Insurance Proposal Forms

What is the primary purpose of the questions in a proposal form regarding the proposer's occupation?

What type of information may be indicated by the loss story in a proposal form?

What is the primary purpose of the questions in a proposal form regarding the subject matter of insurance?

What is the significance of the insurance history in a proposal form?

What is the purpose of the sum insured in a proposal form?

Proposal Forms

A document drafted by the insurer to gather material information about the risk proposed for insurance
Completed by the proposer, providing answers to questions that help insurers assess the proposed risk
Questions shed light on physical and moral hazards involved

Proposer's Information

Name: for identification and communication purposes
Address: for communication and underwriting purposes
Situation of Risk: for communication and underwriting purposes

Occupation and Insurance History

Occupation: important for underwriting, as it may indicate physical and/or moral hazard
Insurance History: important for underwriting, including details of previous insurers who declined or refused to renew

Risk Assessment

Loss story: important for underwriting, as it may indicate poor physical and/or moral hazard
Sum insured: important for assessing premium and determining the need for reinsurance

Subject Matter of Insurance

Description and situation of subject matter: important for identification and underwriting decision
In liability insurance, the limit of indemnity is indicated

This quiz assesses your understanding of insurance proposal forms, which are documents used by insurers to gather information about potential risks. The forms contain questions that help insurers evaluate the proposed risk, including the proposer's identity and the location of the risk.