Page 314 - IC38 GENERAL INSURANCE
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Question 9
An example of a fact which need not be disclosed unless asked for is
______________ by the insurer.
I. Age of the insured
II. Presence of fire extinguisher
III. Heart ailment
IV. Other insurance details
Question 10
________________ is a wrong statement made during negotiation of a contract.
I. Misrepresentation
II. Contribution
III. Offer
IV. Representation
Answers to Self-Examination Questions
Answer 1
The correct option is I.
Moral hazard means dishonesty or character defects in an individual.
Answer 2
The correct option is II.
„Risk‟ indicates a chance of loss.
Answer 3
The correct option is II.
Diversification means spreading one‟s investment in different kinds of assets.
Answer 4
The correct option is II.
Sunlight cannot be classified as asset as it fails the test of scarcity and
ownership.
Answer 5
The correct option is III.
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