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Advanced Wealth Management Course (IIBF) - Paper 4

Part I: Ch 9: Fire Insurance

Q1.

Which type of policy is a package cover meant for industries with an overall sum insured of Rs. 100 crores?

Reinstatement value polices

Agreed bank clause in a fire policy

Industrial all risk policy

Declaration policy

Q2.

Under insurance of up to ________ is permitted in Industrial all risk policy.

10%

15%

20%

25%

Q3.

For Declaration policies issue, the minimum sum to be insured must be at least _________ in any location.

Rs. 1 crore

Rs. 5 crores

Rs. 10 crores

Rs. 50 crores

Q4.

The refund of premium based on the declarations is not permitted beyond ___________ of the premium.

40%

70%

60%

50%

Q5.

Declaration policies cannot be issued for:

Insurance required for short periods

Stocks under process

Both (a) & (b)

Stocks at Railway sidings

All of the above

Q6.

(I) TAC does not permit reinstatement value policies for stocks & goods. (II) Declaration policies cannot be floater policies.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q7.

Reinstatement value policy is a fire policy that specifies that in event of loss, the policy will pay an amount required for reinstatement of the property insured.

True

False

Q8.

The Middle-of-Term cover commences only ________ days after the receipt of the premium.

5 days

10 days

15 days

25 days

Q9.

(I) Partial insurance can only be issued for such items and properties whose market value cannot be readily ascertained. (II) Under Floater policy stocks lying at different locations are covered under one sum insured.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q10.

(I) Variable charges are fixed amount irrespective of the business transacted, which cannot be reduced in direct proportion to any reduction of business. (II) Standing charges are expenses incurred in the production of goods which vary in amount in direct proportion to the volume of business transacted.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q11.

Net Profit is:

Turnover – Variable charges

Turnover – Standing charges

Turnover – (Variable charges + Standing charges)

Turnover + (Variable charges – Standing charges)

Q12.

A typical fire policy does not cover: