9 Questions
What does the contribution principle aim to prevent?
Overpayment from multiple insurances
To assess insurance adequacy, what should be compared to the value of the insured risk?
Total combined insurance amounts
In the given example, how were the insurance amounts distributed among insurers A, B, and C for the house?
SAR 500,000, SAR 300,000, SAR 200,000
How is insurance density calculated?
(insurance amount) / (value of insurance subject)
What does an insurance density of 1 indicate?
Just right insurance amount
In case of a fire with damages estimated at SAR 800,000 for a house insured at SAR 1,000,000, what will the house owner receive as compensation?
SAR 800,000
What does the 'contribution principle' apply to?
General insurances only
When assessing insurance adequacy, what confirms sufficient coverage?
Total equals or exceeds combined insurance amounts
In the given example, what was the value of the house when the fire broke out?
(Insurance density) * (1,000,000)
Test your knowledge of insurance coverage and compensation calculations with this quiz. Determine the entitled compensation based on the actual loss and insurance amount in various scenarios.
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