Q-11- First CAR policy issued in _________.
- 1923
- 1925
- 1929
- 1930
Option-3 First CAR policy issued in 1929, construction of Lambeth bridge in London.
Q-12- In earlier times all losses arising from or caused by defective design, workmanship or material, were excluded.
This statement is TRUE or FALSE?
- True
- False
- can’t say
- depends on Insurer
Option-1 True,In earlier times all losses arising from or caused by defective design, workmanship or material, were excluded.
Q-13- Defects and losses arising were viewed as a __________ for the contractor.
- Market risk
- Liability risk
- Business risk
- Construction risk
Option-3 At that times, defects and losses arising were viewed as a “business risk” for the contractor.
Q-14- In earlier times Insurers and brokers established the principles that a defect is a condition, not a _______
- Risk
- Peril
- Risk & Peril both
- none of above
Option-2 Insurers and brokers established the principles that a defect is a condition, not a peril.
Q-15- The Intent of Insurers & Brokers was to _________________________.
- exclude both the defect and resultant damage
- exclude the defect but to cover resultant damage
- include the defect but to exclude resultant damage
- include both the defect and cover resultant damage
Option-2 In earlier time, the intent was to exclude the defect but to cover resultant damage
Q-16- DE Clauses drafted by ____________
- group of Brokers.
- group of Insurers.
- group of Surveyors.
- group of Underwriters.
Option-2 DE Clauses drafted by a group of(mainly London Market) Insurers.
Q-17- In which year London Engineering Group drafted the LEG clauses to be more aligned to larger EAR exposures?
- 1995
- 1996
- 1997
- 1998
Option-1 in 1995-London Engineering Group drafted the LEG clauses to be more aligned to larger EAR exposures.
Q-18- Which is the equivalent DE clause against LEG1/96 clause?
- DE1
- DE2
- DE3
- DE4
Option-1 DE1 is the quivalent to LEG01/96 clause.
Q-19- DE or LEG clauses both are __________
- exclusions
- inclusions
- can’t say
- both above
Option-1 DE/LEG both are exclusions applied to an all risks wordings.
Q-20- DE excludes cost of reinstating defective elements _______, LEG excludes _______ rectification of the defect
- post loss, pre loss
- pre loss, post loss
- pre loss, pre loss
- post loss, post loss
Option-1 DE excludes cost of reinstating defective elements post loss, LEG excludes pre loss rectification of the defect.
It is interesting to note, that the difference between LEG2 & DE3/4 & DE3 / 4 excludes the damage and hence cost of Reinstatement, LEG2 excludes the amount it would have cost to replace the defective parts immediately prior to the loss occurring.