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
what essential terms of a contract must be agreed upon for an insurance policy to be valid
nature of the risk
subject matter of insurance
duration of the contract
amount of the premium
which type of insurance contract must be in writing
marine, only needs to five the name of the insured or their agent, be signed by or on behalf of the insurer and specify the subject matter of the insurance with reasonable clarity
definition of insurable interest
legal right to insure arising out of a financial relationship recognised at law between the insured and subject matter of insurance
what are the key elements of insurable interest
subject matter of insurance
economic or financial interest in the subject matter of insurance
current interest
legal interest (in english law)
in what class of insurance is there no statutory requirement of insurable interest
goods
