4th Principles of Insurance

4th Principles of Insurance

Multiple Choice

What role does insurance play in financial planning?

• It guarantees that income and assets are protected

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It grows in value and appreciates over time

Multiple Choice

Did a contract exist between Muffin Man and Irie Promotions Ltd?

• Yes

• No

Multiple Choice

Which element/s was missing from the case?

• Offer and Acceptance

• Competence of Parties

• Intention to create legal agreement

• Consideration

• None of the above

Multiple Choice

Impossibility is an example of:

• Elements of a contract

• Invitation to treat

• Termination of a contract

• Terms and conditions

Multiple Choice

Was there Breach of Contract?

• Yes

• No

Multiple Choice

Who would win in a court of law?

• Muffin Man

• Irie Promotions Ltd

Multiple Choice

The central idea/s of an insurance is to make sure that:

• An insured is put back to the position as or she was before loss.

• As insured under no circumstance should make profit.

• As insured should have a cover over his risk.

• Al of the above

Multiple Choice

A cargo ship was insured against perils of sea. While the consignment was being loaded few rats also creeped along. During the Voyage, the rats made holes in the ship. Consequently, the sea water entered into the ship and the cargo was damaged. Will he get his claims? If not, why?

• Yes, he will get his claim.

• No he will not get his claim due to proximate cause.

• No he will not get his claim due to mitigation cause.

• No he will not get his claim due to subrogation cause.

Multiple Choice

Which of the principles of insurance is being violated in this scenario? When getting insurance Amy did not inform the insurer of a previous illness that she suffered.

• subrogation

• utmost good faith

• under insurance

• Proximate cause

Multiple Choice

.........................emphasises on full disclosure of material facts related to the subject matter by both insurer and insured.

• Principle of the Utmost faith

• Principle of Subrogation

• Principle of Proximate cause

• NONE of the above.

Multiple Choice

Identify the Principle which says that, 'The insured should have pecuniary interest in the subject matter'.

• Principle of the Utmost faith

• Principle of Contribution

• Principle of Indemnity

• Principle of Insurable Interest

Multiple Choice

After the claim, the right of the property is transferred to the Insurance Company. Under no circumstances, the insured is allowed to make any profit by sale of scrap. Identify the Principle.

• Principle of indemnity

• Principle of mitigation

• Principle of Subrogation

• Principle of proximate cause.

Multiple Choice

John Insured his house with two different insurance companies. When his car was stolen, he placed a claim with both companies. Which Principle of Insurance is in place here?

• Indemnity

• Subrogation

• Utmost Good Faith

• Contribution