Page 315 - IC38 GENERAL INSURANCE

Damage as a result of wear and tear cannot be treated as risk.
Answer 6
The correct option is I.
Earthquake is an example of catastrophic risk.
Answer 7
The correct option is I.
Insurance cannot protect an asset from loss or damage.
Answer 8
The correct option is II.
Subrogation means transfer of all rights and remedies, with respect to the
subject matter of insurance, from insured to insurer.
Answer 9
The correct option is II.
Presence of fire extinguisher need not be disclosed while buying insurance,
unless asked for.
Answer 10
The correct option is I.
Misrepresentation is a wrong statement made during negotiation of a contract.

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