4th Life vs Non-Life Insurance Policies

4th Insurance

Life vs Non-Life Insurance Policies

Multiple Choice

This term pays for protection against loss of life, property, and finances.

• collision

• premium

• insurance

• deductible

Multiple Choice

The amount paid for insurance is the

• closing cost

• premium

• deductible

• assessed value

Multiple Choice

The person named in a life insurance policy to receive the death benefit is called the

• policy holder

• beneficiary

• recipient

• insurance agent

Multiple Choice

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury

• emergency savings

• coverage

• claim

• employee benefits

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 Proximate cause

• Principle of Subrogation

• 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

Jeevan has insured his property with 2 insurance company Oman Insurance company and Continental Financial services for AED 2 million and AED 6 million respectively for fire. Due to fire he suffers a loss of AED 1 million and he files a claim for AED 1 million from each company. Will he get his claims? If not, why?

• Yes he will receive his claims.

• No. because he has violated Principle of Insurable Interest.

• No. because he has violated Principle of Contribution.

• No. because he has violated Principle of Indemnity.

Multiple Choice

Utmost Good Faith means..

• That you must tell half of the truth when applying for insurance.

• Make up all of the material facts on your application form.

• That you must be honest about all material facts when applying for insurance.

Multiple Choice

Insurance that protects your family against financial loss due to your death is

• coinsurance

• disability insurance

• life insurance

• comprehensive insurance

Multiple Choice

What is the best way to choose your life insurance?

• Get the one that your friends have

• Compare phone companies

• Get what your parents have

• Compare companies and those the one that best fits you

Multiple Choice

Term coverage allows a person to be insured for their entire life.

• True

• False

Multiple Choice

The type of insurance that provides protection against financial loss from medical bills is called

• health insurance

• coinsurance

• life insurance

• premium

Multiple Choice

This type of insurance pays the fees of other doctors who see you in or out of the hospital.

• hospitalization insurance

• disability insurance

• medical insurance

• life insurance

Multiple Choice

While driving your car you hit a tree. Your car must be fixed by a professional repair shop.

• Health Insurance

• Life Insurance

• Homeowners Insurance (Liability or Property)

• Disability Insurance

• Automobile Insurance (Liability or Property)

Multiple Choice

What is life insurance?

• Insurance that insures your own life

• Insurance that insures your car

• Insurance that insures your home

• Money that is paid to you to live

Open Ended

Clairmont Fisheries Ltd. is a large Caribbean business with branches in five Caribbean countries. The company is in the fishing business (canned mackeral, herrings, fish etc.). It empoys one thousand (1000) persons and owns a fleet of fishing trawlers.

a. Identify FOUR types of policies to which Clairmont Fisheries Ld. could subscribe to protect itself and its employees. For EACH of the insurance identified, explain the type of protection or coverage it offers. (8marks)