1 - General Insurance

Question 1

The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract…this is referred to as what?

Answer 1

Utmost Good Faith

Question 2

Not all losses are insurable and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT
A - the loss must be intentional
B - the loss must not be catestrophic
C - there must be a sufficient number of homogeneous exposure units to make losses reasonably predictable
D - the loss produced by the risk must be definate

Answer 2

A - the loss must be intentional