Chapter 5 Questions Flashcards
When would insurable interest exist for an employer on the life of an employee
for a key employee reflecting the cost of replacing them if they were to die
when must insurable interest be present with a life insurance policy
only at inception
An insurer has issued marketing material and a quotation to Laura for insurance. She decides to take out the insurance and sends a completed proposal to her insurance broker. The insurer then writes to confirm cover is in force. When has an offer been made?
with the completion of the proposal form by Laura
Mo had an existing vehicle insurance policy but, due to a change of address, did not receive the renewal notice for this. At the end of the cover period, what would be the legal position and why?
the contract has expired so he would not be covered
An individual takes out buildings insurance in anticipation of a forthcoming house purchase. If the premium was paid and the insurer assumed risk but the sale fell through, what would typically be the position?
the insured would get their premium back in full
