CH 3: Investment Insurance

What is the primary purpose of insurance in a business context?

In an insurance contract, who is the insurer?

What is the role of premiums in an insurance policy?

Which term refers to a formal request by the insured to the insurer for payment due to a loss covered by the policy?

Why is it crucial for businesses to understand insurance policies' terms and conditions?

What differentiates compulsory insurance from non-compulsory insurance?

Who agrees to compensate the insured for financial losses in an insurance contract?

'Policy' in an insurance context refers to:

'Claim' is best described as:

What is the role of premiums in an insurance policy?

What is the primary purpose of the Unemployment Insurance Fund (UIF)?

Which insurance policy compensates individuals injured in road accidents for medical expenses and loss of earnings?

Which type of insurance covers damage or loss of business property due to events like fire, theft, and natural disasters?

What is the principle of Utmost Good Faith (Uberrima Fides) in insurance policies?

What is the purpose of the Average Clause in insurance policies?

What is the term used to describe a situation where the value of the insurance coverage exceeds the value of the insured item?

Which insurance policy protects against claims resulting from injuries and damage to people or property?

What is the term used when the insurer chooses to reinstate or replace the damaged property instead of paying out the claim in cash?

Which insurance policy covers legal and court costs of defending any claims of bodily harm caused by defective products?

What is the principle of Insurable Interest in insurance policies?

What is the primary function of insurance in a business context?

Which party is responsible for paying premiums in an insurance contract?

What is the primary purpose of a claim in an insurance context?

Which principle in insurance contracts requires both parties to act honestly and disclose all relevant information?

What is the term used when the value of the insurance coverage exceeds the actual value of the insured item?

Which type of insurance typically covers legal and court costs associated with defending claims of bodily harm caused by defective products?

What is the primary purpose of the Average Clause in insurance policies?

Which type of insurance typically covers damage or loss of business property due to events like fire, theft, and natural disasters?

What is the primary distinction between compulsory insurance and non-compulsory insurance?

In an insurance contract, who is considered the insurer?

Which of the following is NOT a compulsory insurance policy mentioned in the text?

What is the purpose of the Indemnity principle in insurance policies?

Which of the following statements about Over-insurance is correct?

What is the purpose of the Average Clause in insurance policies?

Which type of insurance policy covers legal and court costs of defending claims of bodily harm caused by defective products?

What is the term used when the insurer chooses to reinstate or replace the damaged property instead of paying out the claim in cash?

Which principle in insurance policies requires both parties (insurer and insured) to act honestly and disclose all material facts?

What is the purpose of the Insurable Interest principle in insurance policies?

Which of the following statements about insurance in a business context is NOT true?

What is the primary purpose of the Road Accident Fund (RAF)/Road Accident Benefit Scheme (RABS)?

Which principle in insurance contracts ensures that the insured does not profit from the occurrence of an insured event?

What is the primary purpose of the Average Clause in insurance policies?

Which insurance principle dictates that the insured must have an insurable interest in the subject matter of the insurance contract?

In the context of insurance, what is the term used to describe a situation where multiple insurers share liability for the same risk or loss?

Which insurance principle allows the insurer to recover the amount paid to the insured from a third party responsible for the loss?

What is the term used to describe a situation where the insured holds multiple insurance policies covering the same risk or loss?

Which principle in insurance contracts requires both parties to act honestly and disclose all material facts?

In the context of insurance, what is the term used to describe a situation where the value of the insurance coverage exceeds the actual value of the insured item?

Which insurance principle dictates that the insured cannot recover more than the actual loss or damage sustained?

What is the term used when the insurer chooses to reinstate or replace the damaged property instead of paying out the claim in cash?

Which principle ensures that the insured is compensated for the actual financial loss suffered, neither more nor less?

If a business owner insures their property for an amount higher than its actual value, what is this situation called?

Which insurance policy is designed to provide short-term financial relief to workers who become unemployed or are unable to work due to specific circumstances?

If an asset is insured for less than its actual value, which clause is used to calculate the compensation?

Which principle requires both the insurer and the insured to disclose all material facts relevant to the insurance policy?

Which type of insurance policy protects businesses against claims resulting from injuries and damage to people or property caused by their operations?

Which principle requires the insured to have a legal or financial interest in the object of insurance to ensure they stand to suffer a financial loss if the insured event occurs?

Which insurance policy compensates individuals injured in road accidents for medical expenses, loss of earnings, and provides support to dependents in case of death?

Which insurance policy offers compensation to employees who are injured or contract diseases through their employment?

What is the primary role of insurance in ensuring business sustainability?