Commercial General Insurance Mock Paper Singapore -

Note: Candidates should refer to the latest Monetary Authority of Singapore (MAS) circulars, WICA limits (updated annually), and the Insurance Act for precise statutory figures.

A retail chain has a Business Interruption policy with a 12-month indemnity period and a Gross Profit basis. Their turnover is S$10 million, with a gross profit percentage of 30%. A fire shuts down their main store for 5 months. During that period, actual sales dropped by S$2 million, but they saved S$200,000 in avoided purchases (unpurchased stock). Calculate the Gross Profit loss using the standard BI formula (show workings). Ignore increased cost of working for this exercise. Commercial General Insurance Mock Paper Singapore

Advise GL on their duty of disclosure regarding the lithium batteries. If the insurer discovers the nondisclosure post-loss, what remedies are available under the Insurance Act (Cap 142) as amended by the Insurance (Amendment) Act 2020 (fair presentation)? Note: Candidates should refer to the latest Monetary

Discuss whether the CGL policy will respond to the neighbour’s wall damage (S$200k) and any third-party bodily injury if a neighbour worker suffered burns. Refer to the “known hazard” exclusion. A fire shuts down their main store for 5 months

A food importer in Singapore has a Marine Cargo policy under Institute Cargo Clauses (B) and a separate Storage Floater for the warehouse. A container of frozen prawns arrives at Pasir Panjang Terminal, is trucked to the warehouse, and upon opening 24 hours later, is found to have thawed and spoiled. The refrigeration unit was not plugged in during the 2-hour truck journey. Does the Marine Cargo policy respond? Justify using ICC (B) exclusions.

Calculate the indemnity payable under the Fire policy for the building damage , assuming the actual physical damage to the building is S$4 million. Show the application of the Average Clause. Explain whether the insurer will pay for the damage to Client A’s batteries under this policy.