Insurance

Question 1

What is a Policy? (Insurance)

Answer 1

Sec. 49. The written instrument in which a contract of insurance is set forth.

It is the written document embodying the terms and stipulations of the contract of insurance between the insured and the insurer.

Question 2

Who among the parties are obliged to be in a signatory of the contract of insurance?

Answer 2

Only the insurer or his duly authorized agent.

Question 3

What are the contents of the policy?

Answer 3

Sec 51.
a. Name of parties
b. Amount of insurance
c. Premium
d. Property or life insured
e. Interest of insured in property
f. Risks insured against
g. Term or duration of insurance

Question 4

What are the kins of insurable risks?

Answer 4

a. Personal risks- those involving a person
b. Property risks- those involving loss or damage to property
c. Liability risks- those involving liability for the injury to the person or property of others

Question 5

Distinguish risk, peril and hazards

Answer 5

Risk- the chance of loss or the possibility of the occurrence of a loss

Peril- the contingent or unknown event which may cause a loss

Hazard- the condition or factor, tangible or intangible, which may create or increase the chance of loss from a given peril