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Consequential Loss

Total questions: 6

Worksheet time: 3mins

Name
Class
Date
1.

Will consequential loss policy covers profit already earned?

a)

Yes

b)

No

2.

Material damage provise refer to _______________

a)

A CL policy will only operate to cover loss of gross profit and increase of working if the policyholder’s interest in the subject matter of the loss is also covered.

b)

A CL policy will only operate to cover loss of gross profit, even the policyholder’s interest in the subject matter of the loss is not covered.

c)

A CL policy will only operate to cover loss of gross profit and increase of working, even the policyholder’s interest in the subject matter of the loss is not covered.

3.

In selecting an indemnity period, the time required for the following need to be considered:

a)

Demolition and site clearance/ removal of debris

b)

Repair

c)

Replacement of stocks

d)

Delivery and installation of new machinery

4.

These are the basis of indemnity, EXCEPT :

a)

Gross profit = Net Profit + All Standing Charges

b)

Gross profit = Net Profit + Variable Charges

c)

Gross profit = Turnover + Closing stock – [Opening stock + Uninsured Working Expenses]

5.

Specified Customer Extension covers loss arising from the damage to specified customers’ premises located in ______________

a)

Malaysia

b)

Thailand

c)

Singapore

d)

Brunei

6.

When a shopkeeper cannot reach his premises because of a fire in adjacent building bars access, this situation can be cover under_____________

a)

Public Utilities Extension

b)

Specified Supplier Extension

c)

Prevention of Access Extension