Question 1

How does an insurance contract differ from an ordinary business contract?

Accepted Answer

A)  There is uncertainty that could result in either a gain or a loss.
B)  Both parties believe that the contractual price and the value of the contractual goods are equivalent.
C)  The insured will receive a sum of money on the occurrence of an event which must occur at some time,although the time of the occurrence is uncertain.
D)  One party knows that they are paying a price far less than the value provided by the other party and that the other party will only have to perform if certain conditions are met.E) B) and D)
F) None of the above

Question 2

An insurance broker is:

Accepted Answer

A)  an employee of an insurance company.
B)  an employee of the insured.
C)  an agent of an insurance company.
D)  an independent adviser.E) All of the above
F) A) and B)

Question 3

Insurable interest means that the insured must suffer a pecuniary or financial loss.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT an example of general insurance?

Accepted Answer

A)  Credit insurance.
B)  Motor vehicle insurance.
C)  Life insurance.
D)  Professional indemnity.E) B) and C)
F) C) and D)

Question 5

Which of the following is an example of an insurable interest?

Accepted Answer

A)  Mortgagees and mortgagors.
B)  Landlords and tenants.
C)  A creditor against a debtor's insolvency.
D)  All of the above.E) A) and D)
F) A) and B)

Question 6

The onus of proving that all material facts have been disclosed rests with the insured.

Accepted Answer

A) True 
 B)False

Question 7

Before an insured party can place a claim on their policy,they must prove:

Accepted Answer

A)  they have suffered a loss because of the damage to or destruction of the property insured.
B)  they have an insurable interest in the property insured.
C)  they have either a legal or an equitable interest in the property insured.
D)  they are the owner of the property insured.E) A) and B)
F) C) and D)

Question 8

List the duties of an insurance agent or insurance broker.

Accepted Answer

The duties of an insurance agent or insu...

Question 9

In the case of goods insured at market value,their value is assessed:

Accepted Answer

A)  at the date the goods were lost or destroyed.
B)  at the date the goods were purchased.
C)  at the date of the claim.
D)  at the date the contract of insurance commenced.E) A) and B)
F) A) and C)

Question 10

In what circumstances can an insurer cancel an insurance policy?

Accepted Answer

A)  If the insured has breached their duty of good faith.
B)  If the insured has breached a term of the contract.
C)  If the insured has made a fraudulent claim.
D)  All of the above.E) None of the above
F) All of the above

Exam 23: Insurance

In the case of goods insured at market value,their value is assessed:

Correct Answer
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Which of the following is NOT an example of general insurance?

Correct Answer
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Insurable interest means that the insured must suffer a pecuniary or financial loss.

Correct Answer
verified

How does an insurance contract differ from an ordinary business contract?

Correct Answer
verified

Which of the following is an example of an insurable interest?

Correct Answer
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Before an insured party can place a claim on their policy,they must prove:

Correct Answer
verified

An insurance broker is:

Correct Answer
verified

The onus of proving that all material facts have been disclosed rests with the insured.

Correct Answer
verified

In what circumstances can an insurer cancel an insurance policy?

Correct Answer
verified

List the duties of an insurance agent or insurance broker.

Correct Answer
verified
The duties of an insurance agent or insu...
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Exam 23: Insurance

In the case of goods insured at market value,their value is assessed:

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of general insurance?

Correct AnswerverifiedShow Answer

Insurable interest means that the insured must suffer a pecuniary or financial loss.

Correct AnswerverifiedShow Answer

How does an insurance contract differ from an ordinary business contract?

Correct AnswerverifiedShow Answer

Which of the following is an example of an insurable interest?

Correct AnswerverifiedShow Answer

Before an insured party can place a claim on their policy,they must prove:

Correct AnswerverifiedShow Answer

An insurance broker is:

Correct AnswerverifiedShow Answer

The onus of proving that all material facts have been disclosed rests with the insured.

Correct AnswerverifiedShow Answer

In what circumstances can an insurer cancel an insurance policy?

Correct AnswerverifiedShow Answer

List the duties of an insurance agent or insurance broker.

Correct AnswerverifiedThe duties of an insurance agent or insu...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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The duties of an insurance agent or insu...
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