Insurance MCQ Daily-16

Q-11- What is the fundamental difference between the three commercial property insurance covered causes of loss forms – Basic Form, Broad Form, and Special Form?

  1. The number of perils listed in each causes of loss form.
  2. Only the Special Form offers additional coverage for fungus and collapse.
  3. The Basic Form names the perils covered while the Broad and Special Forms cover all perils that are not specifically excluded.
  4. Both the Basic and Broad Forms are written on a named perils basis while the Special Form provides coverage for all direct causes of loss not specifically excluded.

Option-4

Q-12- Which of the following factors does NOT result in higher premiums on commercial property insurance?

  1. Larger limits of insurance
  2. Smaller deductible amounts
  3. Additional optional coverages
  4. Broader covered causes of loss

Option-3 Additional Optional Coverage

Q-13- Who among the following decides whether to accept or not to accept the risk?

  1. Broker
  2. Insurer
  3. Surveyor
  4. Underwriter

Option-4 Underwriter decides whether to accept or not to accept the risk.

Q-14- What is the purpose of deductible clause in insurance policy?

  1. Increase Premium
  2. Reduce coverages
  3. Reduce Claim Outgo
  4. Eliminate small Insurance Claims

Option-4 Deductibles aim to reduce small claims.

Q-15- How is the premium under the Burglary policy decided?

  1. Premise Location
  2. Nature of Property
  3. Security Measures
  4. All of above

Option-4 All mentioned factors are taken into consideration while decides premium of Burglary policy.

Q-16- Which among the following insurance policy will be used by the employer to insure himself from dishonest act of his employees?

  1. Declaration Policy
  2. Public Liability Insurance policy
  3. Employes compensation policy
  4. Fidelity Guarantee Insurance policy

Option-4 Fidelity Guarantee Insurance policy helps employers to insure himself from dishonest acts of employees.

Q-17- Credit Insurance provide ________

  1. Coverage against fire loss
  2. Coverage against burglary
  3. Coverage against bad debts
  4. Coverage against Marine loss

Option-3 Credit Insurance provide coverage against Bad Debts.

Q-18- Oil well liability covers

  1. Drilling operations
  2. Scalling operations
  3. Machinery Operations
  4. All of these

Option-1 Oil well liability covers drilling Operations.

Q-19- The proportion of the risk which the direct insurer holds on his own account refers to __________

  1. Line
  2. Retention
  3. Retocession
  4. Ceding Insurer

Option-2 Retention

Q-20- Committee of Reforms in insurance sectors during 1993 headed by ____________.

  1. R.N. Malhotra
  2. S. Narashiman
  3. Manmohan Singh
  4. P. Chidamabaram

Option-1 Reform committee headed by R.N.Malhotra.

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