| Both are regularly amended |
| Q7.What is the difference between a Quota share treaty and the Surplus treaty? |
| In a Quota share treaty, there is the binding agreement of ceding and accepting all the risks underwritten |
| In a Surplus treaty, there is a binding of ceding and accepting |
| The surplus treaty is a type of non-proportional treaty insurance |
| A quota share treaty is a type of non-proportional treaty insurance |
| A quota share treaty is a type of facultative reinsurance |
| Q8.'Fire Load' is most suitable to measure ease of ignition. Discuss - |
| Yes, Fire Load is most suitable to measure ease of ignition |
| No, Flash Point is most suitable to measure ease of ignition |
| No, Explosion Point is most suitable to measure ease of ignition |
| No, Fire Resistance is most suitable to measure ease of ignition |
| No, Resistance Point is most suitable to measure ease of ignition |
| Q9.What is the 'True and Fair view’ with respect to accounts of the insurer? |
| All appropriate estimates of premium gains should be placed as of 31st March in accounts |
| All appropriate estimates of accumulated gains should be placed as of 31st March in accounts |
| All appropriate estimates of losses should be placed as of 31st March in accounts |
| Contingent assets of the insurer must be shown on the liabilities side of the balance sheet |
| Contingent liabilities must be shown on the liabilities side of the balance sheet |
| Q10.What is the role of ‘Adjustment Clause’? |
| By using the Adjustment Clause, any deduction may be made to the pre-fire figures taken to calculate the loss |
| By using the Adjustment Clause, any addition may be made to the post-fire figures taken to calculate the loss |
| By using the Adjustment Clause, any increment may be made to the post-fire figures taken to calculate the loss |
| By using the Adjustment Clause, any adjustment may be made to the pre-fire figures taken to calculate the loss |
| By using the Adjustment Clause, any adjustment may be made to the post-fire figures taken to calculate the loss |