Page 341 - IC38 GENERAL INSURANCE

Answers to Test Yourself

Answer 1
The correct option is III.
The principle of contribution ensures that multiple insurers covering the same
subject matter; come together and contribute the claim amount in proportion
to their exposure to the subject matter
Answer 2
The correct option is II.
As per guidelines, an insurance company has to process an insurance proposal
within 15 days.
Answer 3
The correct option is I.
In case the premium payment is made by cheque, then the risk may be assumed
on the date on which the cheque is posted.
Answer 4
The correct option answer is IV.
Cover notes are predominantly used in marine and motor classes of general
insurance.
Answer 5
The correct option is II.
A warranty is a condition expressly stated in the policy.

Answer 6
The correct option is II.
If certain terms and conditions of the policy need to be modified at the time of
issuance, it is done by setting out the amendments through endorsement.
Answer 7
The correct option is IV.
As per regulations there is no legal obligation on insurers to send a renewal
notice to insured before the expiry of the policy.

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