Page 377 - IC38 GENERAL INSURANCE
P. 377
I. To avoid claim payment
II. To eliminate payment of small claims
III. To harass the policyholder
IV. To increase the premium
Question 9
Installation of sprinkler system in the premises:
I. Increases risk
II. Decreases the risk
III. Neither increases nor decreases risk
IV. Increases risk of hooding
Question 10
Insured‟s declared value in motor insurance includes:
I. Registration
II. Manufacturer‟s cost price
III. Manufacturer‟s selling price
IV. Arbitrary price component
Answers to Self-Examination Questions
Answer 1
The correct option is II.
Underwriter decides whether to accept or not to accept the risk.
Answer 2
The correct option is I.
Rate is the price of a given unit of insurance.
Answer 3
The correct option is I.
Sum insured is the maximum amount that an insurance company will indemnify
to someone who files a claim.
Answer 4
The correct option is IV.
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