UBM588 - Quiz Chapter 5 (A) KBA2433C

A ____ is an agreement between two (2) or more persons which creates an obligation to do or not to do a particular thing.

• contract

• document

• policy

'Uberrima Fides' is latin word for ____.

• Proximate Cause

• Utmost Good Faith

• Insurable Interest

Insured shall be restored to the same financial position after the loss as he has enjoyed immediately before it. This statement is about -

• Proximate Cause

• Principle of Indemnity

• Utmost Good Faith

____ in the context of insurance can be defined taking the rights belonging to an insured by the insurer after the latter has indemnified the insured.

• Subrogation

• Contribution

• Indemnity

An ____ is a firm proposition put forward by one party (the offeror) to another person (the offeree) with an intention that it shall become legally binding as soon as it is accepted by the person to whom it is addressed.

• Acceptance

• Offer

• Consideration

Defined as “the right to insure arising out of legally recognizes financial interest” which a person has in the subject matter of insurance. This statement is about -

• Legal Interest

• Financial Interest

• Insurable Interest

____ is the fair exchange of something of value to induce the other party to enter into a legally binding contract.

• Consideration

• Offer

• Acceptance

All parties to a contract must agree to exactly the same terms. This statement is about

• Offer

• Consent

• Consideration

____ is the unconditional assent by one party to the terms of the offer.

• Consideration

• Offer

• Acceptance

Section 153 of the Insurance Act 1996 provides that a minor above 16 years old may enter into legally binding insurance contracts. This is about -

• Offer

• Legal Capacity to Contract

• Consent