BPD Internal training - 09.2024-1

What type of insurance does the concept of Constructive Total loss apply to?

• Marine Insurance

• Fire Insurance

• Both Marine and Fire Insurance

Which indemnity may happens if the words "for which he (or they) are responsible" are not included in the description of the subject matter of the insurance, 

• The amount payable will be limited by the amount of the insured's insurance interest in the property

• The amount payable will be limited by the value of the destroyed subject matter and will include any foreseeable consequential loss for which the insured is held to be responsible such as the full value of goods held in trust

• Agreed value

Which factor below affects whether an insurer is liable for goods held in trust?

• The number of parties named in the property contract

• Whether another insurance contract covers the same goods

• Whether the policy benefits insured as well as others

If raw materials are destroyed in a fire, what are insurers liabilty to pay

• The original price that the insured has paid for the goods

• Market price of the goods at the time and place of the fire

How do insurers calculate indemnity manufacturer' partially processed damaged stock-in-trade

• Add the cost of replacement raw materials or parts

• The anticipated profit if there were no damage is used

• Add the cost of replacement raw materials or parts and anticipated profit of partially completed goods

Which clause could make insurers pay for insured's anticipated profit for stock-in-trade

• Brand and label clause

• Contract Price Clause

• Extra charges clause

What does the insured need to do when the insurer decides to reinstate any property that lost, damaged or destroyed?

• Not interfere in the reinstatement procedure

• Work with the insurer to appoint a suitable contractor

• Provide any information needed for reinstatement