Quiz #2 Types and principles of insurance

The contract between the insurer and insured is referred to as a

(a)  

Money charged by the insurer is known as a

(a)  

The person who buys the insurance policy is known as the

• insurer.

• insured.

• insurance.

• policy provider.

The purpose of insurance is to provide monetary (a)   to someone who has suffered a loss.

 It is not possible to insure against a risk unless you have an insurable (a)   .

An insurance company will only agree to provide cover if it can_________the frequency with which an event could occur

• cover

• calculate

• guess

• manipulate

The principle of insurance that requires all information to be truthfully given is known as

• subrogation.

• proximate cause.

• utmost good faith.

• insurable interest.