C81 Chapter 5 & 6

Question 1

bailee

Answer 1

one to whom goods or property are entrusted for a stated purpose

Question 2

what are the 5 elements to a legally binding contract

Answer 2

GLACC- genuine intent, legality of purpose, agreement, capacity to contract, consideration

Question 3

insurance contracts have 3 additional elements

Answer 3

insurable interest, indemnity, utmost good faith

Question 4

material fact affects the minds of reasonable thought when insurers decide what 3 things

Answer 4

acceptability of the risk, the amount of the premium, and conditions applicable to the accepting risk

Question 5

what are the general main 5 sections of basic policies

Answer 5

CrIPS: coverage summary, insuring agreements, statutory conditions, policy conditions, signature clause

Question 6

what type of insurance professional sells policies on behalf of serval insurers

Answer 6

broker

Question 7

what helps regulations by the insurance act of insurance intermediaries

Answer 7

renewal of licence

Question 8

which section of the policy states commencement date, term, and expiry date

Answer 8

coverage summary

Question 9

if an insured cancels a policy mid-term, what must the insurer do with the paid premium

Answer 9

return the unearned portion of the insured’s premium

Question 10

in an insurance contract who is known as the first party

Answer 10

the insured- the client/policyholder

Question 11

what are the parts/info required on insurance application

Answer 11

name, policy term, subject of insurer, loss payee, loss history, prior insurance, broker’s report, signatures.