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Updated Final Term IRM 2020 Online Revised
Updated Final Term IRM 2020 Online Revised
Updated Final Term IRM 2020 Online Revised
Instructions: Attempt all questions and provide concise and to the point answer.
Q. No. 2 Private insurance provides coverage that can be used to meet specific loss situations. For each of the following situations,
identify a private insurance coverage (Type of Insurance) that would provide the desired protection.
a. Ms. Nazi, age 40, is a single parent with two dependent children. She wants to make certain that funds are available for her
children’s education if she dies before her youngest child finishes college.
b. Ms. Zain, age 19, recently obtained her driver’s license. Her parents want to make certain they are protected if Zain negligently
injures another motorist while driving a family car.
c. Mr. Saleem, age 32, is a married person with two dependents. He wants his income to continue if he becomes totally disabled
and unable to work.
d. Mr. Naveed, age 45, recently purchased a house for Rs. 20000,000 that is located in an area where tornadoes frequently occur.
He wants to make certain that funds are available if the house is damaged or destroyed by a tornado.
Q. No. 3 Mr. Jaffar is a book dealer who purchased a building from Aleem. Jaffar obtained a loan from the National Bank of Pakistan
(NBP) to purchase the building, which held a mortgage on the building. Jaffar planned to store his inventory of books in the building. He
also planned to use part of the building for a fast-food restaurant. When Jaffar applied for property insurance on the building, he did not
tell the agent about the fast-food restaurant because premiums would be substantially higher. Eight months after the policy was issued, a
fire occurred in the restaurant that caused substantial damage to the building.
a. Do any of the following parties have an insurable interest in the building at the time of loss? Briefly explain your answer in the
light of Principle of Insurable Interest.
i. Jaffar
ii. Aleem
iii. NBP
b. Could Jaffar’s insurer deny coverage for the fire loss based on a material concealment? Briefly justify your answer in the light
of Principle of Utmost Good Faith.
c. Investigation of the fire revealed that an electrician improperly wired an electrical outlet in the restaurant, which caused the fire.
Briefly explain how the Principle of Subrogation might apply in this case.
Q. No. 4. You are required to list out basic parts of insurance contract. Explain with arguments
Good Luck