Agency Name : Lapangan Ria

3rd Phase agents' CPD - 2020 Agency Code: M40100

Date: 23/112020
ASSIGNMENT / TEST QUESTIONS FOR COMPLETION BY AGENTS FROM STUDY/
E - Learning .
COURSE TEXT - PROPERTY PRO BUSINESS PACKAGE INSURANCE POLICY

Please duly answer & return within 2 days from the date of receipt of this test question sheet
Please return your answered sheet by e-mail to your respective Branches

(please tick / highlight the correct answer to all the questions below) Passing mark is 50%

1 The Property Pro Business Package is a non-tariff product, unlike a Fire tariff product, the insured perils,
the features, conditions differs from one Company to another. Which statement below is TRUE?
A The policy wordings must follow the Standardised Fire Tariff
B The rating structure is also standardised
C The coverage differs. Rates are actuarial priced according to respective insurers' claims experience.
D All the above.

2 The Property Pro Business Package is a commercial product and the Proposer is a Business or Corporate
Entity, related to its trade, business or profession. Which statement below is applicable insofar to
information declared in the Proposal Form. Which is the correct answer?

A For Non-Consumer Insurance Contracts (Insurance for purposes related to your trade, business or profession)
B For Consumer Insurance Contracts (Insurance wholly for purposes unrelated to your trade, business or
profession)
C Insurance Contract Act
D None of the above.

3 Which of the following are true statements stated under the OPERATIVE CLAUSE
i. The "COMPANY" referred to is The Pacific Insurance Berhad.
ii. The Proposal or any information supplied by the insured is incorporated & form the basis of this contract.
iii Policy not in force unless signed by an authorised representative of the Company
iv. The insurance provided, the limit of liability is as described in the Policy for the Period of Insurance stated in
the Schedule

A I, ii, iii, iv
B ii, iv,
C I, ii, iii
D ii, iii, iv,

4 How many types and sections of cover in the Property Pro Business Product ?

A 12
B 11
C 10
D 8

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5 Which is the mandatory type of insurance Cover of this product?. This must be taken up before other classes

A Fire Consequential Loss

B Burglary
C Public Liability
D Fire (Property Pro)

6 The Standard Property Pro Business Package Policy covers which of the following Perils:

A Bush fire & Explosion

B Busting & Overflowing of Water Tanks
C Fire & Lightning
D Impact Damage & Subterranean Fire

7 There are 3 standard value added benefits in the Property Pro policy. Which is the correct answer?:

i Theft of business monies

ii Theft of Stock-In-Trade, merchandise and or contents following Fire
iii Temporary Protection for safeguarding of the premises pending replacement upon happening of an Insured
Perils
iv Cost incurred in tracing or locating the source the escape of water from any Water Tanks, Apparatus or Pipes
which result in a loss or damage to the property insured.

A i, ii, iii, iv
B i, ii, iii,
C ii, iii, iv
D I, iii, iv

8 What is the limit of the Company's liability in respect of each of the Added Benefits stated in Question 7 above.

A 10% of the total Sum Insured of the property insured or maximum RM20,000
B 20% of the total Sum Insured on the property insured or maximum RM10,000 whichever is lower.
C Limit of RM25,000
D 10% of the total Sum Insured on the property insured or maximum RM10,000 whichever is lower.

9 With payment of an additional premium, which are the extra perils below that can be extended into the policy.
i. War or warlike operations including civil war..
ii Commercial cooking gas explosion
iii Riot, Strike and Malicious Damage
iv Earthquake & Volcanic Eruption

A i, ii, iv
B i, ii, iii, iv
C ii, iii, iv
D I, ii, iii

10 Condition No: 14 of Section 1 of the Property Pro policy states; "If the property insured shall, at the
breaking out of any fire, be collectively of greater value than the sum insured thereonthen the Insured
shall be considered as being his own Insurer for the difference, ans shall bear a rateable proportion of
the loss accordingly. What is the name of this clause ?

A Average Condition Clause

B No claim Clause
C Premium Warranty Clause
D Agreed Value Clause

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11 Your client operates a medium sized Restaurant, what other Perils would you think is necessary or appropriate
to recommend, besides just the Standard Property Pro cover.

i. Earthquake & volcanic Eruption.

ii. Explosion
iii. Riot, Strike & Malicious Damage
iv. Bursting or overflowing of Water Tanks, apparatus or pipes

A i, ii, iii, iv.

B ii, iii, iv
C I, ii
D None of the above

12 A "Deductible" is also known as :

A Franchise
B Stop Loss
C First Loss
D Excess

13 Which of the following clauses do NOT require the payment of additional premium.?

A Spontaneous Combustion
B Flood extension
C Impact Damage
D Mortgagee Clause

14 The rating & pricing structure of this Product, Standard Property Pro Business Section I, and its optional
Special Perils is determined by which of the following core factors:
I. Nature & purpose use of the premises, trade, occupation & any manufacturing process therein.
ii. The type of construction of the premises housing the trade
iii. The claims experience of the type of trade - risk factors of the trade.
iv. Located in which state or district.

A i, ii, iv
B i, ii, iii, iv
C i, ii, iii,
D iii, iv

15 The insurance on Rent applies only if (any of) the said building(s) or any part thereof is unfit for occupation in
consequence of any fire or any other perils hereby insured against but only in respect of the period necessary
for reinstatement or repair as stated in the policy.
Which of the following entities is permissible to take up / purchase this insurance on RENT.

i. Owner - non-occupier of the premises

ii. Owner - occupier of the premises
iii. Tenant - occupier of the premises
iv. Neighbor of the occupier of the premises.
A i, ii, iv
B i, ii, iii, iv
C iii, iv
D i, ii, iii,

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16 "SABOTAGE & TERRORISM EXTENSION" - Section 1a, is an optional extension available under the Property
Pro Business Package. What is the maximum liability of the Company during any one period of insurance of
the policy?

A RM1,000,000
B Limited to 10% of the sum insured under Section 1 of the policy.
C RM2,000,000
D Limited to 10% of the Total Sum Insured under Section 1 of the policy or RM1,000,000/- whichever is lower

17 Fire Consequential Loss, also known as "Business Interruption" or "Loss of Profits" Insurance covers the amount
of loss resulting from such interruptions arising from loss or damage to the Insured premises from an insured
peril. This cover is essential and relevant to client who are Business entities, will suffer losses from such
interruption. Which is the correct / requirement to take up this cover under this Property Pro Business Package?

A This optional cover must be taken up together with the mandatory Section 1 -Fire (Property Pro)
B Can take up cover on its own, not compulsory to have Section 1 -Fire (Property Pro)
C can combine with Public Liability Insurance without Section 1 - Fire (Property Pro)
D Can combine with Burglary Insurance only

18 Depending on the insured’s needs and subject to the Company’s agreement and payment of additional
premiums the Optional Cover -Section 2: the Fire Consequential Loss basic policy can be extended to cover
the following special perils, EXCEPT

A Increase in cost of working .

B Prevention of access extension.
C Specified and Unspecified supplier extension.
D Public Utilities extension (water, electricity and gas).

19 The standard Burglary policy covers THEFT to contents or damage to property or premises consequent upon:
which are correct statements below?

I Theft consequent upon & connected with visible violent forcible entry into and /or exit from the premises.
ii Cover any damage to the said Premises arising from break in /break out
iii In respect of the damages to premises, the limit of liability is RM5,000.
iv Premises means the interior of that portion of any building at the location of risk stated in the Policy Schedule
which is occupied by the Insured in conducting the business as stated therein.

A I, ii.
B ii, iii, iv
C I, ii, iii.
D I, ii, iii, iv.

20 Amongst others, the main Exclusions under a Burglary policy will include all of the following, EXCEPT
A Radioactive contamination.
B Goods held in trust or commission by the Insured
C Damage occasioned by fire or explosion.
D War, strike, riot, civil commotion and kindred risks.

21 Which of the following are Standard basic covers under the Money Insurance - Section 4 of the Property Pro
Business Package policy.

I Theft by Deception (Cheating)

ii Abscondment by messenger
iii Damage to safe and/or locked drawers - limit RM1,000
iv Armed robbery and hold-up, Break-in theft at the insured’s premises
v Loss of Money via electronic funds transfer - Limit of RM5,000 per online transaction.

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A ii, iii, iv, v
B I, ii, iv, v
C I, ii, iii, iv, v
D iii, iv, v

22 The Company shall make good to the Insured all such direct pecuniary loss, not exceeding the limit set in the
Schedule as the Insured shall sustain through any act or acts of FRAUD or DISHONESTY by such employee.
Such financial loss are covered under which Section of Insurance in the Property Pro Business Package policy.

A Section 7 - All Risk

B Section 3 - Burglary
C Section 6 - Fidelity Guarantee
D Section 10 - Employers Liability

23 Section 7 - All Risks insurance provides cover for:

A Loss, damage or destruction of the insured property by fire and theft.

B Loss, damage or destruction of the insured property by wear and tear.
C Loss, damage or destruction of the insured property by moth and vermin.
D Loss, damage or destruction of the insured property by fire, theft or any accident or misfortune not specifically
excluded

24 The intention of Section 8 - Special Risk Equipment, is to provide cover for Loss or damage:

A Mobile equipment, not licensed for public road use as defined in the Road Transport Act, and used within the
Insured's premises as stated in the Policy Schedule.
B All Purpose use throughout Malaysia
C All Risk including Third Party Liability
D For the carriage of passengers

25 Public liability insurance is designed to cover:

A Protect a manufacturer/supplier in respect of third party claims for bodily

B Protect a professional against professional negligence claims from third parties.
C Protect employers against claims from employees.
D Protect the Insured against third party claims from the public, its legal liability in respect of bodily injuries and / or
property damage arising in connection with the Insured's business, including all costs & expenses of litigation
incurred with Insurer's consent.

26 Amongst others, the main Exclusions under a Public Liability policy will include all of the following, EXCEPT

A Liability its employees

B Property belong to the Insured, in his charge or under the control of Insured or his servants including and goods/
property / land/ building or structure on which Insured or his servants is or had been working on.
C Liability arising from Insured's signboard which fell & damaged to car parked in parking lot in front of his shop
D Liability occasioned by or through or in consequence of pollution or contamination.

27 An Employers’ Liability policy provides protection to the Insured against his legal liability at common law of
damages and claimant costs and expenses:

A Bodily injury/illness to employees arising in the course of employment.

B Property damage to employees’ property arising out of their occupation.
C Lability to third party for negligence on road use vehicle
D Liability to third party for bodily injury or property damage.

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28 Which of the following class of Insurance is an available optional part of the Property Pro Business Package?

A Group Personal Accident Insurance

B Group Hospitalisation & Surgical Insurance
C Plate Glass Insurance
D Motor Insurance

29 In all General Insurance policies, clear General Conditions are applicable and specifically spelled out.
which of the following are stated under General Conditions:

i. Claims Procedure
ii. Premium payment
iii Subrogation
iv Contribution
v. Arbitration

A i, ii, iv, v
B I, ii, iii, iv, v.
C ii, iv, v
D I, ii, iii, iv,

30 What is the percentage of commission allowable for this Property Pro Business Package Insurance?

A 10%
B 15%
C 20%
D 25%

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