IC74 LIABILITY INSURANCE – 02


Que. 1 : Q1) A person is responsibility for all the_______________consequences from his negligence.

   1.  a) Direct and indirect

   2.  b) Reasonably foreseeable

   3.  c) Civil and criminal

   4.  d) Injury and damages

Que. 2 : Q2) One of the claim conditions is that the directors and officers of the company shall give notice in writing of any claim made. Which of the following is the time limit for such notice?

   1.  a) 24 hours

   2.  b) 48 hours

   3.  c) Immediately

   4.  d) None of the above

Que. 3 : Q3) The basis of liability is negligence. Say whether True or False.

   1.  a) True

   2.  b) False

   3.  

   4.  

Que. 4 : Q4) Which of the following is a major difference between clams made and occurrence policy?

   1.  a) Limits can be more accurately predicted in claims made contract than in occurrence contracts.

   2.  b) Claim made contract are retrospective whereas occurrence is forward looking.

   3.  c) The initial premium and subsequent year’s premium are substantially lower in claims made policy than in an occurrence policy.

   4.  d) To purchase extended reporting coverage is better in claims made policy but no such extended reporting coverage is needed in an occurrence policy.

Que. 5 : Q5) Which of the following act is not an example of tort?

   1.  a) Assault

   2.  b) Battery

   3.  c) Burglary

   4.  d) Slander