Page 14 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

64. An insured has a superstore full of tools. Management estimate that the maximum amount
that could be stolen in one incident is $50,000 against an overall stock sum insured of $2 million.
To cover the risk of theft in a single incident an intermediary might recommend a:

a) Theft only policy
b) First loss policy
c) Benefit policy
d) Agreed value policy

65. An insurer may opt to indemnify an insured by:

a) A new policy
b) No claim bonus
c) Reinstatement
d) Deleting the excess

66. Wholesalers’ and retailers’ stock in trade is always insured on the basis of:

a) New for old including handling costs
b) Indemnity value plus transport and handling
c) Cost of raw materials and all profit
d) Replacement less trade discount

67. Indemnity can best be described as:

a) Putting the insured back in the financial position they were in before the loss
b) Giving the insured sufficient money to replace damaged items with new ones
c) Making sure that the insured makes a profit from their loss
d) Paying a claim without deducting an excess or imposing limits

68. Reinstatement as a method of indemnifying a client for a damaged building is not popular
with insurers. Why?

a) Because insurers lose overall control of the claim
b) The insured can rebuild exactly as they wish
c) Insurers may have to pay more than the sum insured
d) The insured can use the claim settlement as they wish

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