3469320
Description
Quiz by victoriahowell90, updated more than 1 year ago
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Created by victoriahowell90
almost 9 years ago
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Question 1
Question
A primary purpose of insurance as a risk transfer mechanism is to
Answer
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compensate for financial losses however sustained
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help balance the national economy
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spread the cost of an insured loss amongst many policyholders
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provide a source of funds for capital investment
Question 2
Question
The duty of providing full particulars of a claim and proof of loss ultimately rests with the
Answer
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loss adjuster
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broker
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loss assessor
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insured
Question 3
Question
Assignment in relation to insurance is the
Answer
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passing of rights under the policy from one party to another
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division of a loss between insurers where two or more insurers cover the same risk
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delegation of a loss settlement authority to a third party
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scaling down of a claim payment in proportion to the degree of underinsurance
Question 4
Question
A proposer makes a fraudulent statement in order to obtain insurance cover at a reduced rate. The consequent common law position is that any policy issued will
Answer
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be void from inception
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remain valid, but the insured must pay an additional premium only
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remain valid, but the insured must pay an additional premium and the policy cannot be renewed
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remain valid, but cannot be renewed only
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