Page 46 - Insurance Times December 2019

10. What are the circumstances which need not be dis- a. Material Fact b. Fact.
closed in the absence of inquiry? c. Expectation or belief. d. Agreement,
a. Any circumstances that diminish the risk or the informa- e. Voyage.
tion are waived by the insurer.
b. Any circumstances that is known or presumed to be 16. Choose the correct answer.
known to the insurer, or which is superfluous to disclose (i) Representation is the communication made during ne-
by reason of expressed or implied warranty. gotiations, for affecting insurance and before the con-
c. Any question of law. tract is concluded.
d. Facts of common knowledge. (ii) If a representation relates to material fact, then the rep-
e. All of these. resentation must be true.
(iii) A representation relating to a 'fact' is regarded as true
11. Facts of common knowledge are:
if substantially correct, provided that the difference be-
a. Common /General Law. tween what was originally represented and what turns
b. Riots in city. out to be the actual fact, does not amount to a 'mate-
c. War.
rial fact'.
d. Material circumstances, which should be known to him
a. All are correct. b. All are incorrect.
in ordinary course of business.
c. (i) and (ii) are correct. d. (ii) and (iii) are correct.
e. All of these.
e. (i) and (iii) are correct.
12. What is the duty of the agent/ broker regarding the dis-
closure of material facts? 17. A Warranty is a promise by _________ to the
a. The agent should make a full disclosure of all material _________ that something shall or shall not be done
or that a certain state of affairs does or does not exist.
facts to the insurer.
b. He should disclose not only what has been communi- a. Insured, insurer. b. Insurer, insured.
cated or might have been communicated to him by his c. Assured, underwriter. d. Insurer, underwriter.
principal, he should disclose any circumstance of which e. Agent, assured.
he himself may have knowledge.
c. He should present all representations and communica- 18. What are the sections that deal with Warranties?
tions made during negotiations, for effecting insurance a. 15 to 23. b. 25 to 33.
and before the contract is concluded. c. 35 to 43. d. 45 to 53.
d. All of these. e. 55 to 63.
e. None of these.
19. What are the characteristics of a Warranty?
13. _________ are communications made during negotia- a. It is a promise made by the assured to the underwriter.
tions, for effecting an insurance and before the contract b. A Warranty must be literally complied with, as otherwise
is concluded. the insurer may avoid all liability from the date of breach.
a. Written Letters. b. Verbal Words. c. A Warranty is kind of a safety valve for the insurers by
c. Representations. d. Actions. which they can ensure that, in addition to all disclosures
e. Agreements. and true representations, the risk is exactly the one they
intended to accept.
14. What are the categories of representation? d. There are two types of Warranties, Express and Implied
a. Material Fact b. Fact. Warranties.
c. Expectation or belief. d. All of these. e. All of these.
e. None of these.
20. What are the types of Warranty?
15. A representation relating to a '_________' is regarded
a. Express Warranties. b. Impress Warranties.
as true if substantially correct, provided that the differ- c. Implied Warranties. d. Only a and c.
ence between what was originally represented and
e. b and c.
what turns out to be the actual fact, does not amount
to a 'material fact'. Ans. on page 50

46 The Insurance Times, December 2019