Page 425 - IC38 GENERAL INSURANCE
P. 425
Answers to Test Yourself
Answer 1
The correct option is III.
Fire policy for commercial risks covers the perils of explosion and implosion.
Answer 2
The correct option is I.
A business interruption insurance policy can be taken only in conjugation with
standard fire and special perils policy.
Answer 3
The correct option is IV.
The premium for burglary policy depends on the nature of number of things like
insured property, the moral hazard of the insured himself, construction and
location of premises, safety measures (e.g. watchmen, burglar alarm), previous
claims experience etc.
Answer 4
The correct option is II.
Loss of cash from one‟s premises due to burglary is covered under a money
insurance policy. Riot strike and terrorism can be covered as an extension by
paying an extra premium
Answer 5
The correct option is I.
A fidelity guarantee insurance policy indemnifies employers against the
financial loss suffered by them due to fraud or dishonesty of their employees.
Answer 6
The correct option is IV.
A banker‟s indemnity insurance policy can cover: money securities lost or
damaged whilst within the premises due to fire, forgery or alteration of
cheques, dishonesty of employees with reference to money.
419
