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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 is the primary purpose of the questions in a proposal form regarding the proposer's occupation?
- To determine the proposer's identity
- To determine the premium amount
- To communicate the insurance policy details
- To assess the physical and/or moral hazard involved (correct)
What type of information may be indicated by the loss story in a proposal form?
What type of information may be indicated by the loss story in a proposal form?
- The proposer's occupation
- Poor physical and/or moral hazard (correct)
- The proposer's identity
- The sum insured
What is the primary purpose of the questions in a proposal form regarding the subject matter of insurance?
What is the primary purpose of the questions in a proposal form regarding the subject matter of insurance?
- To assess the physical and/or moral hazard involved
- To identify the proposer
- To determine the premium amount
- To describe and identify the subject matter of insurance (correct)
What is the significance of the insurance history in a proposal form?
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?
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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