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Questions and Answers
What does the contribution principle aim to prevent?
What does the contribution principle aim to prevent?
- Overpayment from multiple insurances (correct)
- Preventing individuals from getting any insurance
- Underpayment from multiple insurances
- Underinsurance of risk
To assess insurance adequacy, what should be compared to the value of the insured risk?
To assess insurance adequacy, what should be compared to the value of the insured risk?
- Total insurance premiums paid
- Insurance coverage duration
- Total combined insurance amounts (correct)
- Number of insurance policies held
In the given example, how were the insurance amounts distributed among insurers A, B, and C for the house?
In the given example, how were the insurance amounts distributed among insurers A, B, and C for the house?
- SAR 600,000, SAR 200,000, SAR 200,000
- SAR 500,000, SAR 300,000, SAR 200,000 (correct)
- SAR 400,000, SAR 300,000, SAR 300,000
- SAR 700,000, SAR 200,000, SAR 100,000
How is insurance density calculated?
How is insurance density calculated?
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What does an insurance density of 1 indicate?
What does an insurance density of 1 indicate?
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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?
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?
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What does the 'contribution principle' apply to?
What does the 'contribution principle' apply to?
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When assessing insurance adequacy, what confirms sufficient coverage?
When assessing insurance adequacy, what confirms sufficient coverage?
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In the given example, what was the value of the house when the fire broke out?
In the given example, what was the value of the house when the fire broke out?
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