Insurance Principles and Policies Quiz
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Questions and Answers

What type of information is Rita providing to her insurer?

  • Contract consideration
  • Relevant information (correct)
  • Best advice
  • Common interest
  • What principle is being applied when the farmer's claim is paid without deduction for underinsurance?

  • Principle of contribution
  • First loss basis of cover
  • Special condition of average (correct)
  • Subrogation waiver
  • How is the liability of each insurer determined in the case of Amir and Roshan?

  • According to the proportion of their respective ownership shares
  • According to the principle of contribution
  • According to the principle of average
  • According to the proportion of their respective insured values (correct)
  • What is the duty of the insured in relation to providing information?

    <p>To provide relevant information</p> Signup and view all the answers

    At what point does the duty to disclose relevant information first arise?

    <p>At the beginning of negotiations</p> Signup and view all the answers

    What is the term for the sharing of losses between multiple insurers?

    <p>Contribution</p> Signup and view all the answers

    What is the purpose of the duty of disclosure in insurance?

    <p>To ensure fairness in the policy</p> Signup and view all the answers

    What happens when an insured has multiple policies with different insurers?

    <p>The insurers will pay the claim in proportion to their respective insured values</p> Signup and view all the answers

    What is the consequence of non-disclosure of relevant information?

    <p>The policy will be void</p> Signup and view all the answers

    What is the term for the amount of insurance that is less than the value of the insured property?

    <p>Underinsurance</p> Signup and view all the answers

    Who bears the loss when an insured has underinsured their property?

    <p>The insured</p> Signup and view all the answers

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