Podcast
Questions and Answers
What is the primary objective of life insurance?
What is the primary objective of life insurance?
- To provide financial protection against accidental death
- To indemfify losses due to natural disasters
- To create a fund for the next of kin in the event of the insured's death (correct)
- To provide medical and health benefits
What type of insurance compensates the insured for losses due to a gas pipe leakage?
What type of insurance compensates the insured for losses due to a gas pipe leakage?
- Life insurance
- General insurance (correct)
- Accidental insurance
- Health insurance
What is the term for the process of compensating the insured for losses?
What is the term for the process of compensating the insured for losses?
- Restitution
- Compensation
- Reimbursement
- Indemnification (correct)
What type of insurance does not fall under life insurance?
What type of insurance does not fall under life insurance?
What is the outcome of a fortuitous loss?
What is the outcome of a fortuitous loss?
What is a necessary condition for an insurer to calculate the probability of loss?
What is a necessary condition for an insurer to calculate the probability of loss?
What is the primary reason why insurers usually charge a high premium for perils with high probability of occurring?
What is the primary reason why insurers usually charge a high premium for perils with high probability of occurring?
Which of the following is NOT a legal principle of insurance?
Which of the following is NOT a legal principle of insurance?
What type of losses are usually not covered by insurers?
What type of losses are usually not covered by insurers?
Why would an insurer not insure the contents of a container that carries illegal weapons or drugs?
Why would an insurer not insure the contents of a container that carries illegal weapons or drugs?
What is the primary purpose of the premium charged by an insurer?
What is the primary purpose of the premium charged by an insurer?
What is the primary objective of the principle of indemnity?
What is the primary objective of the principle of indemnity?
Which type of insurance policies does the principle of indemnity not apply to?
Which type of insurance policies does the principle of indemnity not apply to?
What is the consequence of non-disclosure or misrepresentation of facts by the insured?
What is the consequence of non-disclosure or misrepresentation of facts by the insured?
What is the purpose of the principle of subrogation?
What is the purpose of the principle of subrogation?
Which principle of insurance involves the transfer of rights from the insured to the insurer?
Which principle of insurance involves the transfer of rights from the insured to the insurer?
What type of insurance contracts is the principle of subrogation usually applicable to?
What type of insurance contracts is the principle of subrogation usually applicable to?
What is the primary purpose of the principle of insurable interest?
What is the primary purpose of the principle of insurable interest?
What happens when a policyholder takes out multiple insurance policies to cover the same loss?
What happens when a policyholder takes out multiple insurance policies to cover the same loss?
What is the role of the insured in determining liability in the principle of proximate cause?
What is the role of the insured in determining liability in the principle of proximate cause?
What is the main objective of the principle of contribution?
What is the main objective of the principle of contribution?
What happens in the absence of insurable interest?
What happens in the absence of insurable interest?
What is the key consideration in determining liability under the principle of proximate cause?
What is the key consideration in determining liability under the principle of proximate cause?
Which of the following is NOT a characteristic of speculative risks?
Which of the following is NOT a characteristic of speculative risks?
What is a key reason for requiring a large number of exposure in insurable risks?
What is a key reason for requiring a large number of exposure in insurable risks?
Which type of insurance is NOT typically classified under life insurance?
Which type of insurance is NOT typically classified under life insurance?
What is a key characteristic of fortuitous losses?
What is a key characteristic of fortuitous losses?
What is a key requirement for a definite and measurable loss?
What is a key requirement for a definite and measurable loss?
Which of the following is an example of a general insurance product?
Which of the following is an example of a general insurance product?
