Page 344 - IC38 GENERAL INSURANCE

Answers to Self-Examination Questions
Answer 1
The correct option is I.
Sum insured is the maximum limit of liability of insurer under the policy.
Answer 2
The correct option is IV.
Premium is the consideration or price paid by insured under a contract.
Answer 3
The correct option is I.
A document which provides an evidence of contract of insurance is called
policy.
Answer 4
The correct option is III.
The duty of disclosure arises prior to the inception and continues even during
the policy
Answer 5
The correct option is III.
Material fact is important as it influences the decision of the underwriter.
Answer 6
The correct option is IV.
Fire proposal seeks to know process of manufacture, details of material stored
and construction of the building.
Answer 7
The correct option is III
Premium cannot be received by promissory note.

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