Page 116 - CFPA-SCR-Award in General Insurance W01_2018-19_Neat

7/14 W01/March 2018 Award in General Insurance

Self-test questions

1. What is the definition of indemnity?
2. Why are benefit policies not policies of indemnity?
3. Who decides the method of indemnity after a loss?
4. What are the four options where indemnity may be provided under a property policy?
5. What is an example of the type of insurance claim where insurers usually opt to provide indemnity by
repair?
6. What is the maximum amount that could be paid as a measure of indemnity under a property policy?
7. Why do insurers usually allow only modest discounts for ‘first loss’ policies?
8. Why are ‘agreed value’ policies issued in property insurance?

You will find the answers at the back of the book

7
Chapter