Basic Insurance Concepts & Principles - exampdfs 02

Which of the following clauses is useful for insuring antiques?

Which of the following is most often included in a Householder's Insurance policy?

What of the following is defined as "the right of one person (the insurer) to take over the rights of another (the insured)"?

Which of the following is used to make sure that an insured person does not get more than an indemnity by claiming for the same loss or damage from both the insurance policy and another source or sources?

Under common law, the insurer must ________ the insured before they can exercise subrogation rights.

With regards to subrogation, if there is any surplus after the insurers have recovered their money, the ________ is entitles to keep it.

Subrogation is applicable only to:

Which of the following situations is also known as ex-gratia payment?

Subrogation rights most frequently arise in:

Waiver of subrogation rights most frequently arise in:

In common law, which requirement must be satisfied before contribution arises?

Which of the following clauses when added to a policy will cause the policy not to contribute if there is another insurance in force?

Which of the following is NOT a category of peril?

Which of the following is TRUE regarding a Fire Insurance policy which excludes damage from explosion?

Suppose a Householder's Insurance policy covers a direct physical loss to a property resulting from fire or lightning. A fire occurred in a bedroom of a house. Fireman sprayed the other rooms to keep the fire from spreading. The water causes damage to the furniture, antiques, etc. In such a case:

Duties of an Agent to the Principal include all the following except:

An agent should not delegate his duties except where the delegation:

Agents must act within the scope of their authority which can be classified into all of the following except:

Which of the following authorities is exercised when an insurance agent collects the premium from the insured?

Which of the following authorities is exercised when a broker negotiates with the insurer on the insured's behalf without given authority?

Apparent authority is also known as:

Where an agent has acted outside the scope of what is permitted in the terms of the agency agreement, and the principal accepts the acts as having been done on his behalf, this is called:

The following are rules in relation to a valid ratification, except

The voluntary relinquishment of a known legal right is known as:

Leonard has a motor insurance policy and its premium is due. He calls the insurance agent and asks for an extension of time. The insurance agent assured him that the insurer has a 10 day grace period for overdue premiums. If Leonard has an accident during the grace period, the insurer cannot deny liability, because of the law of ________, designed to prevent persons from changing their minds to the detriment of another party.

If an agent incurs liability or pays out money in the performance as an agent, he has a right to be indemnified by the principal except when:

Which of the following describes the Right of Lien?

An agency may be terminated by which of the following acts?

Which of the following is NOT true with regards to the role of agent during claims?

Which of the following is NOT true about the description or definition of a contract?

Which of the following are elements for a contract to be valid? 1) Intention to create legal ralationship 2) Offer and acceptance 3) Consideration 4) Capacity to contract

Which of the following is NOT a characteristic of group insurance?

The amount returned by an insurer to a group policyholder when the claims experienced of a particular group has been more favourable than anticipated is known as the:

Which of the following is an advantage of a voluntary group insurance compared to a compulsory one?

Third party policies do not require insurable interest between the proposer and insured.

What is a Cover Note?

Certificate of Insurance are normally used in all the following except:

The following is true of a cover note except:

The certificate of insurance for motor insurance must be kept by the ______ at all times.

In marine insurance, insureds have regular shipments of cargo and it is sometimes inconvenient for the insurer to issue an insurance policy giving the details of all the classes for each and every shipment. What sort of Master policy is issued to solve this problem?

What is the 'contra proferetum' rule?

What is the Preamble Clause?

Which type of warranties do not appear in the policy but are understood to automatically apply in the contract of insurance?

The statement "In witness whereof, this Policy has been signed by and on behalf of the Company", is known is:

Conditions precedent to liability are conditions which must be fulfilled:

An insured has a policy with Insurer X for $75,000 and Insurer Y for $25,000. A loss arises to the sum of S$40,000, under the Independent Liability method of calculation, how much should Insurer X pay for?

An insured has a policy with Insurer X for $75,000 and Insurer Y for $25,000. A loss arises to the sum of S$40,000, under the Respective Sums Insured, how much should Insurer Y pay for?

An agreement whereby one or more reinsurers automatically accept all reinsurance which falls within pre-detemined limits is known as:

An insurer insures a risk on a sum insured of $10M and his retention on his risk is $2M. It reinsures the risk under a Facultative Excess of Loss cover of $8M in excess of $2M. If the loss is $5M, what is payable by the reinsurer?

An insurer insures a risk on a sum insured of $10M and his retention on this risk is $2M. It reinsures the risk under a Facultative Excess of Loss cover of $8M in excess of $2M. If the loss is $1M, what is payable by the insurer?