Insurance Contract

Question 1

Three Unique elements of insurance contract

Answer 1

1. Insurable interest
2. Indemnity
3. Utmost good faith

Question 2

A financial interest in the property being insured

Answer 2

Insurable interest

Question 3

Supporting principle of indemnity

Answer 3

Salvage,
Subrogation,
Contrition

Question 4

Property saved from loss

Answer 4

Salvage

Question 5

Legal process in which an insurer who has paid a loss, pursues any right of recovery against the responsible 3rd party

Answer 5

Subrogation

Question 6

The sharing of the loss or liability between 2 or more insurance companies sharing the same risk. The insured has several policies covering the same risk

Answer 6

Contribution

Question 7

How to calculate contribution

Answer 7

Amount of coverage/total of combined coverage x amount of loss = rate-able portion

Question 8

Three different types of insurance contracts

Answer 8

Excess Insurance,
Valued Contracts,
Contracts of Compensation

Question 9

Purchase of extra insurance

Answer 9

Excess Insurance

Question 10

A policy that insurers a property for an amount which is agreed to by the insurer and the insured at the time the contract is ade

Answer 10

Valued contracts

Question 11

Specifies that a stated amount is payable on occurrence of the event insured against

Answer 11

Contract of Compensation

Question 12

Withholding information pertinent to the risk

Answer 12

Non-Disclosure/Concealment

Question 13

The effective cause of the loss, not necessarily that last even before the occurrence, which in a chain of circumstances leased naturally and directly in the ordinary course of events to the loss

Answer 13

Proximate Cause

Question 14

The last link in the chain of circumstances is called

Answer 14

Immediate cause

Question 15

A cause which is not a proximate cause is

Answer 15

Remote cause