Insurance MCQ Daily-24

Q-11- First CAR policy issued in _________.

  1. 1923
  2. 1925
  3. 1929
  4. 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?

  1. True
  2. False
  3. can’t say
  4. 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.

  1. Market risk
  2. Liability risk
  3. Business risk
  4. 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 _______

  1. Risk
  2. Peril
  3. Risk & Peril both
  4. 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 _________________________.

  1. exclude both the defect and resultant damage
  2. exclude the defect but to cover resultant damage
  3. include the defect but to exclude resultant damage
  4. 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 ____________

  1. group of Brokers.
  2. group of Insurers.
  3. group of Surveyors.
  4. 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?

  1. 1995
  2. 1996
  3. 1997
  4. 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?

  1. DE1
  2. DE2
  3. DE3
  4. DE4

Option-1 DE1 is the quivalent to LEG01/96 clause.

Q-19- DE or LEG clauses both are __________

  1. exclusions
  2. inclusions
  3. can’t say
  4. 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

  1. post loss, pre loss
  2. pre loss, post loss
  3. pre loss, pre loss
  4. 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.

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