The principle of indemnity in insurance means that the insured is restored to their financial position prior to the loss. How do insurance companies uphold this principle?

The principle of utmost good faith in insurance contracts requires parties to disclose which type of facts?

The principle of subrogation allows an insurer to assume the legal rights of the insured after compensation. How does subrogation arise?

The principle of contribution is defined as the value added by a particular component to the overall property. How is the amount of contribution determined?

The principle of proximate cause is defined as:

Fill in the blank: The principle of insurance that requires the insured to have a financial stake in the subject matter of the insurance is called _________

Fill in the blank: The principle of insurance that requires both parties to act honestly and disclose all relevant information is called _________.

Fill in the blank: The principle of insurance that determines the actual cause of loss when multiple causes are involved is called _________.

Fill in the blank: The principle of insurance that ensures the insured is compensated only to the extent of the loss suffered is called _________.

Fill in the blank: The principle of insurance that allows the insurer to take over the rights of the insured after compensation is paid is called _________.

Fill in the blank: The principle of insurance that states if multiple policies cover the same risk, each insurer will contribute to the compensation is called _________.

What is the definition of insurable interest?

Fill in the blank: A legally recognized financial interest is a financial interest that is recognized under the ________ or statute.

A person whose financial interest in the subject matter of insurance is not recognized by the law does not have insurable interest.

Which of the following is NOT an example of insurable interest? Choose the correct answer.

Fill in the blank: The Vehicle Ownership Certificate (VOC) is an example of ________ interest in property.

Fill in the blank: Subject matter of insurance is the ______, limb, property, rights or any potential legal liability insured under a policy.

Fill in the blank: Subject matter of contract is the insured’s ______ interest subject matters of insurance.

Which of the following best describes the difference between subject matter of insurance and subject matter of contract?

Is it allowed for someone to buy an insurance policy for their brother-in-law?

Fill in the blank: Assignment is the transfer of rights and liabilities of the insured to a new _______.

Fill in the blank: The assignee, the person who takes over the assignments, will have no better rights than those enjoyed by the _______.

General rule: Prior consent is required ______ an assignment of a policy can be affected.

According to the example, can the vendor of a house assign his fire policy to the purchaser without the insurer's consent?

Before the assignment of the insurance policy takes place, who is the assignor?

What happens to the ownership of the policy after assignment according to the diagram?

Fill in the blank: After assignment, the policy becomes ______ policy according to the diagram.

Who is the assignee in the process of assignment?

What is the duty of utmost good faith in insurance contracts?

What does 'Uberrimae Fidei' mean in the context of insurance contracts?

Fill in the blank: Both parties must make a full declaration of all ________ facts in the insurance proposal.

What is a material fact? Fill in the blank: A material fact is defined as a fact which would influence the _______ _______ in accepting the risk or fixing the premium.

Fill in the blank: The duty to disclose material facts lasts until the _______ of the insurance contract.

The proposer is required to notify the changes to the insurer, otherwise the contract would be voidable.

Fill in the blank: The duty of disclosure will terminate upon the _______ of the contract.

Utmost good faith is breached if the duty of ______ is not observed.

Which of the following are breach of utmost good faith? Please select more than 2.

Misrepresenting a material fact to the insurer is considered a breach of utmost good faith.

Fill in the blank: Proximate cause means the ________ that sets in motion a train/chain of events which brings about a result, without the intervention of any force started and working from a new and independent source.

Which of the following best describes a 'proximate cause'?

The causes that are not dominant and are overshadowed by the main cause are called ________ causes.

Look at the sequence of images: a car accident, an ambulance, a gravestone, and a person with a heart attack. Based on the concept of proximate and remote causes, which event is most likely to be considered the proximate cause of the loss?

What is the principle of indemnity in insurance? Fill in the blank: Insured shall be ______ to the same financial position after the loss as he has enjoyed immediately before it.

What is the object of the principle of indemnity in insurance?

The effect of the principle of indemnity is to prevent the insured from making a profit out of loss.

When is indemnity applied to insurance contracts?

Fill in the blank: There are two types of insurance contracts: ________ and benefit contracts.

Which type of insurance contract is described as 'an insurance contract where the subject matter of insurance can be quantified in economic terms'?

Which type of insurance contract is life insurance an example of?

Which method of providing indemnity involves monetary payment made directly to the insured claimant based on market value, cost of repair, or depreciation as resulted from the damage?

Which method of providing indemnity involves the insurer assuming responsibility for repair to make good the damage, with payment for repair work made directly to the repairer?

Which method of providing indemnity involves substitution of lost, destroyed, or damaged item with a similar one, with the cost of replacement paid by the insurer?

Which method of providing indemnity involves reconstruction of destroyed or damaged buildings at the original or alternative site, with the insurer responsible for increase in the cost of reconstruction?

X has a burglary policy covering stock in his or her business premises. He or she insured his or her stock valued at RM 140,000 for a sum insured of RM 120,000. A theft involving violent and forcible entry took place at his or her premises. The thieves took away RM 80,000 worth of stock, X filed a claim against his or her insurer. How much will he or she recover from his or her policy? Amount recoverable = ________

A fire occurred in a sundry shop, damaging part of the building and some stock. The owner has effected a standard fire policy with sum insured on building for the amount of RM 120,000 and of stock RM 80,000. After investigation, the claim was found to be valid and the amount of losses were assessed to be RM 12,000 for the building and RM 7,800 for the stock. At the time of loss, the values of the building and the stock were found to be RM 150,000 and RM 120,000 respectively. Calculate the amount payable separately for the building and the stock. Fill in the blanks:

MR. BEN PURCHASED A COMPREHENSIVE MOTOR POLICY FROM AN AUTHORIZED INSURANCE AGENT IN HIS TOWN. THE SUM INSURED WAS RM 60,000. THE MARKET VALUE OF THE CAR WAS RM 75,000. HE WAS ISSUED WITH THE COVER NOTE. TWO MONTHS LATER, HIS CAR INVOLVED IN AN ACCIDENT. THE DAMAGE TO THE CAR WAS ESTIMATED AT RM 20,000. HE SUBMITTED A CLAIM FOR THIS AMOUNT. CALCULATE THE CLAIM PAYABLE TO MR. BEN. (MARCH 2014) What is the claim payable to Mr. Ben?

Fill in the blank: The principle of insurance that requires both parties to act honestly and disclose all relevant information is called _________.