Principles of Insurance

.........................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.

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

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.

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.

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.

• All the above.

When applying for insurance you must fill out a ...

• Claim Form

• Proposal Form

• Application Form

Which of the following are “Principles of Insurance”. Select as many as you think are correct.

• Indemnity

• Intimidation

• Subrogation

• Alliteration

• Insurable Interest

An endowment policy

• Can only be drawn down when the company goes bankrupt.

• Can be drawn down at a specific date or upon death.

• Can be drawn down whenever the insured feels like it.