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Questions and Answers
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?
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What is the purpose of the sum insured in a proposal form?
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Study Notes
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
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Description
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.
