1.

A fire policy taken for one year is extended for one month by charging
a. Short period note for one month
b. Pro rata premium for one month
c. 50% of the short period note
d. 50% of the pro rata taken for one month

2. If the insured proposes to cover his building for fire and earthquake from division
1 of the insurance company and his machinery for fire from division 2 of the same
insurance company he will be
a. Permitted to insure as per his request
b. Will not be permitted
c. Permitted by owing him to have both the policy in division 1
d. Permitted by owing him to have both the policy in division 2

3. If the insured proposes to get add on are cover for STFI during the middle of the
policy
a. The same can not be covered
b. The same can be covered
c. Covered with a waiting period of 15 days
d. Covered with a waiting period of 30 days

4. If computers are covered under a fire policy and in case breakdown of the
computers due to short circuit
a. The claim is payable in full
b. The claim is payable as not standard
c. The claim is not payable
d. The claim is payable at value of the computers at 40% depreciation p.a.

5. If a building is occupied in the ground floor as an Engineering workshop and first

floor as a dwelling by different owners
a. First floor are rated at the higher rate for the two
b. Rated at lower rate for the two
c. rated per se
d. Engg. Workshop is rated at the rate of dwindling

6. Under a contractor all risk policy issued for construction of a road project, is to be
extended for a further period
a. Can be done only for the full sum insured
b. Can be extended for the balance sum insured excluding the completed portion
which is not put into service
c. Cannot be extended
d. Can be extended for value of remaining project completion + 50% of s.i. for the
completed portion
7. Which of the following is true under a Reinstalment value policies
a. The replacement / Reinstalment need not be carried out
b. The replacement / Reinstalment shall be completed within 12 months
c. The insured need not intimate his intension to do the replacement / Reinstalment
d. All the above

8. Can fire policies be issued for more than 12 months

a. Yes can be issued to all types of premiums
b. Can be issued only for dwellings
c. Can be issued for godown covering non-hazardous goods
d. Can be issued only for godown covering hazardous goods

10. Valued policies can be issued for

a. Properties of a VIP
b. Properties exceeding value of 5 years
c. Properties whose market value can not be ascertained
d. None of the above

11. Which of the following is not applicable for Mid-term cover?

a. Insurers must receive specific advice from the insured accompanied by payment
of the reqd. additional prem. in cash or draft. This additional premium can not be
adjusted against existing case deposit or debited bank guarantee
b. Mid-term cover shall be granted for the entire property at one complex /
compound / location covering the entire interest of the insd. under one or more
policies insd. Shall not have any option for selection
c. Cover shall commence 15 days after receipt of the premium
d. The premium shall be charged on pro-rata basis

12. A silent risk denotes

a. Factories where no manufacturing / storage activities are carried out
continuously for 30 days or more
b. Factories in which machine do not make a noise
c. Factories where trade unions does not exist
d. None of the above

13. Average clause becomes applicable when

a. Sum insured is lower than the value of risk at the time of loss
b. Properties insured situated at more than one location
c. Insured is a partnership firm and they prefer to accept claim in the proportion of
value of amount invested by each one of them
e. None of the above
10. Which of the policies cannot be issued for a project under construction
a. Contractors’ all risk policy
b. Marine -cum-erection policy
c. Machinery breakdown policy
d. Election all risk policy