Insurance Questions and Answers
Test and improve on your knowledge of insurance with these Insurance questions and answers. This aptitude test assesses your understanding of the fundamental concepts of insurance.
Test and improve on your knowledge of insurance with these Insurance questions and answers. This aptitude test assesses your understanding of the fundamental concepts of insurance.
full return of premium paid for a contract of insurance is applicable in a situation involving?
double insurance
reduction of cover
absence of agreement
financial distress
Correct answer is A
double insurance: Situation in which the same risk is insured by two overlapping but independent insurance policies. When an individual has double insurance, he or she has coverage by two different insurance companies upon the identical interest in the identical subject matter.
The general rule is that in the event of double insurance, if a loss is caused by the risk insured against, subject to the terms of each insurance policy, the insured may recover the full amount of his loss from whichever insurer or insurers he chooses.
The financial interest of the insured in an insurance policy is the
subject matter of insurance
subject matter of the contract
assignment of the contract
deed of the contract
Correct answer is C
An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignorwants the assignee to step into his shoes and assume all of his contractual obligations and rights.
A document issued by an insurer giving temporary protection to the insure is?
endorsement
certificate
proposal form
cover note
Correct answer is D
cover note; A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.