12 Questions
Which agency is mandated to ensure enforcement of the provisions of the Insurance Code?
Insurance Commission
What is the role of the Securities and Exchanges Commission?
Administer oversight on the corporate sector
What is an essential element of an insurance contract?
Insured possessing insurable interest
What is critical for a firm in the financial market to consider?
Market stability
What is the main reason an insured cannot assign his rights under a property policy without the insurer's consent?
To ensure that the insurer considers the personal qualification of the insured
Which of the following is NOT a ground for cancellation of a non-life policy insurance?
Failure to comply with regulatory measures
How do insurance contracts maintain a synallagmatic nature between the insured and the insurer?
By ensuring each party has reciprocal obligations of equal value
What is the primary role of a financial regulator like MAS in ensuring market stability?
To prevent firms from failing their objectives, causing systemic risk
What is the main characteristic of an insurance contract under the Uberrimae Fides Contract?
Requirement for both parties to act in good faith
What distinguishes an insurance contract as a Contract of Indemnity?
Entitlement to recover more than the total loss sustained
Why is an insurance contract considered Aleatory according to the information provided?
Guaranteed payout regardless of events
How does a Contract of Adhesion in an insurance policy differ from other types of contracts?
It allows modification by the insured
Test your knowledge on the characteristics and nature of insurance contracts, including the concept of Uberrimae Fides and the insured's contribution to the general insurance fund. Explore the assumptions of risk and the distribution of losses in insurance contracts.
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