We are providing FIRE-Chapter-02 MCQ questions which helps in all insurance promotional exams as well as in III examination Licentiate Associate Fellowship.
IC-57 FIRE AND CONSEQUENTIAL LOSS INSURANCE
CHAPTER 2
ADD ON COVERS AND SPECIAL POLICIES
1. Sum Insured of Add On Peril should be
A. 50% of Basic Sum Insured
B. 10% of Basic Sum Insured
C. Same As Basic Sum Insured
D. Any of Above
2. Spontaneous Combustion Covers Damages
A. Fire Only
B. All Perils
C. Fire and Shock
D. All of Above
3. Earthquake cover granted
A. If Entire property in one complex / compound only.
B. If property is on different locations
C. If stock is in godown only
D. If stock is in open only
4. Earthquake clause does not cover the losses covered by
A. RSMD
B. STFI
C. Impact Damage
D. None of Above
5. Acronyms of FLEXA is
A. Fire Loss Excess Amount
B. Fire Lightning Excess Amount
C. Fire Lightning Explosion Aircraft
D. Fire Lightning Exclusive Amount
6. Excess Clause of Earthquake clause is
A. Rs. 10,000/- of each claim
B. 10% of each claim
C. 5% of Net claim amount under the Add-on
D. No Excess
7. Impact Damage Add-on does not include
A. Loss due to Insured’s own Animal
B. Loss due Insured’s own driven vehicle
C. Loss due to articles dropped from cranes
D. Due to Insured’s own forklifts
8. Deterioration of stocks in cold storage premises due to accidental power failure does not cover
A. If such failure is due to deliberate act of Govt, Municipal / Local Authority
B. If such failures exceeds 24 Hrs
C. Only B
D. Both A & B
9. Architect Fee clause covers Fee
A. 3% of claim amount
B. 7.5% of claim amount
C. 10% of claim amount
D. 1% of claim amount
10. Under Omission to Insure, Additions, Alterations / Extension clause , declaration needs to submit
A. On the last day of every month
B. On every 10th of each month
C. Within 30 days of expiry of policy
D. Any time during policy period
11. Omission to Insure, Additions, Alterations / Extension clause does not cover
A. Plant and Machinery
B. Stock
C. Building
D. Furniture and Fixture
12. Under Omission to Insure, Additions, Alterations / Extension clause, how much premium is
A. 5% of extra premium of Sum Insured in Advance
B. 5% of Extra Premium at the time of addition of property
C. 50% Premium of Basic Sum Insured in Advance
D. 50% premium of Basic Sum Insured at the time of addition of property
13. Spoilage Material damage clause covers
A. Loss of stock in process
B. Damage to machinery, Containers and Equipment
C. Furniture & Fixture
D. A & B Only
14. Maximum Sum Insure allowed under Escalation clause is
A. 10% of Basic Sum Insured
B. 25% of Basic Sum Insured
C. 50% of Basic Sum Insured
D. 100% of Basic Sum Insured
15. Escalation clause is applicable on
A. Building
B. Machinery & Accessories
C. Stocks
D. Only A & B
16. Reinstatement Value Policies does not cover
A. Plant & Machinery
B. Furniture & Fixture
C. Building
D. Stock
17. Premium for Local Authorities Clause is
A. No additional premium
B. 5% of Basic Premium
C. 10% of Basic Premium
D. Flat Rs. 500/-
18. Basis of valuation for declaration in declaration policy is
A. Reinstatement Value
B. Market value
C. Book value
D. All of Above
19. In declaration policy, refund of premium cannot be more than
A. 50% of Provisional SI
B. 20% of Provisional SI
C. 80% of Provisional SI
D. No Refund
20. If at the time of loss, there is any other policy than declaration policy then
A. Declaration policy act first
B. That policy act first
C. Share loss in proportion
D. Any of Above
21. Minimum SI for Declaration policy is
A. 1 Cr
B. 2 Cr
C. 50 Cr
D. 100 Cr
22. Which is true about declaration policy
A. Increase in SI is not allowed
B. Reduction in SI is not allowed
C. Reduction in SI is allowed
D. Minimum SI is 2 Cr
23. Declaration policy cannot be issued for
A. Insurance required for short period
B. Stocks undergoing process
C. Stocks at railway sidings
D. All of Above
24. Sum Insured for Floater declaration policy is
A. 1 Cr
B. 2 Cr
C. 50 Cr
D. 100 Cr
25. Calculation of premium in floater policy
A. On the rating of building
B. On the rating of stock
C. Highest rate applicable to Insured’s property at one location
D. Any of Above
26. Contact Price Insurance Clause
A. Only for Local Manufactured Goods
B. Only for Imported Goods
C. Both A & B
D. None of Above
Answers Key
1. C
2. A
3. A
4. B
5. C
6. C
7. A
8. D
9. B
10. C
11. B
12. A
13. D
14. B
15. D
16. D
17. A
18. B
19. A
20. B
21. A
22. B
23. D
24. B
25. C
26. B
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