Page 342 - IC38 GENERAL INSURANCE

Self-Examination Questions

Question 1

__________ is the maximum limit of liability of insurer under the policy

I. Sum insured
II. Premium
III. Surrender value
IV. Amount of loss

Question 2

_______________ is the consideration or price paid by insured under a contract

I. Claim amount
II. Surrender value
III. Maturity amount
IV. Premium

Question 3

A document which provides an evidence of contract of insurance is
called________

I. Policy
II. Cover note
III. Endorsement
IV. Certificate of insurance

Question 4

The duty of disclosure arises

I. Prior to inception of the policy
II. After inception of the policy
III. Prior to inception and continues during the policy
IV. There is no such duty

Question 5

Material fact

I. Is the value of all material covered in a policy
II. Not important for assessing the risk
III. Is important as it influences the decision of the underwriter
IV. Is not important as it has no bearing on the decision of the underwriter

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