BOOK 1 - 113 câu

The main purpose of indemnity is to

• Enable profit-making

• Compensate for losses

• Avoid legal disputes

• Reduce premiums

What principle requires the insurer and the insured to act honestly and disclose all material facts?

• Indemnity

• Utmost good faith

• Nature of risk

• none of the three principles mentioned

If an insurer overcharges fees, they violate the principle of:

• Insurable interest

• Utmost good faith

• Indemnity

• none of the three principles mentioned

The insured must disclose accurate information about their insurable interest to avoid violating due to...

• none of the three principles mentioned

• principles of indemnity

• principle of nature of risk

• principles of utmost good faith

Which factors do insurers consider to determine premiums?

• Policyholder's honesty and duration of policy

• Frequency and severity of risk

• Policy terms and conditions

• Coverage limits

A policyholder's financial interest in the insured property or person is called:

• Contribution

• Insurable interest

• Indemnity

• Proximate cause

Utmost good faith ensures:

• Only the insurer is honest

• Both parties disclose material facts

• Profits for the insurer

• Faster claims processing

Indemnity ensures that the insured:

• Receives compensation equal to the loss

• Profits from insurance

• Pays lower premiums

• Avoids policy exclusions

If the insured misrepresents the value of their assets, they breach the principle of:

• Indemnity

• Contribution

• Utmost good faith

• Subrogation

Frequency and severity/of risk impact:

• Coverage limits

• Premium amounts

• Claim processing time

• Policy exclusions