NONLIFE EXAM REVIEWER PART 3

Which of the following statements in Marine Insurance on "abandonment" is false?

• It is an act of the insured which after a constructive total loss, he declares the relinquishment to the insurer of his interest in the thing insured

• It can be partial or conditional

• It is equivalent to a transfer by the insured of his interest in the thing insured

• It can be sustained only upon cause specified in the notice of abandonment

A passenger, under the LTO insurance

• Is always a fare-paying person being transported and conveyed by a motor vehicle for transportation of passenger compensation

• Need not necessarily be a fare-paying passenger

• Combination of A and B

• None of the above

Jettison, in Marine Insurance

• Includes every wrongful act willfully committed by the master or crew to the prejudice of the owner

• Refers to the temporary detainment of property with a view to ultimate release

• Refers to throwing overboard of cargo or part of a vessels equipment in order to relieve a vessel when it is in peril

• None of the above

An insuring agreement:

• Defines the liability

• Specifies how much the insured will receive

• Defines the condition under which benefits will be paid subject to exclusions and limitation

• Binds the insurance company to the risk

Under the Compulsory Motor Vehicle Insurance, the basis for determining the amount of insurance required for passenger liability is

• Horse power

• Displacement capacity

• Number of passenger

• Unladen weight

Why is the application for insurance important?

• It gives the company information for the sale of insurance at a later date

• Because it gives the company information on other prospects in the family

• It is the easiest way to get the applicant to sign up for coverage

• Because the company accepts or rejects the applicants based on the information in the application

In a court action to regain possession of his personal property, the plaintiff files a bond known as

• Attachment bond

• Seizure bond

• Replevin bond

• Requisition bond

Under the average Clause of the fire policy, the insure:

• Shall not be paid the full value of his loss

• Is not bound to insure the property

• Shall be considered a self-insurer of the uninsured portion

• None of the above

The provision in a Standard Fire Policy that - except as may be stated on the face of this policy there is no other insurance on the property hereby covered - breach of this condition will render the policy null and void known as

• Control of the property clause

• Waiver of premium

• Average clause

• Other insurance clause

A contract signed and executed by a third party in favor of a bonding company by virtue of which said party binds himself to indemnity the company against loss which may arise by reason of the issuance of the bond is called:

• Contractor's bond

• Fiduciary bond

• Surety bond

• Third party indemnity agreement