BCP Property & Casualty Insurance 1

Question 1

What does a standard Fire Insurance policy in Singapore typically cover?

Accepted Answer

Fire, lightning, and explosion of domestic boilers

Answer

A standard Fire Insurance policy covers loss or damage caused by fire, lightning, and explosion of domestic gas boilers or gas used for domestic purposes. Other perils require extensions.

Question 2

Which of the following is typically EXCLUDED from a standard property insurance policy?

Accepted Answer

Gradual deterioration and wear and tear

Answer

Gradual deterioration and wear and tear is typically excluded from property insurance policies because insurance covers sudden, unforeseen events — not inevitable deterioration over time.

Question 3

What is 'public liability insurance' designed to cover?

Accepted Answer

A business's legal liability to third parties for bodily injury or property damage

Answer

Public liability insurance covers a business's legal liability to third parties (members of the public) who suffer bodily injury or property damage arising from the business's activities.

Question 4

In motor insurance, what does 'Third Party Only' (TPO) coverage provide?

Accepted Answer

Coverage for injuries and damage caused to other parties by the insured

Answer

Third Party Only (TPO) motor insurance covers the insured's legal liability to third parties for bodily injury and property damage caused by the insured's vehicle, but does not cover the insured's own vehicle.

Question 5

What does 'employers' liability insurance' cover in Singapore?

Accepted Answer

The employer's legal liability for work-related injuries or illnesses suffered by employees

Answer

Employers' liability insurance covers the employer's legal liability to pay compensation to employees who suffer work-related injuries, diseases, or death in the course of their employment.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP Property & Casualty Insurance 1