IC NON-LIFE REVIEWER QUESTIONS AND ANSWERS
A Term which refers to a relative division of risk between the insurer and the insured, depending upon
the relative amount of the policy and the actual value of the property insured and takes effect only
when the actual loss is partial and less than the amount of the policy is - CORRECT
ANSWER✅✅✅CO-INSURANCE
Explosion to be recoverable as extraneous risk and written in conjunction with the standard fire policy
must be: - CORRECT ANSWER✅✅✅Chemical explosion, as in the case of gas used for lighting or
domestic purposes
With respect to Coinsurance Average or Contribution Clause which of following statements is true -
CORRECT ANSWER✅✅✅None of the above
According to the term of the "Loss Clause" (which is contained in the coverage form attached to a fire
policy) must an insured request the reinstatement of his insurance after a loss occurred? - CORRECT
ANSWER✅✅✅Not until the premises have been restored
Not until the premises have been restored - CORRECT ANSWER✅✅✅a. To obtain a measurement of
the insured's loss
b. Guard against moral hazard
c. Prevent wagering
d. ALL OF THE ABOVE
Under the Insurance Law, a fund was created to be used in the payment of allowed claims against an
insurance company authorized to transact business in the Philippines, remaining unpaid by reason of
insolvency of such company. The fund is the - CORRECT ANSWER✅✅✅Security Fund
Under the provision of the Insurance Code, a cancellation notice to the insured from the insurer, to be
effective, shall be based on the occurrence of any of the following, except: - CORRECT
ANSWER✅✅✅Verbal notice to the insured
In Health Insurance, Total Disability is taken to mean - CORRECT ANSWER✅✅✅a. A complete
inability of the insured to engage in his occupation for a period specified in the policy
, b. Inability to engage in any gainful occupation for which he is fitted by education and training
c. The insured is not able to perform any gainful occupation
d. ALL OF THE ABOVE
An insurable interest exists in the following instances
I. In the love and affection of persons related by blood or by law
II. If a person is interested in the well-being of another person
III. If a person is interested in buying insurance on another person
IV. If a person has an economic interest in the insured even though he is not related to the insured -
CORRECT ANSWER✅✅✅I and IV
AN insured property being shipped may be stationary temporarily at a certain location. The property will
eventually continue on its way to its destination. The kind of shipment, in insurance is known a -
CORRECT ANSWER✅✅✅In due course of transit
A kind of insurance that protects the insured against loss due to the non-performance of contract to
which - CORRECT ANSWER✅✅✅Guaranty Insurance
Generally, Fidelity Bonds are issued to become effective as of a given date for - CORRECT
ANSWER✅✅✅A term of employment
All of the following are true, except - CORRECT ANSWER✅✅✅All of the following are true, except
A misrepresentation is not material unless it led the insurance company to issue coverage that would
not have been issued if the true facts had been known. This statement is - CORRECT
ANSWER✅✅✅a. Valid only if there was a witness
b. False
c. TRUE
d. False, a misrepresentation is always material
A Term which refers to a relative division of risk between the insurer and the insured, depending upon
the relative amount of the policy and the actual value of the property insured and takes effect only
when the actual loss is partial and less than the amount of the policy is - CORRECT
ANSWER✅✅✅CO-INSURANCE
Explosion to be recoverable as extraneous risk and written in conjunction with the standard fire policy
must be: - CORRECT ANSWER✅✅✅Chemical explosion, as in the case of gas used for lighting or
domestic purposes
With respect to Coinsurance Average or Contribution Clause which of following statements is true -
CORRECT ANSWER✅✅✅None of the above
According to the term of the "Loss Clause" (which is contained in the coverage form attached to a fire
policy) must an insured request the reinstatement of his insurance after a loss occurred? - CORRECT
ANSWER✅✅✅Not until the premises have been restored
Not until the premises have been restored - CORRECT ANSWER✅✅✅a. To obtain a measurement of
the insured's loss
b. Guard against moral hazard
c. Prevent wagering
d. ALL OF THE ABOVE
Under the Insurance Law, a fund was created to be used in the payment of allowed claims against an
insurance company authorized to transact business in the Philippines, remaining unpaid by reason of
insolvency of such company. The fund is the - CORRECT ANSWER✅✅✅Security Fund
Under the provision of the Insurance Code, a cancellation notice to the insured from the insurer, to be
effective, shall be based on the occurrence of any of the following, except: - CORRECT
ANSWER✅✅✅Verbal notice to the insured
In Health Insurance, Total Disability is taken to mean - CORRECT ANSWER✅✅✅a. A complete
inability of the insured to engage in his occupation for a period specified in the policy
, b. Inability to engage in any gainful occupation for which he is fitted by education and training
c. The insured is not able to perform any gainful occupation
d. ALL OF THE ABOVE
An insurable interest exists in the following instances
I. In the love and affection of persons related by blood or by law
II. If a person is interested in the well-being of another person
III. If a person is interested in buying insurance on another person
IV. If a person has an economic interest in the insured even though he is not related to the insured -
CORRECT ANSWER✅✅✅I and IV
AN insured property being shipped may be stationary temporarily at a certain location. The property will
eventually continue on its way to its destination. The kind of shipment, in insurance is known a -
CORRECT ANSWER✅✅✅In due course of transit
A kind of insurance that protects the insured against loss due to the non-performance of contract to
which - CORRECT ANSWER✅✅✅Guaranty Insurance
Generally, Fidelity Bonds are issued to become effective as of a given date for - CORRECT
ANSWER✅✅✅A term of employment
All of the following are true, except - CORRECT ANSWER✅✅✅All of the following are true, except
A misrepresentation is not material unless it led the insurance company to issue coverage that would
not have been issued if the true facts had been known. This statement is - CORRECT
ANSWER✅✅✅a. Valid only if there was a witness
b. False
c. TRUE
d. False, a misrepresentation is always material
