Podcast
Questions and Answers
Which of the following is NOT considered one of the fundamental elements required for a valid insurance contract?
Which of the following is NOT considered one of the fundamental elements required for a valid insurance contract?
- Witness attestation (correct)
- Consent
- Cause
- Subject matter
In Takaful insurance, participants pay a 'contribution' into a collective fund, from which eligible members receive compensation when a risk occurs.
In Takaful insurance, participants pay a 'contribution' into a collective fund, from which eligible members receive compensation when a risk occurs.
True (A)
Who are the primary parties involved in an insurance contract?
Who are the primary parties involved in an insurance contract?
insurer and insured
An insurer often operates as a ______, possessing a separate legal identity from its shareholders.
An insurer often operates as a ______, possessing a separate legal identity from its shareholders.
In a mutual or cooperative insurance association, what roles do the members primarily assume?
In a mutual or cooperative insurance association, what roles do the members primarily assume?
Insurance intermediaries always have unlimited authority to represent an insurer and conclude insurance contracts on their behalf.
Insurance intermediaries always have unlimited authority to represent an insurer and conclude insurance contracts on their behalf.
Who primarily benefits from an insurance policy entered into by a person with an insurance company?
Who primarily benefits from an insurance policy entered into by a person with an insurance company?
The policyholder is always the insured party and the beneficiary in every insurance contract.
The policyholder is always the insured party and the beneficiary in every insurance contract.
In cases where the insured event is death, who is typically both the policyholder and the insured party?
In cases where the insured event is death, who is typically both the policyholder and the insured party?
When a creditor insures the life of a debtor, which role does the creditor primarily assume?
When a creditor insures the life of a debtor, which role does the creditor primarily assume?
Match the party in an insurance contract with their primary role:
Match the party in an insurance contract with their primary role:
Which of the following scenarios represents a deviation from the default assumption where the policyholder and the insured are the same?
Which of the following scenarios represents a deviation from the default assumption where the policyholder and the insured are the same?
Takaful insurance operates on principles of ______ and cooperation among contributors.
Takaful insurance operates on principles of ______ and cooperation among contributors.
In a insurance contract, 'cause' refers to:
In a insurance contract, 'cause' refers to:
Briefly explain how insurance intermediaries facilitate the sales process between insurers and the public.
Briefly explain how insurance intermediaries facilitate the sales process between insurers and the public.
Flashcards
Consent (Insurance Contract Element)
Consent (Insurance Contract Element)
Agreement between parties involved.
Subject Matter (Insurance Contract Element)
Subject Matter (Insurance Contract Element)
The risk covered in the event occurring.
Cause (Insurance Contract Element)
Cause (Insurance Contract Element)
The reason for the insurance.
Takaful Insurance
Takaful Insurance
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Insurer
Insurer
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The Insured
The Insured
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Default Assumption (Insurance)
Default Assumption (Insurance)
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Insured Party
Insured Party
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Beneficiary
Beneficiary
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Study Notes
- Elements of an insurance contract include:
- Consent
- Subject matter
- Cause
Insurance Contract:
- Insurance is designed to achieve solidarity and cooperation among contributors to address risks.
- Each contributor pays an amount called "contribution" into an insurance fund.
- Compensation is paid to eligible persons from the fund when a risk happens.
Parties to the Insurance Contract:
- The insurer, often an insurance company or mutual insurance association, assumes liability for a risk in exchange for payment.
- It may also be a mutual insurance association.
- A mutual or cooperative insurance association operates on a not-for-profit basis.
- Insurance intermediaries represent the insurer and offer insurance policies to the public.
- The insured enters into an insurance policy with the insurance company for their benefit or the benefit of a named insured or beneficiary.
- Policyholder (insured) is typically the insured party (named insured) and beneficiary unless specified otherwise.
- Policyholder and insured party may be the same, while the beneficiary is someone else.
- The person affected by the insured event, like death, is both the policyholder and insured party.
- The beneficiary could be a third party, like a spouse or children.
- A single individual can be both the policyholder and beneficiary, while the insured party is someone else.
- For example, the creditor is the policyholder and beneficiary.
- The creditor is entitled to receive the insurance payout upon the occurrence of the insured event, which is the debtor's death.
- Debtor for life insurance.
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